The Nail, September 2018 by Home Builders Association of Middle Tennessee (HBAMT)

September, 2018

The NAIL 1

We're Growing Again! We're growing our team—with the newest acquisition of Werthan Granite in the Nashville, Tennessee market! Apply online: www.Sims-Lohman.com 448 Chestnut Street, Nashville, TN 37203 • 615.503.9611 805 Airpark Commerce Drive, Nashville, TN 37217 • 615.503.4919

2 The NAIL

September, 2018

The NAIL 3

THE

NAIL The official magazine of Home Builders Association of Middle Tennessee President Keith Porterfield Vice President Justin Hicks Secretary/Treasurer David Hughes Executive Vice President John Sheley Editor and Designer Jim Argo Staff Connie Nicley Charlotte Fischer 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.

To donate needed materials and/or labor, please contact Jimmy Franks at 615-794-7415 or franco314@aol.com; or Blake Parks at: 615-243-6373 or blake@tennesseevalleyhomes.com Visit http://www.hbamt.org/showcase_fundraiser.html for more details. 4 The NAIL

September, 2018

FEATURES 9 Luxury at every price point (including smaller ones) “Best Interior Merchandising” award winners share luxurious commonalities despite widely divergent price points.

11 2018 James Hardie Golf Tournament

The 2018 James Hardie Golf Tournament was held last month at The Legends Golf Club in Franklin.

19 2019 HBAMT Home Show exhibit space available

The 2019 Home Builders Association of Middle Tennessee Home Show is gearing up for next January’s show. Secure your exhibit space today!

DEPARTMENTS

Advertise in

THE

NAIL

6 News & Information 21 SPIKE Club Report 22 September Calendar 22 Chapters and Councils

Visit http://www.hbamt.org/nail.html and click The NAIL Advertising Rates (pdf) to download rates and registration form Email jargo@hbamt.org for more details

ON THE COVER: Golfers tee off during the afternoon round of the 2018 James Hardie Golf Tournament last month at The Legends Golf Club. September, 2018

The NAIL 5

news&info

Builder confidence remains firm in August

uilder confidence in the market for newly-built single-family homes edged down one point to a solid 67 reading in August on the NAHB/Wells Fargo Housing Market Index (HMI). “The good news is that builders continue to report strong demand for new housing, fueled by steady job and income growth along with rising household formations,” said NAHB Chairman Randy Noel. “However, they are increasingly focused on growing affordability concerns, stemming from rising construction costs, shortages of skilled labor and a dearth of buildable lots.” “The solid economic expansion and firm job market should spur demand for new single-family homes in the months ahead,” said NAHB Chief Economist Robert Dietz. “Meanwhile, builders continue to monitor how tariffs and the growing threat of a trade war are affecting key building material prices, including lumber. These cost increases, coupled with ris-

The solid economic expansion and firm job market should spur demand for new homes in the months ahead. 6 The NAIL

September, 2018

ing interest rates, are putting upward pressure on home prices and contributing to growing affordability challenges, as indicated by the latest quarterly reading of the NAHB/Wells Fargo Housing Opportunity Index.” Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/ Wells Fargo Housing Market Index 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. The HMI index measuring current sales conditions inched one point lower to 73 while the component gauging expectations in the next six months all fell a single point to 72. Meanwhile, the metric charting buyer traffic dropped two points to 49. Looking at the three-month moving averages for regional HMI scores, the South and West each held steady at 70 and 75, respectively. The Northeast fell three points to 54 and the Midwest also posted a three-point decline to stand at 62. n

