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THE
NAIL The official magazine of Home Builders Association of Middle Tennessee President Trey Lewis Vice President Randall Smith Secretary/Treasurer John Zelenak 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.
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FEATURES 9 Association’s legislative efforts benefit all
Recent legislative victories benefit not only the industry but home buyers and local communities as well.
11 2015 Showcase of Homes entries now being taken
Enter your available properties now in the Showcase of New Homes scheduled for this September.
DEPARTMENTS 6 News & Information 13 SPIKE Club Report 14 June Calendar 14 Chapters and Councils
ON THE COVER: The association’s legislative efforts produce positive results for the home building industry, home buyers and local communities. See story on page nine. June, 2015
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news&info
The Metro/Nashville and Williamson County Chapters held a joint meeting last month at the HBAMT offices. Joe Valley, standing, delivered a presentation about the services provided by Nashville Electric Service (NES) for those in attendance.
New home sales rise 6.8 percent in April
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ales of newly built, single-family homes rose 6.8 percent to a seasonally adjusted annual rate of 517,000 units in April, according to newly released data from HUD and the U.S. Census Bureau. “Sales are moving forward and our builder members are telling us they are starting to see more activity as more buyers get off the fence and enter the market-
Sales are moving forward and NAHB builder members are reporting that they are starting to see more activity as more buyers get off the fence and enter the marketplace. 6 The NAIL
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place,” said Tom Woods, chairman of the National Association of Home Builders (NAHB) and a home builder from Blue Springs, Mo. “Following an unusually low sales report in March, today’s numbers are consistent with other data we’ve seen recently and indicate a continuing, gradual improvement in the housing market,” said NAHB Chief Economist David Crowe. Regionally, home sales were mixed, rising 36.8 percent in the Midwest and 5.8 percent in the South. The Northeast posted a 5.6 percent decline and the West fell 2.3 percent. The inventory of new homes for sale edged up to 205,000 units in April. This is a 4.8-month supply at the current sales pace. n
Ray Khayatt from Coldwell Banker Barnes lead an expert panel in a discussion about cultural diversity at the Sales and Marketing Council’s May meeting. A big thanks to FirstBank and Coleman American Moving Services for sponsoring the meeting.
An informative “Managing Emotional Home Owners” webinar was held May 6 at the HBAMT. The educational event was hosted and sponsored by the Remodelers Council.
Housing production jumps 20.2 percent in April
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ationwide housing starts rose 20.2 percent to a seasonally adjusted annual rate of 1.135 million units in April from an upwardly revised March reading, according to newly released data from the U.S. Commerce Department. This is the highest level of housing production since November 2007. Both housing sectors registered production gains this month. Single-family housing starts increased 16.7 percent to a seasonally adjusted annual rate of 733,000 in April while multifamily starts rose 27.2 percent to 402,000 units. “Our builders tell us that consumers are slowly returning to the market,” said NAHB Chairman Tom Woods. “This month’s report shows release of pent-up demand and evidence of a sustainable housing recovery.” “The April gains make up for the production dips we saw in the past two months, but single-family housing is still only about halfway back to what could be considered a normal market,” said NAHB Chief Economist David Crowe. “With low interest rates and affordable home prices, we expect more upward momentum in the months ahead.” Combined single- and multifamily starts were up in three out of the four regions in
April. The Northeast posted an 85.9 percent gain, the Midwest rose 27.8 percent and the West increased 39 percent. Housing production dropped 1.8 percent in the South. Overall permit issuance rose 10.1 percent in April to a rate of 1.143 million. Multifamily permits registered a 20.5 percent gain to a rate of 477,000 while single-family permits increased 3.7 percent to 666,000. Regionally, the Northeast, South and West posted respective permit gains of 38.8 percent, 9.9 percent and 3 percent. Permits dipped 1.3 percent in the Midwest. Builder confidence falls two points Builder confidence in the market for newly built, single-family homes in May dropped two points to a level of 54 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). It is a nine-point increase from the May 2014 reading of 45. “Despite this month’s slight dip, builder confidence in the new home market remains above the 50-point benchmark,” said Woods. “Overall, the second quarter of 2015 is shaping up to be very solid.”
