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THE
NAIL The official magazine of Home Builders Association of Middle Tennessee President Brandon Rickman Vice President Jim Hysen Secretary/Treasurer Kelly Beasley Executive Vice President John Sheley Editor and Designer Jim Argo Staff Connie Nicley Kim Grayson
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 9 Fall Fest & Builders Show at the HBAMT last month
The HBAMT’s Annual Fall Fest & Builders Show took place at the HBAMT last month. A large crowd of builders and developers packed the event tent and enjoyed food, beverages, cash prizes, vendor booths, and more!
12 Installation Banquet sponsorships available
The association’s biggest night of the year returns Thursday, December 7th. Don’t miss your chance to sponsor the popular event and reach hundreds of the industry’s top professionals.
14 The HBAMT’s Annual Chili Cook-off is back!
Sign up now to enter your best chili recipe in the association’s annual Chili Cook-off Tuesday, November 14th. Register today!
DEPARTMENTS 6 News & Information 13 SPIKE Club Report 14 November Calendar 14 Chapters and Councils
ON THE COVER: The HBAMT’s Annual Fall Fest and Builders Show was held at the association last month. See page 9 (nine) for more details. November, 2023 l The NAIL 5
NEWS&INFO
New home sales get boost from lack of resale inventory
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espite mortgage rates that are at a 23year high, new home sales posted a double-digit percentage gain in September because of a lack of inventory in the resale market. Sales of newly built, single-family homes in September increased 12.3% to a 759,000 seasonally adjusted annual rate, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in September was up 33.9% from a year ago. “While more buyers are turning to new construction because of a lack of existing inventory, higher mortgage rates that are approaching 8% are expected to slow the market in the coming months as affordability conditions continue to worsen,” said Alicia Huey, chairman of the National Association of Home Builders (NAHB) and a custom home builder and developer from Birmingham, Ala. “Higher interest rates not only raise the cost of housing for buyers, but for builders as well because of increased costs for financing construction loans.” “New home sales surged in September largely due to the low existing home inventory rate, as many homeowners with attractive mortgage rates are electing to stay put rather than purchase a move-up home with a much higher interest rate,” said Danushka Nanayakkara-Skillington, NAHB’s assistant vice
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president for forecasting and analysis. “To compensate for this high interest rate environment, more builders are building smaller homes, which has resulted in a decline in the median new home price.” 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 September reading of 759,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory in September was 435,000, down 5.4% compared to a year ago. This represents a 6.9 months’ supply at the current building pace. A measure near a 6 months’ supply is considered balanced. Completed, ready to occupy inventory is up 39.6% from a year ago, however that inventory type remains just 17% of total new home inventory. The median new home sale price in September was $418,800, down 3.3% from last month, and down 12.3% compared to a year ago. Pricing is down both due to builder incentive use and a shift towards building slightly smaller homes. Regionally, on a year-to-date basis, new home sales are up in all four regions: up 12.8% in the Northeast, 0.5% in the Midwest, 5.4% in the South and 2.5% in the West. n
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NAIL For advertising rates and information, or to secure your ad, please email jargo@hbamt.org with your questions and requests.
Single-family housing starts post unexpected gain in September
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espite elevated mortgage rates averaging above 7%, single-family starts posted a solid gain in September as more buyers are turning to new homes because of a dearth of inventory in the resale market. Overall housing starts increased 7% in September to a seasonally adjusted annual rate of 1.36 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The September reading of 1.36 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 increased 3.2% to a 963,000 seasonally adjusted annual rate. However, single-family starts are 12.8% lower year-to-date due to higher interest rates. The multifamily sector, which includes
apartment buildings and condos, increased 17.6% to an annualized 395,000 pace. “The uptick in single-family production was somewhat unexpected as our latest builder surveys indicate that starts are likely to weaken in the months ahead due to recent higher mortgage rates that were near 7.6% in mid-October,” said Alicia Huey, NAHB chairman. “Meanwhile, builders also continue to face persistent labor shortages, a lack of buildable lots and higher financing costs for acquisition and development loans.” “Despite ongoing challenges in the market, the housing deficit of resale inventory continues to provide some market support for builders,” said NAHB Chief Economist Robert Dietz. “Because of a lack of existing homes in the marketplace, 31% of homes available for sale in August were new construction. This compares with a historical average in the 12-14% range. But in another
Who are today’s home buyers? NAHB study provides details
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sing the 2021 American Housing Survey (AHS), NAHB investigated the characteristics of recent home buyers — defined as households who purchased homes in the two years preceding the date the 2021 AHS was conducted — in a new special study. According to this criterion, roughly 10.2 million households recently bought and moved to a new home. The study focuses on two important groups of home buyers: Those who bought a brandnew home (new home buyers) and those who purchased a home for the first time (first-time home buyers). Income In the 2021 AHS, the median household income for all recent home buyers was $97,700. Median household income among all home buyers grew 13% from $60,000 in 2001 to $68,000 in 2007 and then fell 4% to $64,998 in 2011. After the Great Recession, household income accelerated, jumping by around 50% from $64,998 in 2011 to $97,700 in 2021. Not surprisingly, new home buyers consistently
show higher median income than first-time home buyers ($112,100 vs $90,000 in 2021). Age According to the 2021 AHS, the median age of all home buyers was 41. The median age of first-time buyers was 33, while the median age of new home buyers was 45. Household size may also play a factor, as a growing family is one of the reasons of home purchases. The average household size for recent home buyers was 2.70 in the 2021 AHS. It declined from 2001 to 2011 (2.84 to 2.61), then grew steadily afterwards. Meanwhile, the average household size among non-moving homeowners was 2.57 in 2021.
