Issue 3 | July 11, 2016
Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members FOR YOUR CALENDAR: July 15 - Fall Parade of Homes, Remodeled Home Tour Entry Deadline July 27 - Muddy Boots Contractor Picnic Aug. 11 - Associate Appreciation & Family Picnic
Sept. 13 - HBA of F-M Golf Outing
Sept. 17-18 & 24-25 Fall Parade of Homes
Sept. 24-25 - Remodeled Home Tour Sept. 29 - Hard Hat Happy Hour
Visit the calendar at hbafm.com for details.
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.
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.
Share Support Of Diversion Financial Plan With Commissioners by Krista Mund, Executive Vice President
The financial plan released by the Diversion Authority in May shows one way to fund and finance the F-M Area Diversion Project; the plan calls for an extension of existing sales taxes, but requires no tax increases and no use of special assessments.
Cass County Commissioners and Fargo Commissioners will now consider specific ballot language and whether this is the best funding method to put on the November ballot. Please share your support of the financial plan with commissioners and ask them to approve adding sales tax extensions to the November ballot. Visit www.hbafm.com for talking points and contact information.
The F-M community has been reaching milestones when it comes to the F-M Area Diversion: The HBA of F-M worked with the Business Leaders Flood Task Force to highlight the importance of Fargo and Moorhead approving a Joint Powers Agreement and Project Partnership Agreement critical to secure funding and begin construction on the F-M Area Diversion Project in August. Both entities approved the documents.
June 29, the Minnesota Department of Natural Resources (DNR) released the Determination of Adequacy of its Final Environmental Impact Statement (EIS) on the F-M Area Diversion Project. The Determination of Adequacy concludes that Minnesota conducted a thorough assessment of the project and alternatives, and this step allows Minnesota to consider permitting and construction, which the Corps is planning to start later this year. A Dam Safety Permit was applied for in Minnesota in February. An application was submitted in North Dakota in February and finalized in May for construction of the Diversion Inlet Structure located south of Horace, ND. Multiple permit applications are expected as the Project will be permitted in phases. Each permit authorizes specific activities and each has its own applicable timing, rules, and processes.
July 5, U.S. Army Corps of Engineers Assistant Secretary for Civil Works, Jo-Ellen Darcy signed off on the Diversion project. She visited Fargo July 11 to formally sign the partner agreement. The Corp’s work plan includes $5 million Congress appropriated for the current fiscal year to get the project started. This action clears the way for construction to begin southeast of Horace this fall on the Diversion’s inlet structure. Diversion continued on back page
HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM
2016 COMPARED TO JANUARY - MAY 2015 HOUSING STARTS +1%
MULTI FAMILY -9%
NEW COMMERCIAL -9%
RESIDENTIAL REMODEL +12%
PUBLIC PROJECTS +32%
COMMERCIAL REMODEL 0%
2015 Housing January - May
2016 Housing January - May
Chart below shows permit and value growth January through May 2016 compared to the same period in 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 - May 2016 5 57 208 153 423 $1,205,900 $11,188,000 $48,867,502 $39,030,183 $100,291,585 423 10 41 874 216 29 181 1774 $100,291,585 $23,727,655 $52,716,441 $13,943,151 $72,389,840 $64,860,456 $9,829,737 $337,758,865
January - May 2015 13 107 147 153 420 $3,745,850 $20,958,499 $31,491,745 $35,719,441 $91,915,535 420 11 45 781 216 22 159 1654 $91,915,535 $25,406,720 $35,681,312 $11,572,802 $40,318,441 $16,028,396 $7,957,859 $228,881,065
Difference -8 -50 61 0 3 -$2,539,950 -$9,770,499 $17,375,757 $3,310,742 $8,376,050 3 -1 -4 93 0 7 22 120 $8,376,050 -$1,679,065 $17,035,129 $2,370,349 $32,071,399 $48,832,060 $1,871,878 $108,877,800
HBA of F-M’s monthly building permit report is prepared by Fiebiger, Swanson, West & Co.
