Andy Hodes

By David Israel, Business Manager

Everyone around the world and in Chattanooga are going "green", but what does it mean? Some people say that the term has become a buzz word for companies to capitalize on a movement to be able to charge more for products and services. Others feel that it is an ecological movement by the citizens of the world to clean up the mess we have made over the past century, and a few even call this movement just a "fad"! Kermit the Frog was actually the leading proponent of going green in the early 70's saying, "It's not easy being green".

Personally, I think going "green" is a way of life that is changing the world around us. As consumers of "stuff", I really think that this movement is here to stay and hope that it will improve our lives. There are so many products that have come to market in the past couple of years, but do we really know if they are "green" and really what does it all mean to you and to me personally? We hear terms that builders are now building "Green Homes" under LEED Standards with Energy Star Appliances, and a reduction in the Carbon Footprint. This sounds wonderful, but what in the world are they talking about? Well, I was reading Georgia Realtor Magazine, September/October 2008, "Going Green Eco-Friendly Initiatives in Real Estate" Issue, and found a glossary of terms that gave me a better understanding of what all these terms and acronyms mean and I thought I would share them with you.

The Glossary of Green Terms:

Alternative Energy - Energy from sources other than fossil fuels (coal and natural gas), such as renewable sources like wind, sun, or raining water.

Carbon Footprint - The total amount of carbon dioxide emitted over a given time by a person, organization or state. Usually expressed in equivalent tons of carbon dioxide (CO2).

Energy Star(R) - Actually introduced in 1992 by the US Environment Protection Agency as a voluntary labeling program to identify and promote energy-efficient products to help reduce greenhouse emissions. Originally designed for computers, it has expanded to office products, major appliances, lighting, home electronics and now expanded to include complete buildings such as homes, commercial and industrial buildings.

Green Power - This is the production of electricity from environmentally friendly sources such as hydrogen fuel cells, ocean energy and wind power.

Greenwashing - The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology or company practice.

Greywater - Waste water from lavatories, showers, baths and sinks only. This water can be stored in special equipment and may then be used to water lawns, gardens or other relatively benign non-potable uses such as groundwater recharge. Water from toilets is called black water; it must be properly drained to the sewer or septic system.

LEED - The acronym for "Leadership in Energy and Environmental Design." The LEED program was developed by the U.S. Green Building Council as a system for rating new and existing commercial, institutional and residential buildings. It evaluates the overall environmental performance during the life-cycle of a building and provides a tangible methodology for analyzing the standards of a green building.

Sustainability - A way of working and living that balances immediate needs for commerce, living, habitation, food, transportation, energy and entertainment with future needs for these resources and systems as well as the liveliness and support of nature, natural resources and future generations.

I certainly hope that this information was helpful in all of our basic understanding of what it means to be green. I am sure Kermit would appreciate us all.

By Kacey Sides, Buyer Specialist

Even before hurricanes Gustav and Ike, gas station owners in the Chattanooga area warned us of the increase in prices to come - and they weren't kidding! As of this past Saturday, we are finally seeing some decreasing prices at the pump.

Since the beginning of September, gas prices have soared to as much as $4.15 a gallon for regular unleaded gas. Not only did the prices increase, but at most stations you either had to wait in line, or search for a station that had some gas to sell! Although it has been frustrating, Chattanooga was not as hard hit as some of our neighbors in Georgia and North Carolina, who were also affected by the gas shortage.

With the end of the shortage in sight and with oil prices hovering around $85 a barrel, we're hoping for prices to continue to drop. Currently, the lowest I noticed in our area is $3.06 a gallon for regular (which I never thought I'd be excited to see!). Other areas of the country are seeing prices well below $3 a gallon!

With as much driving as I do working with my buyers, I can see that all areas in Chattanooga are not as quick to give the lower prices to their consumers and, with consumers driving less, not everyone is aware that lower prices are literally just around the corner . I found a great web site to check the gas prices in the area to make sure I get the best available price.

http://autos.msn.com/everyday/gasstations.aspx?zip=&src=Netx

With this site you enter your zip code and it will give you the current gas prices in your area from the lowest to highest. I was amazed when I checked this morning that there is a gas station near my house still charging $3.87 a gallon! At that price it's worth driving a few extra miles to get it for $3.07!! Avoiding those stations with the higher prices will not only save you money, but will send them a compelling message! Check out this site for your area today...you'll be glad you did!

By David Israel, Business Manager

Today my wife and I went to the Chattanooga Zoo, not to see the animals, but to experience Go!Fest 2008. Go!Fest is part of an initiative created by Chattanooga Mayor Ron Littlefield to help make Chattanooga more accessible to everyone, regardless of their ability.

"People of all abilities want to live their lives to the fullest - without limitations," said Mayor Littlefield. "And the public's perception and awareness about disabilities will expand when discoveries are made about how people with different abilities live, work and play together. We all benefit from unlocking the unique gifts of every citizen. That's what Go!Fest is all about."