Single-family permits increase 6.3% over 2017 levels

ver the first six months of 2018, the total number of single-family permits issued year-to-date (YTD) nationwide reached 444,600. On a year-over-year basis, this is a 6.3% increase over the June 2017 level of 418,128. The results from the SOC are similar, year-to-date single-family permits over the first six months of 2018 was, 444,700 which is 6.6% ahead of its level over the same period of 2017, 417,000. Year-to-date, across the country, single-family permits grew in all the regions except in the Northeast and Midwest where it declined by 2.3% and 0.3% respectively, compared to June 2017 YTD. Out of the nine Northeastern states, only two, New Hampshire and New York recorded an increase in single-family permit growth during this time while the other seven states declined. In the Midwest, out of the 12 states, only four states reported an increase in single-family permits issued during this time. Western region had the highest growth in single-family (14.2%) while South recorded the highest multifamily permits growth (13.6%) during the last 12 months. Between June 2017 YTD and June 2018 YTD, 30 states saw growth in single-family permits issued while 20 states and the District of Columbia registered a decline. Colorado recorded the highest growth rate during this time at 26.3% while single-family permits in the District of Columbia declined by 66.7%, from 171 in 2017 to 57 in 2018. In the single-family sector, Texas led with

64, 879 permits issued year-to-date in June 2018 and Florida came in second with 48,132 during this time. Meanwhile the lowest number came from the District of Columbia with 57 permits. The 10 states issuing the highest number of single-family permits combined accounted for 60.6% of the single-family permits issued. The 6.3% increase in the nationwide growth rate of year-to-date single-family permits, is largely due to the aggregate increase in single-family permits across the Western states. Out of the 13 which are classified as Western states, eight states recorded single-family permit growth exceeding the national average. A total of 15 states recorded growth rates higher than the national average. Eight of these came from the Western region of the county, six from

Research reveals trends baby boomers seeking in new homes

ew research on baby boomer households conducted by John Burns Real Estate Consulting reveals several trends about what active adults are looking for in their next home and its surrounding community. In the Summer Issue of the NAHB 55+ Online Magazine, researchers Steve Burch and Chris Porter discuss their findings. Among them: l As the trend of urban-like living in the suburbs continues to rise, older households will comprise a notable share of this

growth. This is impacting the older shoppersâ&#x20AC;&#x2122; community and location preference and is beginning to remake the suburbs. l Labor force participation rates for the older population are at the highest levels in decades. While this creates a number of societal impacts, it is pushing consideration for age-restricted communities to an older age. l Due to longevity and delayed child bearing, the boomers are the first real â&#x20AC;&#x153;sandwich generationâ&#x20AC;? simultaneously caring for their adult children and aging

the South, and one from Northeast. New Hampshire was the lone state to record single-family permit growth higher than the national rate from the Northeast region. Year-to-date, ending in June 2018, the total number of multifamily permits issued nationwide reached 229,013. This is 7.1% ahead of its level over the first six month of 2017, 213,911. The increase in nationwide growth rate is due to the increases across Southern and Western states which posted growth rates of 13.6% and 7.1% respectively. The results from the SOC show an increase of 3.9% in multifamily permits over the first six months of 2018, 226,000 compared to the same period of 2017, 217,600. Between June 2017 YTD and June 2018 YTD, 30 states recorded growth while 20 states and the District of Columbia recorded a decline in multifamily permits. Rhode Island lead the way with a growth rate of 278.8%, from 33 to 125, while Mississippi had the largest decline of 78.8% from 891 to 189. n

parents. This is having a distinct impact on the need for multi-generational homes. Get details on the survey results and what they mean for your design and marketing plans in the latest issue. n

September, 2018

The NAIL 7

8 The NAIL

September, 2018

Luxury at every price point (smaller ones, too!)

he Nationals 2018 Best Interior Merchandising Gold Award winners have sales prices from the upper $200,000s to over $1.5 million. Despite the difference in price, they have several things in common. Today’s shopper has come to expect sophisticated design everywhere they shop for home furnishings, from Target to by-appointment-only specialty stores. The award-winning merchandisers rose to the challenge of creating a luxury feel for shoppers on a budget, and for the higher-end buyer, creating a home that blurs the line between indoor and outdoor living, making every day feel like a holiday. The Avion at Denver Connection Horizon Collection 22A1 came home with Best Interior Merchandising of a Model Priced Under $300,000 Gold Award during The Nationals gala awards event at the NAHB 2018 International Builders’ Show in Orlando for builder William Lyon Homes and interior designer Possibilities for Design. This model home has a clear target market: a confident, single woman who is

