Building Business News August 2012

Building Business News

August 2012

The Official Newspaper of The Home Builders Association of Greater Kansas City

HGTV’s Vern Yip

September 14-16 at the Overland Park Convention Center

Home Show–Fall Edition Features Vibrant Exhibitors and Special Guests The HBA’s Home Show-Fall Edition, a Kansas City tradition is back, Friday, September 14, through Sunday, September 16 at the Overland Park Convention Center. Visitors will see hundreds of exhibits and meet the experts of home improvement as the season changes to autumn. This vibrant market place will have new home products and services, decorating, design demonstrations, the latest remodeling ideas.

The Spaces Show Stage will feature HGTV Star Vern Yip (pictured left) Saturday and Sunday at 2 p.m. He will share his eclectic design tips and meet and greet show patrons. Vern’s HGTV projects include Deserving Design with Vern Yip, HGTV Design Star, HGTV Urban Oasis, and Bang for Your Buck. He’s also known for his four seasons on TLC’s Trading Spaces and appearances on NBC’s Home Intervention.

Local celebrity chefs also will be part of the programming that will feature Jasper Mirabile of Jasper’s, Mark Webster of The New Theatre Restaurant, Jeff Martin of Smallcakes, and Shannon Kimball of Fire Bug BBQ. In addition, Jasper (Continued on page 8)

Kansas City Chosen as a Site to “Rally for Homeownership” In cooperation with NAHB, the HBA is joining together to “Rally for Homeownership,” September 25, noon- 1 p.m. at the Harry S. Truman Library and Museum.

These rallies send a powerful message to elected leaders that Americans value homeownership for countless personal reasons and because homeownership generates jobs and revenues that will help speed the nation’s ailing economy to recovery.

NAHB is organizing these events in seven critical “swing states” this election year. The goal is to make homeownership a top priority for lawmakers by highlighting the housing challenges facing communities across America.

The local rally is being co-chaired by PRSTRT STD U.S. Postage PAID Permit No. 108 Lawrence, Ks

Travis Graham, Graham Construction, and Mike Brown, Brown Midwest who are recruiting volunteers to participate.

To become involved contact Sara Corless, scorless@kchba.org.

Future rally locations and schedules (subject to change) are: Kansas City, MO – Sept. 25 Milwaukee, Wisc. – Sept. 27 Columbus, Ohio – Oct. 9 Richmond, Va. – Oct. 11 Las Vegas, NV – TBA These events will help make the voice of the housing industry heard and turn back misguided policy proposals with a visible show of support and stories from the HBA presidents, state lawmakers, business and

Rally for Homeownership Co-Chairs, Travis Graham and Mike Brown community leaders and current and future home buyers.

Everyone is encouraged to attend and more details will be available soon from the HBA and at www.ProtectHomeownership. com where those interested can sign up for notifications.

Pick of the Parade Contest Showcases Best of the Best Add to your marketing exposure by joining the Pick of the Parade and Distinctive Plan & Design Contests. All winners will be recognized at the Awards Celebration and be listed in the Kansas City Star. The regular deadline is August 3 for $250 and the late deadline is August 17 for $400.

Each of the contests spotlight the different elements of the home. The Pick of the Parade evaluates workmanship and overall construction of the home while the Distinctive Plan & Design judges the architecture, floor plan and interior design of furnished homes.

The Fall Parade of Homes runs September 29-October 14. Contest judging takes place Friday, September 28 and Saturday, September 29. Forms are online at www kchba.org and for more information, contact Gina Battle, gina@kchba.org.

Winners will be announced at the awards celebration, October 3.

Inside this Edition PMD Celebrates 100 Years

P5

builder confidence on the rise

P7

August 2012

www.kchba.org

Calendar Aug. 1, 8 am-5 pm

Business Management for Building Professionals

Aug. 2 & 3, 8 am-5 pm

Certified Green Professional (CGP) Course

Aug. 14, 11:30 am

Kansas Area Council Luncheon

Earn Your Certified Green Professional (CGP) Designation

Aug. 16, 4-6 pm Associates Council Thirsty Thursday Aug. 17, 9 am

New Member Coffee

Aug. 21, 11:30 am Board of Directors Meeting

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Volume 18 • NO. 8

For more information or to register for any event, go to www.kchba.org or call 816-942-8800

The HBA is hosting CGP training, August 1-3. This valuable designation provides a solid background in business management and green building methods. Two classes lead to the CGP designation. The first is Business Management for Building Professionals, August 1, 8 a.m.-5 p.m. at the HBA. Cost is $210 for members. The second is Green Building for Building Professionals which is a 2-day course, August 2 & 3, 8 a.m.-5 p m. at the HBA. Cost is $365 for members. Register online at www.kchba.org or contact Gina Battle, gina@kchba.org or 816-733-2219.

NAHB Fall Board of Directors Meeting The 2012 Fall Board of Directors Meeting will be held in Austin, Texas, from Wednesday, Sept. 12 - Saturday, Sept. 15. Meetings will take place at the Hilton Austin Hotel (HQ Hotel) and the Austin Convention Center. The Gold Key event will be Thursday, September 13, 7-10 p m. Registration and housing is now open online at www.nahb.org.

