The Nail - August, 2012 by Home Builders Association of Middle Tennessee (HBAMT)

THE

NAIL The official magazine of Home Builders Association of Middle Tennessee President Dan Strebel Vice President James Franks Secretary/Treasurer Michael Dillon Executive Vice President John Sheley

Editor and Designer Jim Argo Staff Connie Nicley Pat Newsome

THE NAIL is published monthly by the Home Builders Association of Middle Tennessee, a non-profit trade association dedicated to promoting the American dream of homeownership to all residents of Middle Tennessee. SUBMISSIONS: THE NAIL welcomes manuscripts and photos related to the Middle Tennessee housing industry for publication. Editor reserves the right to edit due to content and space limitations. POSTMASTER: Please send address changes to: HBAMT, 9007 Overlook Boulevard, Brentwood, TN 37027. Phone: (615) 377-1055.

August 2012 z The NAIL 3

Secure your space in the 2012 Parade of Homes Plan Book and secure your place in homes throughout Tennessee for years to come! At each Parade event, over 18,000 attendees are handed a magazine as they walk through the front gate; the Parade Plan Book. The Plan Book is a tremendous opportunity to put your message into the hands of pre-qualified customers who refer to the book long after the Parade of Homes is over. Plan Book Advertising Rates Half Page 7.5” x4.75” (Horizontal)

$800

Full Page 7.5”x10” 8.75”x11.25” (Bleed)

$1,200

Page One 7.5”x10” 8.75”x11.25” (Bleed)

$1,600

Inside Front Cover

$2,100

Inside Back Cover

$2,300

Back Cover

$3,250

Double-truck 16”x10” 17.25”x11.25” (Bleed)

$2,840

Become a part of Parade history TODAY! Complete the form below and return it to the HBAMT to reserve your space in 2012 Parade Plan Book. Yes! Please save space for me in the 2012 Parade of Homes Plan Book. Your name ____________________________________ Company _____________________________________ Ad size:lan Book Advertising Space Full Page

Half Page

Special Location: _____________________

Complete & Return to Secure Your Plan Book Ads, Exh Contact info (how can we best get in touch with you?): Phone/Cell ____________________________________ Email ________________________________________ Address _______________________________________ City ____________________ State ____ Zip ________ Signature ___________________________________________________________________________________ HBAMT - 9007 Overlook Blvd., Brentwood, TN 37027 Phone: (615) 377-1055 | Fax: 377-1077 Email: receptionist@hbamt.net

FEATURES 9 Dates set for 2012 Parade of Homes at Kings’ Chapel The Parade of Homes returns this fall for a two-week, three weekend run at the Kings’ Chapel community in Arrington, Tennessee.

10 Round five wraps up Bass Trail, Grand Finale awaits qualifying fishermen The fifth and final qualifying round of the 2012 Piedmont Natural Gas Bass Trail was held at Bull Creek Marina last month. All the results are here, including our 2012 Tournament Points Champions.

DEPARTMENTS 6 News & Information

CONFERENCE Rooms Available Need space for an upcoming meeting, seminar or special event? Call the Home Builders Association and reserve one (or both) of the spacious, first-floor conference areas. Located in the heart of Brentwood at the HBA’s first-class office building, each room makes an ideal venue for both business and social engagements alike.

12 SPIKE Club Report 14 August Calendar 14 Chapters and Councils

Boardroom Members Non-members -

$350* $600*

Classroom Members Non-members -

$250* $500*

Rooms are reserved on a first-come, first-serve basis. Call (615) 377-1055 for availability and reservation information. *Each room requires a deposit of $100 (refundable) and half the amount of the rental fee due prior to date of occupancy. Boardroom furniture may not be taken from the room or rearranged. The Home Builders Association of Middle Tennessee

9007 Overlook Blvd., Brentwood, TN 37027 615/377-1055 Fax: 377-1077

ON THE COVER: Kings’ Chapel will host the 2012 Parade of Homes, scheduled to open a two-week, three weekend run Saturday, October 6 at the Arrington, Tennessee community. Pictured: The actual Kings’ Chapel for which the community is named (photo, Stan Dunlap). See page nine (9) for more details. Visit KingsChapelLife.com for more about the community and the upcoming Parade of Homes.

