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THE
NAIL The official magazine of Home Builders Association of Middle Tennessee President Michael Dillon Vice President Trey Lewis Secretary/Treasurer Randall Smith 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 Now is the time for Millenials to buy a home
There are several reasons why now is a great time for Millennials and other firsttime home buyers to start building their American Dream. Here’s the top five!
10 LP Building Products Golf Tournament and HBAMT Summer Blowout!
The big event is back! Sign up now to participate. Golfers, sponsors and silent auction items are needed. Or just RSVP for the Friday Night Bash. Act NOW!
DEPARTMENTS 6 News & Information 13 SPIKE Club Report 14 August Calendar 14 Chapters and Councils
ON THE COVER: A beautiful day on the fairways at The Legends Club Golf Course. Sign up now for the LP Building Products Golf Tournament August 15 and join us there! See pages 10-12 of this issue to register for the tournament and for other ways to participate. August, 2014
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news&info
Remodeling confidence regains momentum
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he National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) rose three points to 56 in the second quarter of 2014, regaining the momentum built in 2013. This is the fifth consecutive quarter for an RMI reading above 50. An RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity. “With many home owners on better financial footing, home remodeling has become more popular,” said NAHB Remodelers Chair Paul Sullivan, CAPS, CGR, CGP, of Waterville Valley, N.H. “The completion of postponed work has helped remodelers in all regions regain confidence in the remodeling market.”
With many home owners on better financial footing, home remodeling has become more popular. 6 The NAIL
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The RMI’s future market conditions index rose to 56 from 52 in the previous quarter, under the strength of an increase in all four of its subcomponents: calls for bids, amount of work committed for the next three months, backlog of jobs and appointments for proposals. The current market conditions component of the RMI increased three points to 56 this quarter. Remodeling jobs valued at $25,000 or more rebounded to 54, the same level as the end of 2013. Smaller remodeling jobs and maintenance and repair components performed well this quarter with readings of 56 and 58, respectively. “The recent improvement in the job market has helped restore remodelers’ confidence after a dip in the first quarter that was probably in part weather-related. As homeowners feel more secure about their economic situation, they become more willing to undertake remodeling projects—especially larger, discretionary projects,” said NAHB Chief Economist David Crowe. “In addition, fewer new home builders are looking to remodeling as a way supplement their revenue, and this has somewhat reduced competition for remodeling projects.” For more information about remodeling, visit nahb.org/remodel.. n
Housing production down as builder confidence rises
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ationwide housing production fell 9.3 percent to a seasonally adjusted annual rate of 893,000 units in June, according to newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The drop was due primarily to a nearly 30 percent decline in the South. All other regions posted monthly gains. “A modest 2.6 percent increase in single-family permits falls in line with the general optimism that we are hearing from our builders,” said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del. Single-family housing starts were down 9 percent to a seasonally adjusted annual rate of 575,000 units in June, while multifamily production fell 9.9 percent to 318,000 units. Regionally in June, combined single- and multifamily housing production rose in the Northeast, the Midwest and the West, with respective gains of 14.1 percent, 28.1 percent and 2.6 percent. Total production fell by 29.6 percent in the South, the nation’s largest region. “Take away the South and nationwide housing starts would have been in positive territory this month,” said NAHB Chief Economist David Crowe. “This sharp regional decline could be due in part to lots and labor shortages, which are particularly acute in that part of the country. However, the general direction of housing production is trending upward, and we expect 2014 to be a positive year.” Issuance of building permits registered a 4.2 percent decline to a seasonally adjusted annual rate of 963,000 units in June. Multifamily permits dropped 14.9 percent to 332,000 units while single-family permits increased 2.6 percent to 631,000 units. The Northeast, South and West registered overall permit losses of 15.5 percent, 6.3 percent and 1.8 percent, respectively, while the Midwest posted a 6.6 percent gain. Builder confidence reaches milestone Builder confidence in the market for newly-built single-family homes reached an im-
