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THE
NAIL The official magazine of Home Builders Association of Middle Tennessee President John Zelenak Vice President Keith Porterfield Secretary/Treasurer Justin Hicks Executive Vice President John Sheley Editor and Designer Jim Argo Staff Connie Nicley Charlotte Fischer Cilla Lamar 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 11 Local charities benefit from House For Hope
Carbine & Associates recently donated proceeds from the 2017 House For Hope project to local charities.
13 NAHB members fan out on Capitol Hill
NAHB members from across the country attended the association’s annual Legislative Conference last month.
DEPARTMENTS 6 News & Information 14 SPIKE Club Report 16 July Calendar 16 Chapters and Councils
ON THE COVER: NAHB members, including many from our local and state associations, made their way to the nation’s capital last month for the 2017 Legislative Conference. More on page thirteen. July, 2017
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news&info
New home sales rise 2.9 percent in May
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ales of newly built, single-family homes in May rose 2.9 percent to a seasonally adjusted annual rate of 610,000 units after an upwardly revised April reading, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. “We are seeing solid overall growth in new home sales this year,” said Granger MacDonald, chairman of the National Association of
With more consumers entering the market, further job growth and tight existing home inventory, the new home sector should continue to expand. 6 The NAIL
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Home Builders (NAHB) and a home builder and developer from Kerrville, Texas. “Sales are up more than 12 percent from this time last year, and we expect continued gains throughout 2017.” “This month’s report is in line with our forecast, and consistent with solid builder confidence readings,” said NAHB Chief Economist Robert Dietz. “With more consumers entering the market, further job growth and tight existing home inventory, the new home sector should continue to expand.” The inventory of new home sales for sale was 268,000 in May, which is a 5.3-month supply at the current sales pace. Regionally, new home sales increased 13.3 percent in the West and 6.2 percent in the South. Sales fell 10.8 percent in the Northeast and 25.7 percent in the Midwest. n
Optimistic but cautious consumers in June
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he Consumer Confidence Index, released by the Conference Board, rose in June. Consumers were quite optimistic about current conditions, but less optimistic about the near term outlook than in May. The index increased to 118.9 in June, from 117.6 in May. The present situation index rose from 140.6 to 146.3 while the expectations index decreased from 102.3 to 100.6. Consumers’ assessments of current business conditions strengthened. The share of respondents reporting business conditions “bad” decreased by 1.2 percentage points from 13.9% to 12.7%, mostly offset by the net increase in the share of respondents reporting business conditions “good” (1.0 percentage point). Consumers were also optimistic about current employment conditions. The share of respondents reporting that jobs were “plentiful” increased from 30% to 32.8%, while assessments of “jobs not so plentiful” decreased by 2.5 percentage points and “jobs hard to get” declined by 0.3 percentage point. Expectations of business conditions over the next six months were mixed. The share of respondents expecting future business conditions to be the same increased by 1.5 percentage points from 68.2% to 69.7%, with the net gain coming from the net declines in the shares of respondents expecting business conditions to be better (1.1 percentage points) and worsen (0.4
percentage point). Similar to expectations of business conditions, expectations of employment conditions over the next six months were also mixed. The share of respondents expecting “same jobs” in the coming six months dropped by 3.2 percent-
Conference Board Consumer Confidence Respondents Planning to Buy a Home
Builder confidence remains solid in June
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uilder confidence in the market for newly-built single-family homes weakened slightly in June, down two points to a level of 67 from a downwardly revised May reading of 69 on the NAHB/Wells Fargo Housing Market Index (HMI). “Builder confidence levels have remained consistently sound this year, reflecting the ongoing gradual recovery of the housing market,” said NAHB Chairman Granger MacDonald. “As the housing market strengthens and more buyers enter the market, builders continue to express their frustration over an ongoing shortage of skilled labor and buildable lots that is impeding stronger growth in the single-fami-
age points from 69.3% to 66.1%, while expectations of “fewer jobs” and “more jobs” increased by 2.5 percentage points and 0.7 percentage point, respectively. The Conference Board also reported the share of respondents planning to buy a home within six months. There were 5.9% of respondents planning to buy a home in June, compared with 6.1% in May. Despite the monthly volatility, the trend in the share of respondents planning to buy a home within six months has been climbing. n
ly sector,” said NAHB Chief Economist Robert 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 losses in June but remain at healthy levels. The components gauging current sales conditions fell two points to 73 while the index charting sales expectations in the next six months dropped two points to 76. Meanwhile, the component measuring buyer traffic also moved down two points to 49. Looking at the three-month moving averages for regional HMI scores, the Midwest and South each edged one point lower to 67 and 70, respectively. The Northeast and West both dropped two points to 46 and 76, respectively.. 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