August 2012 z The NAIL 5

NEWS&INFO

Housing starts rise 6.9 percent in June, fastest pace since 2008 ationwide housing production rose by 6.9 percent to a seasonally adjusted annual rate of 760,000 units in June, according to newly released figures from HUD and the U.S. Census Bureau. This is the fastest pace of newhome construction since October of 2008. “This good report is in keeping with the results of our latest builder confidence survey, in which many of our members said that they are seeing an influx of more serious buyers to the new-homes market this summer,” observed Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “What’s especially encouraging is that, as consumers realize the advantages of purchasing a newly built home while prices and interest rates are so favorable, builders are able to put more crews back to work on construction sites across the country. This in turn is helping spur local economic growth, and policymakers need to be very careful to not take any steps that would derail the beginnings of such a positive trend at this crucial time.” “This is one more piece of evidence that housing is starting to take back its traditional role of leading the nation out of recession, and tracks with our forecast for continued improvement in new construction through the end of this year,”

Housing is starting to take back its traditional role of leading the nation out of recession. 6 The NAIL z August 2012

said NAHB Chief Economist David Crowe. “While many challenges continue to weigh down the housing recovery – including those related to builders’ and buyers’ access to credit, poor appraisals and the number of distressed properties in certain markets – production of singlefamily homes is now the strongest it has been since 2010 due to rising consumer demand brought on by improving market conditions." Single-family housing starts rose for a fourth consecutive month to a seasonally adjusted annual rate of 539,000 units in June, their fastest pace since April of 2010. Meanwhile, multifamily starts rose 12.8 percent to 221,000 units, in keeping with the solid pace of demand for rental units. Regionally, combined single-and multi-family housing starts rose 22.2 percent in the Northeast and 36.9 percent in the West, but fell back 7.3 percent in the Midwest and 4.2 percent in the South in June. However, the declines were entirely due to monthly volatility on the multifamily side, as single-family starts posted gains across every region in June. Issuance of new building permits, which can be an indicator of future building activity, fell 3.7 percent to a seasonally adjusted annual rate of 755,000 units in June following a large increase in the previous month. While single-family permitting posted a marginal, 0.6 percent gain to 493,000 units, multifamily permitting fell back 10.9 percent to 262,000 units from an abovetrend pace in the previous month. On a regional basis, permit issuance rose 2.9 percent in the West and held unchanged in the Northeast, but retreated 0.8 percent in the Midwest and 8 percent in the South in June.

www.hbamt.org

New home sales pace slows, builder confidence still rising ales of newly built, single-family homes slowed 8.4 percent to a seasonally adjusted annual rate of 350,000 units in June following an upwardly revised, strong pace in the previous month, according to figures released today by HUD and the U.S. Census Bureau. “While we would have liked to see a third consecutive month of new-home sales gains in June, the fact remains that the sales numbers are up on both a quarterly and yearly basis, while builders continue to report that they are seeing more serious buyers in the market for a newly constructed home with all of the latest updates,” said NAHB Chairman Barry Rutenberg. “The lower number of new-home sales in June represents an adjustment from a robust level of activity in May, yet overall results for the second quarter show we are still on track for continued improvement,” observed NAHB Chief Economist David Crowe. “That said, the very tight inventory of new homes for sale at this time poses a challenge to builders, who’d like to have a larger selection for buyers to choose from but continue to confront issues with obtaining credit to build viable new projects.”

On a regional basis, new-home sales gained 14.6 percent in the Midwest and 2.1 percent in the West, but fell 8.6 percent in the South and 60 percent in the Northeast in June. Meanwhile, the inventory of new homes for sale was virtually unchanged for the month at 144,000 units, which represents a relatively slim, 4.9-month supply at the current sales pace.