We believe in the home. We believe in the office park. We believe in the building and we want to help you make each one great. We operate more than 450 building material facilities all across the country, all devoted to those who create the buildings that shape America. We are ProBuild.

And we believe in the building.

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©2012 ProBuild. All Rights Reserved.

It looks like the sector turned a little earlier this year. Will this last?

What is impacting the economy now and what does next year look like? This has been another mixed year and transition is always challeng- Dr. Chris Kuehl ing. Tune in to see what awaits as presented by economist Dr. Chris Kuehl, August 14, 11:30 a.m. at the HBA during the Kansas Area Council Luncheon that will be open to all HBA members and guests.

Meet New Members at the New Member Coffee

You are invited to meet the new members at the New Member Coffee, Friday, August 17, 9 a.m. at the HBA. This is often the first networking event for new members as they learn about ways to get involved, what’s new in the industry, get acquainted with other members, tour the HBA offices and get an overview of Builder Fusion, the online gateway to events and information at the HBA. Register online at www kchba.org.

Join us for the annual

Fall Parade Awards Celebration Wednesday, October 3, 2012

• Decking Door/Millwork 1227 E Martha Truman Road Grandview, MO 64080 816.765.4080

Kansas Area CouncilHome on the Range is it Safe Yet?

• Lumber • Millwork

The Gallery in the Power & Light District 14th Street between Main and Walnut

• Moulding • Siding & Trim • Engineered Wood Products

Cocktails & hors d’oeuvres, 6:00-7:30 pm Awards Presentation, 7:30 pm • Admission: $40 Register online at www.kchba.org or contact Gina Battle, 816-733-2219 or gina@kchba.org.

www.probuild.com

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Building Business News

Volume 18 • NO. 8

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August 2012

HBA Events & News

Members and Guests Enjoy HBA Night at the Royals

HBA members and families had an evening of fun, networking, and Royals baseball, Friday, July 13, thanks to generous sponsors who are made the event possible: Kitchens & Baths by Briggs, Northcraft Flooring & Granite Design, White & Assoc., First Federal Bank, Grisamore Realty, ShowMe Ready Mix, Stewart Title Co., Beaver Timber, Eastern Jackson County Builders & Developers Assoc., Design 4 You, Henges Insulation, Factory Direct Appliances, First American Title, and Elevated Electronics.

Members gathered for tailgating with Chris Arnold, Designed 4 You, Chad Wastler, and Jim Breitkreutz of Beaver Timber working the grill. The 150 plus HBA members got a full evening of baseball with the Royals going 14 innings and losing 8-9. Many thanks to the Associates Council members for organizing this special membership event.

More choIceS. More StYLe. LeSS tIMe.

Left: Bob Frost, Frost Construction Company, welcomes the 150 members and families. Right: Alan White, First Federal Bank, Kevin Kirtley, K & E Flatwork, and Mindy Arnold, Design 4 You. Above: Associates Council members organized this fun event!

Hunt Midwest Announces New Manager Jenni Mann has joined Hunt Midwest Real Estate Development as Manager of Residential Marketing. In her new position Jenni will be responsible for marketing Hunt Midwest’s 12 current residential communities located in Kansas City’s northland, Platte County, North Kansas City, Lee’s Summit and Raymore, Missouri.

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Building Business News

Missouri South Membership Meets Missouri South members came out of the heat and into a cool luncheon at Garozzo’s in Lee’s Summit and heard HBA Missouri lobbyist Jewell Patek discuss the results of the Missouri legislative session and Mike Deleo with Blue Cross and Blue Shield discuss health care reform and the Affordable Care Act. © 2010 Ander en www.kchba.org

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August 2012

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HBA Events & News

Volume 18 • NO. 8

HBA Member Produces Jazz for Joplin

Jeff Robinson, Chris Ragland, Alan White

NAHB Awards Spikes Spikes are membership champions who earn credits through recruiting new members and helping retain members. The HBA recently welcomed two new Spikes to the NAHB Spike Club: Chris Ragland, Homes by Chris and Alan White, First Federal Bank. The recognition of Life Spike was awarded to Jeff Robinson, J.S. Robinson Fine Homes.

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HBA member Ken Rosberg is a man of many talents. Not only is he a stand out in sales and marketing with Cedar Creek Development Company with the nickname Mr. Cedar Creek, but he’s also a jazz singer and philanthropist.

Rosberg recently introduced his debut CD, “Just Follow Your Heart,” on the website Jazz for Joplin and explained how the majority of proceeds from the sale of the CD & t-shirts will go directly to Habitat for Humanity in Joplin. Music has been an important part of Rosberg’s life and the timing of his first CD and the devastating tornado in Joplin corresponded in a unique way according to this talented jazz vocalist.

“Having lived in KC my entire life, I’m not surprised anymore by an occasional spring tornado touching down,” said Rosberg. “But I was just so stunned by the incomparable magnitude of the damage that this particular tornado caused to the Joplin community.” The F-5 tornado touched down, May 22, 2011, and was on the ground for over 20 miles and grew to be a mile wide at one point. Seven thousand homes were destroyed, another 1,000 were damaged, and 160 people lost their lives.

www.kchba.org

“After we finished production of the CD and decided it may be good enough to sell, for whatever reason the slogan ‘Jazz for Joplin’ just came to my mind,” said Rosberg. “I visualized the logo, had a graphic artist transfer my thoughts to paper and off we went!”

