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

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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 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.

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FEATURES 9 HBAMT Hoedown at the last Membership Mixer!

Sponsored by Tonya Esquibel & Summit Funding, the “HBAMT Hoedown” Membership Mixer event drew a crowd last month at the association’s offices.

11 James Hardie Parade of Homes set for October

Don’t miss this year’s Parade event! The 2016 James Hardie Building Products Parade of Homes is set for October at the Hideaway at Arrington community (right down from the Arrington Vineyards).

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

ON THE COVER: A view of the Hideaway at Arrington golf course from the neighborhood, site of the 2016 James Hardie Building Products Parade of Homes. More on page eleven. July, 2016

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news&info

New home sales fall six points in May following strong April

ales of newly built, single-family homes dropped 6 percent in May from a downwardly revised April reading to a seasonally adjusted annual rate of 551,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. “Although new home sales are down from a robust reading in April, they remain solid and builder confidence in the market is grow-

Although new home sales are down from a robust reading April, they remain solid and builder confidence in the market is growing. 6 The NAIL

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ing — two indicators that the housing sector should strengthen throughout the year,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “At an annual pace of 551,000 units, new home sales are up relative to the first few months of 2016 as well as last year,” said NAHB Chief Economist Robert Dietz. “The sales market continues to make overall gains despite month-to-month volatility.” The inventory of new homes for sale was 244,000 in May, which is a 5.3-month supply at the current sales pace. The median sales price of new houses sold was $290,400. Regionally, new home sales rose by 12.9 percent in the Midwest. Sales fell by 0.9 percent in the South, 15.6 percent in the West and 33.3 percent in the Northeast. n

Housing production unchanged, builder confidence on the rise

ationwide housing starts were virtually unchanged in May, inching down 0.3 percent to a seasonally adjusted annual rate of 1.16 million, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Overall permit issuance edged up 0.7 percent to a seasonally adjusted annual rate of 1.14 million. “Despite May’s relatively flat report, our builders are telling us that the market is improving and consumers are more ready and willing to make a home purchase,” said NAHB Chairman Ed Brady. “Builder confidence rose this month and single-family housing starts are up roughly 10 percent from a year ago — two indicators that we can expect further growth in housing production this year,” said NAHB Chief Economist Robert Dietz. “However, builders continue to face supply-side constraints, such as shortages of buildable lots and labor.” Single-family housing starts inched up 0.3 percent to a seasonally adjusted annual rate of 764,000 units in May while multifamily production edged down 1.2 percent to 400,000 units. Combined single- and multifamily starts were mixed in May, rising 14.4 percent in the West and 1.5 percent in the South. The Midwest posted a 2.5 percent loss and the Northeast registered a 33.3 percent loss. However,

single-family production rose in three out of the four regions — the Northeast, South and West. Single-family permits fell 2 percent to a rate of 726,000 while multifamily permits rose 5.9 percent to 412,000. Permit issuance increased 15.3 percent in the West. Meanwhile, the South, Northeast and Midwest posted respective losses of 1.4 percent, 7.8 percent and 9.2 percent. Builder confidence rises two points After holding steady for the past four months, builder confidence in the market for newly constructed single-family homes rose two points in June to a level of 60 on the NAHB/ Wells Fargo Housing Market Index (HMI). This is the highest reading since January 2016. “Builders in many markets across the na-

Updated reference offers latest guidelines on home performance

uilderBooks, the publishing arm of the NAHB, just released the fifth edition of Residential Construction Performance Guidelines, the industry’s most widely accepted reference on how homes should perform. Available in contractor and consumer versions, this fully revised and updated reference helps builders and remodelers successfully manage customer expectations while delivering high-performance homes. Initially created and reviewed by more than 300 builders and remodelers, as well as representatives of specialty trade organizations, the fifth edition updates the performance guidelines to make the text more comprehensive and consistent with current building science advancements. The newest version should be used for all contracts written on or after Jan. 19, 2016.

