October, 2013
l
The NAIL 1
2 The NAIL
l
October, 2013
October, 2013
l
The NAIL 3
THE
NAIL The official magazine of Home Builders Association of Middle Tennessee President James Franks Vice President Michael Dillon Secretary/Treasurer Trey Lewis 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.
4 The NAIL
l
October, 2013
FEATURES 8 Senator Jim Tracy visits the HBAMT
The senator visited with the association during the September Board of Directors meeting at the HBAMT.
11 International Builders Show in Las Vegas
Register now for the 2014 International Builders Show in Las Vegas. The show will run Feb 4-6 at the Las Vegas Convention Center.
DEPARTMENTS 6 News & Information 13 SPIKE Club Report 14 October Calendar 14 Chapters and Councils
ON THE COVER: The 2014 NAHB International Builders Show will be held in Las Vegas February 4-6. Registration is now open. Visit NAHB online at www.nahb.org for details. (More on page eleven of this issue.) October, 2013
l
The NAIL 5
news&info
MTSU Economics Professor David Penn (standing) was the guest speaker at the Metro/ Nashville Chapter’s September meeting at the HBAMT. Penn presented an “Economic Update and Outlook for Middle Tennessee” for meeting attendees.
Record high housing markets listed as improving
A
total of 291 metropolitan areas across the country now qualify as improving housing markets, according to the National Association of Home Builders/First American Improving Markets Index (IMI) for September, released today. This reflects a gain of 44 markets from August and marks the index’s highest level since it was initiated two years ago. The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. In September, 242 housing markets retained their existing positions on the IMI while 49 new markets were added and five were dropped from the list. Recent additions include such geographically diverse locations as Brownsville, Texas, Spokane, Wash. and Milwaukee, Wis. “Just over 80 percent of the 361 metros tracked by our index are showing consistent growth in three key measures of housing market strength – prices, permits and employment,” explained NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “While there is still plenty of room for growth, this is an excellent indication of how the housing recovery has begun to take hold across more geographic areas.” “The dramatic increase in markets qualifying for the IMI in September was partly due to a recent im-
This marks the index’s highest level since it was initiated two years ago. 6 The NAIL
l
October, 2013
provement in the way that Freddie Mac measures home prices, which resulted in stronger gains than previously reported,” noted NAHB Chief Economist David Crowe. “Even so, the broadened list of metros on the IMI continues to demonstrate the slow but steady gains that individual housing markets are making to bolster the national outlook.” “With every state now able to claim at least one county that’s part of an improving metro, and 23 states having charted at least one new entry in September alone, prospective home buyers have good reason to be encouraged by this news,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Co. The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three measures for at least six consecutive months following those measures’ respective troughs before being included on the improving markets list. A complete list of all 291 metros currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in September, is available at www.nahb.org/imi. n
Tony LaFrenier (center) from Precision Air talks with Jan Walters and Stefan Peter-Contesse following the Green Building Council’s September meeting. LaFrenier delivered a presentation about properly sized HVAC systems for meeting attendees. Special thanks to Precision Air for sponsoring the meeting
Wayne Lee from Middle Tennessee Lumber Company addresses HBAMT members at the Dickson County Chapter’s September meeting. Lee delivered an informative presentation about moisture and hardwood floors.
