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THE
NAIL The official magazine of Home Builders Association of Middle Tennessee President Nick Wisniewski Vice President Brandon Rickman Secretary/Treasurer Jim Hysen Executive Vice President John Sheley Editor and Designer Jim Argo Staff Connie Nicley Hannah Garrard
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.
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FEATURES 10 2022 Golf Tournament Sponsorships now available
The James Hardie Golf Tournament is for Thursday, August 18th in Spring Hill! Secure your sponsorship today!
11 Managing a Construction Project
NAHB shares some essential tips you can use to improve the construction project management process.
13 Spring Fling & Builders Show! The popular builders event and associate showcase was held last month underneath the big tent at the HBAMT.
17 2022 Parade advertising and exhibiting opportunities
Advertise in
THE
NAIL For advertising rates and information, or to secure your ad, please email jargo@hbamt.org with your questions and requests.
The Pinnacle Financial Partners Parade of Homes returns this fall to Rosebrooke. Secure your planbook space today!
DEPARTMENTS 6 News & Information 19 SPIKE Club Report 20 June Calendar 20 Chapters and Councils
ON THE COVER: The Spring Fling and Builders Show was held last month at the HBAMT. See page thirteen for more from the big event. June, 2022
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NEWS&INFO
New home sales down on rising interest rates
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n a further sign of a housing slowdown, new home sales posted a double-digit percentage decline in April, falling to their weakest pace in two years, as rising mortgage interest rates and worsening affordability conditions continue to take a toll on the housing market. Sales of newly built, single-family homes in April fell 16.6% to a 591,000 seasonally adjusted annual rate from a downwardly revised reading in March, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. New home sales are down 26.9% compared to April 2021. “The volume of signed sales contracts significantly declined in April as the cost of purchasing a home increased in 2022 as interest rates surged higher,” said Jerry Konter, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Savannah, Ga. “Higher construction costs fueled by rising material prices and supply-side constraints along with limited existing home inventory are pricing many potential home buyers out of the market.” In another indicator that deteriorating affordability conditions are particularly hurting the entry-level market, a year ago, 25% of new home sales were priced below $300,000, while in April this share fell to just 10%. “The April drop for new home sales is a clear recession warning,” said NAHB Chief
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Economist Robert Dietz. “The median price of a newly-built single-family home increased 19.7% year-over-year. The combination of higher prices and increased interest rates are generating a notable slowing of the housing market. While the nation needs additional housing, home sales are slackening as tightening monetary policy continues to put upward pressure on mortgage rates and supply chain disruptions raise construction costs.” A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the April reading of 591,000 units is the number of homes that would sell if this pace continued for the next 12 months. In an indication that builders will be slowing construction, new single-family home inventory jumped to a 9 months’ supply, up 40% over last year, with 444,000 available for sale. However, just 38,000 of those are completed and ready to occupy. The median sales price rose to $450,600 in April from $435,000 in March and is up more than 19% compared to a year ago, due primarily to higher development costs, including materials. Regionally, on a year-to-date basis, new home sales fell in three regions, down 16.8% in the Midwest, 19.3% in the South and 0.6% in the West. New home sales were up 6.5% in the Northeast. n
Single-family starts dip lower, builder confidence drops
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he single-family housing market continued to show signs of slowing in April as rising mortgage rates and ongoing supply chain disruptions continue to raise housing costs and take a toll on the housing market. Due to a surge in multifamily production, overall housing starts held fairly steady, falling just 0.2% to a seasonally adjusted annual rate of 1.72 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The April reading of 1.72 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 7.3% to a 1.10 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, increased 15.3% to an annualized 624,000 pace. “Lower single-family construction starts in April reflects our recent builder surveys showing notably weaker confidence in the single-family market, as rising mortgage rates and building material construction costs are driving more potential buyers out of the market,” said Jerry Konter, NAHB Chairman. “President Biden’s plan to address housing affordability challenges is a welcome development, but the administration needs to focus more on resolving rising lumber and building material prices and supply chain bottlenecks.” “Today’s housing starts report is more evidence that the single-family market is slowing,” said NAHB Chief Economist Robert
Dietz. “While single-family starts are up 4.1% on a year-to-date basis, we’re expecting flat conditions for the year and a decline in 2023 as housing affordability challenges in the form of higher mortgage rates and construction costs continues to worsen housing affordability conditions. Single-family permits are down 2.3% on a year-to-date basis thus far in 2022.” On a regional and year-to-date basis, combined single-family and multifamily starts are 6.3% higher in the Northeast, 5.2% higher in the Midwest, 13.3% higher in the South and 8.3% higher in the West. Overall permits decreased 3.2% to a 1.82 million unit annualized rate in April. Single-family permits decreased 4.6% to a 1.11 million unit rate. Single-family permits authorized but not started are up 8.5% year-over-year to 153,000 units. Meanwhile, single-family units under construction are still growing, up 26% yearover-year to 815,000 units. Builder confidence down Builder confidence in the market for newly built single-family homes fell eight points to 69 in May, according to the NAHB/Wells Fargo Housing Market Index (HMI). This is the fifth straight month that builder sentiment has declined and the lowest reading since June 2020. “Housing leads the business cycle and housing is slowing,” said Konter. “The White House is finally getting the message and yesterday released an action plan to address rising
