Issue 2 | May 3, 2016
Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members
FOR YOUR CALENDAR: May 5 - Lunch Session: Fargo Rules for Construction Vehicles on Roadways May 12 - EPA Renovation, Repair & Painting Refresher May 12 - Parade of Homes Celebration June 6 - 17 - Herdina Academy for the Construction Trades
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 F-M Metro Permit Numbers
by Krista Mund, Executive Vice President Housing activity is off to another fast start this year, according to the HBA of F-M’s first-quarter building permit report. With 115 housing permits through the end of March, the F-M metro community encompassing Dilworth, Moorhead, Fargo and West Fargo experienced a 7 percent decrease over last year’s 124 housing permits. HBA President Tom Spaeth, Accent Contracting, says, “Part of last year’s first-quarter surge was 38 twin home permits in Moorhead which resulted from builders applying for those permits before Minnesota’s code requiring fire sprinklers became effective. Even though we saw a slight decrease compared to last year, we have to remember that 2015 was housing’s strongest start since 2004.”
June 14 - North Dakota Primary Election
Watch HBA communications for information on which candidates the Association supports for critical local races!
June 24 - Remodeled Home Tour Early Entry Registration Deadline July 12 - HBA Golf Outing July 27 - Muddy Boots Contractor Picnic
Visit the calendar at hbafm.com for details.
FIRST QUARTER HOUSING PERMIT COMPARISON
Compared to last year through March, single-family permits increased by 40 community-wide, while twin-home construction decreased by 38 permits. Row-house permits decreased from 12 to one. Housing permit values increased 12 percent over last year, from $25.5 million to $28.5 million through March. “Like last year, this open, dry spring has allowed the housing industry to start activity early, which may be one reason why we’re seeing continued strong early permits,” says Tom Spaeth, Accent Contracting. “The HBA is preparing for the third-largest Spring Parade of Homes with 99 houses, which is representative of this permit report and the high housing activity.” Dilworth - 2015 was the first year since 2010 that Dilworth experienced new housing activity in the first quarter; it had three starts. This year continues that trend with two single-family starts. Moorhead - Moorhead’s first quarter was similar to 2014 when it had eight housing starts. The city’s residential remodeling is up 82 percent, going from 55 permits to 100 and nearly doubling value compared to last year. First-quarter permits continued on back page
HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM
HOUSING STARTS -7%
MULTI FAMILY -50%
NEW COMMERCIAL +58%
RESIDENTIAL REMODEL +22%
COMPARED TO Q1 2015
Q1 Housing Permits 1998-2016
PUBLIC PROJECTS +233% COMMERCIAL REMODEL -13%
Total Number of Permits Q1 2016
Chart below shows permit and value growth through first-quarter 2016 compared to first-quarter 2015. See insert for the full permit report.
HOUSING STARTS
HOUSING VALUE
TOTAL PERMITS
TOTAL VALUE
2
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 New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Totals
January - March January - March 2016 2015 2 3 9 52 52 20 52 49 115 124 $535,900 $802,850 $2,160,000 $9,519,000 $12,948,762 $3,861,745 $12,833,600 $11,304,651 $28,478,262 $25,488,246 115 124 2 4 19 12 371 304 116 133 10 3 53 43 686 623 $28,478,262 $25,488,246 $10,443,000 $15,056,720 $35,638,833 $11,214,580 $6,204,872 $5,755,663 $47,044,435 $15,426,479 $13,514,489 $2,541,300 $2,919,675 $2,668,960 $144,243,566 $78,151,948
Difference -1 -43 32 3 -9 -$266,950 -$7,359,000 $9,087,017 $1,528,949 $2,990,016 -9 -2 7 67 -17 7 10 63 $2,990,016 -$4,613,720 $24,424,253 $449,209 $31,617,956 $10,973,189 $250,715 $66,091,618
HBA of F-M’s monthly building permit report is prepared by Fiebiger, Swanson, West & Co.