Percentage Difference -62% -47% 41% 0% 1% -68% -47% 55% 9% 9% 1% -9% -9% 12% 0% 32% 14% 7% 9% -7% 48% 20% 80% 305% 24% 48%
Permits Plus
SEASONALLY ADJUSTED UNEMPLOYMENT RATES May 2016
April 2016
Minnesota
May 2015
Source: bls.gov
3.8%
North Dakota
3.8%
3.6%
3.2%
2.8%
5.0%
5.5%
2.5%
2.5%
Source: bls.gov
3.2%
United States Source: bls.gov
4.7%
Fargo-Moorhead
Source: bls.gov
2.5%
SINGLE AND MULTI-FAMILY BUILDING PERMITS May 2016
May 2015
Minnesota
% change
Source: NAHB
5,541
4,763
16%
1,063
8%
345,721
5%
557
-16%
North Dakota Source: NAHB
1,144
United States
Source: NAHB
361,919
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
470
MORTGAGE RATES
Source: Wells Fargo as of May 2, 2016
30-Year Fixed
3.654%
15-Year Fixed
2.962%
30-Year Fixed FHA
4.647%
5-Year ARM VA
2.789%
30-Year Jumbo
3.381%
FRAMING LUMBER PRICES Source: National Association of Home Builders
Date
Per 1,000 Board Ft.
CME Futures
June 10
$349
$301.8
June 23 May 27 May 13
$348
$357
$359
$301.3
$308.5 $310.9
facebook.com/HBAFargoMoorhead VISIT HBAFM.COM FOR THE LATEST LOCAL REAL ESTATE
Source: Coldwell Banker First Realty, Barbara Grande
June 2016
June 2015
% change
$218,014
$208,000
4.81%
$366,253,221
$368,892,903
-.72%
$74,678,144
$77,598,015
-3.76%
$269,283, 128
$267,358,471
.72%
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
(DOLLARS PER GALLON)
June 6
June 13
June 20
June 27
$2.409
$2.466
$2.370
$2.291
$2.381
Issue 3 | July 11, 2016
$2.399
$2.353
$2.329
July 4
$2.291
$2.208
3
Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103
Diversion continued from front page
The graphic below illustrates the financial plan proposed to pay for the F-M Area Diversion Project. It calls for a sales tax extension, no tax increases and no special assessments. Please share your support of the financial plan with commissioners and ask them to approve adding sales tax extensions to the November ballot. Visit www.hbafm.com for talking points and contact information.
Permits Plus
4
Home Builders Association of Fargo-Moorhead 2016 Permit Report - May January - June 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
5 5 0 0 0 0 1 25 2 0 11 44
Units
January - May 2015 Value Permits
Units
2016 Value Permits
$1,317,000 $1,317,000 $0 $0 $0 $0 $1,078,000 $306,239 $3,015,000 $0 $58,999 $5,775,238
13 11 2 0 0 0 2 21 2 0 4 42
$18,377,599 $11,244,674 $3,892,925 $3,240,000 $0 $660,000 $6,770,597 $3,356,923 $6,896,314 $0 $107,010 $36,168,443
107 63 44 0 0 7 6 170 34 0 15 339
173 137 20 16 0 14 30 524 188 39 204 1,172
$37,951,681 $31,357,681 $4,374,000 16 $2,220,000 0 $0 526 $43,838,000 $197,854,040 $8,437,448 $69,375,426 $76,854,991 $13,698,652 $448,010,238
147 99 12 36 0 2 30 426 163 16 115 899
$31,491,745 208 $25,514,205 169 $1,820,210 20 36 $4,157,330 19 0 $0 0 164 $15,579,840 6 $16,686,835 15 $6,672,388 451 $28,165,852 151 $7,433,299 23 $6,575,370 153 $112,605,329 1,007
219 167 28 3 0 11 22 165 37 3 28 485
$47,333,744 $41,513,744 $2,940,000 24 $2,880,000 0 $0 384 $28,100,000 $39,498,375 $2,933,181 $4,093,615 $16,241,551 $1,258,400 $139,458,866
