HOME BUYERS SHOWING MORE CONFIDENCE

CAPE GIRARDEAU -- Home buyers, buoyed by lower mortgage rates and renewed confidence spurred by America's military success in the Persian Gulf, are beginning to come back to the housing market.

"The outcome of the war has helped turn around a sagging consumer confidence," said Jim Arnzen, a Cape Girardeau home builder. "After months of sputtering, it looks as if the housing market may have passed its low point and is regaining strength."

The housing market in the Cape Girardeau and the Southeast Missouri has been struggling the past eight or nine months, say housing officials.

"It all started with the news of a major earthquake prediction for this area," said Arnzen, who is president of the Southeast Missouri Home Builders Association. "A lot of people decided to sideline building plans during that period in mid-to-late 1990."

Arnzen was on hand at the association's annual Home and Garden Show, which is being held at the Show Me Center on the Southeast Missouri State University campus this weekend.

The show, which features a number of exhibitions ranging from home furnishings and decorating services to lawn supplies and home improvement materials, will open today at 10 a.m. and remain open until 5 p.m., with admission $2. Children under 12 accompanied by an adult are admitted free.

A count of visitors was not available for the first two days of the show, but a steady stream of people passed through the turnstiles Friday evening and Saturday.

Some visitors attended various seminars that are being conducted throughout the show, but the turnout was light compared to a year ago, noted one seminar official.

More seminars are scheduled today: lawn irrigation at 11 a.m.; landscaping for energy conservation, noon; pool and spa care, 1 p.m.; cruise travel, 2 p.m. and 3 p.m. and installing deck lumber, 4 p.m.

The show is a mecca for people considering new homes, remodeling or additions. Exhibitors include several financial institutions, building centers, furniture dealers, cabinet and appliance dealers, carpet dealers and much more.

Also being held in conjunction with the show is an arts and crafts show, located on the upper level of the Show Me Center, with crafts ranging from stained glass to quilts.

"There's something here for everybody," said Arnzen. "The weather has cooperated and we're seeing a good crowd.

"The earthquake scare is over, the war is over, and the mortgage rates are right," added Arnzen. "I think you're going to see a stronger home market out there, for both existing homes and new homes."

Arnzen said that although new housing starts were not up during the past two or three years, his firm and others had not been completely idle.

"A lot of people turned to remodeling their present homes," said Arnzen.

Figures are not yet available for the first quarter of 1991, but totals from 1988 through 1990 indicate that $2 million was spent on additions and remodeling of residences over the past three years.

"It's really surprising that we have maintained a level economy on housing in our area over the past three years," said Kent Bratton, city planner, who was also on hand at the Home and Garden Show Saturday. "Despite higher mortgage rates, the earthquake talk, and the war situation, we didn't see a drop in the building industry in 1990.

"We've been just over $25 million a year the past three years in construction," he said. "That includes new house, remodeling and commercial buildings."

Bratton added that activity had picked up in early 1990 in various subdivisions.

Total new housing permits have shown the following figures over the past four years:

1987 84 new houses, at a total cost of $6,398,725 (average cost, $76,175); 114 apartment units, at $2,224,000; additions for residences, $1,059,918; and commercial buildings and additions, $10,298,000. Total construction was $20,176,968.

1988 105 new houses, at costs of $8,267,292 (average, $78,736); 119 apartment units, at $2,838,500; additions to residences, $1,328,255; and commercial buildings and additions, $12,924,054. Total construction, $25,779,188.

1989 78 new houses, at $6,586,000 (average, $84,436 each); 39 apartment units, at $564,000; additions to residences, $607,263; and commercial buildings and additions, $17,331,413. Total construction, $25,088,676.

1990 82 new houses, at cost of $6,176,051 (average $70,989); 84 apartment units, $1,662,000; additions to residences, $345,131; and commercial building and additions, $17,333,237. Total construction, $25,517,419.