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.
The annual Spring Fling & Builders Show was held last month drawing big crowds of builders and industry professionals to the HBAMT.
James Hardie Golf Tournament this August
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 13; sponsors registration page fourteen.
June, 2024 l The NAIL 5 FEATURES 9 2024 Spring Fling and Builders Show
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DEPARTMENTS 6 News & Information 15 SPIKE Club Report 16 June Calendar 16 Chapters and Councils ON THE COVER: The Annual Builders Show was held last month at the HBAMT. See page 9 (nine) for more details.
New home sales in April down on higher mortgage rates
Mortgage rates that averaged above 7% since mid-April per Freddie Mac data acted as a drag on new home sales last month.
Sales of newly built, single-family homes in April fell 4.7% to a 634,000 seasonally adjusted annual rate from a downwardly revised reading in March, 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 April is down 7.7% from a year earlier.
“The last four weeks mortgage rates have been above 7% and this is clearly causing many potential home buyers to sit on the fence,” said Carl Harris, chairman of the National Association of Home Builders (NAHB) and a custom home builder from Wichita, Kan. “However, in the weeks and months ahead, we expect mortgage rates to fall below 7%. Moderating rates, along with a dearth of existing inventory, should help new home sales recover as new construction will be needed to meet the demand for homes, especially during this crucial spring/summer season.”
“A lack of homes in the resale market combined with softening of the median new home price should incentivize home buyers to turn to new construction in the coming months,”
said Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis.
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 634,000 units is the number of homes that would sell if this pace continued for the next 12 months.
New single-family home inventory in April remained elevated at a level of 480,000, up 12.1% compared to a year ago. This represents an 9.1 months’ supply at the current building pace, which has been supported by the ongoing shortage of resale homes. Completed, ready to occupy inventory (97,000 homes in April) is up 42.6% from a year ago. However, that inventory type remains 20% of total inventory.
The median new home sale price in April was $433,500, down 1.4% from March, and up 3.9% compared to a year ago.
Regionally, on a year-to-date basis, new home sales are up 22.4% in the Northeast, 22.3% in the Midwest and 14.0% in the West. New home sales are down 10.5% in the South n
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.
Higher interest rates keep single-family housing starts flat
Single-family starts remained flat in April as interest rates moved above 7% last month and builders were dealing with tighter lending conditions.
Overall housing starts increased 5.7% in April to a seasonally adjusted annual rate of 1.36 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 1.36 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 0.4% to a 1.03 million seasonally adjusted annual rate. However, this pace is 17.7% higher than a year ago. On a year-to-date basis, single-family starts are up 25.7%, totaling 335,600. The multifamily sector, which includes apartment
buildings and condos, increased 30.6% to an annualized 329,000 pace.
“While the start of the year has seen an expansion for single-family home building because of a lack of existing home inventory, home building activity leveled off in April as higher interest rates, tighter lending conditions and lower home building sentiment acted as headwinds on new home construction,” said Carl Harris, NAHB chairman. “Lower interest rates, particularly for builder and developer loans, will help builders to increase the pace of home construction in the months ahead.”
“Moving forward, the multifamily market will see additional declines for construction volume, while the pace of completions remains elevated,” said NAHB Chief Economist Robert Dietz. “April marked the fifth
Builder sentiment down six points in May
With mortgage rates averaging above 7% for the past four weeks per data from Freddie Mac, builder sentiment posted its first decline since November 2023.
Builder confidence in the market for newly built single-family homes was 45 in May, down six points from April, according to the NAHB/Wells Fargo Housing Market Index (HMI) released recently.
“The market has slowed down since mortgage rates increased and this has pushed many potential buyers back to the sidelines,” said NAHB Chairman Carl Harris. “We are also concerned about the recent codes rules that require HUD and USDA to insure mortgages for new single-family homes only if they are built to the 2021 International Energy Conservation Code. This will further increase the cost of construction in a market that sorely needs more inventory for firsttime and first-generation buyers.”
