Housing market the new look

By John M. Martin Executive Vice President National Lumber & Building Material Dealers Association

lltHEN the UU curtain opens on the 1982 housing market, look for a new cast of characters, new dialogue and cer- tainly a new scenario. Sooner or later there must be a rebound in home building construction because the demand is on the verge of explosion. In part, the difference may be in the way the play is cast. The questionis when. andtowhat level of production?

In home sales, names like Sears Roebuck, Merrill Lynch and National Steel will surface along with names traditionally more common to the market. A quick look at recent Sears activities shows a trend that will undoubtedly be followed by others. Consider: a. Martin was Governor Reagan's savings and loan commissioner.

(1) Sears has long had Allstate Insurance (homeowners packages).

(2) Allstate Savings and Loan belongs to the retail giant (mortgages).

(3) Private mortgage insurance, a competitor to FHA, is hidden in a Sears subsidiary with these types of operations apparentlY masterminded by financing veteran Preston Martin, an "assistant to the Sears president." Observers recognize that Martin is certainly more than just an assistant to the president. Why?

Story at a Glance

Near future coming up roses . major housing market

(6) What's missing from Sears' bouquet of housing services?-A large home building or commercial construction company. Maybe that decision is just around the corner.

Changes

watch role ol Sears Roebuck . . don't ex' pect single digit mortgage in' terest in'82.. no more quick fixes by government.

Coldwell Banker, a prestigious commercial-industrial real estate firm in Los Angeles, sometime ago had gone nationwide by buying established residential real estate companies across the country. EnterSears. . buys Coldwell Banker.

Dean Witter, long a prominent name in the securities market, and a noticeable participant in the money market mutual fund business, is tapped by Sears.

Now look at the package. The scene: a suburban shopping center. Enter Mr. and Mrs. Homebuyer who happen to be among Sears' 26 million or so credit card holders. They are greeted by a friendly salesperson who can offer them all of the ingredients they need to build or buy, finance, insure, furnish and maintain a home.

Far-fetched? Don't discount Sears' intentions, especially when you have the creative talents available in their management headed by Preston Martin. Next . home buying through the Sears catalog. it happenedbefore.

In the meantime, what about the rest of the housing market? What about the retailer supplying building materials to home builders and do-ityourselfers? There is one absolutely sure bet you can make. There will be no "help" from a Reagan-run Washington, D.C. which to me and the members of the National Lumber and Building Material Dealers Association is just great.

The government quick-fixes of the past have gotten this industry deeper and deeper into a dependence syn(Please turn to page 74)