“Both contractors and consumers can benefit from this great resource by opening a dialogue on expectations on how homes are meant to perform,” said NAHB Chairman Ed Brady. “The latest edition of this manual contains even more detailed information and building science updates, providing clear guidelines for any home building or renovation job.” The new edition also features: - A unique collection of nearly 300 guidelines in 13 major categories - New guidelines on wall insulation, windows and glass, roofing, plumbing, electrical, flooring and more - Remodeling-specific guidelines - Tips for taking critical measurements

tion are reporting higher traffic and more committed buyers at their job sites,” said Brady. “However, our members are also relating ongoing concerns regarding the shortage of buildable lots and labor and noting pockets of softness in scattered markets.” “Rising home sales, an improving economy and the fact that the HMI gauge measuring future sales expectations is running at an eightmonth high are all positive factors indicating that the housing market should continue to move forward in the second half of 2016,” said Dietz. 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. All three HMI components posted gains in June. The component gauging current sales conditions rose one point to 64, the index charting sales expectations in the next six months increased five points to 70, and the component measuring buyer traffic climbed three points to 47. Looking at the three-month moving averages for regional HMI scores, the South registered a two-point uptick to 61 and the West rose one point to 68. The Northeast dropped two points to 39 and the Midwest fell one point to 57. n

The consumer version of Residential Construction Performance Guidelines helps customers understand the basics of a properly constructed home and how it should perform during the warranty period. Builders and remodelers can give the Consumer Reference to every customer as an integral part of their warranty claims process. The guidelines selected for this reference/ publication deal with the issues that most frequently prompt questions between a contractor and customer; it is not meant to answer all questions that may arise during a typical residential construction project. They are meant to be a collection of minimum performance criteria. While a good starting point for residential construction performance, the book is not designed to take the place of a warranty. Both Contractor and Consumer versions of Residential Construction Performance Guidelines are available in both hard copy and eBook format, and bulk orders are available. Place your order by visiting www.BuilderBooks.com or by calling 800-223-2665. n

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Please return your completed registration form (provided below) to the HBAMT to enter. ALL COMPANIES & SINGLE PLAYERS ENTERING MUST BE A MEMBER OF THE HBAMT.

CONTACT ________________________________ COMPANY _____________________________________ EMAIL ___________________________________ PHONE ________________________________________ Print names of players. Four (4) players per team ($210.00 per player). Players reserving for ONE only ($225.00) will be assigned a foursome. 1.) _________________________________________ 2.) _____________________________________________ 3.) _________________________________________ 4.) _____________________________________________ Check your preference (to accommodate all golfers we are hosting two rounds): r Morning Round | r Afternoon Round _____________ Number of players x $210.00 or One (1) player for $225.00 | Make checks payable to HBAMT; to pay by credit card call 377-1055. Return entries to: HBAMT - 9007 Overlook Blvd, Brentwood, TN 37027 | Fax: (615) 377-1077 | Email: receptionist@hbamt.net 8 The NAIL

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Hoedown at the HBAMT!

Jimmy Franks, Opal Haub and Ron Imbrecht.

Kristen Carbine, James Carbine, Susan Ritter, Randall Smith and Scott Ghertner.

David Webber and Brock Baker present Carol Carter with a new Epiphone guitar. Carter won the guitar after taking part in Limestone Title’s raffle for Hoedown attendees. Congratulations Carol!

HBAMT Hoedown and Membership Mixer last month!

Last month’s membership mixer was a fun-filled “HBAMT Hoedown,” with great western themed food, cold beverages and awesome music from Jimmy Charles. Sponsored by Tonya Esquibel and Summit Funding, the event drew a big crowd of old and new members alike. A big thanks also to Limestone Title and Superior Walls for helping sponsor the food and beverages served during the event.

Tonya Esquibel and Luke Humphrey from the Summit Funding team that sponsored the event.

Jimmy Charles (center) and crew.

Trey Lewis and John Ganschow. July, 2016

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2016 Parade set for October!