New home sales rise 7.9 percent in August
S
ales of newly built, single-family homes rose 7.9 percent to a seasonally adjusted annual rate of 421,000 units in August, according to newly released figures from HUD and U.S. Census Bureau. The gain partly offsets a dip in sales activity that occurred in July as consumers reacted to higher interest rates. “Consumers are adjusting to the reality of today’s higher rates following a period of record-setting lows, and today’s sales report provides evidence of that,” said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. “We expect to see more buyers coming back to the market as the psychological effects of the rate gains continue to wear off, particularly since, even after the recent spike, mortgage rates remain exceptionally favorable on a historic basis.” “Sales of new homes bounced partway back in August from an unusual low in July,” said NAHB Chief Economist David Crowe. “That said, we are only about halfway back to what would be considered a sustainable level of activity in a normal economy, and the ongoing housing recovery continues to be slowed by consumers’ concerns about interest rates, as well as weak job growth and uncertainty about
what’s happening in Washington.” Three out of four regions posted solid gains in new-home sales activity in August. Sales rose 8.8 percent in the Northeast, 19.6 percent in the Midwest and 15.3 percent in the South for the month. The West was the exception to the rule, with a 14.6 percent decline. While the months’ supply of new homes edged down to 5.0 due to the quicker sales pace in August, the total inventory rose for a seventh consecutive month, to 175,000 units. Housing starts up in August Led by a solid increase in single-family starts, nationwide housing production rose 0.9 percent to a seasonally adjusted annual rate of 891,000 units in August, according to figures released today by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Meanwhile, construction of multifamily buildings slowed following a rebound in the previous month. “Overall, this is an encouraging report as builders are seeing pent-up demand begin to be released for single-family homes despite headwinds such as rising mortgage rates and tight credit conditions,” said Judson.
Call for entries, 2014 National Sales & Marketing Awards
J
oin the “best and the brightest” by entering the nation’s largest awards program for sales and marketing professionals and communities, The NationalsSM, sponsored by the National Association of Home Builders (NAHB) National Sales and Marketing Council. The awards pay tribute to housing industry professionals for excellence in sales and marketing. The largest competition in the nation for newhome sales and marketing professionals and communities, The Nationals is also the most prestigious, in part because it is national in scope, and categories are effectively linked to real-world marketing strategies and challenges. Award categories are regularly refined with new opportunities made available in response to feedback from sales and marketing councils (SMCs) across the country. Gold and Silver award winners will be announced at the National Sales and Marketing Awards Ceremony on Feb. 4, 2014, during
the NAHB International Builders’ Show in Las Vegas. The Nationals also recognizes Community of the Year achievements, with winners selected from affordable, attached and detached project categories. Individual sales and marketing pros are eligible in five special achievement categories, as are sales and marketing councils throughout the country. In conjunction with The Nationals, Legends of Residential Marketing are honored for significant contributions to the industry over time. This select group demonstrates exceptional creativity and innovation in new-home marketing. Entrants have until Oct. 11, 2013, to submit their applications and until Oct. 25, 2013, to submit their projects for consideration. To submit an award entry or to learn more about the awards, go to http://www.thenationals.com/. For additional questions, please call 800-6582751 or email lparrish@thenationals.com.. n
“This is the kind of signal we’ve been looking for, with single-family starts and permits up or holding steady across every region in the nation,” added Crowe. “This report is reflective of gradual improvement in buyer confidence in the overall market and our recent surveys that indicate a solid outlook for single-family production. On the multifamily side, we are catching up with underlying rental demand. We expect to see additional multifamily starts in the future, but not as rapid a pace of growth as we’ve seen in the past.” Single-family housing starts rose 7 percent to a 628,000 unit pace. Regionally, single-family starts activity rose 9.6 percent in the Northeast, 7.1 percent in the Midwest, 2.3 percent in the South and 17.5 percent in the West. The annualized rate of multifamily production fell 11.1 percent to a seasonally adjusted annual rate of 263,000 units. Overall building permits, which are an indicator of future building activity, declined 3.8 percent to 918,000 units in August. This was due entirely to a pullback in the multifamily sector, where permits fell 15.7 percent to 291,000 units. Single-family permits posted a 3 percent gain to 627,000 units – the best pace since May of 2008. Regionally, single-family permit issuance increased 2.9 percent in the Midwest, 2.5 percent in the South, 5.3 percent in the West and held steady in the Northeast. Builder Confidence unchanged Following four consecutive months of improvement, builder confidence in the market for newly built, single-family homes held unchanged in September with a reading of 58 on the most recent NAHB/Wells Fargo Housing Market Index (HMI). “While builder confidence is holding at the highest level in nearly eight years, many are reporting some hesitancy on the part of buyers due to the sharp increase in interest rates,” said Judson. “Home buyers are adjusting to the fact that, while mortgage rates are still quite favorable on a historic basis, the record lows are probably a thing of the past.” “Following a solid run up in builder confidence over the past year, we are seeing a pause in the momentum as consumers wait to see where interest rates settle and as the headwinds of tight credit, shrinking supplies of lots for development and increasing labor costs continue,” noted Crowe. HMI component indexes were mixed in September. While the component gauging current sales conditions held unchanged at 62, the component gauging sales expectations in the next six months declined three points to 65 and the component gauging traffic of prospective buyers increased one point, to 47. All four regions posted gains in their threemonth moving average HMI scores in September, including a two-point gain to 41 in the Northeast, a four-point gain to 64 in the Midwest, a twopoint gain to 56 in the South and a four-point gain to 61 in the West, respectively. . n October, 2013
l
The NAIL 7
Senator Jim Tracy visits with HBAMT Vice President Mike Dillon and Secretary/Treasurer Trey Lewis prior to addressing the Board of Directors.
