2 The NAIL l June, 2023
THE NAIL
The official magazine of Home Builders Association of Middle Tennessee President
Brandon Rickman
Vice President Jim Hysen
Secretary/Treasurer
Kelly Beasley
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.
4 The NAIL l June, 2023
FEATURES
9
Home prices rebound in March
After recent declines, home prices climbed for the second straight month in March according to latest reports
11
Annual Builders Event a big success last month
The annual Spring Fling & Builders Show was held last month drawing big crowds of builders and industry professionals to the HBAMT.
15
HBAMT’s popular Golf Tournament in 2 months!
The HBAMT’s Annual Golf Tournament returns this August to the Towhee Club in Spring Hill. Sign up now to participate in the big event as a player or a sponsor and join us on the course. Players registration on page 15; sponsors registration page sixteen.
June, 2023 l The NAIL 5
DEPARTMENTS 6 News & Information 17 SPIKE Club Report 17 June Calendar 18 Chapters and Councils ON THE COVER:
Underneath the big tent at the HBAMT’s Annual Builder Show last month. See page 11 (eleven) for more details.
New home sales get boost in April from dip in resales
Stabilizing mortgage rates and a lack of resale inventory provided a boost for new home sales in April, even as builders continue to wrestle with rising costs stemming from shortages of transformers and other building materials and a persistent lack of construction workers.
Sales of newly built, single-family homes in April increased 4.1% to a 683,000 seasonally adjusted annual rate from a downwardly revised reading in March, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest level since March 2022.
“A lack of existing inventory supported sales of newly-built, single-family homes in April,” said Alicia Huey, chairman of the National Association of Home Builders (NAHB) and a custom home builder and developer from Birmingham, Ala. “Even more encouraging, we are seeing sales growth in the more affordable price ranges of $200,000 to $400,000.”
“April saw an increase in new home sales as buyers sought new construction even as builders struggle to keep up with demand because of a shortage of distribution transformers and skilled construction workers,” said NAHB Chief Economist Robert Dietz. “Sales for 2023 thus far are still down 9.7% on a year-to-date basis due to elevated
interest rates, and sales may weaken in the months ahead given the recent rise in interest rates.”
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 April reading of 683,000 units is the number of homes that would sell if this pace continued for the next 12 months.
New single-family home inventory increased 0.2% in April and remained elevated at a 7.6 months’ supply at the current building pace. A measure near a 6 months’ supply is considered balanced. However, the lack of resale, existing home inventory means that overall inventory for the single-family market remains tight.
The median new home sale price fell in April to $420,800 and was down 8% compared to a year ago. The report showed growth in the lower price ranges, with 9,000 sales in the $200,000-$299,999 price range in April 2023, compared to just 4,000 sales a year prior. The $300,000-$399,999 price bracket grew by 14,000 sales in that same time frame.
Regionally, on a year-to-date basis, new home sales fell in all regions, down 19.2% in the Northeast, 9.8% in the Midwest, 0.7% in the South and 27.5% in the West n
6 The NAIL l June, 2023
NEWS&INFO
Advertise in THE NAIL For advertising rates and information, or to secure your ad, please email jargo@hbamt.org with your questions and requests.
Single family starts show improvement in April
Alack of existing inventory and stabilizing mortgage rates helped push single-family production up to the highest rate thus far in 2023 even as builders continue to deal with high construction costs, persistent labor shortages and tightening credit conditions for construction loans.
Overall housing starts in April increased 2.2% to a seasonally adjusted annual rate of 1.40 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
The April reading of 1.40 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 increased 1.6% to an 846,000 seasonally adjusted annual rate. However, this remains 28.1% lower than a year ago. The multifamily sector, which includes apartment buildings and condos, increased 3.2% to an annualized 555,000 pace.
“Single-family starts are showing gradual improvement from the beginning of the year, and this is reflected in our builder sentiment
surveys, which are up for five consecutive months,” said Alicia Huey, NAHB chairman. “Due to a lack of inventory for resales, we expect to see further improvement for single-family production in the months ahead even as builders continue to grapple with supply-chain and labor shortages.”
“As the Federal Reserve nears the end of its tightening of financial conditions, we expect mortgage rates to moderate in the months ahead, and this will lead to a gradual improvement in single-family production,” said NAHB Chief Economist Robert Dietz. “Multifamily permits are down 23% yearover-year, and this indicates a slowdown for apartment construction is underway due to a tighter lending environment.”
On a regional and year-to-date basis, combined single-family and multifamily starts were 8.9% lower in the Northeast, 29.5% lower in the Midwest, 15.9% lower in the South and 29.7% lower in the West.
