April 2015
Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members
FOR YOUR CALENDAR: April 30 - May 3 and May 7-10 - Spring Parade of Homes May 13 - EPA RRP Refresher
May 14 - Lunch Session: Succession Planning
May 14 - Parade of Homes Celebration May 15 - Remodelers Council Picnic
May 28 - Lunch Session: New Closing Procedures
June 16 - HBA Golf Outing July 14 - HBA Golf Outing
QUOTABLE “As the spring buying season gets underway, home builders are confident that current low interest rates and continued job growth will draw consumers to the market.” -Tom Woods National Association of Home Builders chairman April 15
Published six times per year in addition to the Plains Builder, Permits Plus aims to provide a concise report on building permit numbers and a timely update on Association advocacy efforts.
Home
builders post strong first-quarter metro permit numbers
F-M
Housing activity is off to its fastest start since 2004, according to the Home Builders Association of F-M’s first-quarter building permit report. With 124 permits through the end of March, the F-M metro community encompassing Dilworth, Moorhead, Fargo and West Fargo experienced a 121 percent increase over last year’s 56 permits.
Single-family homes increased by ten permits community-wide, while twinhome construction saw a surge from six permits last year to 64 this spring. Row-house permits remained consistent at 12. Housing permit values also nearly doubled, from $13.5 million last year to $25.5 million through March. “This open, dry spring has allowed the housing industry to start activity earlier than last year, which may be one reason why we’re seeing an uptick,” says Clay Dietrich, Dietrich Homes, Inc. “The HBA is preparing for the secondlargest Spring Parade of Homes with 90 houses, which is representative of this permit report and the high housing activity.” Moorhead - This year is Moorhead’s strongest start for new housing. With 52 permits taken in the first quarter, the city’s residential new construction is over six times last year’s numbers. Twin-home construction accounted for over 85 percent of that increase. “That can probably be attributed to builders applying for those permits early this year before Minnesota’s new fire-sprinkler code requirement for twin homes took effect,” Dietrich says. “Even so, the city’s single-family home permits went from eight to 14 compared to last year.” Permits continued on back page
“The HMI (National Association of Home Builders/Wells Fargo Housing Market Index) component index measuring future sales expectations rose five points in April to its highest level of the year. This uptick shows builders are feeling optimistic that the housing market will continue to strengthen throughout 2015.” -David Crowe, National Association of Home Builders chief economist April 15 HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM
First Quarter 2015 - Dilworth, Moorhead, Fargo, West Fargo
Total Housing Permits
City
HOUSING Starts
HOUSING Value
TOTAL Permits
TOTAL Values
2
Dilworth Moorhead Fargo West Fargo Totals Dilworth Moorhead Fargo West Fargo Totals Housing Starts Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Totals Housing Starts Multi-Family Public Miscellaneous New Commercial Residential Remodel Commercial Remodel Totals
Total Building Permits Value
First Quarter 2015 3 52 20 49 124 $802,850 $9,519,000 $3,861,745 $11,304,651 $25,488,246 124 4 12 304 133 3 43 623 $25,488,246 $15,056,720 $2,541,300 $2,668,960 $11,214,580 $5,755,663 $15 426 479 $15,426,479 $78,151,948
First Quarter 2014 0 8 27 21 56 $0 $1,919,000 $5,798,305 $5,741,500 $13,458,805 56 0 18 275 112 13 61 535 $13,458,805 $0 $13,648,100 $1,549,801 $40,343,700 $5,508,840 $19 108 324 $19,108,324 $93,617,570
Difference 3 44 -7 28 68 $802,850 $7,600,000 -$1,936,560 $5,563,151 $12,029,441 68 4 -6 29 21 -10 -18 88 $12,029,441 $15,056,720 -$11,106,800 $1,119,159 -$29,129,120 $246,823 -$3,681,845 $3 681 845 -$15,465,622
HBA of F-M’s monthly building permit report is prepared by Fiebiger, Swanson, West & Co.