Housing affordability posts solid gain in first quarter
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ower interest rates and home prices contributed to a solid boost in nationwide affordability in the first quarter of 2015, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) released today. “Consumers benefitted from continued low mortgage rates and some fall in the price of homes sold in the first quarter, as these conditions offer a great time to buy,” said NAHB Chairman Tom Woods. “The past two quarters have seen an improvement in affordability as mortgage rates remain low,” said NAHB Chief Economist David Crowe. “Eighty-five percent of the metropolitan areas measured experienced an increase in affordability. Along with favorable home prices and pent-up demand, this broad improvement should help encourage more buyers to enter the marketplace.” In all, 66.5 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $65,800. This is up from the
62.8 percent of homes sold that were affordable to median-income earners in the fourth quarter. The national median home price declined from $215,000 in the fourth quarter to $210,000 in the first quarter. Meanwhile, average mortgage interest fell from 4.29 percent to 4.03 percent in the same period. For the second straight quarter, Syracuse, N.Y. remained the nation’s most affordable major housing market, as 95.6 percent of all new and existing homes sold in the first quarter of 2015 were affordable to families earning the area’s median income of $68,500. Also ranking among the most affordable major housing markets in respective order were Toledo, Ohio; St. Louis; Akron, Ohio; and Harrisburg-Carlisle, Pa. Meanwhile, Sandusky, Ohio topped the affordability chart among smaller markets in the first quarter of 2015. There, 96.3 percent of homes sold during the first quarter were affordable to families earning the area’s median income
“Consumers are exhibiting caution, and want to be on more stable financial footing before purchasing a home,” said Crowe. “On the bright side, the HMI component measuring future sales expectations has been tracking upward all year, mortgage rates remain low, and house prices are affordable. These factors should spur the release of pent-up demand moving forward.” 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 index’s components were mixed in May. The component charting sales expectations in the next six months rose one point to 64, the index measuring buyer traffic dropped a single point to 39, and the component gauging current sales conditions decreased two points to 59. Looking at the three-month moving averages for regional HMI scores, the South and Midwest each rose one point to 57 and 55, respectively. The Northeast fell by one point to 41 and the West dropped three points to 55. n
of $69,600. Other smaller housing markets at the top of the index included Cumberland, Md.-W. Va.; Elmira, N.Y.; Davenport-Moline-Rock Island, Iowa-Ill.; and Kokomo, Ind. For a 10th consecutive quarter, San Francisco-San Mateo-Redwood City, Calif. was the nation’s least affordable major housing market. There, just 14.1 percent of homes sold in the first quarter were affordable to families earning the area’s median income of $103,400. Other major metros at the bottom of the affordability chart were Los Angeles-Long Beach-Glendale, Calif.; Santa Ana-Anaheim-Irvine, Calif.; New York-White PlainsWayne, N.Y.-N.J.; and San Jose-Sunnyvale-Santa Clara, Calif. All five least affordable small housing markets were in California. At the very bottom was Santa Cruz-Watsonville, where 21.6 percent of all new and existing homes sold were affordable to families earning the area’s median income of $87,000. Other small markets included Salinas, Napa, San Luis Obispo-Paso Robles, and Santa Barbara-Santa Maria-Goleta; in descending order. Please visit nahb.org/hoi for tables, historic data and details. n
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Legislative victories benefit everyone Home builders legislative efforts save buyers money, bring jobs.
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ome builders serve a vital function in communities across Tennessee. We build shelter, of course. But our industry also is an economic engine that employs tens of thousands of people throughout the state and improves the tax base further though the houses and developments we build. As an association, our primary focus is working through the regulatory and legislative processes to ensure no unnecessary costs drive up home prices, and that nothing hinders our industry’s status as a strong source of jobs and economic growth. Each year, our association faces regulatory challenges head on and this year was no different as we won significant victories in the State Legislature that potentially saves the homebuyer money on a new home. Fire sprinkler legislation Our major win was a follow-up from a win we had a couple of years ago regarding efforts by governments to require fire sprinklers in
every new home built. We requested legislation this year to prohibit any local or statewide-adopted code from requiring fire sprinkler systems in townhomes that don’t exceed three stories and have a two-hour firewall assembly in the structure. The bill sponsored by State Sen. Mike Bell (R-Riceville) and State Rep. Ryan Williams (R-Cookeville) was amended during the legislative process to require a local government to follow the same adoption process for fire sprinklers specified in state law for single family homes. In this process, local government must have two meetings separate from the code adoption process. Those meetings must be at least two weeks apart, and approval must be by twothirds majority of the voting members. We negotiated that adoption process as a compromise with legislators three years ago in an effort to ultimately give homebuyers a voice when it comes to regulations required in new homes. Building a safe home is of the utmost concern to us and we believe current code requirements provide extremely safe parameters for new construction. (continued on page 13) June, 2015
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CAPS Designation Earn the CAPS Designation from NAHB by taking the three (3) required courses at the HBAMT!