Overall permits decreased 1.5% to a 1.42 million unit annualized rate in April. Single-family permits increased 3.1% to an
Lack of existing inventory boosts builders confidence
Limited existing inventory, which has put a renewed emphasis on new construction, resulted in a solid gain for builder confidence in May even as the industry continues to face several challenges, including building material supply chain disruptions and tightening credit conditions for construction loans.
Builder confidence in the market for newly built single-family homes in May rose five points to 50, according to the NAHB/Wells Fargo Housing Market Index (HMI). This marks the fifth straight month that builder confidence has increased and is the first time that sentiment levels have reached the midpoint mark of 50 since July 2022.
“New home construction is taking on an increased role in the marketplace because many home owners with loans well below current mortgage rates are electing to stay put, and this is keeping the supply of existing homes
at a very low level,” said NAHB Chairman Alicia Huey. “While this is fueling cautious optimism among builders, they continue to face ongoing challenges to meet a growing demand for new construction. These include shortages of transformers and other building materials and tightening credit conditions for residential real estate development and construction brought on by the actions of the Federal Reserve to raise interest rates.”
“Lack of existing inventory continues to drive buyers to new construction,” said NAHB Chief Economist Robert Dietz. “In March, 33% of homes listed for sale were new homes in various stages of construction. That share from 2000-2019 was a 12.7% average. With limited available housing inventory, new construction will continue to be a significant part of prospective buyers’ search in the quarters ahead.”
Derived from a monthly survey that
855,000 unit rate, but are down 21.2% compared to a year ago. Multifamily permits decreased 7.7% to an annualized 561,000 pace.
Looking at regional permit data on a yearto-date basis, permits were 27.2% lower in the Northeast, 28.2% lower in the Midwest, 18.7% lower in the South and 28.6% lower in the West.
The number of single-family homes under construction in April fell to 698,000, down 16% from a peak total of 831,000 in May 2022.
There are now 977,000 apartments under construction, which is the highest level since September 1973. n
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 major HMI indices posted gains in May. The HMI index gauging current sales conditions rose five points to 56, the component charting sales expectations in the next six months increased seven points to 57 and the gauge measuring traffic of prospective buyers increased two points to 33.
Looking at the three-month moving averages for regional HMI scores, the, Midwest edged up two points to 39, the South increased three points to 52 and the West moved three points higher to 41. The Northeast held steady at 45.” n
June, 2023 l The NAIL 7
Home prices rebound in March
After seven consecutive months of decline, home prices climbed for a second straight month in March as low inventory levels persist. Locally, five metro areas, reported by S&P Dow Jones Indices, experienced negative home price appreciation in March.
The S&P CoreLogic Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 5.1% in March, following a 3.6% increase in February. After a decade of growth, home prices declined for seven consecutive months from July 2022 to January 2023, driven by elevated mortgage rates and weakening buyer demand. Nonetheless, national home prices are now 62% higher than their last peak during the housing boom in March 2006.
On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 0.7% annual gain in March, down from 2.1% in February. Yearover-year home price appreciation slowed for the twelfth consecutive month.
Meanwhile, the Home Price Index, released by the Federal Housing Finance Agency (FHFA), rose at a seasonally adjusted annual rate of 7.7% in March, following an 8.8% increase in February. On a year-overyear basis, the FHFA Home Price NSA Index rose by 3.7% in March, down from 4.3% in the previous month.
In addition to tracking national home price changes, S&P Dow Jones Indices reported home price indexes across 20 metro areas in March. In March, local home prices varied and their annual growth rates ranged from -10.3% to 18.5% in March. Among the 20 metro areas, nine metro areas exceeded the national average of 5.1%. Detroit, New York and San Diego had the highest home price appreciation. Detroit led the way with an 18.5% increase, followed by New York with a 13.9% increase and San Diego with a 12.7% increase.
Compared to the previous month, home prices in five metro areas declined in March. They were Dallas (-1.5%), Cleveland (-2.7%), Las Vegas (-4.2%), Phoenix (-4.5%) and Seattle (-10.3%) n
June, 2023 l The NAIL 9
10 The NAIL l June, 2023
2023 BUILDERS SHOW a hit!
The Annual Spring Fling & Builders Show enjoyed big crowds last month at the HBAMT. Over 50 member vendors and sponsors took part in the fun-filled event welcoming builders to their exhibit booths and taking part in all the festivities.
A big thanks to the Ferguson team for once again stepping up and providing great food at their grilling station during the show. And a big thanks to all the Spring Fling & Builders Show exhibitors and sponsors for making the event such a success. n
June, 2023 l The NAIL 11
2022 HBAMT President Nick Wisniewski and wife Lauren introduced their baby girl Elliot to the association during the event. Congratulations Nick and Lauren!
