The Nail, February, 2016 by Home Builders Association of Middle Tennessee (HBAMT)

February, 2016

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THE

NAIL The official magazine of Home Builders Association of Middle Tennessee President Randall Smith Vice President John Zelenak Secretary/Treasurer Keith Porterfield 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 10 2016 Home Show enjoys busy weekend

The annual HBAMT Home Show had a successful three-day run at the Fairgrounds Nashville last month.

12 Home Show Beer Garden makes impressive debut

The first ever “Builders and Brewers” Beer Garden made a splash during the busy Saturday afternoon hours at the Home Show.

DEPARTMENTS 6 News & Information 13 SPIKE Club Report 14 February Calendar 14 Chapters and Councils

ON THE COVER: Consistent crowds packed the aisles of the Fairgrounds Nashville during the 2016 Home Show last month. More details on page ten. February, 2016

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news&info

2015 new home sales reach eight year high

ales of newly built, single-family homes rose 14.5 percent to 501,000 units in 2015, the highest level since 2007, according to newly released data from HUD and the U.S. Census Bureau. Meanwhile, sales in December increased 10.8 percent to a seasonally adjusted annual rate of 544,000 from an upwardly revised November reading. “The December sales report is a great end to a very strong year,” said Ed Brady, chair-

Relatively low interest rates and an improving economy are motivating buyers to make a new home purchase housing is now at its highest level since October, 2009. 6 The NAIL

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man of the National Association of Home Builders (NAHB) and home builder and developer from Bloomington, Ill. “As we move forward in 2016, we should see the housing market continue to make lasting gains.” “Relatively low interest rates and an improving economy are motivating buyers to make a new-home purchase,” said NAHB Chief Economist David Crowe. “Builders are upping their inventory in response to heightened consumer interest. Housing inventory is now at its highest level since October 2009.” Sales increased in all four regions in December. The Midwest, West, Northeast and South all posted respective gains of 31.6 percent, 21 percent, 20.8 percent and 0.4 percent. The inventory of new homes for sale was 237,000 units in December. This is a 5.2-month supply at the current sales pace. n

Millenials to shape housing preferences

he millennial generation is poised to make a significant impact on home design with their strong preferences for energy efficiency and smart home technology; comfortable, workable kitchens and more casual spaces, said speakers today from the National Association of Home Builders (NAHB) and Better Homes and Gardens. Both spoke at a press conference on housing preferences for millennials, Gen X, boomers and seniors held today during the NAHB International Builders’ Show in Las Vegas. But first, they have to move out of their parents’ homes and into a place of their own, said NAHB Assistant Vice President for Survey Research Rose Quint. In 2015, about 15 percent of adults ages 25-34 lived with a

parent, about 3 percent more than the highest share between 1983 and 2007 – 12 percent. That translates into 1.3 million people who normally “would be out there, forming their own households, demanding their own units,” either as buyers or renters, she said. Quint had anticipated that new mortgage programs and looser mortgage insurance requirements unveiled a year ago would have led to an increase in consumers buying homes for the first time. But a look at the size of the typical new single-family home in 2015 found the opposite: home sizes grew to an average of 2,721 square feet, the highest yet, and an indication that the new-home market continues to be dominated by move-up buyers, rather than first-time buyers. “Before we see that expected pullback in

More than 110,000 attend 2016 International Builders Show

ore than 110,000 housing industry professionals packed the aisles at Design & Construction Week,[tm] held Jan. 19-22 in Las Vegas. This marked the third year of the co-located mega-event, which included the National Association of Home Builders (NAHB) International Builders’ Show (IBS), the Kitchen and Bath Industry Show, the International Window Coverings Expo and The International Surface Event. Official attendance for IBS was 59,687, which was 8 percent higher than last year’s show. Nearly 1,400 IBS exhibitors filled more than 500,000 square feet of space, including a record-breaking 30,000-square- foot outdoor exhibit space. New products focused on home technology and increased energy efficiency:

two factors boosting the return of buyers to the new home market. “The packed crowds and positive energy throughout this year’s Design & Construction Week are another indication of the residential construction industry’s ongoing recovery,” said NAHB Chairman Ed Brady. IBS organizers also noted an increase in international exhibitors, with 460 exhibitors representing 25 countries and filling 72,000 square feet--or 14 percent of total IBS exhibit space. Overall, Design & Construction Week boasted more than 3,750 exhibitors and 1.2 million net square feet of exhibit space. “We reached our goal of creating the ‘must attend, must exhibit’ week for anyone and everyone in the residential construction industry,” said

square footage and price, we’re going to have to see a significant return of the first-time buyer,” who is more likely to buy a smaller home at a lower price point, Quint said. This year, home buyers of all ages say they are looking for homes with separate laundry rooms, energy-star appliances and windows, exterior lighting and a patio. What they don’t want are rooms with cork flooring, elevators, pet washing stations, expensive outdoor kitchens and fireplaces, and two-story entryways and family rooms. And their countertops should be granite, but never laminate, according to a Fall 2015 survey of potential buyers. In terms of house type, buyers want a detached, single-family home: 65 percent of all buyers and 68 percent of millennials expressed that preference. That number rises to 72 percent with Gen X (born between 1965 and 1979) but falls somewhat to 55 percent with those born before 1945, Quint said.