Builder confidence rises 5 points Builder confidence in the market for newly built, single-family homes rose six points to 35 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for July, released today. This is the largest one-month gain recorded by the index in nearly a decade, and brings the HMI to its highest point since March of 2007. “Builder confidence increased by solid margins in every region of the country in July as views of current sales conditions, prospects for future sales and traffic of prospective buyers all improved,” said Rutenberg. “This is greater evidence that the housing market has turned the corner as more buyers perceive the benefits of purchasing a newly built home while interest rates and prices are so favorable.”

“Combined with the upward movement we’ve seen in other key housing indicators over the past six months, this report adds to the growing acknowledgement that housing – though still in a fragile stage of recovery – is returning to its more traditional role of leading the economy out of recession,” noted Crowe. “This is particularly encouraging at a time when other parts of the economy have begun to show softness, and is all the more reason that the challenges constraining housing’s recovery – namely overly tight lending conditions, poor appraisals and the flow of distressed properties onto the market – need to be resolved.” Every HMI component recorded gains in July. The components gauging current sales conditions and traffic of prospective buyers each rose six points, to 37 and 29, respectively, while the component gauging sales expectations for the next six months rose 11 points to 44. Likewise, every region posted HMI gains in July. The Northeast registered an eight-point gain to 36, while the Midwest gained three points to 34, the South gained five points to 32 and the West gained 12 points to 44. Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at www.nahb.org/hmi. More information on housing statistics is also available at www.housingeconomics.com.

August 2012 z The NAIL 7

NEWS&INFO

Remodeling Market Index dips, future market activity steady he second quarter results of the Remodeling Market Index (RMI) slipped under pressure from a softening labor market, according to the NAHB, dropping two points to 45. The downward adjustment comes after the RMI reached 48 twice in 2011, the highest reading since 2006. The RMI is based on a quarterly survey of NAHB remodelers that asks them to rate current remodeling activity along with indicators of future activity. An RMI below 50 indicates that more remodelers report market activity is lower (compared to the prior quarter) than report it is higher. In the second quarter, the RMI component measuring current market conditions dropped to 46 from 49 in the previous quarter. The RMI component measuring future indicators of remodeling business remained unchanged at 44. “Remodelers have some backlog of jobs and along with higher quality leads, this is making them cautiously optimistic about the near future,” said NAHB Remodelers Chairman George “Geep” Moore Jr., GMB, CAPS, GMR and owner/president of Moore-Built Construction & Restoration Inc. in Elm Grove, La. “The positive outlook is constrained by continuing credit constraints and inaccurate appraisals that make cus-

8 The NAIL z August 2012

tomer financing difficult for big jobs like additions and whole house remodels.” In the South, the RMI rose by one point to 47, while in the West it was flat at 47. The RMI for the Northeast and Midwest regions fell by six points and four points, down to 42 and 46, respectively. Among the detailed RMI components, two important indicators of future activity increased in the second quarter: backlog of jobs to 46 (from 43) and amount of work committed for the next three months to 43 (from 42). All indicators of current market conditions fell: major additions and alterations to 42 (from 44), minor additions and alterations to 47 (from 52) and maintenance and repairs to 50 (from 51). “The labor market was weak in April, May and June, adding no more than 80,000 jobs a month, which hurt consumer confidence and explains some of the temporary signs of weakness in the construction industry during the second quarter—like the two point decline in the RMI,” said NAHB Chief Economist David Crowe. “The relative strength of the RMI components for jobs in the pipeline is consistent with the modest increase in remodeling activity NAHB is forecasting for the balance of 2012.” For more information about remodeling, visit www.nahb.org/remodel.

The picturesque entrance at the Kings’ Chapel community. Kings’ Chapel to the left, guard station to the right. Photography: Stan Dunlap.