Construction job openings on the rise
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he construction labor market remains tight, as the industry sees a rising number of job openings year-over-year. The count of open construction jobs increased slightly to 396,000 unfilled positions in March. The highest measure in the history of the data series (going back to late 2000) was 416,000 in April 2019. The housing market remains underbuilt and requires additional labor, lots and lumber and building materials to add inventory. Hiring in the construction sector ticked down
to a 5.2% rate. The post-virus peak rate of hiring occurred in May 2020 (10.4%) as a rebound took hold in home building and remodeling. Construction sector layoffs remained low at a 1.6% rate in March. In April 2020, the layoff rate was 10.8%. Since that time however, the sector layoff rate has been below 3%, with the exception of February 2021 due to weather effects. The rate trended lower in 2021 due to the skilled labor shortage and remains low in 2022. The job openings rate in construction re-
housing costs that emphasizes a very important element long-advocated by NAHB – the need to build more homes to ease the nation’s housing affordability crisis.” “The housing market is facing growing challenges,” said Dietz. “Building material costs are up 19% from a year ago, in less than three months mortgage rates have surged to a 12-year high and based on current affordability conditions, less than 50% of new and existing home sales are affordable for a typical family. Entry-level and first-time home buyers are especially bearing the brunt of this rapid rise in mortgage rates.” Derived from a monthly survey that NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All three HMI indices posted major losses in May. The HMI index gauging current sales conditions fell eight points to 78, the gauge measuring sales expectations in the next six months dropped 10 points to 63 and the component charting traffic of prospective buyers posted a nine-point decline to 52. Looking at the three-month moving averages for regional HMI scores, the Northeast held steady at 72 while the Midwest dropped seven points to 62, the South fell two points to 80 and the West posted a six-point decline to eighty-three. n
mained elevated at 4.9% in March, with 396,000 open positions in the sector. This is significantly higher than the 336,000 count recorded a year ago. The number of quits in construction in March (242,000) marked an increase and was notably higher than a year ago (187,000). Looking forward, the construction job openings rate is likely to see increased upward pressure as both the residential and nonresidential construction sectors expand. Attracting skilled labor will remain a key objective for construction firms in the coming quarters and will become more challenging as the labor market strengthens and the unemployment rate declines. n June, 2022
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DEVELOPERS ROUNDTABLE!
The Metro/Nashville Chapter held an informative and entertaining event at the HBAMT last month. Four of the association’s top developers took part in a roundtable discussion and answered questions from attendees. The group included: l James Carbine Carbine & Associates l Steve Cates CK Development l Jim Hysen LandVenues l Austin Pennington Barlow Builders A big thanks to Chapter President Tonya Esquibel and Team Esquibel at CrossCountry Mortgage for sponsoring the event.
From left: Steve Cates, James Carbine, Tonya Esquibel, Jim Hysen, and Austin Pennington.
Building materials prices move higher, up 19% year-over-year
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ccording to the latest Producer Price Index (PPI) report released today by the Bureau of Labor Statistics, the prices of goods used in residential construction ex-energy (not seasonally adjusted) climbed 0.5% in April, following upwardly revised increases of 1.9% and 2.4% in March and February, respectively. This adds up to an 4.9% increase in building materials prices since the start of 2022. Year-over-year, building materials prices are up 19.2% and have risen 35.6% since the start of the pandemic. The price index of services inputs to residential construction registered a similar increase, rising 0.9% in April. However, the index was upwardly revised for March, causing the monthly increase to jump from 3.2% to 6.8% over the month. As a result, the price index of services used in home building (including trade services, transportation and warehousing) has climbed 13.3% since the start of the year. Year-over-year, the index has
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increased 18.1% and is up 45.6% since the start of the pandemic. Softwood Lumber The PPI for softwood lumber (seasonally adjusted) declined 15.6% in April following a
downwardly revised 5.4% increase in March and a 2.5% gain in February. As a result, the index is down 8.9% over the first four months of 2022. Since reaching its most recent trough in September 2021, prices have risen 60.4%. Ready-Mix Concrete The PPI for ready-mix concrete (RMC) resumed its upward trend after a small decline in March (-0.2%) as prices rose 1.3% (SA) in April. The index has climbed 8.9% year-overyear and is 12.6% higher than the January 2021 reading. Steel Products Steel mill products prices (NSA) climbed 2.4% in April–the first monthly increase since December 2021. Nonetheless, the first four months of 2022 have been positive for the cost of derivative steel products after increasing 128.0% in 2021. Gypsum Products The PPI for gypsum products (SA) was flat in April. Year-over-year, the prices of gypsum products are 17.8% higher and have increased 23.5% since January 2021. n
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2022 Golf Tournament Sponsorships!