Percentage Difference N/A 550% -26% 133% 121% N/A 396% -33% 97% 89% 121% N/A -33% 11% 19% -77% -30% 16% 89% N/A -81% 72% -72% 4% -19% 19% -17%
Permits Plus
SEASONALLY ADJUSTED UNEMPLOYMENT RATES Feb. 15
Jan. 15
Minnesota
Feb. 14
Source: bls.gov
SINGLE AND MULTI-FAMILY BUILDING PERMITS Feb. 14
Feb. 15
Minnesota
% change
Source: NAHB
3.7%
3.7%
North Dakota
4.4%
Source: bls.gov
1,160
1,830
58%
200
-67%
148,400
9%
56
Unavailable
North Dakota Source: NAHB
2.9%
2.8%
United States
2.7%
Source: mn.gov
590
United States Source: NAHB
5.5%
Fargo-Moorhead
5.7%
6.7%
Source: bls.org
2.7%
136,200
Fargo-Moorhead Source: HBA of F-M
3.6%
2.7%
Unavailable
WAGE GROWTH - AVERAGE ANNUAL SALARY
LOCAL REAL ESTATE
Source: Greater Fargo-Moorhead Economic Development Corporation
Source: Coldwell Banker First Realty, Barbara Grande
March 2015
March 2014
% change
1st Qtr 2015
1st Qtr 2014
% change
$46,644
44,772
4.2%
$194,464
$176,471
10.2%
$36,088
$34,008
6.1%
1,289
1,320
-1%
Cass Clay
Number of new listings
FRAMING LUMBER PRICES
MORTGAGE RATES
Source: National Association of Home Builders
Date
April 10
March 27 March 13 Feb. 27
Home prices in Fargo-Moorhead
Source: Wells Fargo as of Apr. 17
Per 1,000 Board Ft. CME Futures
30-Year Fixed
3.875%
15-Year Fixed
3.125%
$336
$265.00
30-Year Fixed FHA
$335
$279.20
5-Year ARM
$336
$348
$284
$290
30-Year Jumbo
3.625% 3.000% 3.750%
ADVERTISE IN PERMITS PLUS, THE HBA’S HOTTEST NEW PUBLICATION Published six times per year in addition to the Plains Builder, Permits Plus aims to provide a concise report on building permit numbers and a timely update on Association advocacy efforts. Business-card size ads are available, and we have one half-page ad for the remaining four issues. contact Allison Weckman at (701) 232-5846 or allisonw@hbafm.com. April 2015
3
Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103
Permits continued from front page
Moorhead’s residential remodeling permits slipped, but value was up 33 percent West Fargo - West Fargo’s housing and residential remodeling permits nearly doubled compared to first quarter last year. It had 49 housing starts: 25 singlefamily and 24 twin homes. After a dip to 15 single-family permits last spring, the city has once again exceeded its five-year average for single-family homes in the first quarter. Dilworth - Last year at this time, Dilworth had no housing permits; this year it had three valued at over $800,000. 2015 is the first year since 2010 that Dilworth has experienced new housing activity in the first quarter. Fargo - Fargo is the only community that saw a decrease in housing permits, going from 27 to 20 and value decreasing about 33 percent. Dietrich points out that the reduction in Fargo’s homebuilding activity may be the result of buyers choosing one of the other three communities that have more robust flood control in place and that will not see the major flood insurance cost impacts that Fargo will. There are also additional flood-proofing costs involved with building a home in Fargo that may be pricing some
buyers out of the market. “Each of our communities relies on one another. Many people who work in Fargo, live in Moorhead, West Fargo or Dilworth, and vice versa. The F-M Diversion doesn’t only protect Fargo, it ensures economic vitality for our entire metro area and everyone who lives and works here,” he says. Overall - While total building permits are up 16 percent, total value across all communities through first quarter is down about 17 percent. At $78.2 million, total construction value still exceeds the five-year average of $71.4 million. Total permits and values include housing, multi-family, new commercial, residential and commercial remodeling, public and miscellaneous categories. “Last year overall was great for commercial construction and high-value projects which started out strong in the first quarter. Many of the large projects permitted last year are still under construction, which affects when new projects will be permitted,” Dietrich says. “This year, both commercial remodeling and commercial new construction are down in value compared to last year, but the number of commercial remodeling permits is up. Public projects were also much stronger last year in the first quarter.”
The full 2015 first-quarter building permit report is included as an insert in this issue of Permits Plus. If you did not receive it, contact the HBA of F-M at (701) 232-5846 or visit the newsroom page at www.hbafm.com.