Parade returns this fall The 2012 Parade of Homes will return October 6 for a two-week, three weekend run at the Kings’ Chapel community in Arrington, Tennessee.

he Parade of Homes™ is back for a second consecutive year! The HBAMT announced that the 2012 event will open Saturday, October 6 and run daily through Sunday, October 21 at the Kings' Chapel community in Arrington, Tennessee. “We are very excited to invite people to the beautiful community of Kings’ Chapel this fall to visit our Parade homes,” said David Crane, Parade of Homes™ chairman. Ashby Communities, LLC, the Kings’ Chapel developer, and Kings Chapel Realty will host of this event and have assembled an impressive cast of local builders and designers: Aspen Construction, Inc. and Kathleen Evers; Norfolk Homes and Linda Totok; Southern Heritage Company will be building two homes, one with Lee Shacklock, one with Jennifer Parker; Tradition Homes with Marie Joe Bouffard; and Woodridge Homes with Dana Dashiell. The Parade will be open daily from 11 a.m. until 8 p.m. with the last ticket sold at 7 p.m. Tickets will be available at the gate. Admission is $12 per adult. Children twelve (12) and under are admitted free. On Tuesdays realtors will get in free with a business card. For more information please visit www.hbamt.org or call (615) 377-1055 during regular office hours. Also see KingsChapelLife.com for community details and Parade info.

The clubhouse and pool area at Kings’ Chapel. August 2012 z The NAIL 9

On to the Grand Finale The last qualifying round of the 2012 Piedmont Natural Gas Bass Trail Tournament was held at Bull Creek Marina last month.

he 2012 Piedmont Natural Gas Bass Trail Fishing Tournament wrapped up its fifth and final qualifying round July 17 at Bull Creek Marina. Qualifying fishermen advance to this fall’s Grand Finale, the last event on this year’s Bass Trail Tournament. Topping round five’s scoreboard was the Piedmont Natural Gas team of Gary Moody and George Ralls. The duo secured first place honors with a weigh-in totaling 11.75 lbs. Moody and Ralls also took home the tournament’s “Big Fish Award” for a catch of 4.89 lbs. Oliver Bradley and Jeff Johnson of the Jeffco Flooring boat wrapped up second place with a weigh-in of 11.36 lbs. And the Piedmont Natural Gas team of Robert E. Lee and Rusty Parsons took home third place honors with catches totaling 10.94 lbs. A complete rundown of posted scores are listed to the right.

Company/Boat

Fishermen

Pts

Piedmont Natural Gas

Gary Moody & George Ralls

11.75 lbs.

100

Jeffco Flooring

Oliver Bradley & Jeff Johnson

11.36 lbs.

Piedmont Natural Gas

Robert E. Lee & Rusty Parsons

10.94 lbs.

Bob Kennedy Builders

Bob Kennedy & Donnie Kennedy

10.83 lbs.

Joe Haas Construction

Joe Haas & Rusty Rust

9.74 lbs.

Piedmont Natural Gas

Jerry Deal & Kevin Tidwell

9.29 lbs.

POINTS CHAMPION EMERGES - Clayton Richardson and Randall Herbert wrapped up the Points Champion title for Five Star Building Group with their round five showing. The duo totaled 474 points during the 2012 Bass Trail. Nathan Vaughn and Trey Bain made it a tight race compiling 471 points for the Benchmark Construction boat.

Benchmark Construction Trey Bain & Nathan Vaughn

7.39 lbs.

Five Star Building Group Clayton Richardson & Randall Herbert

7.31 lbs.

Five Star Building Group Jason King & JP King

6.72 lbs.

Special thanks to Piedmont Natural Gas for making the 2012 Bass Trail possible. The Grand Finale is scheduled for October 1 at Goose Pond Marina in Guntersville, Alabama. Registration is closed.

AmericanHeating & Cooling Roger Dunn & Kevin Israel

5.10 lbs.

Piedmont Natural Gas

4.89 lbs.

Gary Moody and George Ralls, Piedmont Natural Gas, took home first place honors at the July 17 Bass Trail tournament.

10 The NAIL z August 2012

Lamar Morgan & Joe Reese

First place winners Moody and Ralls with tournament official Bill Terry (center).