“A lack of progress on reducing inflation pushed long-term interest rates higher in the first quarter and this is acting as a drag on builder sentiment,” said NAHB Chief
Economist Robert Dietz. “The last leg in the inflation fight is to reduce shelter inflation, and this can only occur if builders are able to construct more attainable, affordable housing.”
The May HMI survey also revealed that 25% of builders cut home prices to bolster sales in May, ending four months of consecutive declines in this metric. However, the average price reduction in May held steady at 6% for the 11th straight month. Mean-
consecutive month for which the seasonally adjusted rate of multifamily completions was above 500,000. This additional rental supply will help lower shelter inflation, which is the last leg of the inflation policy challenge.”
On a regional and year-to-date basis, combined single-family and multifamily starts are 24.5% lower in the Northeast, 11.0% higher in the Midwest, 1.8% higher in the South and 8.4% higher in the West.
Overall permits decreased 3.0% to a 1.44 million unit annualized rate in April. Single-family permits decreased 0.8% to a 976,000 unit rate; this is the lowest pace since August 2023. Multifamily permits decreased 7.4% to an annualized 464,000 pace.
Looking at regional data on a year-to-date basis, permits are 9.3% higher in the Northeast, 8.5% higher in the Midwest, 2.8% higher in the South and 0.2% higher in the West.
After peaking in July 2023 at 1.02 million apartments under construction, active multifamily units under construction is declining quickly—down to 934,000 in April. n
while, the use of sales incentives ticked up to 59% in May from a reading of 57% in April.
Derived from a monthly survey that 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 component indices posted declines in May. The HMI index charting current sales conditions in May fell six points to 51, the component measuring sales expectations in the next six months fell nine points to 51 and the gauge charting traffic of prospective buyers declined four points to 30.
Looking at the three-month moving averages for regional HMI scores, the Midwest increased three points to 49, the Northeast fell two points to 61, the South dropped two points to 49 and the West posted a four-point decline to 43. n
June, 2024 l The NAIL 7
Spring Fling and Builders Show!
The HBAMT's Annual Spring Fling & Builders Show enjoyed big crowds last month at the association's Brentwood offices. Over 50 member vendors and sponsors filled the event tent and welcomed builders to the big show and their exhibit booths.
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, 2024 l The NAIL 9
David Hughes (above) and Roy Miles (right) were big cash prize winners during the event's annual raffle.
June, 2024 l The NAIL 11
Please return your completed registration form (provided below) to the HBAMT to enter.
TEAMS
BE A MEMBER OF THE HBAMT (all teams must have at least one HBAMT member playing).
ROUND SOLD
- you are registering for the afternoon 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; cc payment below* | HBAMT - 9007 Overlook
June, 2024 l The NAIL 13
ALL
CONTACT ________________________________ COMPANY _____________________________________ EMAIL ___________________________________ PHONE ________________________________________ Print names
players.
players per team ($240.00 per player). **Team not guaranteed for tournament play until payment is received** 1.) _________________________________________ 2.) _____________________________________________ 3.) _________________________________________ 4.) _____________________________________________ MORNING
Blvd, Brentwood, TN 37027
Credit Card _______________________ Credit Card # _______________________________ Exp. ____________ CC V-Code ______ The “v-code” is found on the back of the card, usually printed or embossed atop or near the signature strip. It is comprised of three digits. Signature ________________________________________________________________________________________ *A 3% convenience fee is applied to all credit card transactions
COMPANY
MUST
of
Four (4)
OUT
| Email: cnicley@hbamt.org
2024 Golf Tournament Sponsorships!
The 13th Annual HBAMT Golf Tournament is set for Thursday, August 15 at the Towhee Club in Spring Hill. Sign up now to sponsor at one of the following levels!