Jim Tracy visits HBAMT
Senator and Congressional Candidate Jim Tracy was the special guest of the HBAMT during the Board of Directors meeting Tuesday, September 3rd. A longtime friend of the industry - Tracy’s support was vital to our successful efforts to defeat recent fire sprinkler proposals - the senator talked with the board about current and upcoming legislative issues of interest to the home building community. n
Senator Tracy with HBAT President Mitzi Spann.
8 The NAIL
l
October, 2013
Senator Tracy addresses members during his visit.
October, 2013
l
The NAIL 9
10 The NAIL
l
October, 2013
Builders Show 2014!
T
he National Association of Home Builders (NAHB) officially opened online registration this week for the 2014 NAHB International Builders’ Show® (IBS), the largest annual light construction tradeshow in the world. The 2014 megashow, to be held in Las Vegas, Feb. 4-6, is part of the first Design & Construction Week,™ a co-location with the Kitchen and Bath Industry Show (KBIS), hosted by the National Kitchen and Bath Association (NKBA). With more than 70,000 anticipated attendees, 1,500 exhibitors and 600,000+ net square feet of exhibits, this new megaevent is the largest annual gathering of residential construction and design professionals. While the shows will remain separate and distinct, all registrants will have access to the exhibits of both IBS and KBIS as well as the exhibits of a third show, the International Window Coverings Expo. “Design & Construction Week is already generating a lot of excitement,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “Now more than ever, industry professionals can find everything they need under one roof from an expansive exhibit floor with the top products to comprehensive
education programs, networking opportunities and special events. Attendees will not want to miss this one-of-a-kind event.” One of the many draws of IBS is The New American Home® (TNAH) 2014, a one-of-a-kind green show home that is being built in a nearby neighborhood and will be open to attendees to tour during IBS. The state-of-the-art home incorporates builders’ best practices in energy efficiency, indoor-air quality, safety, convenience and aesthetics. The NAHB International Builders’ Show is not open to the general public. Building industry professionals and their affiliates are invited to register by visiting the show’s website at www.buildersshow.com. n
2014 Show Schedule - Feb 4-6 Las Vegas Convention Center
TUES, FEB 4 8:00 AM - 9:15 AM Opening Ceremonies 8:00 AM - 4:00 PM Education Sessions 9:00 AM - 5:00 PM Exhibits Open 10:00 AM - 11:30 AM Area Caucuses 1-7 12:00 PM - 1:30 PM Area Caucuses 8-15 2:00 AM - 5:00 PM 2013 Joint Executive Board, Budget and Resolutions Committee 6:00 PM - 8:00 PM IBS House Party 6:00 PM - 10:00 PM The Nationals WED, FEB 5 8:00 AM - 4:00 PM Education Sessions 9:00 AM - 11:30 AM Sales Rally 9:00 AM - 5:00 PM Exhibits Open 1:00 PM - 2:30 PM 2014 Executive Board Orientation 5:00 PM Student Chapters Award Ceremony THURS, FEB 6 8:00 AM - 2:00 PM 8:00 AM - 4:00 PM 9:00 AM - 5:00 PM 5:00 PM - 7:30 PM
NAHB Board of Directors Meeting Education Sessions Exhibits Open IBS Spike Concert
October, 2013
l
The NAIL 11
12 The NAIL
l
October, 2013
SPIKE REPORT Life Spikes