Wed, June 24
Thurs, June 25
Fri, June 26
CAPS I
CAPS II
CAPs REQUIRED COURSE
Marketing & Communication Strategies for Aging & Accessibility - $250.00
Wednesday, June 24th
Learn the best practices in communicating and interacting with 50+ customers and take advantage of one of the fastest growing market segments in remodeling and related industries. A graduate of this course will be able to: Explain the three segments within the Aging in Place market that present business opportunities for building professionals Implement a process for promoting new opportunities for products and services in the Aging in Place market Enhance your sales process with effective techniques for the Aging in Place market
Design/Build Solutions for Aging & Accessibility - $250.00
Thursday, June 25th
Business Management for Building Professionals $250.00
This course will help you understand the requirements of accessibility, the importance of doing an assessment with input from qualified health care professionals, and the significance of good design in making modifications that can transform a house into a safe, attractive, and comfortable home for life.
Develop a solid foundation for managing small to medium size building/remodeling and service companies. This course explains critical elements from planning to evaluating progress and presents practical tips and tools for managing a business successfully.
A graduate of this course will be able to: Describe the home ownership market as it relates to the three segments of the Aging in Place market Recommend specific design solutions for the Aging in Place client Identify considerations for executing the job while the client is in residence
Friday, June 26th
A graduate of this course will be able to: Identify common business challenges and ways to overcome them Describe how to plan effectively for achieving business success Describe the organization and processes that a company needs to have in place to run efficiently
Sign up for all three (3) of the required courses by returning the completed form below to the HBAMT. If you do not require the full three days of course work select only those courses you wish to attend. CAPS Designation Courses - Registration Check this box if you will be taking all three courses to earn the CAPS designation and agree to be billed $750.00:
r CAPS I, CAPS II and third Required Course - Wenesday, Thursday and Friday, June 24-26 Check ONLY the boxes of the courses you will be taking (if you checked box above skip this step); you will be billed $250.00 for each course:
r CAPS I - Wednesday, June 24
r CAPS II - Thursday, June 25
r Required Course - Friday, June 26
Your Name _________________________________________ Company ____________________________________________ Contact cell phone (
) __________________________________ Contact email ____________________________________
Address _____________________________________ City ______________________________ State _____ Zip ___________ Return completed form to: HBAMT - 9007 Overlook Blvd, Brentwood, TN 37027; fax - 615-377-1077; email - receptionist@hbamt.net 10 The NAIL
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2015 Showcase of New Homes SEPTEMBER 10-13 & SEPTEMBER 17-20
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he Showcase of New Homes is a scattered-site promotion of Homes open to all builder members of the HBAMT which takes place Thursday through Sunday for two weeks. Showcase builders receive many benefits which make the event a terrific opportunity: Effective marketing Because the Showcase is a scattered-site event, you can build or show the type of home you specialize in. Model homes are encouraged. Promotion Each participant’s entry fees are pooled to create a professional, comprehensive advertising campaign which gives you far more exposure than any individual investment you can make!
Low Entry Fees!
You can be a Showcase Builder for as low as $1,540! For that low fee you get multi-media advertising by HBAMT, three (3) yard and directional signs and a Showcase page in the Showcase Home Buyers Guide (plan book) which includes a color picture of your house, floor plan, description and directions. As past Showcase builders will tell you, the Home Buyers Guide is a marketing tool which promotes your work for months and years after the event.
2015 Showcase Entry Rates
Participate in the Showcase of New Homes at a discounted rate by entering multiple entries:
Join the growing team of 2015 Showcase builders today!!
Entry Rates 1-4 homes 5 or more homes 10 or more homes
$1,540 each $1,400 each $1,160 each
Entry deadline: July 15, 2015 To qualify for the prices above, the following items must be returned to the HBAMT (see other side for details) by the listed date:
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Entry form (reverse side) Check for entry fee(s) House floor plans Color photo of house elevation 75 word description of house
All entries which have not submitted pictures, plans & descriptions by July 15 may remain in the show but will be omitted from the Buyers Guide.