You can hear samples of each song on the website, www.jazzforjoplin.com.

Rosberg also credits some of the best musicians in Kansas City including Danny Embrey, Mark Lowrey, Gerald Spaits, Zack Albetta and David Chael.

Rosberg was presented the Bob Bollier Award for excellence in sales and marketing at the 2011 Inaugural Celebration.

Building Business News

Volume 18 • NO. 8

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Industry News

August 2012

KANSAS CITY COMPANY REACHES CENTURY MILESTONE

Pacific Mutual Door & Window’s Links to Celebrity, War and Housing through the Years This year, Kansas City’s Pacific Mutual Door & Window (PMD) opens the door to a company milestone—100 years in business. Behind the doors to this locally headquartered supplier of quality millwork products lies an array of historically fascinating experiences and business decisions, underscoring both its strength and longevity over the last century.

The company traces its roots—liter-

Building Business News

ally—to the durability and quality of the Douglas fir tree, known for its large and fast-growing characteristics. PMD began as one of nine Washington and Oregon millwork manufacturers, working together to introduce a line of Douglas fir doors, sash, mouldings and columns to the east coast. Although the company began in Tacoma, Washington, a series of key business decisions, expansions and

Circa 1909, Spokane WA to New York. acquisitions eventually brought PMD’s corporate home to rest in Kansas City.

Today, Jon Lambert, grandson of S. Ray Lambert, Sr., one of the company’s early executives, serves as president.

“Our story has all the characteristics of a modern-day business story, but occurred a century ago,” says Jon. “If not for the hearty stock of those nine mill owners who launched the company, we may not have been able to weather the challenges of getting to where we are today.”

Those challenges were interspersed with opportunity as well. Take, for example, PMD’s ties to President Theodore Roosevelt’s infamous quote, “Speak softly and carry a big stick.” According to newspaper reports at the time, PMD was commissioned to construct a large flagpole for a Northport, New York property.

Crafted from a 150-year old Douglas fir and measuring 165 feet long, the flagpole gained the attention of Roosevelt when then PMD President Joseph Gabel sent a note to Roosevelt saying, “There seems at this time to be a need for a ‘Big Stick’ and a man to swing it. Here’s the big stick.”

Roosevelt replied, “My dear Mr. Gabel, that’s a real big stick. I wish to heaven the people of Washington could use it to stiffen up their foreign policies.”

Similarly, while the Stock Market Crash www.kchba.org

of 1929 and the Great Depression would result in financial hardships for PMD, the years leading up to World War II would also set the stage for the company’s future prosperity. Decades before the war, PMD suppliers had been producing panels for its Fir doors. These panels, the company discovered could have other uses. Although they were originally designed in 2-by-5 sheets, improvements in technology allowed the company to produce larger 4-by-8 sheets of a revolutionary new product we know today as Fir plywood.

PMD became the world’s largest distributor of Douglas Fir plywood and through World War II became part of the war effort making crates, ammunition boxes and prefabricated buildings such as field hospitals that could be set up overseas using only fasteners and a screwdriver. S. Ray Lambert, Sr. garnered 10 U.S. patents associated with the development of these structures.

A series of competitor acquisitions between 1927 and 1994 allowed PMD to keep pace with the growth and changes occurring in the construction industry.

Ultimately, the company’s longevity allowed the Lambert family to become sole owners of PMD. “My grandfather brought a keen sense (Continued on page 6) of business Page 5

August 2012

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Industry News

HBA Companies Make List of Fastest Growing Companies Three HBA builder member companies and three associate member companies have made the Ingram’s magazine Corporate Report 100 list of Kansas City’s 100 fastest growing companies. Ingram’s headline on the article says perseverance pays off. This year’s list offers some hard evidence that Kansas City companies have survived the worst that the Great Recession could throw at them.

HBA builder companies include: # 18 Summit Custom Homes #29 James Engle Custom Homes #54 Homoly Construction HBA associate companies include: #23 Fasone & Partners #55 Continental Title Holding #87 Polsinelli Shugart Read the full Ingram’s report at www. ingramsonline.com.

FHA Rescinds “Credit Disputes” Rule – For Now In good news for home buyers, NAHB and other housing and banking industry groups convinced the Federal Housing Administration (FHA) to withdraw a controversial rule that would have prohibited borrowers with any credit disputes of more than $1,000 from obtaining FHA financing. Earlier this year, FHA issued a mortgagee letter stating that buyers either had to pay off ongoing credit disputes of more than $1,000 that appeared on their credit reports or show proof that they have

Page 6

entered into a repayment plan with their creditors before they could qualify for an FHA loan. NAHB and others in the housing finance community opposed this action citing concerns that it would further restrain the flow of mortgage credit and prevent creditworthy borrowers from qualifying for an FHA-insured loan. The agency is expected to issue new guidance on this topic in the near future. For more information please contact Steve Linville (800-368-5242 x8597).

Pacific Mutual Door

(Continued from page 5) to the table early on by carefully watching changes, adapting to those changes and anticipating future needs in the industry,” Jon says. “That’s a mindset we still have today.”