portant milestone in July, rising four points to a reading of 53 on the NAHB/Wells Fargo Housing Market Index (HMI). Any reading over 50 indicates that more builders view sales conditions as good than poor. “This is the first time that builder confidence has been above 50 since January and an important sign that it is strengthening as pent-up demand brings more buyers into the marketplace,” said Kelly. “An improving job market goes handin-hand with a rise in builder confidence,” said Crowe. “As employment increases and those with jobs feel more secure about their own economic situation, they are more likely to feel comfortable about buying a home.” 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 from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All three HMI components posted gains in July. The index gauging current sales conditions increased four points to 57, while the index measuring expectations for future sales rose six points to 64 and the index gauging traffic of prospective buyers increased three points to 39. The HMI three-month moving average was up in all four regions, with the Northeast and Midwest posting a one-point and two-point gain to 35 and 48, respectively. The West registered a five-point gain to 52 while the South rose two points to 51. Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com. n
NAHB revamps its Green Awards for 2014 The National Association of Home Builders (NAHB) recently announced its new integrated Green Awards program. For the first time, industry professionals have the opportunity to be recognized across several awards programs for their green building accomplishments, rather than entering one standalone awards program. Starting this year, green and sustainable categories have been added to many of NAHB’s industry awards programs, including the Best in American Living Awards, The Nationals, the 50+ Housing Awards, the multifamily Pillars of the Industry Awards and the Jerry Rouleau Awards for Excellence in Marketing and Home Design for systems-built homes. Winning a green or sustainable award in any of these programs, means the entrant will be automatically entered into the Best in Green Awards. Best in Green categories include: • 50+ Home or Community • Single-Family Production Home • Single-Family Custom Home • Multifamily Project • Interior Project • Remodeling Project • Development • Sales and Marketing Strategy • Systems-Built Home “Green and sustainable building is no longer just a niche, we now see it in nearly every segment of the building industry,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. “As such, it made sense to expand the NAHB Green Awards to offer additional opportunities to reward the great work in sustainable building practices we see across the entire industry.” Winners will be announced on Jan. 21, 2015, during the International Builders’ Show at a new event, Plugging into Performance: Best in Green Awards Brunch. In addition, all other green and sustainable award winners from the individual programs will be recognized. For more information, or to apply for an award, please visit www.nahb.org/greenawards. Please contact Jaclyn Toole at jtoole@nahb.org or 202-266-8225 with any additional questions. n
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Top 5 reasons millenials should buy now
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ith the economy and housing market still recovering, some potential first-time home buyers may be hesitant to invest in a new home. Yet there are several reasons why now is a great time for Millennials and other first-time home buyers to start building their American Dream. 1) Interest rates are low. Today’s historically low interest rates are helping first-time home buyers find affordable housing options. Average weekly interest rates for a 30-year fixed mortgage remain under 4.5%. But it’s important to keep in mind that interest rates are sensitive to market forces and can change quickly. There’s no indication that rates will suddenly surge upward, but even a slight rate increase can push monthly payments to the point that a buyer might miss out on their first choice for a new home. 2) Huge downpayments are not necessary. While lenders are looking more closely at borrowers today than in recent years, there are
options for purchasing your first home without a 20% downpayment. For example, the Federal Housing Administration (FHA) offers loans to first-time home buyers with downpayments as low as 3.5%. However, these loans require mortgage insurance. Locally, our state housing finance agency provides consumers with tremendous opportunities for purchasing a new home. According to Ralph M. Perrey, executive director of the Tennessee Housing Development Agency, THDA can offer buyers of new homes a sixmonth lock on the mortgage loan interest rate while the home is completed. “That way there’s no anxiety about rushing into a purchase to beat a potential interest rate jump,” explains Perrey. For more details, including how to easily access this program through local lenders, please visit www.GreatChoiceTN.com. To ensure that the financing process goes smoothly, buyers should consider pre-qualifying for a mortgage and having a financing commitment in place before shopping for a new home. Buyers also may find that some home builders
have arranged favorable financing for their customers or offer financial incentives. 3) New homes are built to fit your lifestyle. Designed to accommodate today’s busy lifestyles, new homes – including urban condos and single-family homes – feature open floor plans, flexible spaces, low-maintenance materials and other amenities that appeal to younger buyers. With energy costs near the top of consumer concerns, it’s good to know that new homes can be more energy efficient than ever. Innovative materials and construction techniques mean that today’s new homes are built to be much more energy efficient than homes constructed a generation ago. Not only can they be more affordable to operate, new homes also are significantly more resource efficient and environmentally friendly. 4) Technology makes shopping for a home fun and easy. Today’s tech-savvy home buyers use mobile apps to quickly gather all of the key information on a property and to see extensive photos from their cell (continued on page 13) August, 2014
