THE NAIL
The official magazine of Home Builders Association of Middle Tennessee
President Jim Hysen
Vice President Kelly Beasley
Secretary/Treasurer Eli Routh
Executive Vice President John Sheley
Editor and Designer Jim Argo
Staff
Connie Nicley Kim Grayson
THE NAIL is published monthly by the Home Builders Association of Middle Tennessee, a non-profit trade association dedicated to promoting the American dream of homeownership to all residents of Middle Tennessee.
SUBMISSIONS: THE NAIL welcomes manuscripts and photos related to the Middle Tennessee housing industry for publication. Editor reserves the right to edit due to content and space limitations.
POSTMASTER: Please send address changes to: HBAMT, 9007 Overlook Boulevard, Brentwood, TN 37027. Phone: (615) 377-1055.
Installation Banquet set for this month in Franklin
The association’s biggest night of the year returns Thursday, December 5th at the Franklin Marriott Cool Springs. RSVP now for the HBAMT's 80th Annual Installation and Awards Banquet sponsored by Builders First Source.
Big Winners at the Chili Cookoff and 2025 Elections
The association’s annual Chili Cook-off and 2025 General Elections were held last month at the HBAMT.
Sponsorships available for December’s big event
Register now to participate in biggest night of the year! Sponsor the Annual Installation Banquet by signing up today.
ON THE COVER:
Don’t miss the HBAMT’s big events this month. The Annual Installation Banquet will be held December 5th (see page nine), and the HBAMT’s Holiday Office Party is set for December 19th (see page seventeen). Plus, check out special holiday events being held by the Wilson County Chapter and the Sales & Marketing Council on page eighteen.
October new home sales down on higher rates
Steadily rising mortgage rates coupled with ongoing affordability challenges kept many potential home buyers on the sidelines in October.
Sales of newly built, single-family homes in October declined 17.3% to a 610,000 seasonally adjusted annual rate, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in October is down 9.4% compared to a year earlier. October new home sales are up 2.1% on a year-to-date basis.
“The decline in new home sales highlights the pressures on prospective buyers who are navigating tighter budgets and higher borrowing costs,” said Carl Harris, chairman of the National Association of Home Builders (NAHB) and a custom home builder from Wichita, Kan. “The drop also reflects a slowdown in buyer activity amid broader economic uncertainty.”
“Higher mortgage rates, up 60 basis points in October per Freddie Mac, and elevated
New construction remains a vital part of the market, especially in areas with low existing home inventory.
home prices continued to worsen affordability challenges,” said Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis. “Despite these headwinds, which also include increased material costs for builders, new construction remains a vital part of the market, especially in areas with low existing home inventory.”
A new home sale occurs when a sales contract is signed, or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the October reading of 610,000 units is the number of homes that would sell if this pace continued for the next 12 months.
New single-family home inventory in October remained elevated at a level of 481,000, up 8.8% compared to a year earlier. This represents a 9.5 months’ supply at the current building pace. Completed, ready-to-occupy inventory is up 52.6% to a level of 116,000, compared to a year ago. However, that inventory type remains 24% of total inventory.
The median new home sale price in October edged up 2.5% to $437,300 and is up 4.7% from a year ago.
Regionally, on a year-over-year basis, new home sales are up 35.3% in the Northeast and 15.9% in the Midwest. New home sales are down 19.7% in the South and 1.3% in the West. n
Builder confidence up three points in November
Builder sentiment improved for the third straight month and builders expect market conditions will continue to improve with Republicans winning control of the White House and Congress.
Builder confidence in the market for newly built single-family homes was 46 in November, up three points from October, according to the recently released NAHB/Wells Fargo Housing Market Index (HMI).
“With the elections now in the rearview mirror, builders are expressing increasing confidence that Republicans gaining all the levers of power in Washington will result in significant regulatory relief for the industry that will lead to the construction of more homes and apartments,” said NAHB Chairman Carl Harris. “This is reflected in a huge jump in builder sales expectations over the next six months.”
“While builder confidence is improving,
the industry still faces many headwinds such as an ongoing shortage of labor and buildable lots along with elevated building material prices,” said NAHB Chief Economist Robert Dietz. “Moreover, while the stock market cheered the election result, the bond market has concerns, as indicated by a rise for longterm interest rates. There is also policy uncertainty in front of the business sector and housing market as the executive branch changes hands.”
The latest HMI survey also revealed that 31% of builders cut home prices in November. This share has remained essentially unchanged since July, hovering between 31% and 33%. Meanwhile, the average price reduction was 5%, slightly below the 6% rate posted in October. The use of sales incentives was 60% in November, slightly down from 62% in October.
Derived from a monthly survey that
Housing production edged lower in October
Housing starts edged lower last month as average monthly mortgage rates increased a quarter-point from 6.18% to 6.43% between September and October, according to Freddie Mac.