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NAHB celebrates a diamond jubilee
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AHB celebrated its 75th anniversary with a gala and directors’ reception during its recent Midyear Meeting in Washington, D.C. “These events are important to celebrating our seven-and-a-half decades of building communities, and they help us remember how important home building is to the nation’s well-being,” NAHB Chairman Granger MacDonald said during the June 17 Board of Directors meeting. The gala, supported by key industry spon-
sors, took place on the evening of June 15 at the Washington Hilton. It began with a program highlighting the significant accomplishments of our industry, the meaning of home and the emotional impact of the American Dream. The gala also showcased video of congratulatory remarks from celebrities and current and former Congressional heavyweights, including House Majority Whip Steve Scalise (R-La.) victim of the recent attack in Alexandria, Va. Scalise had recorded his remarks before the incident. Chris Wallace, host of Fox News Channel‘s Fox News Sunday, was the featured speaker. Wallace wove together a humorous narrative about his career observing the Washington policy arena with heart-felt stories about the importance of his home as a core part of his family’s life. The directors’ reception took place June 16, the evening before the Board of Directors meeting, at the National Housing Center – NAHB’s headquarters.
“Connected” homes are the new standard
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or most home shoppers, owning a smart home is no longer a dream — it’s an expectation. Particularly among younger generations who have lived most of their lives in the digital era, staying “connected” is a way of life. So it’s no surprise they want their homes to be connected, too. “Home automation has become significantly more pervasive in recent years,” says Grayling Love, product line manager at Eaton, a member of NAHB’s Leading Suppliers Council. “We’ve reached a point where the majority of consumers aren’t only willing to invest in it, but they’re expecting their next home to be connected.” Later this week during NAHB’s Midyear Board Meeting, Love will lead an in-depth discussion on the emerging trends in connected-home technology. In addition to covering current trends and consumer expectations, his Thursday morning session will review integration solutions for a wide variety of products in the market.
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Increased competition among product manufacturers is resulting in lower prices, making it more feasible for consumers to afford those smart-home products — and more of them. Rather than just buying one or two smart products, they’re buying several and connecting them all through one device. That “middle ground,” as Love calls it, is where the majority of the smart-home market is trending: The segment between having one standalone solution like automated lights, and owning a high-end home with every automated feature imaginable — living in a home with
“For three-quarters of a century, your national organization has fought for home builders, home owners and communities nationwide,” MacDonald said during the reception. “In a world of change, NAHB has been a constant fixture, always working to create a business and political environment in which builders can succeed.” MacDonald noted that just as NAHB is celebrating its 75th anniversary, HBI – NAHB’s workforce training arm – is celebrating its 50th anniversary. He also pointed to the important role that associate members play in the life of the NAHB Federation. Invited to the podium by MacDonald, 2017 Associates Committee Chair Monica Sommerfeldt Lewis commended these innovators and problem solvers for the time and expertise they provide in support of NAHB and its state and local partners. MacDonald recognized former NAHB Chairman Kevin Kelly, who is chairing the 75th anniversary task force. MacDonald also thanked the generous sponsors, of the gala and of the year-long 75th anniversary celebration, including a special recognition of Herb Kohler Jr., chairman of the Kohler Company. n
multiple connected devices is where most of today’s buyers (realistically) want to be. “More people are seeing the long-term ROI of these products and are willing to pay a premium for them,” says Love, who has been working in the technology and connected-product industries for that past 10 years. “Plus, new cases are continually emerging for smart technology in the home, particularly among older consumers for whom the convenience factor is huge.” Love notes that while younger consumers have been quick to embrace the connected home concept, seniors and baby boomers aren’t far behind. “When product manufacturers effectively address concerns about convenience, security and safety, consumers really latch on to that notion of added value and see the connected home as a smart investment,” he says. Love’s presentation, “The Connected Home: Trends and Technologies Shaping the Way We Live,” will take place from 10:30 a.m.-1 p.m. in room Washington 4, exhibition level of the Marriott Wardman Park hotel. All builder members are welcome to attend. For more information, contact Love or NAHB’s Jackie Barnes.. n