James Hardie Parade of Homes to open this fall at Hideaway at Arrington.

ark your calendars now for the James Hardie Building Products 2016 Parade of Homes™! The popular custom home tour will open Saturday, October 1 and run daily through Sunday, October 16 at the Hideaway at Arrington community in Arrington, Tenn. “We’re very excited to host the James Hardie Building Products Parade of Homes™ and can’t wait for people to attend the event and see our community first hand,” said Johan Kok, developer and general manager at the Hideaway at Arrington. “Our builders are ahead of schedule and are constructing beautiful homes that take full advantage of the

scenic virtues our neighborhood and golf course provide.” The developer has assembled an impressive cast of builders: Arthur Rutenberg Homes, Britt Development, Heritage Homes, Legend Homes, Tennessee Valley Homes, Wiesner Custom Homes, and Woodridge Homes. “We’re looking forward to giving attendees a show they won’t forget!” said Kok. Interior design teams are currently being assembled by the builders. For more information visit www.hbamt.org and follow the event on the James Hardie Building Products 2016 Parade Facebook page, or go to www.theparadeofhomes.org. n

Britt Development Group

Tennessee Valley Homes

Wiesner Custom Homes

Arthur Rutenberg Homes

Legend Homes

Heritage Homes

Follow the Parade right up to the big opening weekend online at the event’s Facebook page at

www.hbamt.org More details will also be available at Woodridge Homes

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SPIKE REPORT Life Spikes

Twenty-nine 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 May 31, 2016. Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 720 Terry Cobb 567 Jim Fischer 566 John Whitaker 475 James Carbine 351 Jennifer Earnest 349 Kevin Hale 289 Trey Lewis 288 David Crane 281 Tonya Jones 271 Reese Smith III 261 Steve Moody 219 Sonny Shackelford 219 Davis Lamb 196 Jackson Downey 182 Tim Ferguson 177 James Franks 176

Jim McLean 164 Louise Stark 163 Harry Johnson 146 Steve Cates 141 C.W. Bartlett 138 Sam Carbine 129 Tonya Alexander 128 Steve Hewlett 119 B.J. Hanson 110 Carmen Ryan 110 Dave McGowan 104 Johnny Watson 101 Jordan Clark 99 Julie DuPree 97 Duane Vanhook 92 Jeff Zeitlin 87 Wiggs Thompson 78 Erin Richardson 76 Helmut Mundt 72 Michael Dillon 71 Jeff Slusher 70 John Baugh 68 Don Bruce 62 Jim Ford, Jr. 62 Beth Sturm 59 Hill McAlister 57 Lori Fisk-Conners 56 Christina Cunningham 55 Joe Morgan 54 John Broderick 53 Gerald Bucy 53 David Hughes 53 Andrew Neuman 48 Al Davis 47 John Zelenak 47 Benny Sullivan 46 John Ganschow 45

Bryan Edwards 44 Kay Russell 44 Randall Smith 42 Justin Hicks 41 Peggy Krebs 40 David Lippe 38 Andy Wyatt 37 Chuck Clarkson 36 Frank Miller 36 Derenda Sircy 36 Brad Butler 35 Al Hacker 34 Ray Edwards 32 Marty Maitland 32 Dan Strebel 32 Steve Wheeley 30 Alvin Basel 29 Spikes Ron Schroeder 22 Don Mahone 23 Ricky Scott 19 Keith Porterfield 18 Frank Tyree 18 Ashley Crews 16 Gina Hewlett 10 Don Alexander 9 Jay Elisar 6 McClain Franks 6 Rob Pease 6

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JULY Calendar Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

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, August 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: Wednesday, August 17. Location and 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: Monday, August 22. 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. 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 - Jody Derrick. The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, July 14, 9:30 a.m. to 11:00 a.m. Topic: A special breakfast event held at the Millstone community in Hendersonville, 447 Carriage House Lane, Hendersonville, 37075. SMC members free pending sponsorship; non-SMC members $25 w/RSVP, $35 w/o RSVP Council RSVP Line: 615/377-9651, ext. 302.

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