The 11th Annual HBAMT Golf Tournament is set for Thursday, August 18 at the Towhee Club in Spring Hill. Sign up now to sponsor at one of the following levels! selection
sponsorship level
price/# available benefits
TITLE SPONSOR
$10,000 1 available
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Company name featured as headliner on all materials Booth at registration, awards wrap-up & course hole Opportunity to hand out promotional materials Signage provided
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Lunch Sponsor
$5,000 1 available
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Company name featured as Lunch Sponsor on all material Booth at check-in and Golf Tournament course hole Opportunity to hand out promotional materials Four (4) tickets to Wrap-up and Kick-off Party
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Breakfast Sponsor
$3,000 1 available
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Company name featured as Breakfast Sponsor on all material Booth at check-in and Golf Tournament course hole Your booth will be breakfast ticket pick up point for all golfers Opportunity to hand out promotional materials Two (2) tickets to Wrap-up and Kick-off Party
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KICK-OFF EVENT
$5,000 1 available
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Company name featured on all Kick-off event materials Booth at Kick-off event & on Golf Tournament course hole Hand out promo materials at Kick-off event & course hole Signage at Kick-off event and Golf Tournament provided Four (4) tickets to Kick-off Event
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$1,200 5 available
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Company name featured on all materials Booth at wrap-up & course hole Opportunity to hand out promotional materials at hole Signage at tournament provided Two (2) tickets to wrap-up and Kick-off event
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$1,500 9 available
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Single hole sponsor for both morning & afternoon rounds Opportunity to hand out promotional materials at hole Signage at tournament provided Opportunity to hand out information & goodies Two (2) tickets to wrap-up and Kick-off event
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Silver Sponsor
$600
l Hole sponsor for both morning & afternoon rounds l Opportunity to hand out promotional materials at hole l Two (2) tickets to wrap-up and Kick-off event
Hospitality Cart
$2,000 2 available
l Hospitality cart with your name on it l Opportunity to ride cart in morning & afternoon rounds moving freely within the course handing out beverages & goodies
Wrap-up Party Sponsor
$3,000 1 available
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Title Sponsor
Platinum
Gold Sponsor
SOLD
Company name featured as Wrap-up Sponsor on all material Booth at check-in and Golf Tournament course hole Opportunity to hand out promotional materials Two (2) tickets to Breakfast and Kick-off Party
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Indicate which of the nine (9) sponsorship levels shown above you selected and return the completed form below to the HBAMT to sign up today! (List company EXACTLY as you want it to appear on signage.) CONTACT _________________________________ COMPANY ___________________________________ EMAIL ____________________________________ PHONE ______________________________________ Your Name (print) ____________________________ Signature ____________________________________ Return to: HBAMT - 9007 Overlook Blvd, Brentwood, TN 37027 l Email: cnicley@hbamt.org
10 The NAIL June, 2022 HBAMT does notl allow subletting of any of services, products, promotional opportunities or memberships. **A 3% convenience fee is applied to all credit card transactions.**
Essentials for managing construction projects
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hen managing a construction project, there are many areas you must consider. At every stage, you need to take into account the viewpoints of those on the jobsite and those funding the project. Here are tips you can use to improve the project management process.