Showcase Your Home in Style! Sponsored by the Home Builders Association of Middle Tennessee June, 2015
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2015 Showcase of New Homes Entry Form (one form per entry)
Attached is my CHECK, PLANS (color house picture and floor plans), DIRECTIONS and DESCRIPTIONS. I am completing all sections of this form to be applied to the rate checked below.
SEE RATES AND DEADLINES ON REVERSE SIDE Please note: Money, completed entry form, color photo and floor plans must be returned before final dates to qualify for rate checked.
SECTION I
Please type or print. Fill in the blanks. This form must be complete.
Name of Builder: ______________________________________________________________________________ Home Office Contact Name: _____________________________________________________________________ Contact’s Numbers - Office: _______________________________ Mobile: _______________________________ Contact’s Email address: ________________________________________________________________________ I do hereby certify that I am a Builder Member in good standing with HBAMT. Do hereby agree to abide by all the rules and regulations (available at HBAMT offices). I will put forth my best efforts to have this home completed by Sept. 10, 2015.
Date: _______ Company: ____________________________ Signature: ________________________________
List following information exactly as you would like it to appear in the Home Buyers Guide HOUSE AMENITIES and FACTS (this section is important for both promotional and production purposes).
SECTION II
Name of House and/or Plan Name: ______________________________________ MLS Area #: ______________ Company Name: ______________________________________________________________________________ Model’s Phone: ________________________________ Agent’s Mobile: __________________________________ Street Address: ________________________________ City/Subdivision: _________________________________ Price of Home (as is with options) $_________________ (NOTE: INCLUDE LOT) Base Price of Home (starting at) $_________________ Total square footage: __________ Number Car Garage: ___________________ Marketed by: ________________________________________ Telephone: _______________________________ Please check: Is this a model home? Yes r No r Style of Home? Condo r Single Family r
Is this home furnished? Yes r No r
Judge home for awards? Yes r No r
On a separate sheet of paper, type a brief description (about 75 words) on the unusual and outstanding features of your home. This description will be printed in the Showcase Home Buyers Guide (plan book) as it is submitted! THIS IS IMPORTANT! Attach explicit directions to the house starting from a major highway (remember, you may know how to get there but the general public does not!) These directions will be included in the plan book. Entries which have not submitted plans, descriptions and directions by July 15, 2015 will be omitted from the Home Buyers Guide. Please return completed form to: HBAMT - Showcase l 9007 Overlook Blvd, Brentwood, TN 37027 Phone: (615) 377-1055 l Fax: (615) 377-1077 l Email: jargo@hbamt.net 12 The NAIL
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SPIKE REPORT Life Spikes
Fourteen 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 April 30, 2015. Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 693 Terry Cobb 566 Jim Fischer 566 John Whitaker 422 James Carbine 339 Jennifer Earnest 337 Dan Stern 306 Kevin Hale 287 Tonya Jones 271 David Crane 262 Reese Smith III 261 Steve Moody 219 Sonny Shackelford 218 Trey Lewis 211 Davis Lamb 190 Cyril Evers 182 Jackson Downey 174
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Through our efforts at that time, home builders saved an estimated $2 per square foot on the cost of constructing a new home, which meant keeping prices down for new homebuyers. It also meant that the homebuyer isn’t saddled with long-term maintenance costs and pipe freezing issues of a fire sprinkler system they were forced to have installed but may not have wanted. Our position remains that it should be a homebuyer’s decision to buy a fire sprinkler system, not the government’s decision by force of law. Preventing regulation of licensing contractors On a different matter, we defeated a bill that would have removed the prohibition on local governments regulating contractors and their employees. Had this law passed, local governments would have been able to regulate licensing contractors in addition to the state licensing process. That law had the potential for creating costly bureaucratic chaos. An additional layer of bureaucracy only adds expense for a home builder and increases the price of a home. Our industry suffered greatly in the Great