The company’s Kansas City headquarters changed locations due to the flood of 1951 to its current location at 1525 W 31st Street, added three other locations throughout the U.S. including Nashville, Osborne, Kan. and Albuquerque, and diversified the Kansas City branch to include separate divisions for multi-family housing, custom cabinets, installed sales and a showroom, the Window, Door and Trim Store in Overland Park.

“We don’t use the term ‘experience’ lightly,” Jon says. “It’s the cornerstone on which we do business today. We have had, and continue to have some incredibly talented employees who’ve helped us along the way. We have withstood 100 years of changes, from wars to floods to economic lows, but are still here to meet the needs of lumber yards, contractors and ultimately, area homeowners.”

Today, PMD has come a long way from its early beginnings to what remains the focal point of the business—its customers.

“We wouldn’t have been able to survive and prosper over this much time without great customers.” Jon says. The company continues to partner with manufacturers and other resources to allow its customers access to building materials, product knowledge and an experienced employee ready to help.

Pacific Mutual Door & Window (PMD) is a premier supplier of quality millwork products to the Greater Kansas City area. The company provides energy efficient windows and doors in all price ranges. PMD carries a

www.kchba.org

Volume 18 • NO. 8

varied selection of building materials, including replacement windows, doors, stair systems, hardware, mouldings, cabinets, architectural millwork and columns to meet both needs of new construction and historic restoration. The company is owned and operated by the Lambert family. www.

PacificMutalDoor.com

Senate Approves Rural Housing Provision in Farm Bill

In an important victory for NAHB, the Senate passed by voice vote an amendment to the farm bill offered by Sen. Ben Nelson (D-Neb.) that would “grandfather” all existing communities in the USDA Rural Housing Section 502 program for another 10 years, allowing them to maintain access to USDA’s Rural Housing Service.

The amendment also increased the legal population threshold for the definition of a “rural” county from 25,000 to 35,000 for those currently residing in these communities.

The Senate subsequently approved the farm bill by a vote of 64 to 35.

Prior to consideration of the Nelson amendment, NAHB sent a letter to senators designating passage as a “key vote” because of its importance to the housing industry.

“NAHB strongly believes that the programs offered by the Rural Housing Service (RHS) Section 502 are instrumental in providing opportunities for homeownership to families living in rural communities,” the letter stated. “The amendment does NOT expand any funding levels for rural housing programs. It simply updates the pool of communities eligible for its services and will not place additional financial burden on American taxpayers.”

With prospects for the overall farm bill uncertain, NAHB is pursuing several other legislative avenues to address this issue.

For more information, email Kedrin Simms Brachman at NAHB or call her at 800-368-5242 x8413.

Building Business News

Volume 18 • NO. 8

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Industry News

August 2012

Builder Confidence Rises Six Points in July indicators over the past six months, Builder confidence in the market for this report adds to the growing acnewly built, single-family homes rose knowledgement that housing – though six points to 35 on the National Assostill in a fragile stage of recovery – is ciation of Home Builders/Wells Fargo returning to its more traditional role of Housing Market Index (HMI) for July. leading the economy out of recession,” This is the largest one-month gain renoted NAHB Chief Economist David corded by the index in nearly a decade, and brings the HMI to Crowe. “This is its highest point since particularly en“This is particularly March of 2007. couraging at a time “Builder confidence encouraging at a time when other parts of increased by solid marthe economy have when the other parts of gins in every region of begun to show softthe economy have begun the country in July as ness, and is all the views of current sales to show softness,” David more reason that conditions, prospects for the challenges conCrowe, NAHB Chief future sales and traffic straining housing’s of prospective buyers all Economist. recovery – namely improved,” said Barry overly tight lending Rutenberg, chairman of the National conditions, poor appraisals and the flow Association of Home Builders (NAHB) of distressed properties onto the market and a home builder from Gainesville, – need to be resolved.”

Fla. “This is greater evidence that the Derived from a monthly survey that housing market has turned the corner NAHB has been conducting for the as more buyers perceive the benefits of past 25 years, the NAHB/Wells Fargo purchasing a newly built home while inHousing Market Index gauges builder terest rates and prices are so favorable.” perceptions of current single-family “Combined with the upward movehome sales and sales expectations for ment we’ve seen in other key housing the next six months as “good,” “fair” or

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“poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores from 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.

Every HMI component recorded gains in July. The components gauging current sales conditions and traffic of prospective

buyers each rose six points, to 37 and 29, respectively, while the component gauging sales expectations for the next six months rose 11 points to 44.

Likewise, every region posted HMI gains in July. The Northeast registered an eight-point gain to 36, while the Midwest gained three points to 34, the South gained five points to 32 and the West gained 12 points to 44.

ISIT TO

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We proudly support the home building industry.

Reach that target market in the Spring and Fall Parade Guides.

NEW HOMES information, For advertising call ROM TH $ 0 Gina Battle, gina@kchba.org or0 s (91 ) 81

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Spring Parade of Ho mes G U I D E

April 14 29, 2012 | Homes Open Daily 11am 6pm Free admission | www kcparadeof homes com

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August 2012

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Industry News

Enter to Win a Spot to Help with Builder Pick-Up Associate members are invited to help with Builder Pick Up, September 25 & 26. Builder Pick-Up is when the Parade of Homes builders pick up their parade materials, banners, arrows parade guides at the HBA. Two volunteer shifts are available per day, 8 a.m.-noon and noon-5 p m. for a total of eight volunteers who will help. A drawing on Monday, August 13 will determine the lucky winners. Any associate who would like take advantage of this fun way to get involved and support the HBA should email requests to Phil Yancey at phil@kchba.org or call 816-733-2245.