Overall housing starts decreased 3.1% in October to a seasonally adjusted annual rate of 1.31 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
The October reading of 1.31 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 6.9% to a 970,000 seasonally adjusted annual rate. On a year-to-date basis, single-family construction is up 9.3%. The volatile multifamily sector, which includes apartment buildings and condos, increased 9.6% to an annualized 341,000 pace but are down 29.3% on a year-to-date basis.
“Although housing starts declined in October, builder sentiment improved for a third
straight month in November as builders anticipate an improved regulatory environment in 2025 that will allow the industry to increase housing supply,” said Carl Harris, NAHB chairman.
“While multifamily starts were up in Oc-
NAHB has been conducting for more than 35 years, the NAHB/Wells Fargo HMI 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.
All three HMI sub-indices were up in November. The index charting current sales conditions rose two points to 49, the component measuring sales expectations in the next six months increased seven points to 64 and the gauge charting traffic of prospective buyers posted a three-point gain to 32.
Looking at the three-month moving averages for regional HMI scores, the Northeast increased four points to 55, the Midwest moved three points higher to 44, the South edged up one point to 42 and the West held steady at 41. n
tober, the number of apartments under construction is down to 821,000, the lowest count since March 2022,” said NAHB Chief Economist Robert Dietz. “Further interest rate cuts from the Federal Reserve through 2025 should result in lower interest rates for construction and development loans, helping to lead to a stabilization for apartment construction and expansion for single-family home building.”
On a regional and year-to-date basis, combined single-family and multifamily starts are 10.4% higher in the Northeast, 1.7% lower in the Midwest, 5.0% lower in the South due to hurricane effects, and 4.4% lower in the West.
Overall permits decreased 0.6% to a 1.42 million unit annualized rate in October. Single-family permits increased 0.5% to a 968,000 unit rate and are up 9.4% on a yearto-date basis. Multifamily permits decreased 3.0% to an annualized 448,000 pace.
Looking at regional data on a year-to-date basis, permits are 0.9% higher in the Northeast, 3.9% higher in the Midwest, 2.4% lower in the South and 4.8% lower in the West.
Multifamily completions are elevated as the apartment construction slowdown continues. In October, there were 1.8 apartments that completed construction for every one apartment that started construction. n
The Annual HBAMT Installation and Awards Banquet
Thursday, December 5, 2024
5:30 pm (doors open) - Reception - 6:00-7:00 pm
Reception sponsored by:
Franklin Marriott Cool Springs
700 Cool Springs Blvd, Franklin, TN 37067
LIMITED SEATING - RSVP REQUIRED
Tickets - $160.00 per person w/RSVP by Fri, Nov. 22nd $185.00 per person w/RSVP after 11/22 RSVP to:
Thank you Banquet sponsors!
Building Solutions by SPANN
A Winning Night!
The HBAMT’s Annual Chili Cook-off was held last month in conjunction with the 2025 General Elections. The event bested last year's record number of cooking teams by one as 19 chili squads prepared tasty dishes for a large crowd of attendees who enjoyed the festivities and voted for next year’s leadership.
An expert panel determined the top three teams awarded for the top chili creations of the evening. First place honors went to the “Over the Top” team from Northwest Exterminating. Second place went to the “Red Hot Chili Preppers” team from Ox Engineered Products. And third place was awarded to the “Spice Wizards” team from Nashville Fireplace.
Continental Building's "Continental 9993" team took home the People’s Choice Award, determined by ballots cast by event attendees.
HBAMT Election winners who will be sworn in during the Installation and Awards Banquet (see page nine) included the following:
President: Kelly Beasley
Vice President: Eli Routh
Secretary/Treasurer: Danny Clawson
Local Directors: Randy Arnold, John Beyer, Andy Davidson, Scott Ghertner, Sam Gray, Maverick Green, Rachel Holloway, Chris Smith, and Kevin Sturgill.
State Directors: Derek Budde, Jordan Clark, Rachel Holloway, Jim Hysen, Brandon Rickman, Eli Routh, Steve Shalibo, and Kevin Sturgill.
National Directors: Derek Budde, Jordan Clark, Jimmy Franks, Trey Lewis, Eli Routh, and Randall Smith
Congratulations to all of the big winners during the evening! n
First Place winners: Northwest Exterminating's "Over the Top" chili cook-off team.
Second Place winners: OX
Engineered Product's "The Red Chili Preppers" cook-off team.
Third Place winners: Nashville Fireplace's "Spice Wizards" team.
People's Choice Award winners: Continental Building's "Continental 9993" team.
Over the Top Northwest Exterminating
Spice Wizards Nashville Fireplace
Chili Chili Bang Bang Kenny & Company
Sizzlin' Squad Mutual of Omaha
Chili on the Roof Austermiller, Inc.