CONTINUE PLANNING THROUGHOUT THE PROJECT It’s tempting for any project manager to make a concrete plan at the beginning of a project and refuse to change it except in the direst of circumstances. But doing things in the real world doesn’t always go according to plan, and being open to changing elements of the plan — or even planning as you go — can be beneficial. You see this willingness to adjust plans in the Lean-Agile approach taken by software companies, in which they plan for every sprint, section of work, and every milestone. By continuing to plan throughout the project, home builders can actually get a good view of any scope creep and keep a tight rein on risks. It also helps you deal quickly with any problems that arise, as your plan is fluid enough to adapt to the situation at hand. ASK QUESTIONS OF EVERYONE INVOLVED IN THE PROJECT Take time to look at both the big and small picture and ask questions of those in various positions in the company. Speak with the architect or designer — in-house or out — for the project so you know and understand their concerns and when to update or engage them. Talk with construction workers to find out if they feel the jobsite is safe and meets their needs. Communication is key to a project’s success, but that doesn’t mean simply relying on bland reporting; project management is, at heart, a people-focused endeavor, and having everyone working toward the same goal is critical. If you continually ask people what they need and want, their concerns, and where they are in the process, you get a good picture of any challenges or roadblocks … and ensure everyone feels as though they’re being heard. KEY TAKEAWAYS FOR SUCCESSFUL PROJECT MANAGEMENT Construction management is a form of project management that can have disastrous consequences if things don’t go right. However, the key takeaways for improving your project are to be flexible in your planning, keep risk top of mind, and ensure communication workflows are developed early on and maintained throughout the project. Do this and you should find your project — and life — become much easier. n
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Spring Fling & Builders Show!
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he association’s Spring Fling & Builders Show drew big crowds last month underneath the big tent at the HBAMT. Over 50 vendors and sponsors took part in the big show welcoming builders to their exhibit booths and taking part in all the festivities. A big thanks to the Ferguson team for providing great food at their grilling during the event. And a big thanks to all the Builders Show exhibitors and sponsors for making the event such a success. n
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Pinnacle Financial Partners Parade of Homes The 2022 Parade of Homes at Rosebrooke
ADVERTISE & EXHIBIT
If your company depends on new homes or
related products, furnishings or services, here’s one opportunity you can’t pass up -- the 2022 Pinnacle Financial Partners Parade of Homes at Rosebrooke! Secure your space in the Plan Book or reserve an Exhibit Booth today.
THE PARADE PLAN BOOK
THE PARADE EXHIBIT BOOTH
At every Parade event each attendee is handed a magazine as they walk through the front gate - the Parade Plan Book.
Here’s your chance to demonstrate your product or service to the thousands of qualified prospects who pass through the Parade of Homes exhibit center when they enter and leave the show. As with Plan Book advertising, the exhibit center produces virtually all pre-qualified customers!
The Plan Book is a tremendous opportunity to put your message into the hands of pre-qualified customers who refer to the book several months after the Parade of Homes is over! Plan Book Advertising Rates Half Page 7.5” x4.75” (Horizontal) Full Page 7.5”x10” 8.75”x 11.25” (B1eed) *Page One 7.5”x10” 8.75”x11.25” (Bleed) *Inside Front Cover *Inside Back Cover Double Truck Back Cover
$800 $1,200 $1,600 $2,100 $2,300 $2,840 $3,250
*SPECIALTY LOCATIONS SOLD. Email jargo@hbamt.org for ad specs and availability.
It’s like opening up shop and having thousands of prospects visit your showroom the first two weeks you’re in business. What other medium could come close to producing those kinds of results? The Parade ranks first of all home shows in the nation and you can take advantage of the prestige this show enjoys. Exhibit Booth Price? $750 Each booth in the Parade of Homes exhibit center measures 10’ x 6’ at the front entrance where patrons must enter and exit -- perfect for eye-popping kiosks and marketing publications!
2022 PARADE OF HOMES - PROMOTIONAL OPPORTUNITIES COMMITMENT FORM Return completed form to: HBAMT, 9007 Overlook Blvd., Brentwood, TN 37027 | Email: jargo@hbamt.org
PLAN BOOK AD - please check the size of ad you would like to secure in the 2022 Plan Book:
r Half Page
r Full Page
r Back Cover
r 2-Page Spread
EXHIBIT BOOTH SPACE - please check here to secure your 2022 Exhibit Booth Space: r Your name: ____________________________________ Company: _____________________________________ Cell: _________________________________________ Email: _________________________________________ Total amount being paid: $___________ Credit Card _______________________ Credit Card # _______________________________ Exp. ____________ Credit Card V-Code _______________
The “v-code” is found on the back of the card, usually printed or embossed atop or near the signature strip.
It is comprised of three digits found to the right of a longer number.