A Special Offer

for NAHB® Members Only. In addition to the 5% everyday savings*, NAHB members can save an additional 2% now through 12/7/2012** when you use your Lowe’s Accounts Receivable card. Plus, get free delivery on purchases of $500 or more now through 12/7/2012. To register, and ﬁnd out more information about these offers, visit LowesForPros.com/NAHB or call 877-435-2440. Terry with Oliver Bradley and Jeff Johnson, second place winners from the Jeffco Flooring boat.

* Exclusions apply, discount taken at time of purchase, see store for details. **Offer valid now through 12/7/2012. To be eligible for the 2% discount, you must register your NAHB membership by 11/1/2012 and make a purchase with your Lowe’s Accounts Receivable by 12/7/2012. Allow one complete billing cycle for your registration to be processed and for your discount to appear on your billing statement. Offer and discount provided by Lowe’s, and not GE Money Bank. Excludes Lowe’s Business Account Card, Lowe’s Consumer Credit Card, Lowe’s Project Card, Lowe’s Visa Accounts, Lowe’s Business Rewards from American Express Card and all Lowe’s Canada Credit projects. Offer not valid on purchases made prior to registering NAHB membership at LowesForPros.com. All purchases subject to credit approval. ©2012 Lowe’s Companies, Inc. All rights reserved. Lowe’s and the gable design are registered trademarks of LF, LLC.

Terry with third place winner Rusty Parsons, Piedmont Natural Gas. August 2012 z The NAIL 11

SPIKE REPORT Life Spikes

Seventeen SPIKES (in bold) increased their recruitment numbers last month. What is a SPIKE? SPIKES recruit new members and help the association retain members. Here is the latest SPIKE report as of June 30, 2012. Top 20 Big Spikes Jim Ford Virgil Ray Bill King Mitzi Spann Jim Fischer Terry Cobb James Carbine Dan Stern Bruce Hancock John Whitaker Kevin Hale Jennifer Earnest Tonya Jones Bill Towe Reese Smith III Steve Moody Sonny Shackelford David Crane Michael Apple Cyril Evers

12 The NAIL z August 2012

910 813 776 608 566 561 321 306 297 291 284 274 271 262 256 219 210 186 185 180

Anne McKnight Jackson Downey Jim McLean Louise Stark Davis Lamb Harry Johnson Steve Cates C.W. Bartlett Tonya Alexander Tim Ferguson Steve Hewlett Tom Kelley Johnny Watson Carmen Butner Bill Kottas Lee Santiago Dave McGowan Kim Dykes B.J. Hanson Randy Parker Erin Richardson Duane Vanhook Jeff Slusher John Baugh Sam Carbine Jordan Clark Don Bruce Jim Ford, Jr. Hill McAlister Joe Morgan Gerald Bucy John Broderick Al Davis Sheila Rawlings Beth Sturm

179 171 163 163 160 146 140 138 120 120 119 115 101 97 97 95 91 89 82 75 71 71 70 68 69 68 62 62 57 54 53 51 47 47 47

Bernie Laine Greg Langley Benny Sullivan Kim Nichols Bryan Edwards David Hughes Andrew Neuman Kay Russell Peggy Krebs Trey Lewis Wiggs Thompson Chuck Clarkson Brad Butler Andy Wyatt Al Hacker David Lippe Ray Edwards John Ganschow Dan Strebel James Franks Steve Wheeley Alvin Basel Lori Fisk-Connors Matt Burnett

46 46 46 45 44 44 44 44 38 37 37 36 35 35 34 33 32 32 32 31 30 29 29 25

Spikes Jess Dillon Tracy Lomax Christina Cunningham Marty Maitland Frank Tyree Pam Smith Kelvey Benward Ron Myers Don Mahone Bridget Thompson