Percentage Difference -33% -83% 160% 6% -7% -33% -77% 235% 14% 12% -7% -50% 58% 22% -13% 233% 23% 10% 12% -31% 218% 8% 205% 432% 9% 85%
Permits Plus
SEASONALLY ADJUSTED UNEMPLOYMENT RATES Mar 2016
Feb 2016
Minnesota
Mar 2015
Source: bls.gov
3.7%
North Dakota
3.7%
3.6%
2.9%
2.7%
4.9%
5.5%
2.5%
3.1%
Source: bls.gov
3.1%
United States Source: bls.gov
5.0%
Fargo-Moorhead Source: bls.gov
3.2%
SINGLE AND MULTI-FAMILY BUILDING PERMITS Feb 2016
Feb 2015
Minnesota
% change
Source: NAHB
1,810
1,832
-1%
195
62%
148,355
8%
9
222%
North Dakota
Source: NAHB
315
United States Source: NAHB
159,816
Fargo-Moorhead
NOW IS NOT THE TIME TO PAUSE ON THE F-M AREA DIVERSION Sandbags are not permanent flood protection
Source: HBA of F-M
29
MORTGAGE RATES
Source: Wells Fargo as of May 2, 2016
30-Year Fixed
3.875%
15-Year Fixed
3.125%
30-Year Jumbo
3.625%
30-Year Fixed FHA
3.75%
5-Year ARM VA
3.125%
FRAMING LUMBER PRICES Source: National Association of Home Builders
Date
Per 1,000 Board Ft.
CME Futures
Mar 25
$340
$297.8
Mar 11
$322
Apr 22 Mar 18
$346
$332
$283
$297.0 $277.7
facebook.com/HBAFargoMoorhead LOCAL REAL ESTATE
Source: Coldwell Banker First Realty, Barbara Grande
Mar 2016
Mar 2015
% change
$207,627
$194, 464
6.8%
$127,186,224
$126,572,789
0.5%
$29,737,409
$28,537,669
4.2%
$92,054,015
$89,054,047
3.4%
Home prices in Fargo-Moorhead Closed MLS Volume
Closed MLS Volume - New Construction
Closed MLS Volume - Existing Residential
U.S. REGULAR GASOLINE PRICES
Source: Energy Information Administration
U.S.
Midwest
May 2
Apr 25
$2.161
$2.073
$2.168
Issue 2 | May 3, 2016
$2.08
(DOLLARS PER GALLON)
Apr 18
Apr 11
$2.04
$1.952
$2.053
$1.981
Apr 4
$1.994
$1.968
3
Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103
First-quarter permits continued from front page
Fargo - Fargo saw a significant increase in housing permits, going from 20 to 52. The majority of those starts were single-family homes, and its first-quarter housing permit value more than tripled compared to 2015. West Fargo - West Fargo’s housing starts exceeded last year’s very strong start by three permits, with singlefamily construction increasing 44 percent, from 25 to 36. Residential remodeling stayed relatively steady. Overall - Total building permits were up 10 percent and total value across all communities through first quarter was up 85 percent through March. The major value increase is due to new commercial, commercial remodeling and public permits taken out in the first quarter. “2014 overall was great for commercial construction and high-value projects which started out strong in the first quarter. Many of the large projects permitted then were still under construction throughout 2015, which affected new projects starting up,” Spaeth says. “This year, we’re seeing a jump back up in new commercial and public projects to those first-quarter 2014 marks.” Total permits and values include housing, multi-family, new commercial, residential and commercial remodeling, public and miscellaneous categories. “Every time we release a building permit report, we mention that the Home Builders Association of F-M supports the F-M Area Diversion project, and we encourage those residents who support the project to speak up. Each of our communities rely on one another. Many people who work in Fargo, live in Moorhead, West Fargo or Dilworth, and vice versa. The Diversion doesn’t only protect Fargo; it ensures economic vitality for our entire metro area and everyone who lives and works here,” Spaeth says.
HBA Expands Building Permit Report
HBA of F-M has expanded its monthly building permit report to encompass outlying communities including Barnesville and Hawley in Minnesota, and Casselton, Harwood, Horace, Kindred, Mapleton and Oxbow in North Dakota. See the insert or visit the members-only section at hbafm.com and click the Information tab.