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 _______ No. of players x $210.00 or One (1) player for $225.00 | Make checks payable to HBAMT; call 377-1055 to pay by cc Return: HBAMT - 9007 Overlook Blvd, Brentwood, TN 37027 | Fax: 615-377-1077 | Email:cnicley@hbamt.net
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Local charities benefit from House For Hope
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arbine & Associates presented $102,000 to 17 Middle Tennessee children’s charities as a result of the House for Hope Designer Show House event held in March of this year. One week after opening for tour, the home was under contract and sold with 100% of the home sale proceeds donated by Carbine according to James Carbine, president of Carbine & Associates. Carbine said the House for Hope Foundation was founded in 1993 with his brother, the late Denzel Carbine, as a way for builders, subcontractors and vendors to give back to their community in the build and sale of a beautiful new home. “My brother Denzel and I dreamed for a way in which builders could give back to our community. We are so blessed to work and live in Middle Tennessee and felt called to create a way for ourselves and our peers in the building community to make a contribution. It is the American dream to own your own home. We are lucky to make the dreams of so many come true every day and want to give back to the children of our community who need extra help, support and assistance,” Carbine said. “To date, almost $700,000 has been donated by builders through the House for Hope Foundation.” The custom homebuilder built the farmhouse style home in the new Southern Preserve neighborhood of Franklin, Tennessee opening it last March with design tastemakers from four states participating in the home event. Checks were presented to the following nonprofit organizations: Camp
Will – WMCO Recreation Center; Special Olympics WMCO; Special Olympics Tennessee; Big Brothers Big Sisters of Middle Tennessee; Hospital Hospitality House of Nashville; Tennessee Baptist Children’s Home; Boys & Girls Club –WMCO; Boys & Girls Club – Davidson County; Saddle Up; AGAPE; GraceWorks; My Friend’s House; Narrow Gate Lodge; Waves – Early Learning; High Hopes; Young Life Capernaum – Williamson County; Make-A-Wish Foundation Middle Tennessee; Bridges Domestic Violence Center - Williamson County; Franktown Open Hearts. For more information on building or donating to the House for Hope Foundation, contact Carbine & Associates at 615-661-9995. n Carbine & Associates building team, from left to right: James Carbine, Eric Bentley Kim Dykes, Beth Sturm, Kristen Carbine, Wil Ellison, Suzee Walters. (Photo by Forest Home Media)
Left to right: Tina Edwards, My Friend’s House; Linda Crockett Jackson, Bridges Domestic Violence Center – Williamson County; Gina Wilson, Waves – Early Learning; Grace Bingham, Make-A-Wish Foundation Middle Tennessee; Carbine & Associates’ Daryl Walny and James Carbine; Nick Oldham, Boys & Girls Club Davidson County; Jon Stephenson, Special Olympics WMCO; Chandler Means, AGAPE; SECOND ROW, Alan Bolick, Special Olympics Davidson County; Laurel Owens, Young Life Capernaum-Williamson County; Gail Powell, High Hopes; Chris Barnhill, Franktown Open Hearts; Denise Carothers, Boys & Girls Club – Williamson County; Sarah Beatty, Big Brothers Big Sisters of Middle Tennessee; Katie Hall, Hospital Hospitality House of Nashville; THIRD ROW, Phil Stone, Narrowgate Foundation; Kelly Campbell, Tennessee Baptist Children’s Home. Not pictured: GraceWorks, Saddle Up and Camp Will – Williamson County Therapeutic Programs. Photo by Forest Home Media.
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NAHB members fan out on Capitol Hill M
ore than 800 builders, remodelers and their trade partners from across the nation made their way to Capitol Hill last month for the annual NAHB Legislative Conference. In a day full of meetings with elected officials and their staff, our members called on Congress to make housing and homeownership a national priority and to support policies that will keep the housing recovery moving forward. “Builders from coast-to-coast sent a loud and clear message to members of Congress that a strong housing market is critical to spur job growth and create a vibrant, dynamic economy,” said NAHB Chairman Granger MacDonald. In more than 250 individual meetings with their representatives and senators, our members asked for progress on several key housing issues, including: Regulatory reform. “We need a common-sense approach to regulations that kill small businesses. We need to be at the table. We need to keep pressing,” said Tom Ashley, co-owner of the remodeling company Expand Inc. in Baton Rouge, La. “We’re very excited to go up on the Hill and speak with Sen. (Marco) Rubio. Addressing the labor shortage is definitely our No. 1 priority. But we also need to get a handle on regulations. Many of my clients are getting killed by excessive regulations and it’s getting harder and harder for them to turn a profit. Our hope is that [Congress will] apply more common sense to the regulations that impact home building,” said Kimberly Mackey, president and founder of New Home Solutions in Tampa, Fla. A predictable, affordable national flood insurance program. “Losing the national flood insurance program would make it hard to even build — let alone sell,” said Darrick Guthmiller, chief business officer of Kochmann Brothers Homes Inc. in Fargo, North Dakota. Housing finance reform. “We talked about the future of housing finance. That is the key, critical issue here in Tulsa,” said HBA of Greater
Home Builders Association of Tennessee members, including HBAMT’s James Carbine, Mitzi Spann and Carmen Ryan, make our voices heard at the NAHB Legislative Conference.