design-driven and seeks affordability. With just three areas to furnish (two bedrooms and a combined kitchen/dining/great room space), the merchandisers had to quickly capture the heart of this buyer. The challenge was to create exciting design with finish packages that were within the buyer’s budget. The home’s tailored, neutral design uses soft gray, crisp white and glass accents to ground the great room while keeping the dining area open and bright. The art work maximizes the length of room by leveraging raspberry contrast to draw the eye and capture

full length of space. An oversized dining table accessory draws attention away from the absence of a light fixture. The trim detail on the TV wall can be easily replicated by the buyer: It evokes a classic style without complication, adding texture and depth to entire space. The master bedroom must immediately connect with this buyer and create a “musthave” emotion. A very modern execution of white-on-white combines a design-centric chandelier and sophisticated art to turn a small room into a glamorous retreat. This buyer may need a roommate, so the second bedroom’s design incorporates an upbeat orange accent and bold artwork to signify personality. All paint was part of the builder’s offering; no custom colors were used. All finishes were packages provided by the builder. This makes the high design achievable by the buyer at this price point. The annual awards program is presented by the NAHB National Sales and Marketing Council. Entries are now open for 2019. n September, 2018

The NAIL 9

10 The NAIL

September, 2018

2018 James Hardie Golf Tournament!

he James Hardie Building Products Golf Tournament was held Thursday, August 9 at the Legends Golf Club in Franklin. Over 250 golfers competed in the event and enjoyed food, beverages and support at every hole from an amazing group of sponsors. Helistar Aviation returned for the popular golf ball drop following the afternoon round. Golf ball number fifty-five found its way closest to the hole making Randall Smith the big winner of the contest. See the

inset at the bottom of page 12 for more about the golf ball drop. The Aspen Construction team of Clint Ing, Preston Marshall, Jeremy Lyons and Barry Brewer earned first place honors in the first flight. The foursome posted a 47, the best score of the day. The Regions team of Kevin Little, Pete Chod, Ethan Cooper and Stenn Transeth took home first place honors in the second flight. First round hole competition winners included: Randy Congden, “Closest to the Hole”

on hole three; Josh Shulz, “Closest to the Hole” on hole eleven; and Mike Davis, who won “Longest Drive” on the eighteenth hole. Second round hole competition winners included: Mike Cooper, “Closest to the Hole” on hole three; Shannon Chester, “Closest to the Hole” on hole eleven; and Ryan Workman, “Longest Drive” winner on the eighteenth hole. A big thanks again to our title sponsor James Hardie Building Products, and to all the tournament sponsors who are recognized on page seventeen. n

September, 2018

The NAIL 11

Second place (1st fl): FirstBank - Michael McClellan, Jesse Felker, Alex Hortz and Steve Mercer. With Mike Fell, Timberland Cabinetry (far left).

First place (2nd fl): Regions - Kevin Little, Pete Chod, Ethan Cooper and Stenn Transeth. With Patrick Walk, Timberland Cabinetry (far right).

Randall Smith, Helicopter Golf Drop winner! With John Sheley and the winning #55 ticket and golf ball.

First Round Longest Drive winner Mike Davis took home a Yeti Cooler courtesy of Ferguson. With Carla Medlin, Ferguson.

Pre-flight

Take off

Helicopter Golf Ball Drop! Helistar Aviation made their annual appearance at the tournament for the much anticipated Golf Ball Drop. This year’s flight included a special co-pilot; nine-year-old Myles Fell, who lost his sister to an auto accident late last year, happily took part in the festivities and flew with the crew during their ball drop flight. Myles’ dad Mike said the experience put a much-needed smile on his son’s face that lasted for days. “Myles can’t stop talking about it, he had a blast,” said Mike. “We really appreciate Jimmy Franks inviting Myles on the flight.” Ball drop

12 The NAIL

September, 2018

Myles Fell

Thanks for helping with the drop, Myles!

September, 2018

The NAIL 13

Amerigas

American Heating & Cooling

Ark Title Group

Bancorp

Builders First Source

Cabinet Empire

City Tile

RE/MAx Elite - The Cunningham Team

Elite Roofing

fbc mortgage

Ferguson

First Tennessee

14 The NAIL

September, 2018

GAF

Hale Insurance

Hermitage Lighting Gallery

Interlinc Mortgage

Intex

Kenny and Company

Legacy Cabinet Company

Markraft Cabinets

Metrostudy

Movement Mortgage

Ole South Properties

PPG Paints

September, 2018

The NAIL 15

ProSource

Real Wood Floors

Rogers Group

RSG - Beacon Roofing Supply Co.