Volume 18 • NO. 8

Home Show-Fall Edition Features available. Join current sponsors such as (Continued from page 1) will do his 710AM radio show Live! From Jasper’s Brogden Buick/GMC and R&S UnlimKitchen from the Home Show Stage on ited Landscaping as associate sponsors, Saturday at 11 a.m.

Sure West as the wireless internet service “The Overland Park Convention Center sponsor, Spaces as the show stage sponis a beautiful space and we have signed sor, Rosehill Gardens as ticket sponsor, booth exhibitors fast and furiously,” said and Hen House as ticket outlet sponsor.

Lori Kodanaz, director of Consumer and Home Show-Fall Edition hours will be Trade shows. “I want to encourage any Jen Bertrand talks with Home Show Friday and Saturday, 10 a.m.-8 p.m., and business interested in participating to visitors last year.

Sunday, 10 a m.-6 p m. Tickets are $7.00 contact us and everyone should get ready for a wonderful for adults, online tickets are $6, military and senior are $6, and fall event.” kids 12-and-under are free. Parking is FREE. Tickets and inSponsorships and exhibitor space are filling fast but are still formation are online www.kchomeshow.com.

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Building Business News

Volume 18 • NO. 8

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Industry News

August 2012

84 Metros Listed as Improving Markets with Kansas City Included The list of U.S. housing markets showing measurable and sustained improvement rose by four in July to 84 metros from 80 in June, according to the National Association of Home Builders/ First American Improving Markets Index (IMI), released recently. This number includes representatives from 32 states plus the District of Columbia.

The index identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. This month’s IMI includes 73 metros that held their positions on the list from June, as well as 11 newly added markets. Notable new entries include such geographically diverse places as Prescott, Ariz.; Springfield, Mass.; St. Cloud, Minn.; and Houston, Texas.

“The geographic diversity and growing number of metros on the latest IMI help spotlight the improvements we have begun to see in terms of home prices and job market conditions across certain parts of this country, which in turn are spurring more demand for new homes,” said

NAHB Chairman Barry Rutenberg, a home builder from Gainesville, Fla. “That said, our members continue to assert the need for more reasonable credit standards and more accurate appraisal methods to perpetuate this positive momentum.”

“The modest increase in the July IMI is encouraging because it indicates that individual housing markets continue to regain their footing despite some recent reports of weakening in the broader economy,” added NAHB Chief Economist David Crowe. “This is evidence that the housing recovery is slowly but surely taking root, one market at a time.”

“The positive takeaway from today’s report is that an increasing number of consumers are looking at better conditions to both buy and sell homes, which should help spur greater activity in certain markets going forward,” noted Kurt Pfotenhauer, vice chairman of First American Title Company.

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of

independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau.

NAHB uses the latest available data from these sources to generate a list of improving markets. A metropolitan area must see improvement in all three areas for at least six months following their respective troughs before being included

on the improving markets list.

A complete list of all 84 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in July, is available at www.nahb.org/imi.

The NAHB/First American Improving Markets Index (IMI) is released on the fourth business day of each month at 10:00 a.m., ET, unless that day falls on a Friday – in which case, the index is released on the following Monday. A full calendar of future release dates can be found at www nahb.org/imi.

Associates Gather for Thirsty Thursdays

Sara Corless, HBA, Bryce Henke, Ferguson Enterprises, Ryan Bealmear, Teague Electric Construction Inc, Allen Gregory, Ferguson Enterprises The Associates Council hosted their first Thirsty Thursday, July 19, 4-6 p m. at The Well in the Waldo neighborhood. Associates set aside time monthly to network with fellow associate members and the next event will be August 16, 4-6 p m. at Buffalo Wild Wings in Zona Rosa. If you are interested in helping plan events, contact Phil Yancey, phil@kchba.org or 816-733-2245.

Building Business News

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August 2012

Welcome New Members

www.kchba.org Congratulations to our new members.

Let’s make them feel at home!

David Dussair

R Paul Gardner

Design Build Team, Inc. 5242 Foster Ave. Overland Park, KS 66202 (913) 722-1443 www.designbuildteam.com

Don Fowler

Judy Murray Murray Home Insulation LLC P.O. Box 12212, Parkville, MO 64152 (816) 584-1651 murrayinsulation.com

Nick Zvacek Nick Zvacek Construction, LLC 1009 Industrial Dr. Pleasant Hill, MO 64080 (816) 213-7204

Jill Pipes Northcraft Flooring & Granite Design 5520 Raytown Rd. Raytown, MO 64133 (816) 356-8133 http://www.northcraftfloors.com/home

Volume 18 • NO. 8

R&S Unlimited Landscaping Inc. P.O. Box 334, Louisburg, KS 66053 (816) 250-2494 www.rsunlimitedinc.com

HOMEOWNERSHIP IS UNDER ATTACK!