It was a beautiful day to visit the Chattanooga Zoo. Along with the Chattanooga Department of Parks and Recreation, the city opened the Zoo to the public for free to see the changes in the Zoo and to experience Go!Fest. We arrived around 11:30am and the parking lots were almost full. Adults and children of all ages and disabilities were everywhere enjoying the sunshine and the free admission to the zoo.

Go!Fest is a special project of the Mayor's office, to give the opportunity for all organizations to showcase their programs to children and adults with special needs. There was something for a wide range of disability, there were disabled artists displaying their work, and organizations giving out information on how to assist people with disabilities.

One of the coolest groups that I got the opportunity to meet up with was SPARC, Sports, Arts and Recreation of Chattanooga. Part of this group is sports and recreation for the disabled. SPARC set up in the zoo parking lot to show all the disabled sports they sponsor, basketball, golf, skiing and biking. Well, I have always wanted to get a bicycle, but they are pretty expensive, so I was thrilled at the opportunity to try one of these bicycles and take it for a spin. It was a ton of fun and I am hoping to meet up with the group on Monday for a bike ride along the Tennessee River. The city sponsors this wonderful group, which I plan on joining this week.

Chattanooga is a great town, with incredible amounts of opportunities for all, disabled or able bodied individuals. There are wonderful activites throughout the city, thanks in part to the Chattanooga Parks and Recreation Department. Chattanooga has so many great parks and the new Zoo at Warner Park is just one of many wonderful places to spend time with friends and family.

By Angel Sherlin, Greater Chattanooga Lending

This week the stock market fell to the lowest level since 2003. Normally mortgage markets improve during a stock market decline, since Fannie Mae, Freddie Mac, and Ginnie Mae mortgage backed securities (the vehicles through which most mortgages made today are sold) are considered a relatively safe haven. This week, however, the prices paid for these securities moved lower as well. One reason is that some investment funds have been forced to reduce their leverage and sell nearly every asset class in their portfolios. Another factor is investor concern that the supply of debt will increase significantly as the government funds its rescue actions. Mortgage rates ended the week moderately higher.

Investors viewed the $700 billion rescue plan passed last week as a necessary first step, but not an immediate solution to the credit crisis. Governments around the world took a variety of additional steps during the week to support the banking system. A historic coordinated interest rate cut from many central banks took place on Wednesday. The Federal Reserve lowered the Fed Funds rate by one half point to 1.50%, citing reduced inflationary pressures due to an economic slowdown and falling energy prices. The Fed Funds rate heavily influences short-term interest rates, but its impact on long-term mortgage rates varies based on inflation expectations. In this case, the Fed rate cut most likely helped move mortgage rates a little lower, but the factors described above had more influence.

The decline in home prices was a major cause of the credit crisis, and stabilization in the housing market will be important to resolve the problems. Little noticed this week, August Pending Home Sales jumped 7% from July, far above the consensus for a small decline. They were 9% higher than one year ago and were at the highest level since June 2007. Pending Home Sales are a leading indicator for the housing market, meaning that the next Existing and New Home Sales reports may show increases. Investors will be closely watching future housing market data to see if the trend continues.

Also Notable:
• Fed Chief Bernanke predicted that inflation will moderate "pretty significantly"
• In August, consumer borrowing declined for the first time in more than a decade
• The Dow was down about 40% from the record high levels seen in October 2007
• Oil prices fell to $80 per barrel, down from $147 per barrel in July

Week Ahead
The Economic Calendar will be full next week. The Consumer Price Index (CPI) inflation report will come out on Thursday. CPI looks at the price change for those finished goods which are sold to consumers. The Producer Price Index (PPI) will be released on Wednesday. PPI focuses on the increase in prices of "intermediate" goods used by companies to produce finished products. Retail Sales is also scheduled for Wednesday. Industrial Production, an important indicator of economic activity, will be released on Thursday. Housing Starts will come out on Friday. Consumer Sentiment, the Philadelphia Fed index, and the Fed's Beige Book will round out a busy week. Investors will also be watching for additional government actions to ease credit markets. Mortgage markets will be closed on Monday in observance of Columbus Day.

Andy Hodes - "The Local Economist"

Below is a link to the second part of an interview with Andy conducted by Richard Winham of WUTC 88.1, Friday August 22, 2008. This was part series entitled "Around and About," a Public Affairs Program on the University of Tennessee at Chattanooga's Radio Station, an NPR Member Station. This interview was done in our office and aired several weeks ago. The topic was more about Andy Hodes and his decision to pursue a carrier and succeed in Real Estate! This interview is about 7 minutes long. We welcome all comments, ENJOY!

Andy Hodes on the Radio - CLICK HERE