TITLE SPONSOR
Lunch Sponsor
Breakfast Sponsor
Platinum
Gold Sponsor
$10,000 1 available
$5,000 1 available
$3,000 1 available
$1,800 9 available
$1,200 5 available
Silver Sponsor
Hospitality Cart
Wrap-up Party Sponsor
$650
$2,500 2 available
$3,000 1 available
l Company name featured as headliner on all materials
l Booth at registration, awards wrap-up & course hole
l Opportunity to hand out promotional materials
l Signage provided
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
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
SOLD SOLD SOLD
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
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
l Hole sponsor for both morning & afternoon rounds
l Opportunity to hand out promotional materials at hole
l Two (2) tickets to wrap-up
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 eight (8) 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.)
level price/# available benefits
sponsorship
selection
o
o
o
o
o
o
o
o
**SPONSORSHIP NOT RESERVED UNTIL PAYMENT IS RECEIVED**
CONTACT ____________________________________ COMPANY ______________________________________ EMAIL _______________________________________ PHONE _________________________________________ Your Name (print) _______________________________ Signature _______________________________________ Name on credit card _________________________________________ Amount to be charged: $________________ Credit Card* ________________________ Credit Card # ________________________________ Exp. ____________ Credit Card V-Code _____________ The “v-code” is found on the back of the card, usually printed or embossed atop
near the signature strip. It is comprised of three digits found to the right of a longer number. 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.
or
SPIKE REPORT
Twenty-three 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, 2024.
June, 2024 l The NAIL 15
Top 20 Big Spikes
Spann 796 Trey Lewis 577 Terry Cobb 570 Jimmy Franks 538 James Carbine 518 Jennifer Earnest 401 David Crane 362 Brandon Rickman 307 Kevin Hale 304 Nick Wisniewski 280 Reese Smith III 261 Davis Lamb 232 Steve Shalibo 231 Steve Moody 221 Sonny Shackelford 219 David Hughes 211 Randall Smith 197 Helmut Mundt 175 Tonya Esquibel 172 Jim McLean 166 Life Spikes Jordan Clark 151 Steve Cates 148 C.W. Bartlett 138 Joe Dalton 136 Michael Dillon 134 David McGowan 131 Jim Hysen 127 B.J. Hanson 122 Justin Hicks 119 Duane Vanhook 118 John Zelenak 118 Edsel Charles 116 Wiggs Thompson 113 Ryan Meade 98 Sam Henley 95 Jody Derrick 89 Jeff Zeitlin 87 Keith Porterfield 84 Christina James 81 Ron Schroeder 80 Erin Richardson 77 Beth Sturm 77 Lisa Underwood 77 Andrew Neuman 72 Nelson Bordeau 71 Rachel Holloway 70 Bryan Sebring 56 Frank Jones 56 John Broderick 55 John Ganschow 53 Margaret Tolbert 47 Danny Clawson 46 Ricky Scott 45 Eli Routh 38 Kelvey Benward 34 Don Mahone 31 Tammy Chambers 30 Perry Pratt 30 Kelly Beasley 26 Maverick Green 26 Spikes George Simpson 23 Tim Woodward 22 Randy Arnold 17 Rob Pease 15 John Nehrenz 14 Curt Haynes 13 Chris Richey 12 Jason Huelsmann 12 Clint Mitchell 11 Robert Goodall 8 McClain Franks 6
Mitzi
JUNE CALENDAR
Wilson County Chapter Breakfast meeting
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: Thursday, June 20th
Wilson County Habitat for Humanity Restore Store 200 Granville Drive, Lebanon, TN 37090
Topic: Breakfast and a tour of the new Habitat for Humanity ReStore in Lebanon.
Free with RSVP pending sponsorship. 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, JUNE 6TH
Topic: Summer Mixer at Blue Moon Waterfront Grille! 525 Basswood Avenue - Nashville, TN 37209
Food and snacks provided; drinks = dutch treat (two beer and wine drink tickets provided w/RSVP).
Free to attend with RSVP thanks to our sponsors: Ole South Properties and DR Horton.
RSVP to: cnicley@hbamt.org
1 2 3 4 5 6 Sales & Marketing Council Summer Mixer 7 8 9 10 11 12 13 14 15 16 17 18 19 20
21 22 23 24
Monday Tuesday Wednesday Thursday Friday Saturday
Sunday