Tom Swartz, chair of the NAHB Convention and Meetings Committee, during his report to the NAHB Board of Directors on the last day of IBS. Crowded education sessions held during the show demonstrated that builders and remodelers are taking a bigger interest in automating their purchasing, accounting and sales systems. There were more than 120 education sessions during the event. Swartz noted the expanded educational offering on the show floor, with more than 30 companies offering almost 90 “Exhibitor Forums,” and the addition of a new Exhibitor Forum Presentation Stage in Central Hall, where 16 exhibitors demonstrated their most innovative products. Visit BuildersShow.com to see photos and videos of the show, as well as more information about the exhibitors, events, educational sessions and award winners. The 2017 IBS, Jan. 10-12, moves to the Orange County Convention Center in Orlando. n

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news&info

Builder confidence in 55+ market ends year on a positive note

uilder confidence in the single-family 55+ housing market remains strong in the fourth quarter of 2015 with a reading of 61, up one point from the previous quarter, according to the NAHB’s 55+ Housing Market Index (HMI). This is the seventh consecutive quarter with a reading above 50. “Builders and developers for the 55+ housing sector continue to report increased optimism in the market,” said Jim Chapman, chairman of NAHB’s 55+ Housing Industry Council and president of Jim Chapman Homes LLC in Atlanta. “We are seeing steady consumer demand for homes and communities that are designed to address the specific needs of the mature homebuyer.” There are separate 55+ HMIs for two segments of the 55+ housing market: single-family homes and multifamily condominiums. Each 55+ HMI measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for

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that market are good, fair or poor (high, average or low for traffic). An index number above 50 indicates that more builders view conditions as good than poor. One of the three index components of the 55+ single-family HMI posted an increase from the previous quarter: traffic of prospective buyers increased six points to 52. Present sales held steady at 65 while expected sales for the next six months decreased four points to 63.

The 55+ multifamily condo HMI dropped eight points to 42, falling back to a range typical of the past year and a half. All three components decreased as well: present sales fell 10 points to 44, expected sales for the next six months fell 10 points to 46 and traffic of prospective buyers edged down three points to 37. Three of the four indices tracking production and demand of 55+ multifamily rentals posted gains in the fourth quarter. Present production and expected future production both rose one point to 56 and 61, respectively, and future demand increased three points to 71, while current demand for existing units fell four points to 66. “This quarter’s 55+ HMI is in line with our forecast for the overall housing market, which shows a gradual, steady recovery,” said NAHB Chief Economist David Crowe. “In addition, the 55+ housing market is benefitting from growing home equity on the balance sheets of 55+ households, an improving economic outlook, historically low mortgage rates and a growing population as baby boomers age.” For the full 55+ HMI tables, please visit www.nahb.org/55hmi. n

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2016 Home Show draws big crowds Annual HBAMT event packed them in at the Fairgrounds Nashville.

he 2016 Home Show opened January 29 at the Fairgrounds Nashville and drew big crowds throughout a busy three-day weekend. Taking advantage of the unseasonably pleasant weather, attendees flocked to the event where they found a wealth of home improvement products and services, helpful vendors, and educational seminars. A big hit a this year’s Home Show was the first ever “Builders and Brewers” Beer Garden, held the second day of the event. See page 12 of this issue for more details and a list of participants The 2017 Home Show is already signing up vendors for next year’s event scheduled for another three-day run January 13-15. Call the HBAMT at (615) 377-1055 to request your 2017 Home Show registration form. Or visit the event’s page at www.hbamt.org for a downloadable one-page registration form. n

Marty makes the rounds!

Home Show Chairman Marty Maitland took to the airwaves to promote the 2016 show. Clockwise from above: with Meryll Rose on Talk of the Town; mixing it up with 92.9’s Anna Marie; on set with Kacy Hagerty for a More at Midday segment.

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“Builders & Brewers” Beer Garden a hit! Who likes beer?

The 2016 “Builders and Brewers” Beer Garden proved very popular among attendees and vendors alike. Conceived and organized by Home Show Chairman Marty Maitland, the success of the four hour event held the second day of the show might have kicked off an annual tradition. Builders: Aspen Construction; Barlow Builders; Building Masters; Celebration Homes; Goodall Homes; HND Realty; Ole South Properties; Regent Homes; Tennessee Valley Homes; and The Jones Company. Brewers: Black Abbey; Cool Springs Brewery; Czann’s Brewing Company; Fat Bottom Brewing; Granite City Food and Brewery; Mantra Artisan Ales; Mill Creek Brewing; Tailgate Beer; Tennessee Brew Works; and Yazoo Brewing Company.