Signature ____________________________________________________________________________________ June, 2022
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SPIKE REPORT Jim McLean 165 Tonya Esquibel 153 Brandon Rickman 150 Steve Cates 146 Harry Johnson 146 Life Spikes What is a SPIKE? SPIKES recruit new members and help the association retain members. Here is the latest SPIKE report as of April 30, 2022. Top 20 Big Spikes Mitzi Spann 793 Terry Cobb 570 Trey Lewis 534 James Carbine 433 Jimmy Franks 391 Jennifer Earnest 381 David Crane 346 Kevin Hale 302 Reese Smith III 261 Davis Lamb 224 Steve Moody 221 Sonny Shackelford 219 David Hughes 179 Randall Smith 178 Nick Wisniewski 174 Steve Shalibo 168
C.W. Bartlett 138 Jordan Clark 129 Michael Dillon 123 B.J. Hanson 122 Steve Hewlett 119 John Zelenak 118 Dave McGowan 117 Justin Hicks 116 Edsel Charles 112 Wiggs Thompson 108 Duane Vanhook 108 Keith Porterfield 84 Sam Henley 81 Jody Derrick 79 Erin Richardson 77 Beth Sturm 75 Ron Schroeder 72 Nelson Bordeau 71 Christina James 66 Andrew Neuman 66 Joe Dalton 60 Brian Sebring 56
John Broderick 55 Rick Olszewski 54 John Ganschow 51 Rachel Holloway 51 Ryan Meade 50 Frank Jones 46 Ricky Scott 45 Jim Hysen 34 Don Mahone 31 Jeffrey Caruth 28 Maverick Green 25 Spikes Perry Pratt 23 Margaret Tolbert 22 Lisa Underwood 20 Tammy Chambers 18 Rob Pease 15 John Nehrenz 14 Danny Clawson 12 Chris Richey 11 Curt Haynes 11 Eli Routh 11 George Simpson 10 Bob Bellenfant 8 Clint Mitchell 8 Matt Dryden 7 McClain Franks 6
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JUNE CALENDAR Sunday
Monday
Tuesday
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Sales & Marketing Council meeting
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9 Wilson County Chapter meeting/event
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CHAPTERS & COUNCILS CHAPTERS
Robertson County RSVP line: 615-377-9651, ext. 313.
CHEATHAM COUNTY CHAPTER Chapter President - Roy Miles: 615/646-3303 Cheatham County Chapter details are being planned. Next meeting: to be announced. Chapter RSVP Line: 615/377-9651, ext. 310
SUMNER COUNTY CHAPTER Chapter President - Joe Dalton: 615/972-7149 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. Chapter RSVP Line: 615/377-9651, ext. 262
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 Colton’s Steakhouse in Dickson. Next meeting: to be announced. Price: FREE, lunch dutch treat. Chapter RSVP Line: 615/377-9651, ext. 264 MAURY COUNTY CHAPTER Chapter President - Kelly Beasley. Maury County Chapter details are currently being planned. Next meeting: 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 - Tonya Esquibel The Metro/Nashville 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. RSVP to: cnicley@hbamt.org. ROBERTSON COUNTY CHAPTER Next meeting: to be announced.
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WILLIAMSON COUNTY CHAPTER Chapter President - John Nehrenz 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. Builders Free pending sponsorship. Price: $10 per person with RSVP ($20 w/o RSVP). Chapter RSVP Line: 615/377-9651, ext. 305 WILSON COUNTY CHAPTER Chapter President - Margaret Tolbert The Wilson County Chapter meets on the second Thursday of the month, 9:00 a.m. at the Mt. Juliet Chamber of Commerce: 2055 N. Mt. Juliet Road, #200 - 37122. Next meeting: Thursday, June 9th, starting at 9:00 a.m. Topic: The Homes for Homes Foundation. The H4H Foundation builds homes and communities for people living in poverty. H4H brings together local leaders, labor, and materials, to transform communities. RSVP to: cnicley@hbamt.org. COUNCILS HBAMT REMODELERS COUNCIL Council President - Eli Routh.
The HBAMT Remodelers Council meets on the third Thursday of the month at varying locations. Next meeting: to be announced. 11 a.m. to 12:30 p.m. at a location to be determined. Topic: to be announced. Price: free with RSVP. Council RSVP Line: 615/377-9651, ext. 263 INFILL BUILDERS COUNCIL The Infill Builders Council typically meets on the third Thursday of the month, 11:30 a.m. at the HBAMT offices Next meeting: to be announced. Price: to be announced. RSVP to: 615/377-9651, ext. 265. MIDDLE TENN SALES & MARKETING COUNCIL Council President - Lisa Underwood. The SMC typically meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, June 2nd, 9:00 a.m. at the HBAMT. Topic: “Marketing Your Homes in a Multi-Cultural Market,” with an expert panel of local sales professionals. SMC members free thanks to US Bank; non-SMC members $20 w/RSVP, $25 w/o RSVP RSVP to: cnicley@hbamt.org.
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