sign that higher interest rates have slowed the market, the number of single-family homes under construction in September was 674,000, which is almost 15% lower than a year ago.” On a regional and year-to-date basis, combined single-family and multifamily starts are 23.3% lower in the Northeast, 12.9% lower in the Midwest, 7.8% lower in the South and 16.9% lower in the West. Overall permits decreased 4.4% to a 1.47 million unit annualized rate in September. Single-family permits increased 1.8% to a 965,000 unit rate. Single-family permits are down 13.4% year-to-date. Multifamily permits decreased 14.3% to an annualized 508,000 pace. Looking at regional permit data on a year-to-date basis, permits are 22.3% lower in the Northeast, 16.6% lower in the Midwest, 12.7% lower in the South and 17.6% lower in the West. The number of apartments under construction is near 1 million units and will be falling in the months ahead. n
Financing More than half of recent buyers put no more than 20% down on the homes they purchased. Around 18% of all buyers purchased a home without a down payment in 2021, 50% had a down payment of 0 to 20%, and only 16% put more than 20% down. Among all recent home buyers, first-time buyers had relatively smaller down payments. Approximately 82% of first-time home buyers put no more than 20% down, including 18% with zero down payment. In comparison, only 63% of buyers purchased new homes with no more than 20% down. The median value of the homes purchased was $318,185 overall in the 2021 AHS. The median value of new homes was $429,205, and the median value of homes purchased by a first-time buyer was $271,445. Types of Homes Purchased In the 2021 AHS, 91.2%, of new homes purchased were single-family detached, while 6.9% were single-family attached and 2% were multifamily condos. Meanwhile, 83.8% of first-time home buyers purchased a single-family detached home. The remaining 16.2% are split evenly between single-family attached homes and multifamily condos. n
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Builders make the rounds inside the Builders Show tent during the 2023 Fall Fest & Builders Show at the HBAMT.
Fall Fest & Builders Show at the HBAMT!
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he HBAMT’s annual Fall Fest & Builders Show drew a big crowd of builders and developers to the association’s offices last month. Over 50 vendors and event sponsors took part in the big show hosting exhibit booths underneath the big tent and greeting builders with snacks, beverages, and good cheer. A big thanks to all the Fall Fest & Builders Show exhibitors and sponsors for making the event such a success. n David Hughes took home the big cash prize following the annual Builders Show raffle!
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The 2023 HBAMT Installation & Awards Banquet GENERAL SPONSOR
- Logo on all printed material - Two tickets to Installation & Awards Banquet $800 - Recognition at Banquet + Four (4) beverage tickets
PLATINUM SPONSOR
- Larger logo on all printed material - Two (2) tickets to Installation & Awards Banquet $1,400 - Eight (8) beverage tickets of your choice - Increased recognition at Banquet
- Dual logos on all printed material RECEPTION - Signage at Reception and Banquet SPONSOR - Four (4) tickets to Installation & Awards Banquet $6,000 (2 available) - 30 (30) beverage tickets of your choice - Increased recognition at Banquet TITLE SPONSOR (1 available)
SOLD
- Headliner on all printed material with logo at Reception and Banquet - Welcome everyone & introduce entertainment $9,400 - Table at Installation & Awards Banquet (8 tickets) - Sixty (50) beverage tickets of your choice
I want to sponsor the 2023 Banquet (12/7) at the level checked above. Company name: ____________________________________________________ Your Name: ________________________________________________________ Your number: ____________________ Your email: _________________________ 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 _________________________________________________________
Return this form and your company’s logo via email to cnicley@hbamt.org Mail: HBAMT 9007 Overlook Blvd, Brentwood, TN 37027 12 The NAIL l November, 2023
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Credit Card ____________________________________________________________________ Credit Card # _________________________ Exp. _________ 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 ______________________________________________________________________ RETURN YOUR FORM TODAY TO: cnicley@hbamt.org 14 The NAIL l November, 2023