Thermal King Windows 14368 W 96th Terr., Lenexa, KS 66215 (913) 451-2300 www.thermalkingwindows.com

Local economies have suffered from the slowdown in home construction, and home buyers and owners face difficulties getting access to affordable mortgage loans and avoiding foreclosure in today’s distressed environment. What’s worse, policymakers are considering scaling back the mortgage interest deduction, imposing more requirements on borrowers and letting the foreclosure crisis deepen.

David Sparks

RALLY WITH US AND TELL YOUR ELECTED OFFICIALS TO: • Protect the mortgage interest deduction • Guarantee credit-worthy consumers and small businesses the opportunity to obtain mortgages and loans • Resolve the foreclosure crisis

D Three Framing Inc 14352 W 96th Terr., Lenexa, KS 66215 (913) 915-9029

Dusty Dahmer

JOIN US AND STAND UP FOR HOMEOWNERSHIP!

Dusty Dahmer Construction 1009 NE Jib Ct. Ste. C Lee’s Summit, MO 64064 (816) 795-3332 www.dustydahmerconstruction.com

DATE: TIME: PLACE:

Tuesday, September 25, 2012 12:00 - 1 pm Free Lunch and Rally Harry S. Truman Library and Museum

(500 West U.S. Highway 24, Independence, MO 64050)

FEATURED SPEAKERS: Representatives from the local Home Builder Industry & other influential leaders in the Kansas City community (TBD)

Brent A. Barnes B.A. Barnes Electric, Inc. 2014 E. Spruce Circle Olathe, KS 66062 (913) 764-4455

REGISTER: http://www.ProtectHomeownership.com Sponsored by the Home Builders Association of Greater Kansas City and the National Association of Home Builders.

5 Solid Reasons to Call K&E Flatwork Today!

816-746-6100

THE OFFICIAL PUBLICATION OF THE HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY

Aug 2012 Volume 18 Issue 8 Copyright 2012 Published by the Home Builders Association of Greater Kansas City 600 E. 103rd Street, Kansas City, Mo. 64131 (816) 942-8800

Gravel

Executive Vice President Sara Corless Editor Stephanie Stollsteimer Graphics Karla Peterie, Creative Services

Lumber

One Call We Do It All Concrete

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Rebar

2012 Executive Committee Home Builders Association of Greater Kansas City

Workers A PROFESSIONAL CONCRETE FLATWORK COMPANY • Affordable, Upfont Pricing • High-Quality Concrete Flatwork • Exceptional Customer Service • A Professionally Trained Staff • Serving Kansas and Missouri WWW.KEFLATWORK.COM www.kchba.org

President Kevin Stucker Vice President Fred Delibero Secretary/Treasurer Chris Ragland Associate Representative Kevin Kirtley Immediate Past President Travis Graham

To subscribe to Building Business News, call (816) 733-2224 To advertise in Building Business News call (816) 942-8800 For change of address requests, please fax changes to (816) 942-8367 or call (816) 942-8800 For more information, visit the HBA online at www.kchba.org

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Volume 18 • NO. 8

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Happy Anniversary 1963 The Alpert Companies 1975 Richard Link Construction Co. Inc., DBA Legacy Custom Homes 1978 Don Julian Builders, Inc. 1979 Pella Products of Kansas City 1983 Ambassador Construction Co, Inc. 1985 Dobberstine Custom Homes, Inc.

August 2012

These companies’ continued membership shows their support for the local home building industry. The strength of an association is in its membership and a thank you goes out to all of those members who continue to support the HBA. (If you know these members, please encourage them to renew and remember all the benefits they’ll miss by not renewing their membership)

1987 Reilly Homes Inc. 1988 Factory Direct Appliance 1989 Kansas City Building Supply Co. Inc. 1991 Bank of Blue Valley 1994 A S & W Wholesale of K.C., Inc Hoffman Construction, Inc. 1997 Nearing, Staats Prelogar & Jones, AIA, Architects

BUILDING LENDING RELATIONSHIPS FOR OVER 115 YEARS

2002 Canyon Stone Holmes Drywall Supply, Inc. 2003 The National Home Building Co. R.L. Hudson Construction Co Inc. Cedar Creek, Inc. 2005 Adamson Brothers Heating & Cooling Joe Kilowatt, Inc.

2009 Nottington Creek Builders Brightergy Solor Solutions 2010 Mike VanKeirsbilck Construction, Inc. MacDermott Homes 2011 McBee Custom Homes, LLC Property Law Firm Keystone Building Company WSI Internet Advantage Metzler Bros. Insurance Cardinal Crest Homes

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n reach Find out how you ca y Star over 1,000,000 weekl ed iz readers with a custom ntial te profile story. Show po unity m buyers why your com ll home. is a great place to ca

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913-381-5400 / 913-652-2541 / capfed.com

To advertise, call your account executive or Kate Mariani-Vacek at (816) 234-4097.

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August 2012

Page 12

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Volume 18 • NO. 8

HBA Staff

Office: 816-942-8800 Sara Corless Executive Vice President scorless@kchba.org, 816-733-2216 Gina Battle Tour & Membership Records Coordinator gina@kchba.org, 816-733-2219 Marcia Jurgens Permit & Accounting Mgr. marcia@kchba.org, 816-733-2215 Stephanie Stollsteimer Director of Marketing and Communications stephanie@kchba.org, 816-733-2213 Lori Kodanaz Director of Consumer & Trade Shows lori@kchba.org, 816-733-2217 Andrew McKeegan Association Services Manager Andrew@kchba.org, 816-733-2224 Natalie Tucker & Cindy Pearson Events Support Natalie@kchba.org, 816-733-2247 Phil Yancey Membership Manager Phil@kchba.org, 816-733-2245

Click this logo at

www.kchba.org to login to your account

Online Resources for HBA Members!

