June 2015
Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members
FOR YOUR CALENDAR: July 14 - HBA Golf Outing July 20 - Fall Parade of Homes and Remodeled Home Tour Application Deadline July 29 - Muddy Boots Picnic
July 30 - Lunch Session: Quickbooks for Builders
QUOTABLE
REGARDING NATIONAL HOUSING STARTS IN MAY “The uptick in permits shows our builders are optimistic that more consumers are returning to the housing market. Even with this month’s dip in production, it should be a solid year for home building.” -Tom Woods, Blue Springs, Mo. NAHB Chairman June 16 “After a strong April, some readjustment in housing production in May was expected. The starts and permits figures for the second quarter of 2015 are shaping up to be stronger than the first. This upward trajectory is in line with the recently released NAHB/ Wells Fargo HMI, which found growing builder confidence in the market.” -David Crowe NAHB Chief Economist June 16
Moorhead
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.
allows alternate methods for
foundation insulation
The HBA of F-M requested alternate methods for insulating basements in Moorhead due to code changes that occurred with the adoption of the 2015 Minnesota Residential Energy Code earlier this year. These alternates were requested as the new code does not consider our building practices due to heavy clay soil in the Red River Valley. In a letter to the HBA of F-M, Moorhead Building Official Jack Nyberg approved of the two methods. 1. Contractors may use two-inch (R10) foam or three-inch (R15) smoothface foam (without vertical grooves) instead of the code requirement for foam with drainage grooves or the six mil poly drainage plain on the outside of smooth-face foam basement insulation. 2. Contractors may use continuous R15 spray foam insulation on the interior of our concrete foundations (without any exterior insulation). Framing must be held off the foundation wall far enough for the R15 foam to be continuous behind framing members. The inspections department requires a written request including the signed and printed name of both the builder and building owner for each address on which the alternate methods will be used. In the letter, Nyberg reminds contractors that a 15-minute thermal barrier will be required over all foam insulation installed on the interior of a building.
Fargo
wall-bracing specs for basements now
available from
HBA
Revisions to Fargo’s floodproof basement design became effective in January. The HBA of F-M and its members have worked to clarify the information and process. The HBA has commissioned a standard drawing for wall bracing at the top of the basement where the trusses run parallel to the wall. Contact the HBA at (701) 232-5846 or info@hbafm.com for a copy. The drawing shows an alternative method that can be used and is available to HBA members only. This drawing should be provided to your truss manufacturer to be used while designing the trusses for floodproof basements in Fargo. Here are some tips in complying with the requirements: • Before a permit will be issued, foundation plans must show required construction details per city floodproof specifications. Items inspectors look for on the foundation plan include the type of reinforcing option you
Fargo basements continued to back page
HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM
ousing Permits Through May
lworth
January through May 2015 - Dilworth, Moorhead, Fargo, West Fargo
Moorhead
Fargo
Total Housing Permits
West Permit Value Through May Fargo Total Building Permits Value
3% Dilworth
36% West Fargo
26% Moorhead
HOUSING VALUE
TOTAL PERMITS
TOTAL VALUE
2
Housing Starts 40%
N New Commercial 16%
Fargo 35%
HOUSING STARTS
Residential Remodel 5%
Commercial Remodel 18%
City
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
Misc 4%
MultiPublic Family 11% 7%
January - May January - June 2015 2014 Difference 13 5 8 107 103 4 147 173 -26 153 219 -66 420 500 -80 $3,745,850 $1,317,000 $2,428,850 $20,958,499 $18,377,599 $2,580,900 $31,491,745 $37,951,681 -$6,459,936 $35,719,441 $47,333,744 -$11,614,303 $91,915,535 $104,980,024 -$13,064,489 420 500 -80 11 26 -15 45 65 -20 781 922 -141 216 271 -55 22 42 -20 159 269 -110 1654 2095 -441 $91,915,535 $104,980,024 -$13,064,489 $25,406,720 $72,598,000 -$47,191,280 $16,028,396 $93,096,542 -$77,068,146 $7,957,859 $15,123,061 -$7,165,202 $35,681,312 $245,201,012 -$209,519,700 $11,572,802 $15,033,791 -$3,460,989 $40 318 441 $40,318,441 $83 380 355 $83,380,355 -$43,061,914 $43 061 914 $228,881,065 $629,412,785 -$400,531,720
HBA of F-M’s monthly building permit report is prepared by Fiebiger, Swanson, West & Co.