Smart Lien, LLC

Southern Insurance Partners

Timberland Cabinetry Company

Tennessee Housing Development Agency

Trane

USA Today Network

16 The NAIL

September, 2018

Waynes

Thank you tournament sponsors! James Hardie Building Products title sponsors Builders FirstSource - Lunch Amerigas - Breakfast/dinner Timberland Cabinetry - Breakfast/dinner Platinum sponsors Cabinet Empire Ferguson Enterprises GAF Guaranty Trust LP Building Products Lennox Industries Real Wood Floors Gold sponsors American Heating & Cooling Atmos Energy First Tennessee Bank Hermitage Lighting Gallery

InterLinc Mortgage Intex Kenny & Company Legacy Cabinet Company Silver sponsors Ark Title Group BancorpSouth Mortgage C. Andrew Wood, CPA Cadence Construction City Tile Floor Covering D.R. Horton Elite Flooring Emser Tile & Stone fbc mortgage Goodall Homes Hale Insurance LP Building Products Markraft Cabinets Metro Carpets Mid-Tenn Erosion

Movement Mortgage Ole South Properties PPG Paints Parksite ProSource Pulley & Associates (Delta Faucet) Rogers Group RSG-Beacon Roofing Supply Co. Sims-Lohman Southern Insurance Partners Smart Lien, LLC RE/MAX Elite, The Cunningham Team TN Housing Development Agency Trane USA Today Network Waynes Hospitality sponsors Lennar Metrostudy Piedmont Natural Gas

September, 2018

The NAIL 17

18 The NAIL

September, 2018

The NAIL 19

Exhibitor Agreement - January 11-13, 2019 FAIRGROUNDS NASHVILLE - NASHVILLE, TN Exhibitor application & contract for exhibit space

Return this completed form to the HBAMT to reserve your space at the 2019 Home Builders Association of Middle Tennessee HOME SHOW. Return to: HBAMT - 9007 Overlook Boulevard, Brentwood, TN 37027 Phone: (615) 377-1055 Fax: (615) 377-1077 For more information please visit: www.thehomeshow.org

Name ___________________________________________________ Company _________________________________________________ Address ________________________________________________ City ________________________________ St. _____ Zip __________ Phone _______________________________ Mobile ________________________________ Email ________________________________ PLEASE LIST ALL PRODUCTS & SERVICES YOU WISH TO EXHIBIT - This is mandatory (please see rule #1 in show regulations) ___________________________________________________________________________________________________________________ Do you have something new to the market? r Yes; please describe ___________________________________________________________ Estimated time you will need to set up your display ______ Will your display require special needs? r Yes; please describe ____________ ____________________________________________________________________________________________________________________ Would you be interested in doing a seminar? r Yes; what subject _____________________________________________________________

SELECT YOUR BOOTH SPACE & REQUIRED ELECTRICAL CONNECTIONS

for Custom Space Size price, contact HBAMT offices with your dimensions; booth preference choices not guaranteed

Custom Space Insert Size

Exhibit Space Fairgrounds

10x10 Booth Space

10x20 Booth Space

20x20 Booth Space

Member Rate

r $595

r $1090

r $2000

r $______

Non-Member Rate

r $795

r $1490

r $2800

r $______

____ x ____

Standard Electrical Connection (110v) = $125.00* x ___ number of connections = $______ Electricity Industrial Electrical Connection (220v) = $250.00* x ___ number of connections = $______ Your total based on booth space & electrical connections $ ___________ (please pay this amount below)

YOUR TOTAL

A 50% deposit holds your booth; full amount must be paid before the move in date/time assigned by the HBAMT.

Booth preferences

Please list your top 3 booth locations (see brochure at www.thehomeshow.org): ______

______

*Electrical fees are subject to change if requirements ARE NOT requested by January 1, 2019.