12 The NAIL l June, 2023
Jimmy Franks was the big cash prize winner following the event’s annual raffle.
June, 2023 l The NAIL 13
Please return your completed registration form (provided below) to the HBAMT to enter. ALL COMPANY TEAMS MUST BE A MEMBER OF THE HBAMT.
EMAIL ___________________________________ PHONE ________________________________________
Print names of players. Four (4) players per team ($240.00 per player). 1.) _________________________________________
Check your preference (to accommodate all golfers we are hosting two rounds): r Morning Round | r Afternoon Round
______ No. of players x $240.00 Add an additional $80 if you check the box below to purchase a Mulligan Packet
r Check here to add $80 and purchase a Mulligan Packet for each player (each packet includes two (2) mulligans, one (1) extend-a-putt, and one (1) red tee per player on your foursome)
Make checks payable to HBAMT; call 377-1055 to pay by cc*
Return: HBAMT - 9007 Overlook Blvd, Brentwood, TN 37027 | Email: cnicley@hbamt.org
June, 2023 l The NAIL 15
CONTACT ________________________________ COMPANY _____________________________________
2.) _____________________________________________ 3.) _________________________________________ 4.) _____________________________________________
3% convenience fee is applied to all credit card transactions
*A
2023 Golf Tournament Sponsorships!
The 12th Annual HBAMT Golf Tournament is set for Thursday, August 17 at the Towhee Club in Spring Hill Sign up now to sponsor at one of the following levels!
TITLE SPONSOR $10,000 1 available
Lunch Sponsor $5,000 1 available
Breakfast Sponsor $3,000 1 available
Platinum $1,200 5 available
Gold Sponsor $1,800 9 available
Silver Sponsor $650
Hospitality Cart $2,500 2 available
Wrap-up Party Sponsor $3,000 1 available
l Company name featured as headliner on all materials
Your Name (print)
l Booth at registration, awards wrap-up & course hole
l Opportunity to hand out promotional materials
l Signage provided o
l Company name featured as Lunch Sponsor on all material
l Booth at check-in and Golf Tournament course hole
l Opportunity to hand out promotional materials
l Four (4) tickets to Wrap-up
SOLD SOLD
l Company name featured as Breakfast Sponsor on all material
l Booth at check-in and Golf Tournament course hole
l Your booth will be breakfast ticket pick up point for all golfers
l Opportunity to hand out promotional materials
l Two (2) tickets to Wrap-up o
l Company name featured on all materials
l Booth at wrap-up & course hole
l Opportunity to hand out promotional materials at hole
l Signage at tournament provided
l Two (2) tickets to wrap-up o
l Single hole sponsor for both morning & afternoon rounds
l Opportunity to hand out promotional materials at hole
l Signage at tournament provided
l Opportunity to hand out information & goodies
l Two (2) tickets to wrap-up o
l Hole sponsor for both morning & afternoon rounds
l Opportunity to hand out promotional materials at hole
l Two (2) tickets to wrap-up o
l Hospitality cart with your name on it
l Opportunity to ride cart in morning & afternoon rounds moving freely within the course handing out beverages & goodies
l Company name featured as Wrap-up Sponsor on all material
l Booth at check-in and Golf Tournament course hole
l Opportunity to hand out promotional materials
l Two (2) tickets to Breakfast
Indicate which of the six (6) sponsorship levels shown above you selected and return the completed form below to the HBAMT to sign up today! (List company EXACTLY as you want it to appear on signage.) CONTACT
16 The NAIL l June, 2023
sponsorship level price/# available benefits selection
o
o
o
_________________________________
___________________________________
____________________________________ PHONE ______________________________________
COMPANY
EMAIL
____________________________ Signature ____________________________________ Return to: HBAMT - 9007 Overlook Blvd, Brentwood, TN 37027 l Email: cnicley@hbamt.org HBAMT does not allow subletting of any of services, products, promotional opportunities or memberships. **A 3% convenience fee is applied to all credit card transactions.**
SPIKE REPORT
Twenty-two 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 April 30, 2023.