Percentage Difference 160% 4% -15% -30% -16% 184% 14% -17% -25% -12% -16% -58% -31% -15% -20% -48% -41% -21% -12% -65% -83% -47% -85% -23% -52% 52% -64%
Permits Plus
SEASONALLY ADJUSTED UNEMPLOYMENT RATES May 2015
April 2015
Minnesota
May 2014
Source: bls.gov
SINGLE AND MULTI-FAMILY BUILDING PERMITS April 2015 Minnesota
April 2014
% change
Source: NAHB
3.8%
3.7%
North Dakota
4.1%
Source: bls.gov
4,763
North Dakota
3,422
39%
2,450
-57%
317,665
9%
99
Unavailable
Source: NAHB
3.1%
3.1%
United States
2.7%
Source: bls.gov
1,063
United States Source: NAHB
5.5%
5.4%
Fargo-Moorhead
6.3%
Source: Greater Fargo-Moorhead Economic Development Corporation
Unavailable
345,721
Fargo-Moorhead Source: HBA of F-M
2.6%
2.9%
Unavailable
LOCAL REAL ESTATE
Source: Coldwell Banker First Realty, Barbara Grande
1st Qtr 2015
1st Qtr 2014
% change
$194,464
$176,471
10.2%
1,289
1,320
-1%
Home prices in Fargo-Moorhead Number of new listings
MORTGAGE RATES Source: Wells Fargo as of June 18
30-Year Fixed
4.250%
30-Year Fixed FHA
4.000%
5-Year ARM
2.875%
15-Year Fixed
3.500%
30-Year Jumbo
4.000%
FRAMING LUMBER PRICES Source: National Association of Home Builders
Date
May 29 May 15
April 27 April 10
Per 1,000 Board Ft. CME Futures
$315
$273.10
$310
$258.40
$336
$265
$327
$248.80
WAGE GROWTH - AVERAGE ANNUAL SALARY Source: Greater Fargo-Moorhead Economic Development Corporation
3rd Qtr 2014
3rd Qtr 2013
% change
$46,644
$44,772
4.2%
$36,088
$34,008
6.1%
Cass Clay
June 2015
3
Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103
Fargo basements continued from front page
are using (contractors can use different reinforcing options for different walls). The HBA recommends working with your concrete company and truss manufacturer to ensure that the correct information is present on the plans before submitting for a permit.
• The city of Fargo’s “Floodproof Construction Requirements,” document has all information necessary to obtain a permit for floodproof construction and is available from Fargo’s inspections division. We recommend you plan more time for the permitting process the first time you build a floodproof basement in 2015.
Judge stops construction of Oxbow ring dike - In May, a federal judge issued an injunction resulting in cessation of all work on the Oxbow ring dike until the Minnesota Department of Natural Resources completes a study on impacts of the F-M Diversion. Along with work on the ring dike itself, construction of homes replacing bought-out properties was threatened to be stopped by the F-M Diversion Authority. When the injunction was issued, there were eight homes under construction being allowed to continue, five homes under contract, and 25 homes in line for funding and construction, with more anticipated to follow. The HBA of F-M met with the affected builders, the city of Oxbow and the F-M Diversion Authority. The Association has closely monitored the situation, and members addressed the issue with North Dakota’s Congressional Delegation in Washington, D.C., in June. As of press time, affected parties await communication from the federal judge clarifying if his decision included ceasing construction of homes involved in the buy-out process. The impacts of stopping home construction in Oxbow is far-reaching and affects many home-buildingindustry businesses.
Two weekends: Sept. 26-27 and Oct. 3-4
Permits Plus
One weekend: Oct. 3-4
Applications available! Deadline July 20.
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