BREWERS!

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BUILDERS!

SPIKE REPORT Life Spikes

Thirteen 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 December 31, 2015. Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 707 Terry Cobb 567 Jim Fischer 566 John Whitaker 456 James Carbine 344 Jennifer Earnest 344 Kevin Hale 287 David Crane 274 Tonya Jones 271 Trey Lewis 261 Reese Smith III 261 Steve Moody 219 Sonny Shackelford 219 Davis Lamb 194 Jackson Downey 174 Tim Ferguson 174 Jim McLean 164

Better Homes and Gardens Brand Executive Editor Jill Waage echoed Quint’s findings on preferences for well-equipped kitchens and casual, comfortable living spaces. What’s important about this generation is their comfort with technology. Millennials “are leading the way on this,” Waage said. “They are the first generation to walk into homeownership with a smartphone in their hands.” These millennials want to use technology to make entertainment choices easier, monitor the comings and goings of packages, repairmen and their children, and improve their health and well-being. When it comes to product choices, “they’ve read the ratings, comments and reviews, and they know what’s worth it,” and have probably created a Google alert so they know when it’s on sale, she said. Their home improvement preferences center on home organization and workspaces, as the separation between working in an office and telecommuting continues to blur. “This generation is searching out ideas, following bloggers,” and creating Pinterest boards with their preferences, Waage said. “They’ve already curated their dream home online, saving it on their boards so they can [be ready] when the day finally comes.” The survey results are also important to home builders in the 55+ market, said David

James Franks 163 Louise Stark 163 Harry Johnson 146 Steve Cates 140 C.W. Bartlett 138 Tonya Alexander 128 Sam Carbine 127 Steve Hewlett 119 Carmen Butner 108 B.J. Hanson 105 Dave McGowan 104 Johnny Watson 101 Julie DuPree 97 Jordan Clark 90 Duane Vanhook 90 Jeff Zeitlin 87 Erin Richardson 76 Wiggs Thompson 74 Jeff Slusher 70 John Baugh 68 Michael Dillon 66 Don Bruce 62 Jim Ford, Jr. 62 Beth Sturm 59 Hill McAlister 57 Lori Fisk-Conners 55 Joe Morgan 54 John Broderick 53 Gerald Bucy 53 David Hughes 51 Al Davis 47 Andrew Neuman 46 Benny Sullivan 46 John Ganschow 45 Christina Cunningham 44 Bryan Edwards 44 Kay Russell 44

Peskin, president of Reverse Mortgage Funding LLC (RMF), which sponsored the NAHB study. “The boomer generation is currently experiencing a transition to their next phase of life, so the home building and finance industries should commit to better understand the needs of this generation to offer the best solutions for them,” Peskin said. “The results of this important survey shed

Peggy Krebs 40 David Lippe 38 Andy Wyatt 37 Chuck Clarkson 36 Frank Miller 36 Brad Butler 35 Al Hacker 34 Ray Edwards 32 Derenda Sircy 32 Randall Smith 32 Dan Strebel 32 Steve Wheeley 30 Alvin Basel 29 Justin Hicks 29 John Zelenak 26 Marty Maitland 25 Spikes Don Mahone 21 Frank Tyree 16 Ashley Crews 12 Ricky Scott 10 Gina Hewlett 10 Don Alexander 9 Ron Schroeder 9 Keith Porterfield 7 McClain Franks 6

light on the buying preferences of older Americans, and confirm an uneasiness over finances is one of the primary reasons they are hesitant about relocating to a new residence. We are committed to helping home owners age 62 and older meet their financial needs, so this data will be informative to the way we educate consumers about our Home Equity Conversion Mortgage for Purchase (H4P) product.” n

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FEBRUARY Calendar Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Metro/Nashville Chapter meeting

Dickson County Chapter meeting

Sales & Marketing Council meeting

Chapters & Councils CHAPTERS

Robertson County RSVP line: 615-377-9651, ext. 313.

Council RSVP Line: 615/377-9651, ext. 308

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, February 15. 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. Builders Free pending sponsorship. Price: $10 per person with RSVP ($20 w/o RSVP). Chapter RSVP Line: 615/377-9651, ext. 305

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: to be announced.. 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

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: Tuesday, February 16. Topic: “Fiber Optics in 2016,” with Cosmos Fiber. Builders Free pending sponsorship Price: $10 per person with RSVP ($20 w/o RSVP). Chapter RSVP Line: 615/377-9651, ext. 304 ROBERTSON COUNTY CHAPTER Next meeting: to be announced.

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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).

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 - Derenda Sircy. The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, March 3. Topic: “Appraisals and the Appraisal Process.” SMC members FREE with RSVP pending sponsorship; nonSMC members $25 w/RSVP, $35 w/o RSVP Council RSVP Line: 615/377-9651, ext. 302.

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