Register for HBA Events Safe & secure online registration Personalized calendar of events.

Notification of your events

Register for events online

www.kchba.org www.kchba.org

Update Your Membership Change your profile, contact info & membership directory listings.

Call today 816-942-8800, or email gina@kchba.org or scorless@kchba.org Building Business News

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August 2012

Industry News

Can Housing Improvement Persist in a Slowing Economy?

Recent economic data clearly indicate that the economy is experiencing slowing growth rates, with job creation and growth in Gross Domestic Product (GDP) at weaker-than-expected levels. Despite these headwinds, the housing sector continues to be a source of relatively positive news.

New single-family home sales in May gained strength but remain at historically low levels. According to Census Bureau and Department of Housing and Urban Development data, the seasonally adjusted annual rate of new home sales increased to 369,000, an increase of nearly 20% year over year.

Building Business News

Inventories of new homes remained relatively unchanged at 145,000, a 4.7 months-supply, which marks a cycle low and suggests that any growth in future demand will require increases in home construction.

In fact, construction spending remains a source of strength for the economy.

Data from the Census Bureau show that private residential construction spending increased 2.8% in May. Judged on a three-month moving average basis, residential construction spending has increased during each of the last eight months. Strength remains for both re-

modeling and multifamily construction expenditures, while single-family construction spending has shown more recent improvement.

Despite this growth, employment in the home building sector has not picked up.

Data from the Bureau of Labor Statistics show that home building employment (including builders, remodelers and various trade contractors) remains down 1.5 million on net or 42% from the peak.

Federal Reserve announced an extension of the ongoing monetary policy sometimes called “operation twist.” The policy seeks to keep long-term interest rates low, which in theory should help stimulate the economy. Extension of operation twist will have only indirect effects on mortgage rates and housing. That is, to the extent that the policy improves economic growth and employment, the

extension will have a positive impact on housing. But the more binding constraint with respect to housing finance is access to mortgage debt, rather than mortgage interest rates.

All told, the improvement in housing and weakness in job creation are embodied in recent changes in the NAHB/ First American Improving Markets Index (IMI). After falling to a level of 80 in June, the index rose to 84 in July. The IMI is a count of metropolitan areas that are classified as improving based on a conservative evaluation of local home prices, job growth, and building permits.

The markets on the list represent 33 states and the District of Columbia and continue to show broad geographic distribution.

House prices remain the most fragile of the three components of the IMI.

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Page 13

HBA 2012 SPONSORS

August 2012

Page 14

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Platinum

Bank of Blue Valley

Gold

SILVER Henges Insulation & Fireplace Phelps Engineering ProBuild United Heating & Cooling

Capitol Federal Factory Direct Appliance Ferguson Enterprises bronze First Federal Bank Commerce Bank K & E Flatwork Complete Home Concepts Kansas City Star First American Title Kenny’s Tile Hermes Landscaping McCray Lumber & Millwork Kansas City Title Kitchens & Baths by Briggs Nebraska Furniture Mart Pacific Mutual Door Owen Lumber Pella Products Shamrock Cabinet ProSource of Lenexa Sun Lumber Western Chandelier Weber Flooring

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Volume 18 • NO. 8

June New Housing Permits Show Continuing Climb for the Year In cities across the Greater Kansas City Metropolitan Area, housing production continues to climb in 2012 despite a slight dip in permit activity last month, according to the Home Builders Association of Greater Kansas City’s (HBA) monthly Residential Building Permit Statistics report. June permits dropped from this year’s high of 299 recorded in May to 265 permits, however June numbers were still the highest recorded since June 2007.

Multi-family permits also increased with the addition of a 48 unit apartment complex in Kansas City, Missouri and 307 units in Kansas City, Kansas. Year-to-date for both single family and multi-family are both greater than any year since 2008.

“This report continues to reinforce what we hear about housing nationally and reinforces what our membership tells us locally that confidence is growing and that the increasing demand for a newly built home is real,” said Executive Vice President Sara Corless. “Buyers are recognizing the advantages of energy efficiency and favorable interest rates in spite of the continuing challenges in the economy.” Corless added, “Builders are creating a variety of housing products that appeal to buyers and are explaining the difference between buying a new house rather than a resale or foreclosure. For example, new homes have the advantage of sustainable materials that are often easy to maintain with better warranties.”

Six counties have increased year-todate in June including Cass County is up 30 percent, Clay County is up 59 percent, Jackson County is up 9 percent, Platte County is up 121 percent, Johnson County is up 36 percent and Wyandotte County is up 34 percent. Two counties have decreased year-to-date including Leavenworth County decreasing 20 percent and Miami County decreasing 11 percent.