Tim Ferguson 173 Jim McLean 164 Louise Stark 163 James Franks 146 Harry Johnson 146 Steve Cates 140 C.W. Bartlett 138 Tonya Alexander 128 Sam Carbine 123 Steve Hewlett 119 Carmen Butner 108 B.J. Hanson 104 Dave McGowan 102 Johnny Watson 101 Julie DuPree 90 Duane Vanhook 88 Jordan Clark 87 Jeff Zeitlin 87 Erin Richardson 76 Jeff Slusher 70 Wiggs Thompson 69 John Baugh 68 Don Bruce 62 Jim Ford, Jr. 62 Hill McAlister 57 Beth Sturm 57 Michael Dillon 56 Joe Morgan 54 John Broderick 53 Gerald Bucy 53 Lori Fisk-Conners 52 David Hughes 50 Al Davis 47 Andrew Neuman 46 Benny Sullivan 46 Bryan Edwards 44
Recession and many jobs were lost. Artificially increasing the price of homes has the potential of stifling the housing market recovery. “Go Build Tennessee Act” With the recovery we are experiencing, our industry now faces a labor shortage. Currently, the number of workers entering
Kay Russell 44 John Ganschow 43 Peggy Krebs 40 David Lippe 38 Andy Wyatt 37 Chuck Clarkson 36 Christina Cunningham 36 Frank Miller 36 Brad Butler 35 Al Hacker 34 Ray Edwards 32 Dan Strebel 32 Steve Wheeley 30 Alvin Basel 29 Spikes Justin Hicks 24 Don Mahone 20 Marty Maitland 20 Derenda Sircy 19 Frank Tyree 15 Randall Smith 11 Don Alexander 9 Gina Hewlett 8 John Zelenak 8 Ashley Crews 7
the construction trades is about a quarter of those leaving because of retirement or other reasons. We are taking steps to recruit talent into the home building industry and construction in general. A significant step in that direction came when we succeeded in getting the “Go Build Tennessee Act” passed at the legislature. This was achieved by a coalition of the Associated Builders & Contractors, the Associated General Contractors, the Homebuilders Association of Tennessee and the Tennessee Road Builders Association. Together, these associations represent thousands of Tennessee contractors, subcontractors and associates. Go Build Tennessee’s responsibility as a not-for-profit is to create a recruiting program to attract young workers into construction trades of all kinds. Recruiting these workers into the construction trades is vital to the health of home building and the industry’s economic contribution to Tennessee and local communities. As we work on creating more jobs, we will continue working to save home buyers money by fighting regulations and legislation that would unduly increase the cost of building a new home for families across Tennessee. n June, 2015
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JUNE Calendar Sunday
Monday
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Tuesday
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Wednesday
Thursday
Friday
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3 2015 HBAMT Fishing Tournament
Saturday
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Sales & Marketing Council meeting
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CAPS Designation Courses Course I
CAPS Designation Courses Course II
CAPS Designation Courses Course III
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4
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Dickson County Chapter meeting
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Remodelers Council meeting
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Metro/Nashville Chapter meeting
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Sales & Marketing Council meeting
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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, June 15. Topic: to be announced. Price: FREE, lunch dutch treat. Chapter RSVP Line: 615/377-9651, ext. 307 MAURY COUNTY CHAPTER Maury County Chapter details are currently being planned. Next meeting: to be announced. 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, June 22. Topic: “Managing your Erosion & Sediment Site Issues,” with Chris Richey, Middle Tennessee Erosion & Sediment Control. Price: $10 per person with RSVP ($20 w/o RSVP). Chapter RSVP Line: 615/377-9651, ext. 304
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ROBERTSON COUNTY CHAPTER Next meeting: to be announced. Robertson County RSVP line: 615-377-9651, ext. 313. 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 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. 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
sponsorship; $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 308 HBAMT REMODELERS COUNCIL Council President - Ricky Scott. The HBAMT Remodelers Council meets on the third Wednesday of the month, 11:00 a.m. at varying locations. Next meeting: Wednesday, June 17. Location: to be announced. Topic: 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 INFILL BUILDERS COUNCIL The Infill Builders meets on the third Thursday of the month, 11:30 a.m. at the HBAMT offices until further notice. Next meeting: Thursday, June 25. Topic: “Huber Engineered Lumber,” Council RSVP Line: 615/377-9651, ext. 311 MIDDLE TENN SALES & MARKETING COUNCIL Council President - Derenda Sircy. The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, June 4. Topic: “Housing Industry Update & Recap,” with representatives from Metrostudy. FREE with RSVP thanks to LP Building Products; non-SMC members $25 w/RSVP, $35 w/o RSVP Council RSVP Line: 615/377-9651, ext. 302.
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