Top 20 Big Spikes Mitzi Spann 795 Terry Cobb 570 Trey Lewis 557 James Carbine 485 Jimmy Franks 484 Jennifer Earnest 393 David Crane 355 Kevin Hale 303 Reese Smith III 261 Davis Lamb 229 Brandon Rickman 237 Nick Wisniewski 229 Sonny Shackelford 219 Steve Shalibo 210 David Hughes 194 Randall Smith 187 Tonya Esquibel 167 Jim McLean 166 Steve Cates 147 Harry Johnson 146 Life Spikes Jordan Clark 139 C.W. Bartlett 138 Michael Dillon 130 Dave McGowan 126 B.J. Hanson 122 Justin Hicks 118 John Zelenak 118 Edsel Charles 114 Duane Vanhook 114 Wiggs Thompson 111 Joe Dalton 100 Sam Henley 89 Jody Derrick 84 Keith Porterfield 84 Jim Hysen 82 Erin Richardson 77 Beth Sturm 76 Ryan Meade 75 Ron Schroeder 75 Christina James 74 Nelson Bordeau 71 Andrew Neuman 69 Rachel Holloway 65 Bryan Sebring 56 Lisa Underwood 56 John Broderick 55 Rick Olszewski 54 John Ganschow 52 Frank Jones 52 Ricky Scott 45 Margaret Tolbert 37 Kelvey Benward 32 Don Mahone 31 Danny Clawson 29 Jeffrey Caruth 28 Perry Pratt 28 Tammy Chambers 27 Eli Routh 26 Maverick Green 25 Spikes Tim Woodward 22 Nicole Bird 15 Rob Pease 15 John Nehrenz 14 Curt Haynes 12 Chris Richey 11 Randy Arnold 10 Clint Mitchell 10 Robert Goodall 7 Kelly Beasley 6 McClain Franks 6
JUNE CALENDAR
CHAPTERS
CHEATHAM COUNTY CHAPTER
Chapter President - Roy Miles
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
The Dickson County Chapter meets on the third Monday of the month, 12:00 p.m. at Colton’s Steakhouse in Dickson. Next meeting: to be announced.
Price: FREE, lunch dutch treat.
Chapter RSVP Line: 615/377-9651, ext. 264
MAURY COUNTY CHAPTER
Chapter President - Lisa Underwood
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 - Tonya Esquibel
The Metro/Nashville Chapter meets on the third Tuesday of the month, 11:30 a.m. at the HBAMT offices.
Next meeting: to be announced.
Topic: to be announced.
Price: to be announced.
RSVP to: cnicley@hbamt.org
ROBERTSON COUNTY CHAPTER
Next meeting: to be announced.
Robertson County RSVP line: 615-377-9651, ext. 313.
SUMNER COUNTY CHAPTER
Chapter President - Joe Dalton
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. 262
WILLIAMSON COUNTY CHAPTER
Chapter President - Christina James
The Williamson County Chapter meets on the third Tuesday of the month, 11:30 a.m. at the HBAMT offices*.
Next meeting: *Special event! Membership Mixer at Barrels & Brews in Franklin!
When: Thursday, June 15th from 4-6 p.m.
Price: Free with RSVP thanks to SPEC Building Materials! RSVP to: cnicley@hbamt.org
WILSON COUNTY CHAPTER
Chapter President - Margaret Tolbert
The Wilson County Chapter meets on the second Thursday of the month at varying locations in the Wilson County area.
Next meeting: Thursday, June 8th.
Topic: Panel Discussion with Top Builders and Developers. More details coming soon!
RSVP to: cnicley@hbamt.org
COUNCILS
HBAMT REMODELERS COUNCIL
Council President - Eli Routh
The HBAMT Remodelers Council meets at varying
locations throughout the year.
Next meeting: to be announced.
Topic: to be announced.
Council RSVP Line: 615/377-9651, ext. 263
RSVP to: cnicley@hbamt.org
INFILL BUILDERS COUNCIL
The Infill Builders Council typically meets on the third Thursday of the month, 11:30 a.m. at the HBAMT offices
Next meeting: to be announced.
Price: to be announced.
RSVP to: 615/377-9651, ext. 265.
MIDDLE TENN SALES & MARKETING COUNCIL
Council President - Kelvey Benward
The SMC typically meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices.
Next meeting: Thursday, June 1st at the HBAMT.
Topic: “What’s Stopping Your Sale?” Learn from Nashville’s top new home sales leaders how to overcome any objections and get your buyers over the finish line.
SMC members free thanks to Lennar! Non-SMC members $15 w/RSVP, $20 w/o RSVP
RSVP REQUIRED - LIMITED SEATING
RSVP to: cnicley@hbamt.org
18 The NAIL l June, 2023
1 Sales & Marketing
2 3 4 5 6 7 8 Wilson County Chapter meeting 9 10 11 12 13 14 15 Williamson County Chapter MEMBERSHIP MIXER 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 1 2 3 4 5 6 7 8 Sunday Monday Tuesday Wednesday Thursday Friday Saturday
CHAPTERS & COUNCILS
Council meeting