Sixteen 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 August 31, 2013. Top 20 Big Spikes Jim Ford 912 Virgil Ray 818 Bill King 776 Mitzi Spann 654 Jim Fischer 566 Terry Cobb 565 John Whitaker 354 James Carbine 329 Jennifer Earnest 306 Dan Stern 306 Bruce Hancock 297 Kevin Hale 285 Tonya Jones 271 Reese Smith III 259 David Crane 226 Steve Moody 219 Sonny Shackelford 215 Michael Apple 185 Cyril Evers 181 Jackson Downey 174
Davis Lamb 175 Jim McLean 164 Louise Stark 163 Tim Ferguson 157 Harry Johnson 146 Steve Cates 140 C.W. Bartlett 138 Tonya Alexander 125 Steve Hewlett 119 Tom Kelley 115 Carmen Butner 103 Johnny Watson 101 Trey Lewis 100 Sam Carbine 100 Bill Kottas 97 Lee Santiago 95 Dave McGowan 93 B.J. Hanson 91 Kim Dykes 89 James Franks 87 Duane Vanhook 80 Jordan Clark 77 Randy Parker 75 Erin Richardson 73 Jeff Slusher 70 John Baugh 68 Don Bruce 62 Jim Ford, Jr. 62 Hill McAlister 57 Joe Morgan 54 Gerald Bucy 53 Wiggs Thompson 53 John Broderick 52 Beth Sturm 50 Al Davis 47 David Hughes 47 Sheila Rawlings 47
Bernie Laine 46 Greg Langley 46 Benny Sullivan 46 Kim Nichols 45 Bryan Edwards 44 Andrew Neuman 44 Kay Russell 44 Lori Fisk-Conners 39 Peggy Krebs 39 John Ganschow 37 Chuck Clarkson 36 Andy Wyatt 36 Brad Butler 35 David Lippe 35 Al Hacker 34 Ray Edwards 32 Dan Strebel 32 Steve Wheeley 30 Alvin Basel 29 Matt Burnett 25 Spikes Christina Cunningham 20 Jess Dillon 16 Frank Miller 17 Tracy Lomax 14 Don Mahone 13 Michael Dillon 12 Marty Maitland 12 Frank Tyree 11 Pam Smith 10 Don Alexander 7 Kelvey Benward 7
October, 2013
l
The NAIL 13
OCTOBER Calendar Sunday
Monday
Tuesday
1
Wednesday
2
Thursday
Friday
3
Saturday
4
5
Sales & Marketing Council meeting
6
7
8
9
10
11
12
13
14
15
16
17
18
19
24
25
26
Remodelers Council meeting
Casino Night! Sponsored by Trus Joist
21
20
23
22
Green Building Council meeting
Dickson County Chapter meeting
28
27
29
30
31
1
2
5
6
7
8
9
Metro/Nashville Chapter meeting
3
4
Sales & Marketing Council meeting
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 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. 306
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, October 21. Topic: to be announced. Price: FREE, lunch dutch treat. Chapter RSVP Line: 615/377-9651, ext. 307
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. Price*: to be announced. Chapter RSVP Line: 615/377-9651, ext. 305
MAURY COUNTY CHAPTER 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 - 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, October 28. Topic: to be announced. Price*: to be announced. Chapter RSVP Line: 615/377-9651, ext. 304 ROBERTSON COUNTY CHAPTER Next meeting: to be announced.
14 The NAIL
l
October, 2013
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. Chapter RSVP Line: 615/377-9651, ext. 309 *Builders free pending sponsorship. COUNCILS CUSTOM BUILDERS COUNCIL The CBC meets on the second Tuesday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: 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. Next meeting: Wednesday, October 23, at the HBAMT. Topic: to be announced. Price: free for Green Building Council members pending sponsorship; $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, October 16. Location: 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 - Trey Lewis. The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, October 3. Topic: “Special guest Brian Copeland, chief of broker services for Village Real Estate and top producing REALTOR in the greater Nashville area.” Price: Free for SMC members pending sponsorship ($10 w/o RSVP); $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 302.
October, 2013
l
The NAIL 15
16 The NAIL
l
October, 2013