16 14 13 9 9 8 7 7 6 6

AUGUST CALENDAR SUNDAY

MONDAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

SATURDAY

Sales & Marketing Council

Remodelers Council

Dickson County Chapter

Green Building Council

Metro/Nashville Chapter

Sales & Marketing Council

CHAPTERS & COUNCILS CHAPTERS CHEATHAM COUNTY CHAPTER Chapter President - Roy Miles: 615/646-3303 Cheatham County Chapter details are currently being planned. Next meeting: to be announced. Topic: to be announced. Chapter RSVP Line: 615/377-9651, ext. 310 DICKSON COUNTY CHAPTER Chapter President - Mark Denney: 615/446-2873. The Dickson County Chapter meets on the third Monday of the month, 12:00 p.m. at the Ponderosa Restaurant in Dickson. Next meeting: Monday, August 20. Topic: to be announced. Price: FREE, lunch dutch treat. Chapter RSVP Line: 615/377-9651, ext. 307 MAURY COUNTY CHAPTER Maury County Chapter details are currently being planned. Next meeting: to be announced. Price*: to be announced. Chapter RSVP line: 615-377-9651, ext. 312; for callers outside the 615 area code, 1-800-571-9995, ext. 312 METRO/NASHVILLE CHAPTER Chapter President - John Whitaker: 615/843-3300. The Metro/Nashville Chapter meets on the fourth Monday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: Monday, August 27. Topic: “Housing Market Update,” with Brian Laster, InfoSource. Price*: to be announced. Chapter RSVP Line: 615/377-9651, ext. 304 ROBERTSON COUNTY CHAPTER Next meeting: to be announced. Topic: to be announced. Price*: to be announced. Robertson County RSVP line: 615-377-9651, ext. 313.

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SUMNER COUNTY CHAPTER The Sumner County Chapter meets on the fourth Tuesday of the month, 11:30 a.m. at the new Hendersonville Library. Next meeting: to be announced. Topic: to be announced. Price*: to be announced. Chapter RSVP Line: 615/377-9651, ext. 306 WILLIAMSON COUNTY CHAPTER Chapter President - BJ Hanson: 615/884-4935. The Williamson County Chapter meets on the third Tuesday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: to be announced. Topic: to be announced. Price*: to be announced. Chapter RSVP Line: 615/377-9651, ext. 305 WILSON COUNTY CHAPTER The Wilson County Chapter meets on the second Thursday of the month, 11:30 a.m. at the Five Oaks Golf & Country Club in Lebanon. Next meeting: to be announced. Topic: to be announced. Price*: to be announced. Chapter RSVP Line: 615/377-9651, ext. 309 *Builders free pending sponsorship.

COUNCILS CUSTOM BUILDERS COUNCIL Council President - Alan Looney: 615/309-8200. The CBC meets on the second Tuesday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: to be announced. Topic: to be announced. Price: to be announced. Council RSVP Line: 615/377-9651, ext. 311

GREEN BUILDING COUNCIL Council President - Erin Richardson: 615/883-8526. The Green Building Council meets on the fourth Wednesday of the month, 11:00 a.m. at the HBAMT offices. Next meeting: Wednesday, August 22. Topic: to be announced. Price: free for Green Building Council members thanks to our annual sponsors Trus Joist and E3 Innovate; $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 308 HBAMT REMODELERS COUNCIL Council President - Don Mahone. The HBAMT Remodelers Council meets on the third Wednesday of the month, 11:00 a.m. at varying locations. Next meeting: Wednesday, August 15. Topic: August meeting hosted by Brentwood Granite; details to be announced.. Price: free for RMC members with RSVP; $15 for non-members with RSVP ($20 w/o). Council RSVP Line: 615/377-9651, ext. 301 MIDDLE TENN SALES & MARKETING COUNCIL Council President - David Lippe. The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, August 2 - 9:00 a.m. to 12:00 p.m. SPECIAL EDUCATIONAL EVENT - EARN 3 CE CREDITS! Topic: “Selling Against Foreclosures,” with Randall Bedwell, Real Estate Leadership School. Price: FREE for SMC members with RSVP thanks to Ole Sourth Properties ($20 w/o); $20 for non-members with RSVP ($25 w/o). JOIN THE SMC AND ATTEND FREE! Council RSVP Line: 615/377-9651, ext. 302.