Are you interested in an HBAMT membership? r Yes (Members receive reduced Home Show rates & other benefits; visit www.hbamt.org for more) Amount Enclosed __________

Payment: r Check; Check #______________________

r Visa/Mastercard

r AMEX

r Discover

Card Number __________________________________________________________ Exp. _____________________ V-Code _____________ Name on Card (please print) ____________________________________ Signature _____________________________________________ I HAVE READ AND AGREE TO ABIDE BY ALL SHOW RULES AND REGULATIONS - complete list found at www.hbamt.org/home_show.html Applicants signature: _______________________________________________________ Date: ____________________________________ 20 The NAIL

September, 2018

SPIKE REPORT

Nineteen 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 July 31, 2018. Top 20 Big Spikes Virgil Ray Mitzi Spann Terry Cobb Jim Fischer John Whitaker Trey Lewis James Carbine Jennifer Earnest David Crane Kevin Hale James Franks Reese Smith III Steve Moody Davis Lamb Jackson Downey

821 763 570 566 554 413 390 363 313 300 265 261 219 205 182

Tim Ferguson Jim McLean Louise Stark Harry Johnson Steve Cates

177 164 163 146 142

Life Spikes C.W. Bartlett Sam Carbine Tonya Esquibel B.J. Hanson Steve Hewlett Jordan Clark Carmen Ryan Randall Smith John Zelenak Dave McGowan Edsel Charles Wiggs Thompson Duane Vanhook David Hughes Michael Dillon Justin Hicks Christina Cunningham Erin Richardson Beth Sturm Lori Fisk-Conners Don Bruce Keith Porterfield Marty Maitland Joe Morgan Nick Wisniewski

138 135 135 119 119 117 117 116 109 107 105 101 98 96 94 89 81 77 71 68 62 61 59 59 56

John Broderick Ron Schroeder Jody Derrick Andrew Neuman Derenda Sircy John Ganschow Bryan Edwards Ashley Crews Ricky Scott Phillip Smith Steve Shalibo Rick Olszewski Don Mahone Frank Tyree

55 54 50 50 50 49 44 42 42 42 39 35 29 28

Spikes Christina James Jay Elisar Brandon Rickman Frank Jones John Burns Perry Pratt Kenny Burd Will Montgomery Rob Pease Tammy Chambers Bob Bellenfant Kim Carman Eric DeBerry Stacy DeSoto McClain Franks Curt Haynes

22 19 19 18 16 11 10 10 10 9 8 7 7 7 6 6

September, 2018

The NAIL 21

September Calendar Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Sales & Marketing Council meeting

Dickson County Chapter meeting

Remodelers Council meeting

Metro/Nashville Chapter meeting

Chapters & Councils CHAPTERS 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 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, September 17. Topic: to be announced. Price: FREE, lunch dutch treat. Chapter RSVP Line: 615/377-9651, ext. 264 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, September 24. Topic: to be announced. Builders Free pending sponsorship. Price: $10 per person with RSVP ($20 w/o RSVP). Chapter RSVP Line: 615/377-9651, ext. 261 ROBERTSON COUNTY CHAPTER

22 The NAIL

September, 2018

Next meeting: to be announced. Robertson County RSVP line: 615-377-9651, ext. 313.

sponsorship; $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 308

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

HBAMT REMODELERS COUNCIL Council President - Ricky Scott. The HBAMT Remodelers Council meets on the third Wednesday of the month at varying locations. Next meeting: Wednesday, September 19, 11 a.m. to 12:30 p.m. at the HBAMT. Topic: to be announced. Price: free with RSVP. Council RSVP Line: 615/377-9651, ext. 263

WILLIAMSON COUNTY CHAPTER Chapter President - B.J. 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. 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 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 COUNCILS 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: to be announced. Price: free for Green Building Council members pending

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 - Ashley Crews. The SMC typically meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, September 6, 9:00 a.m. at the HBAMT. Topic: to be announced. SMC members free pending sponsorship; non-SMC members $25 w/RSVP, $35 w/o RSVP Council RSVP Line: 615/377-9651, ext. 260.

September, 2018

The NAIL 23

24 The NAIL

September, 2018