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Volume 18 • NO. 8

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August 2012

HOME BUILDERS ASSOCIATION OF GREATER KANSAS CITY

CASS COUNTY Archie Belton Cass County Cleveland Drexel Garden City Harrisonville Lake Winnebago Lee's Summit Peculiar Pleasant Hill Raymore Village of Loch Lloyd

CLAY COUNTY Clay County Excelsior Springs Gladstone Kansas City Kearney Lawson Liberty North Kansas City Pleasant Valley Smithville

Single Family Units^

M-F Units Sale%

M-F Units Rent

0 0 5 0 0 0 0 0 2 0 2 7 2 18

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

8 0 0 48 6 0 4 0 0 0 66

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

Residential Building Permit Statistics JUNE 2012 Total Units

S-F Units YTD

M-F Sale YTD

M-F Rent YTD

Total Units YTD

0 0 5 0 0 0 0 0 2 0 2 7 2 18

0 3 16 0 0 0 1 2 8 0 11 31 11 83

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 3 16 0 0 0 1 2 8 0 11 31 11 83

8 0 0 48 6 0 4 0 0 0 66

19 28 1 227 22 0 13 0 0 7 317

0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0

19 28 1 227 22 0 13 0 0 7 317

M-F Units Sale%

M-F Units Rent

Total Units

S-F Units YTD

M-F Sale YTD

M-F Rent YTD

Total Units YTD

0 0 0 0 0 0

0 0 0 0 0 0

2 0 0 2 1 5

19 1 11 11 5 47

0 0 0 0 0 0

0 0 0 0 0 0

19 1 11 11 5 47

3 0 9 12

0 0 0 0

0 0 307 307

3 0 316 319

11 1 31 43

0 0 0 0

0 0 380 380

11 1 411 423

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

1 7 0 0 0 8

0 0 0 0 0 0

0 0 0 0 0 0

1 7 0 0 0 8

265

8

391

664

1481

8

464

1953

Single Family Units^ LEAVENWORTH COUNTY Basehor 2 Lansing 0 Leav. County 0 Leavenworth 2 Tonganoxie 1 5 WYANDOTTE COUNTY Bonner Springs Edwardsville KCK/Wyandotte Co

MIAMI COUNTY Louisburg Miami County Osawatomie Paola Spring Hill

JUNE 2012

Comparison of Single Family Building Units for Greater Kansas City (Cass, Clay, Jackson, Platte, Johnson, Leavenworth, Miami, Wyandotte Counties)

JACKSON COUNTY Blue Springs Buckner Grain Valley Grandview Greenwood Independence Jackson County Kansas City Lake Lotawana Lee's Summit Oak Grove Raytown Sugar Creek

PLATTE COUNTY Edgerton Kansas City Parkville Platte City Platte County Riverside# Weatherby Lake Weston

JOHNSON COUNTY De Soto Edgerton Fairway Gardner Johnson County Leawood Lenexa Merriam Mission Hills Olathe Overland Park Prairie Village Shawnee Spring Hill

Building Business News

7 0 2 2 4 9 5 2 0 23 1 0 0 55

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 48 0 0 0 0 0 48

7 0 2 2 4 9 5 50 0 23 1 0 0 103

33 0 18 12 18 39 19 20 1 113 2 1 0 276

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 48 0 0 0 0 0 48

33 0 18 12 18 39 19 68 1 113 2 1 0 324

0 17 5 0 6 0 0 0 28

0 8 0 0 0 0 0 0 8

0 0 0 0 0 0 0 0 0

0 25 5 0 6 0 0 0 36

1 59 26 0 73 1 1 0 161

0 8 0 0 0 0 0 0 8

0 0 0 0 0 0 0 0 0

1 67 26 0 73 1 1 0 169

0 0 0 2 2 1 8 2 0 34 24 0 8 0 81

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 36 0 0 0 0 0 0 0 36

0 0 0 2 2 1 44 2 0 34 24 0 8 0 117

6 0 0 17 6 20 43 3 1 214 160 3 65 8 546

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 36 0 0 0 0 0 0 0 36

6 0 0 17 6 20 79 3 1 214 160 3 65 8 582

Month/Year January February March April May June July August September October November December

2006

750 833 1066 899 971 761 772 874 677 672 609 500

2007

2008

2009

2010

2011

2012

Annual Total*

9384

6385

3232

2155

2471

2301

1481

353 475 824 687 677 616 546 515 397 597 385 313

221 262 353 441 231 260 311 293 264 314 167 115

96 129 131 184 189 204 196 207 219 226 192 182

137 145 252 228 213 239 180 243 173 279 173 209

90 121 180 210 230 262 204 205 202 205 185 207

188 182 270 277 299 265

All numbers shown in the box above are ACTUAL numbers.

Comparison of Permits By Units Issued Year to Date* 2006-2012 2006 2007 2008 2009 2010 2011 2012

S-F Units 5280 3632 1768 933 1214 1093 1481

M-F Units

1232 609 1298 78 55 272 472

Total Units

6512 4241 3066 1011 1269 1365 1953

*Annual totals may not match seasonally adjusted numbers. ^The Single Family number is now units and includes both attached and detached units. %Multi-Family units are in buildings with 5 or more units and are divided by sale/rent. # Not available at time of report Permit information reflects the most recent data at time of publication. In order to ensure accurate recording of residential building permit statistics, the HBA may revise monthly and year-to-date figures when updated data is made available.

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August 2012

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Volume 18 • NO. 8

Building Business News