Permits Plus
4
Home Builders Association of Fargo-Moorhead 2016 Permit Report - YTD (March) 2014
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 7 1 0 2 10
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
2016 Value Permits
$802,850 $322,850 $480,000 $0 $0 $0 $0 $94,621 $10,000 $0 $0 $907,471
2 2 0 0 0 0 0 4 1 0 2 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
9 7 2 0 0 0 3 100 15 0 5 132
$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
52 43 8 1 0 2 8 205 76 8 42 393
$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
52 36 16 0 0 0 8 62 24 2 4 152
$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
115 88 26 1 0 2 19 371 116 10 53 686
Units
3-Yr Avg Value
Permits
$535,900 $535,900 $0 $0 $0 $0 $0 $29,359 $750,000 $0 $1,000 $1,316,259
2 1 1 0 0 0 0 7 1 0 2 11
$2,160,000 $1,710,000 $450,000 $0 $0 $0 $8,399,773 $1,424,059 $33,501,206 $0 $25,000 $45,510,038
23 10 13 0 0 1 3 73 14 0 5 118
$12,948,762 $11,726,090 $1,209,000 $13,672 $0 $10,443,000 $11,410,000 $3,566,056 $11,039,254 $11,986,567 $2,699,690 $64,093,329
33 22 3 8 0 1 9 184 87 8 41 363
$12,833,600 $10,927,600 $1,906,000 $0 $0 $0 $15,829,060 $1,185,398 $1,753,975 $1,527,922 $193,985 $33,323,940
41 25 15 0 0 0 5 53 18 1 5 122
$28,478,262 $24,899,590 $3,565,000 1 $13,672 0 $0 117 $10,443,000 $35,638,833 $6,204,872 $47,044,435 $13,514,489 $2,919,675 $144,243,566
98 58 32 8 0 2 16 317 120 9 52 615
0 0 0
Units
0 0 0
Value
$446,250 $286,250 $160,000 $0 $0 $0 $0 $110,590 $1,253,333 $0 $333 $1,810,506
MOORHEAD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
8 8 0 0 0 0 3 63 9 0 5 88
0 0 0
0 0 9
0 0 0
0 0 3
$4,532,667 $2,170,667 $2,362,000 $0 $0 $525,627 $4,664,924 $914,431 $12,437,559 $0 $8,333 $23,083,541
FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
27 15 0 12 0 0 10 170 83 12 48 350
12 0 0
12 0 0
1 0 117
8 0 39
$7,536,271 $6,188,713 $403,000 $944,557 $0 $7,974,280 $16,391,127 $3,590,337 $11,906,467 $9,389,822 $2,276,384 $59,064,687
WEST FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
21 15 6 0 0 0 5 35 19 1 6 87
0 0 0
0 0 0
0 0 0
0 0 0
$9,959,917 $7,954,084 $2,005,833 $0 $0 $0 $8,009,653 $1,207,768 $1,595,720 $511,474 $94,428 $21,378,961
TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
4/13/2016
56 38 6 12 0 0 18 275 112 13 61 535
12 0 0
12 0 9
No assurance is provided on this report. Permit information reported here may have changed. For the most current permit information, please contact the individual cities.
$22,475,104 $16,599,714 $4,930,833 8 $944,557 0 $0 42 $8,499,907 $29,065,704 $5,823,125 $27,193,079 $9,901,296 $2,379,479 $105,337,695
Home Builders Association of Fargo-Moorhead 2016 Permit Report - YTD (March) MINNESOTA BARNESVILLE 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 12 1 0 4 17
Units
0 0 0
Value
$0 $0 $0 $0 $0 $0 $0 $248,950 $40,000 $0 $17,950 $306,900
HAWLEY Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Permits
1 1 0 0 0 0 1 0 0 0 0 2
Units
0 0 0
Value
$200,000 $200,000 $0 $0 $0 $0 $615,333 $0 $0 $0 $0 $815,333
NORTH DAKOTA CASSELTON 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 1 6 1 0 2 10
Units
0 0 0
Value
$0 $0 $0 $0 $0 $0 $50,000 $96,230 $50,000 $0 $42,000 $238,230
HARWOOD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
4/13/2016
Permits
1 1 0 0 0 0 0 1 0 0 0 2
Units
0 0 0
Value
$167,000 $167,000 $0 $0 $0 $0 $0 $300,000 $0 $0 $0 $467,000
MAPLETON 1 1 0 0 0 0 0 1 0 0 3 5
0 0 0
$180,000 $180,000 $0 $0 $0 $0 $0 $1,800 $0 $0 $190,600 $372,400
HORACE Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
KINDRED Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
4 4 0 0 0 0 1 3 0 0 0 8
0 0 0
$1,054,000 $1,054,000 $0 $0 $0 $0 $650,000 $35,700 $0 $0 $0 $1,739,700
OXBOW 0 0 0 0 0 0 0 4 1 0 0 5
0 0 0
$0 $0 $0 $0 $0 $0 $0 $204,036 $75,000 $0 $0 $279,036
Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
No assurance is provided on this report. Permit information reported here may have changed. For the most current permit information, please contact the individual cities.
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