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SPIKE REPORT Life Spikes
Twenty-one 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 June 30, 2014. Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 680 Jim Fischer 566 Terry Cobb 565 John Whitaker 393 James Carbine 334 Jennifer Earnest 327 Dan Stern 306 Kevin Hale 286 Tonya Jones 271 Reese Smith III 260 David Crane 247 Steve Moody 219 Sonny Shackelford 217 Davis Lamb 183 Cyril Evers 182 Jackson Downey 174 Tim Ferguson 168
(continued from page 9) phones or tablets. For example, Homesnap allows you to snap a picture of any home and get all the relevant property details, including any interior photos for homes on the market. If you’re just beginning your search, Realtor.com is a popular app because it generally contains the most accurate information gathered from more than 800 local MLSs (multiple listing services). Also, check out NewHomeSource.com from BDX. This leading new home website not only lets you search communities and homes from the area’s leading home builders, but also provides articles and other helpful information to guide you through the new home buying process. “Over 50% of home buyers start the home shopping process with a preference or interest in a new construction home,” said BDX CEO Tim Costello. “New homes offer key advantages for home buyers like construction quality, lower cost of ownership, modern floor plans and energy efficiency. NewHomeSource.com is a great place to explore all of these advantages and connect with local home builders.” If you’re checking out homes in an unfamiliar area, AroundMe helps you get a quick sense of the neighborhood by telling you the
Jim McLean 164 Louise Stark 163 Trey Lewis 156 Harry Johnson 146 Steve Cates 140 C.W. Bartlett 138 Tonya Alexander 127 James Franks 119 Steve Hewlett 119 Sam Carbine 117 Carmen Butner 105 Johnny Watson 101 Dave McGowan 99 B.J. Hanson 98 Jeff Zeitlin 87 Duane Vanhook 83 Jordan Clark 82 Julie DuPree 77 Erin Richardson 76 Jeff Slusher 70 John Baugh 68 Wiggs Thompson 63 Don Bruce 62 Jim Ford, Jr. 62 Hill McAlister 57 Joe Morgan 54 Beth Sturm 54 John Broderick 53 Gerald Bucy 53 David Hughes 49 Al Davis 47 Sheila Rawlings 47 Bernie Laine 46 Greg Langley 46 Lori Fisk-Conners 46 Benny Sullivan 46 Andrew Neuman 45
Bryan Edwards 44 Kay Russell 44 John Ganschow 41 Peggy Krebs 39 Michael Dillon 38 David Lippe 38 Andy Wyatt 37 Chuck Clarkson 36 Frank Miller 36 Brad Butler 35 Al Hacker 34 Ray Edwards 32 Dan Strebel 32 Steve Wheeley 30 Alvin Basel 29 Christina Cunningham 28 Spikes Don Mahone 18 Marty Maitland 18 Jess Dillon 16 Tracy Lomax 14 Frank Tyree 12 Justin Hicks 11 Derenda Sircy 11 Pam Smith 10 Don Alexander 9 Randall Smith 6
location of local restaurants, supermarkets, other businesses and attractions. There also are several free mortgage apps to help you determine how much you can afford and to compare real-time rates from multiple lenders. Popular mortgage calculator apps include Zillow and Trulia. 5) Owning a home can help young families build wealth and combat rising rents. For most Americans, homeownership is a primary source of net worth and is an important step in accumulating personal financial assets over the long term. Although property values have declined in many markets, Americans have more than $10.8 trillion of equity in their homes, and for most families, home equity represents the largest share of net worth. At the same time, rent prices continue to climb – 2.8 percent in 2013 – as rental vacancies dropped to their lowest point since 2000, according to a recent report from Harvard University’s Joint Center for Housing Studies. That makes now a great time to start investing in your future – instead of your landlord’s. For more information visit the HBAMT online at www.hbamt.org, or visit the National Association of Home Builders (NAHB) at www. nahb.org. n August, 2014
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AUGUST Calendar Sunday
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LP Golf Tournament and Summer Blowout!
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SMC Educational Event Membership Mixer
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Metro/Nashville, Williamson County Chapter meeting
Sales & Marketing Council 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, August 18. 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, August 25. Guest speaker: Barry Westbrook from DocAir. Price: Builders Free thanks to DocAir; $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: Monday, August 25. Guest speaker: Barry Westbrook from DocAir. Price: Builders Free thanks to DocAir; $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.
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 - Jason Broderick. The HBAMT Remodelers Council meets on the third Wednesday of the month, 11:00 a.m. at varying locations. Next meeting: Wednesday, August 20. 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: to be announced. Council RSVP Line: 615/377-9651, ext. 311 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: Tuesday, August 19, 9:00 AM to 12:00 PM. Topic: Special educational event at Piedmont Natural Gas. Kerry Mulcrone presents “Branding Matters to Everyone.” Price: SMC members free thanks to our sponsors (see page three)! ($10 w/o RSVP); $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 302.
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