Tulsa director of association issues Stacey Bayles. Members also discussed tax reform, including protecting incentives for homeownership; promoting cost-effective energy codes; securing a supply of softwood lumber sufficient to meet demand; and improving the Low Income Housing Tax credit to help meet the nation’s acute need for affordable rental homes. Rep. Peter Roskam (R-Ill.), who sits on the House Ways and Means Committee, spoke to builders before they met with their lawmakers and said that this year there is “a real opportunity to do something about tax reform.” House Republicans are working on a tax reform blueprint that would generate economic growth, simplify the tax code, stop erosion of the U.S. tax base so that it is no longer more attractive for U.S. corporations to go overseas, and provide permanency to the tax code to deliver certainty to the business community, Roskam said. It’s the first year since 2013 that NAHB has held its annual Legislative Conference in Washington, D.C. During the past three years, as part of a nationwide effort to “bring housing home,” builders across the country met with their federal lawmakers in their home districts. The conference is held in conjunction with the NAHB Midyear Meeting. “The big benefit of the board meeting for me is coming and meeting with other builders,” said Brian Esposito, owner of Esposito Construction Inc., in Hilton Head Island, S.C. “The learning and education I get from them is a big reason why I come.” n
The HBAT group, including Carbine, Ryan and Spann, meet with Representative Scott DesJarlais during the conference. July, 2017
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SPIKE REPORT Tim Ferguson Jim McLean Louise Stark Harry Johnson Steve Cates C.W. Bartlett
Thirty 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, 2017. Top 20 Big Spikes Mitzi Spann Terry Cobb Jim Fischer John Whitaker James Carbine Jennifer Earnest Trey Lewis Kevin Hale David Crane Reese Smith III James Franks Steve Moody Davis Lamb Jackson Downey
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750 569 566 526 372 357 356 298 296 261 222 219 201 182
177 164 163 146 142 138
Life Spikes Sam Carbine 132 Tonya Esquibel 131 Steve Hewlett 119 B.J. Hanson 115 Jordan Clark 114 Carmen Ryan 114 Dave McGowan 106 Wiggs Thompson 96 Duane Vanhook 95 John Zelenak 91 Helmut Mundt 88 Jeff Zeitlin 87 Randall Smith 85 Michael Dillon 83 Erin Richardson 76 Christina Cunningham 73 David Hughes 66 Lori Fisk-Conners 65 Don Bruce 62 Beth Sturm 62 Justin Hicks 60 Joe Morgan 54 John Broderick 54
Marty Maitland Andrew Neuman Ron Schroeder John Ganschow Bryan Edwards Derenda Sircy Keith Porterfield Ricky Scott Ashley Crews Phillip Smith Jody Derrick Don Mahone
52 50 49 47 44 43 39 35 32 29 28 26
Spikes Frank Tyree 24 Rick Olszewski 23 Jay Elisar 19 Frank Jones 17 Steve Shalibo 16 John Burns 15 Gina Hewlett 10 Kenny Burd 10 Pam Smith 10 Will Montgomery 9 Bob Bellenfant 8 Perry Pratt 8 Stacy DeSoto 7 Rob Pease 7 McClain Franks 6 Jim McCann 6
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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, August 21. 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 28. 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
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Next meeting: to be announced. Robertson County RSVP line: 615-377-9651, ext. 313.
sponsorship; $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 308
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
HBAMT REMODELERS COUNCIL Council President - Ricky Scott. The HBAMT Remodelers Council meets on the third Wednesday of the month at varying locations. Next meeting: Wednesday, August 16. 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
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. Topic: to be announced. Price: free for Green Building Council members pending
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 - Ashley Crews. The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, August 3, 9:00 a.m. at the HBAMT. Topic: to be announced. 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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