Permits Plus
4
Home Builders Association of Fargo Moorhead 2015 Permit Report - 1st Quarter 2011
DILWORTH Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Permits
0 0 0 0 0 0 0 8 1 0 0 9
Units
0 0 0
2012 Value Permits
$0 $0 $0 $0 $0 $0 $0 $59,202 $3,000 $0 $0 $62,202
0 0 0 0 0 0 0 4 0 0 1 5
$168,000 $168,000 $0 $0 $0 $0 $25,000 $659,408 $1,080,665 $0 $0 $1,933,073
7 3 4 0 0 0 0 74 17 0 12 110
$2,237,000 $2,237,000 $0 $0 $0 $10,857,400 $8,745,464 $2,415,898 $12,076,075 $4,753,610 $1,636,200 $42,721,647
26 19 4 3 0 6 11 200 95 8 26 372
$2,575,000 $2,575,000 $0 $0 $0 $0 $0 $577,124 $1,217,110 $0 $19,700 $4,388,934
41 33 8 0 0 0 13 42 13 0 6 115
$4,980,000 $4,980,000 $0 $0 $0 $10,857,400 $8,770,464 $3,711,632 $14,376,850 $4,753,610 $1,655,900 $49,105,856
74 55 16 3 0 6 24 320 125 8 45 602
Units
0 0 0
2013 Value Permits
$0 $0 $0 $0 $0 $0 $0 $13,570 $0 $0 $3,000 $16,570
0 0 0 0 0 0 0 6 0 0 1 7
$796,000 $356,000 $440,000 $0 $0 $0 $0 $762,606 $2,714,118 $0 $26,000 $4,298,724
1 1 0 0 0 3 9 50 15 0 7 85
$5,445,000 $3,715,000 $830,000 $900,000 $0 $14,177,914 $18,753,470 $2,747,709 $16,471,620 $800,000 $4,827,346 $63,223,059
22 22 0 0 0 0 12 152 109 7 17 319
$8,038,700 $7,140,700 $898,000 $0 $0 $0 $1,317,000 $569,800 $912,195 $0 $1,542,500 $12,380,195
32 32 0 0 0 0 0 31 7 0 2 72
$14,279,700 $11,211,700 $2,168,000 $900,000 $0 $14,177,914 $20,070,470 $4,093,685 $20,097,933 $800,000 $6,398,846 $79,918,548
55 55 0 0 0 3 21 239 131 7 27 483
Units
0 0 0
2014 Value Permits
$0 $0 $0 $0 $0 $0 $0 $47,495 $0 $0 $0 $47,495
0 0 0 0 0 0 0 7 1 0 2 10
$280,000 $280,000 $0 $0 $0 $7,140,000 $11,547,614 $585,680 $2,591,557 $0 $0 $22,144,851
8 8 0 0 0 0 3 63 9 0 5 88
$4,256,903 $4,256,903 $0 $0 $0 $0 $5,929,987 $2,733,670 $7,902,956 $210,200 $2,055,996 $23,089,712
27 15 0 12 0 0 10 170 83 12 48 350
$8,305,130 $8,305,130 $0 $0 $0 $0 $0 $469,867 $1,870,480 $0 $50,522 $10,695,999
21 15 6 0 0 0 5 35 19 1 6 87
$12,842,033 $12,842,033 $0 $0 $0 $7,140,000 $17,477,601 $3,836,712 $12,364,993 $210,200 $2,106,518 $55,978,057
56 38 6 12 0 0 18 275 112 13 61 535
Units
0 0 0
2015 Value Permits
$0 $0 $0 $0 $0 $0 $0 $207,789 $3,000,000 $0 $0 $3,207,789
3 1 2 0 0 0 0 9 1 0 1 14
$1,919,000 $1,919,000 $0 $0 $0 $0 $2,420,000 $566,448 $1,732,603 $0 $0 $6,638,051
52 14 38 0 0 3 3 55 18 0 4 135
$5,798,305 $4,298,305 $0 $1,500,000 $0 $0 $30,023,800 $3,690,515 $12,772,536 $13,641,600 $1,528,501 $67,455,257
20 8 0 12 0 1 8 178 103 3 33 346
$5,741,500 $5,126,500 $615,000 $0 $0 $0 $7,899,900 $1,044,088 $1,603,185 $6,500 $21,300 $16,316,473
49 25 24 0 0 0 1 62 11 0 5 128
$13,458,805 $11,343,805 $615,000 $1,500,000 $0 $0 $40,343,700 $5,508,840 $19,108,324 $13,648,100 $1,549,801 $93,617,570
124 48 64 12 0 4 12 304 133 3 43 623
Units
0 0 0
5-Yr Avg Value