153 89 44 13 0 2 7 164 17 6 25 374
$35,719,441 $25,400,941 $6,382,500 $3,936,000 $0 $1,350,000 $13,120,480 $3,039,446 $7,318,500 $8,595,097 $937,500 $70,080,464
0 0 0
0 0 0
$3,745,850 $3,265,850 $480,000 $0 $0 $0 $120,000 $146,732 $35,000 $0 $15,689 $4,063,271
5 5 0 0 0 0 0 22 1 0 6 34
$20,958,499 $13,372,499 $7,586,000 $0 $0 $8,476,880 $5,753,997 $1,714,236 $4,799,089 $0 $429,300 $42,132,001
57 31 2 0 12 4 9 224 31 0 16 341
Units
0 0 0
Value
$1,205,900 $1,205,900 $0 $0 $0 $0 $0 $178,282 $750,000 $0 $35,000 $2,169,182
MOORHEAD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
103 53 26 6 0 1 12 208 44 0 26 394
24 0 6
0 0 87
0 24 36
$11,188,000 $7,138,000 $450,000 $0 $3,600,000 $2,783,755 $10,687,758 $3,038,665 $38,365,941 $0 $287,593 $66,351,712
FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
$48,867,502 $40,413,230 $2,860,600 19 $5,593,672 0 $0 226 $20,943,900 $19,029,623 $8,033,236 $30,512,274 $35,231,366 $8,346,159 $170,964,060
WEST FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
20 0 12
153 119 34 0 0 0 17 177 33 6 6 392
0 0 0
$39,030,183 $30,762,850 $8,267,333 $0 $0 $0 $22,999,060 $2,692,968 $2,761,625 $29,629,090 $1,160,985 $98,273,911
TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
6/13/2016
500 362 74 25 0 26 65 922 271 42 269 2,095
$104,980,024 420 $85,433,099 262 $11,206,925 102 64 $8,340,000 49 0 $0 0 916 $72,598,000 11 $245,201,012 45 $15,033,791 781 $83,380,355 216 $93,096,542 22 $15,123,061 159 $629,412,785 1,654
$91,915,535 423 $67,553,495 324 $16,268,710 56 56 $8,093,330 19 0 $0 12 263 $25,406,720 10 $35,681,312 41 $11,572,802 874 $40,318,441 216 $16,028,396 29 $7,957,859 181 $228,881,065 1,774
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.
$100,291,585 $79,519,980 $11,577,933 19 $5,593,672 24 $3,600,000 262 $23,727,655 $52,716,441 $13,943,151 $72,389,840 $64,860,456 $9,829,737 $337,758,865
Home Builders Association of Fargo-Moorhead 2016 Permit Report - YTD (May) 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
4 4 0 0 0 0 0 20 3 0 16 43
Units
0 0 0
Value
$880,000 $880,000 $0 $0 $0 $0 $0 $355,900 $51,500 $0 $110,591 $1,397,991
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 2 0 0 4 8
Units
0 0 0
Value
$200,000 $200,000 $0 $0 $0 $0 $615,333 $6,800 $0 $0 $20,900 $843,033
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 13 2 1 3 20
Units
0 0 0
Value
$0 $0 $0 $0 $0 $0 $50,000 $216,015 $52,000 $1,470,600 $52,000 $1,840,615
HARWOOD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
6/13/2016
Permits
1 1 0 0 0 0 0 2 0 0 0 3
Units
0 0 0
Value
$167,000 $167,000 $0 $0 $0 $0 $0 $302,800 $0 $0 $0 $469,800
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
14 8 6 0 0 0 1 7 0 0 0 22
0 0 0
$2,720,000 $2,039,000 $681,000 $0 $0 $0 $650,000 $82,546 $0 $0 $0 $3,452,546
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.
6 6 0 0 0 0 1 0 0 0 0 7
0 0 0
$4,622,000 $4,622,000 $0 $0 $0 $0 $1,300,000 $0 $0 $0 $0 $5,922,000