Winner, Winner, Chili Dinner WinSupply of Hendersonville
Home Team Heatwave Team Wilson
Glazin' Hot Chili Makers Tennessee Shower Doors
Fear the Bear Harpeth True Value
Stewie's Secret Recipe Irving Materials, Inc.
Continental 9993 Continental Building
The Chili Champs Southern Elite Custom Homes
Italian Soup Team USA Building Products
Spicy Giga-Bites United Communications
May the Chili Force Be With You Force Roofing System
The Spice is Right CMG Home Loans
Spicy Rate Specialists Mortgage Investor's
SPIKE REPORT
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 October 31, 2024.
DECEMBER CALENDAR
CHAPTERS & COUNCILS
CHAPTERS
CHEATHAM COUNTY CHAPTER
Chapter President - Roy Miles
Cheatham County Chapter details are being planned. Next meeting: to be announced.
RSVP to: cnicley@hbamt.org
DICKSON COUNTY CHAPTER
Chapter President - Mark Denney
Dickson County Chapter details are currently being planned. Next meeting: to be announced.
Price: FREE, lunch dutch treat. RSVP to: cnicley@hbamt.org
MAURY COUNTY CHAPTER
Chapter President - Lisa Underwood
Maury County Chapter details are currently being planned. Next meeting: to be announced.
RSVP to: cnicley@hbamt.org
METRO/NASHVILLE CHAPTER
Chapter President - Tonya Esquibel
Metro/Nashville Chapter details are currently being planned. Next meeting: to be announced.
Topic: to be announced.
RSVP to: cnicley@hbamt.org
ROBERTSON COUNTY CHAPTER
Robertson County Chapter details are currently being planned.
Next meeting: to be announced.
RSVP to: cnicley@hbamt.org
SUMNER COUNTY CHAPTER
Chapter President - Joe Dalton
The Sumner County Chapter typically meets at the new Hendersonville Library. Future meetings to be announced.
Next meeting: to be announced.
RSVP to: cnicley@hbamt.org
WILLIAMSON COUNTY CHAPTER
Chapter President - Christina James Williamson County Chapter details are being planned. Next meeting: to be announced.
RSVP to: cnicley@hbamt.org
WILSON COUNTY CHAPTER
Chapter President - Margaret Tolbert
Next meeting: Wednesday, December 4th at the Ferguson Showroom in Mt. Juliet - 401 S. Mt Juliet Rd, Ste. 515, 37122 "Happy Hour Mixer!" Join the party on December 4th from 5-7 p.m. at the Ferguson Showroom in Mt. Juliet! Mingle and network with fellow HBAMT and Wilson County Chapter members while touring Ferguson's brilliant showroom! Drinks and hors d'oeuvres served courtesy of Tolbert Marketing and Events!
Free with RSVP thanks to our sponsors.
Special thanks to our hosts and sponsors: Ferguson, Tolbert Marketing & Events, and DominionX.
RSVP to: cnicley@hbamt.org
COUNCILS
HBAMT REMODELERS COUNCIL
The HBAMT Remodelers Council meets at varying locations throughout the year.
Next meeting: to be announced.
RSVP to: cnicley@hbamt.org
INFILL BUILDERS COUNCIL
Infill Builders Council details are currently being planned. Next meeting: to be announced.
MIDDLE TENN SALES & MARKETING COUNCIL
Council President - Beth Lewis
The SMC typically meets on the first Thursday of the month. Next meeting: Thursday, December 12th at the Rosebrooke Clubhouse - 1620 Rosebrooke Drive, Brentwood, TN 37027 "Holiday Mixer!" 9:00 a.m. at the Rosebrooke Clubhouse.
Please bring a breakfast dish to share!
Happy Hour at 4:00 p.m., Appetizers & Beverages! FREE for all w/RSVP!
RSVP to: cnicley@hbamt.org
The 2024 HBAMT Installation & Awards Banquet
GENERAL SPONSOR
PLATINUM
SPONSOR
- Logo on all printed material
- Two tickets to Installation & Awards Banquet
- Recognition at Banquet + Four (4) beverage tickets
- Larger logo on all printed material
- Two (2) tickets to Installation & Awards Banquet
- Eight (8) beverage tickets of your choice
- Dual logos on all printed material
- Signage at Reception and Banquet
- Increased recognition at Banquet $1,500 (2 available)
TITLE
SPONSOR (1 available)
- Four (4) tickets to Installation & Awards Banquet
- 30 (30) beverage tickets of your choice
- Increased recognition at Banquet $6,500
- Headliner on all printed material with logo at
- Welcome everyone & introduce entertainment
- Table at Installation & Awards Banquet (8 tickets)
- Sixty (50) beverage tickets of your choice
$9,500