Permits
$802,850 $322,850 $480,000 $0 $0 $0 $0 $94,621 $10,000 $0 $0 $907,471
1 0 0 0 0 0 0 7 1 0 1 9
$9,519,000 $2,883,000 $6,636,000 $0 $0 $1,576,880 $3,175,000 $752,785 $2,078,869 $0 $0 $17,102,534
14 5 8 0 0 1 3 60 15 0 6 99
$3,861,745 $2,541,745 $0 $1,320,000 $0 $13,479,840 $7,739,580 $3,514,439 $11,907,610 $2,541,300 $2,600,960 $45,645,474
21 15 1 5 0 2 9 173 95 7 35 342
$11,304,651 $7,808,151 $3,496,500 $0 $0 $0 $300,000 $1,393,818 $1,430,000 $0 $68,000 $14,496,469
31 23 8 0 0 0 4 42 12 0 4 93
$25,488,246 $13,555,746 $10,612,500 $1,320,000 $0 $15,056,720 $11,214,580 $5,755,663 $15,426,479 $2,541,300 $2,668,960 $78,151,948
66 44 17 5 0 3 16 282 123 7 46 543
Units
0 0 0
20-Yr Avg Value
Permits
$160,570 $64,570 $96,000 $0 $0 $0 $0 $84,535 $602,600 $0 $600 $848,305
2 1 0 0 0 0 0 6 1 0 1 9
$2,536,400 $1,121,200 $1,415,200 $0 $0 $1,743,376 $3,433,523 $665,385 $2,039,562 $0 $5,200 $10,423,447
10 7 3 0 0 1 2 60 16 0 7 95
$4,319,791 $3,409,791 $166,000 $744,000 $0 $7,703,031 $14,238,460 $3,020,446 $12,226,159 $4,389,342 $2,529,801 $48,427,030
26 16 7 1 0 2 8 168 90 7 21 320
$7,192,996 $6,191,096 $1,001,900 $0 $0 $0 $1,903,380 $810,939 $1,406,594 $1,300 $340,404 $11,655,614
22 15 7 0 0 0 3 39 9 0 6 80
$14,209,757 $10,786,657 $2,679,100 $744,000 $0 $9,446,407 $19,575,363 $4,581,306 $16,274,916 $4,390,642 $2,876,005 $71,354,396
58 40 17 2 0 3 13 273 115 8 35 505
Units
0 0 6
Value
$244,738 $186,838 $57,900 $0 $0 $102,363 $65,000 $57,201 $230,844 $0 $4,063 $704,209
MOORHEAD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
1 1 0 0 0 0 1 56 18 0 3 79
0 0 0
0 0 0
0 0 118
0 0 0
0 0 9
0 0 25
0 0 19
$1,615,105 $1,175,905 $426,200 $0 $13,000 $718,144 $1,367,171 $752,358 $3,320,715 $225,000 $7,475 $8,005,968
FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
10 10 0 0 0 3 5 167 84 6 49 324
0 0 207
3 0 203
0 0 0
12 0 0
12 0 134
5 0 109
3 0 57
$3,401,663 $2,550,838 $637,825 $213,000 $0 $3,357,807 $9,937,043 $2,210,055 $8,177,012 $3,887,591 $1,303,079 $32,274,250
WEST FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
11 11 0 0 0 0 0 39 9 0 3 62
0 0 0
0 0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
0 0 30
$3,431,631 $2,747,081 $662,050 $22,500 $0 $690,951 $1,277,520 $479,828 $774,493 $1,113,676 $272,121 $8,040,220
TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
4/6/2015
22 22 0 0 0 3 6 270 112 6 55 474
0 0 207
3 0 203
0 0 118
12 0 0
12 0 143
Due to changes made by different jurisdictions after the printing deadline, permit information reported here may have changed. For the most current permit information, please contact the individual cities.
5 0 134
2 0 60
$8,693,136 $6,660,661 $1,783,975 $235,500 $13,000 $4,869,265 $12,646,734 $3,499,443 $12,503,064 $5,226,266 $1,586,738 $49,024,645