SPIKE REPORT David Hughes Randall Smith Tonya Esquibel Jim McLean Steve Cates Harry Johnson
202 191 169 166 148 146
Life Spikes Eighteen 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 September 30, 2023. Top 20 Big Spikes Mitzi Spann 795 Terry Cobb 570 Trey Lewis 562 Jimmy Franks 505 James Carbine 503 Jennifer Earnest 396 David Crane 357 Kevin Hale 303 Brandon Rickman 263 Reese Smith III 261 Nick Wisniewski 250 Davis Lamb 231 Sonny Shackelford 219 Steve Shalibo 218
Jordan Clark 144 C.W. Bartlett 138 Michael Dillon 130 Dave McGowan 127 B.J. Hanson 122 Joe Dalton 119 Justin Hicks 118 John Zelenak 118 Duane Vanhook 117 Edsel Charles 115 Wiggs Thompson 112 Jim Hysen 99 Sam Henley 92 Jody Derrick 87 Ryan Meade 87 Keith Porterfield 84 Erin Richardson 77 Christina James 76 Beth Sturm 76 Ron Schroeder 75 Nelson Bordeau 71 Andrew Neuman 70
Rachel Holloway 67 Lisa Underwood 68 Bryan Sebring 56 John Broderick 55 Frank Jones 54 Rick Olszewski 54 John Ganschow 53 Ricky Scott 45 Margaret Tolbert 44 Danny Clawson 33 Kelvey Benward 32 Don Mahone 31 Perry Pratt 30 Jeffrey Caruth 28 Tammy Chambers 28 Eli Routh 28 Maverick Green 26 Spikes Tim Woodward 22 Nicole Bird 15 Rob Pease 15 Kelly Beasley 14 John Nehrenz 14 Randy Arnold 13 Curt Haynes 12 Clint Mitchell 11 Chris Richey 11 Robert Goodall 7 McClain Franks 6
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NOVEMBER CALENDAR Sunday
Monday
Tuesday
Wednesday
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Thursday
Friday
2
Saturday
3
4
Sales & Marketing Council meeting
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6
7
8
9
10
11
12
13
14
15
16
17
18
Annual Chili Cook-off and 2024 General Elections
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20
21
22
23
24
25
26
27
28
29
30
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5
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CHAPTERS & COUNCILS CHAPTERS CHEATHAM COUNTY CHAPTER Chapter President - Roy Miles Cheatham County Chapter details are being planned. Next meeting: to be announced. RSVP to: cnicley@hbamt.org. DICKSON COUNTY CHAPTER Chapter President - Mark Denney Dickson County Chapter details are currently being planned. Next meeting: to be announced. Price: FREE, lunch dutch treat. RSVP to: cnicley@hbamt.org. MAURY COUNTY CHAPTER Chapter President - Lisa Underwood Maury County Chapter details are currently being planned. Next meeting: to be announced. RSVP to: cnicley@hbamt.org. METRO/NASHVILLE CHAPTER Chapter President - Tonya Esquibel The Metro/Nashville Chapter typically 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. RSVP to: cnicley@hbamt.org. ROBERTSON COUNTY CHAPTER Next meeting: to be announced. RSVP to: cnicley@hbamt.org.
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COUNCILS SUMNER COUNTY CHAPTER Chapter President - Joe Dalton The Sumner County Chapter typically meets on the fourth Tuesday of the month, 11:30 a.m. at the new Hendersonville Library. Next meeting: to be announced. RSVP to: cnicley@hbamt.org. WILLIAMSON COUNTY CHAPTER Chapter President - Christina James The Williamson County Chapter typically meets on the third Tuesday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: to be announced. RSVP to: cnicley@hbamt.org. WILSON COUNTY CHAPTER Chapter President - Margaret Tolbert The Wilson County Chapter typically meets on the second Thursday of the month. Next meeting: to be announced. Topic: to be announced. RSVP to: cnicley@hbamt.org.
HBAMT REMODELERS COUNCIL Council President - Eli Routh The HBAMT Remodelers Council meets at varying locations throughout the year. Next meeting: to be announced. RSVP to: cnicley@hbamt.org. INFILL BUILDERS COUNCIL Infill Builders Council details are currently being planned. Next meeting: to be announced. MIDDLE TENN SALES & MARKETING COUNCIL Council President - Kelvey Benward The SMC typically meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, November 2nd at Starnes Creek. 7016 Starnes Creek Blvd, Franklin TN 37064 Topic: “Staying Safe in New Home Sales,” with Barb Jordan. Join the SMC at Starnes Creek for their November meeting on Thursday, November 2nd. Barb Jordan, safety expert, will be the special guest for a discussion about onsite safety, focusing on awareness and prevention. SMC Members Free w/RSVP thanks to our sponsors: DOMINION SIDING, DR HORTON and HERMITAGE! Non-SMC members: $15 with RSVP; $20 w/o RSVP RSVP to: cnicley@hbamt.org.
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