Issue 4 | August 26, 2016
Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members FOR YOUR CALENDAR: Sept. 13 - HBA of F-M Golf Outing
Sept. 17-18 & 24-25 Fall Parade of Homes
Sept. 24-25 - Remodeled Home Tour
Sept. 27 HBA Lunch Session: Diversion Update & Flood Insurance Changes
Permits
through to last year
July
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.
holding steady compared
The number of housing permits through July is down 2 percent compared to the same time last year. While Fargo’s housing permits have increased 17 percent, Dilworth, Moorhead and West Fargo saw decreases. Last year’s housing activity, in terms of permit numbers, was the second-highest level since 2005. Single-family housing accounts for 84 percent of total permits this year, while last year it accounted for 71 percent. Housing permit values are up 8 percent compared to 2015. Total construction value across all sectors is down about 1 percent, while the number of permits is up 4 percent. See page two and the inserts for more information.
Sept. 29 - Hard Hat Happy Hour
October - Showroom Tour (all month) Oct. 25 - Awards Gala & Annual Meeting
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.
Fargo, Cass County
approve ballot language to extend sales taxes for diversion On Aug. 15, both the Cass County Commission and the Fargo Commission approved language to be added to the Nov. 8 ballot to extend current sales taxes to partially fund the F-M Area Diversion.
Both commissions took care to craft the ballot language to ensure the debts are paid off as early as tax revenues allow. They want to prevent future leaders from making minimal payments and allowing surplus revenue to accrue. The ballot measures will extend three half-cent sales taxes to as late as Dec. 31, 2084. The HBA of F-M’s presence at the Fargo Commission meeting was noted by Mayor Tim Mahoney.Thank you HBA of F-M members who contacted commissioners and attended meetings regarding this issue! Watch future communications for more details on how you can help spread the word to “vote yes” on these important sales tax extensions.
HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM
2016 COMPARED TO JANUARY - JULY 2015 HOUSING STARTS -2%
MULTI FAMILY -32%
NEW COMMERCIAL -5%
RESIDENTIAL REMODEL +8%
COMMERCIAL REMODEL +5%
PUBLIC PROJECTS -6%
2015 Housing January - July
2016 Housing January - July
Chart below shows permit and value growth January through July 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 - July 2016 14 113 295 265 687 $3,475,900 $22,124,200 $73,931,952 $63,476,983 $163,009,035 687 15 71 1361 313 31 272 2750 $163,009,035 $35,512,655 $97,654,191 $21,412,461 $89,103,297 $67,514,526 $20,959,720 $495,165,885
January - July 2015 21 145 252 283 701 $5,990,850 $28,753,499 $53,201,120 $62,382,111 $150,327,580 701 22 75 1264 298 33 248 2641 $150,327,580 $60,105,420 $60,146,385 $17,595,186 $70,160,774 $128,386,851 $14,794,622 $501,516,818
Difference -7 -32 43 -18 -14 -$2,514,950 -$6,629,299 $20,730,832 $1,094,872 $12,681,455 -14 -7 -4 97 15 -2 24 109 $12,681,455 -$24,592,765 $37,507,806 $3,817,275 $18,942,523 -$60,872,325 $6,165,098 -$6,350,933
HBA of F-M’s monthly building permit report is prepared by Fiebiger, Swanson, West & Co.
Percentage Difference -33% -22% 17% -6% -2% -42% -23% 39% 2% 8% -2% -32% -5% 8% 5% -6% 10% 4% 8% -41% 62% 22% 27% -47% 42% -1%
Permits Plus
SEASONALLY ADJUSTED UNEMPLOYMENT RATES June 2016
May 2016
Minnesota
June 2015
Source: bls.gov
3.8%
North Dakota
3.8%
3.6%
3.2%
2.8%
4.7%
5.3%
2.5%
2.4%
Source: bls.gov
3.2%
United States Source: bls.gov
4.9%
Fargo-Moorhead Source: bls.gov
2.5%
SINGLE AND MULTI-FAMILY BUILDING PERMITS May 2016
May 2015
Minnesota
% change
Source: NAHB
7,552
7,000
8%
2,186
-36%
458,119
3%
717
5%
North Dakota Source: NAHB
1,399
United States Source: NAHB
471,368
Fargo-Moorhead
Source: HBA of F-M
750
MORTGAGE RATES
CT CONTA ! N ALLISO
Source: Wells Fargo as of Aug. 9, 2016
30-Year Fixed
3.625%
15-Year Fixed
3.000%
30-Year Jumbo
3.500%
30-Year Fixed FHA
3.625%
5-Year ARM VA
3.500%
FRAMING LUMBER PRICES Source: National Association of Home Builders
Date
Per 1,000 Board Ft.
CME Futures
July 8
$349
$318.8
July 15 July 1
June 24
$352 $347
$333.3
$307.7
$359
$301.3
LOCAL REAL ESTATE
Source: Coldwell Banker First Realty, Barbara Grande
July 2016
July 2015
% change
$218,574
$205,471
6.377%
$462,687,317
$458,482,280
0.917%
$91,903,148
$90,725,691
1.298%
$340,372,770
$337,918,486
0.726%
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)
July 11
July 18
July 25
$2.155
$2.152
$2.078
$2.253
Issue 4 | August 26, 2016
$2.230
$2.182
Aug 1
$2.159
$2.075
Aug 8
$2.150 $2.115
3
Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103
Copyright
protection for house plans: what you need to know
In June the HBA of F-M brought John Ritchie, NAHB associate general council, to Fargo to discuss copyright protection and what members need to know.
The copyright law was last amended in 1976. It is entirely statutory and is handled in Federal court. This means it preempts any state law or regulations. Copyright law covers any “original work of authorship” which means anything that is written down, in a computer program or anything fixed in a “tangible medium of expression.” If it can be copied or reproduced, it is covered under the copyright law. Originality is a requirement to coverage under the law as well. Work must show a “minimal degree of creativity.” Before 1990, house plans weren’t covered because they were a “useful item.” Now, protection of plans arises immediately, at the moment of creation, as soon as it is fixed in tangible expression. There is no need to file or register in order to receive protection, however if any infringement takes place, you have more rights if you have registered officially. Visit http://ow.ly/2uNY303xOR6 to read the full story. Visit the members-only website at www.hbafm.com to download the handout from Ritchie’s presentation. 5-7 p.m. Sept. 29 ICSS Supply Company • 325 23rd St S Moorhead FREE BEER • FREE FOOD • LIVE MUSIC
Celebrate a successful Fall Parade of Homes and Remodeled Home Tour, and kick off the Showroom Tour. Register: hbafm.memberzone.com/events/calendar or email sami@hbafm.com Thank you sponsors: ICSS Supply Company & Central Minnesota Credit Union
Permits Plus
4
Home Builders Association of Fargo Moorhead 2016 Permit Report - YTD (July) January - September 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
20 18 2 0 0 1 3 32 4 0 23 83
Units
0 0 0
January - July 2015
Value Permits
$4,775,000 $4,375,000 $400,000 $0 $0 $1,600,000 $1,198,000 $382,839 $3,040,000 $0 $596,499 $11,592,338
21 17 4 0 0 0 2 33 4 0 7 67
$32,111,639 $23,552,714 $5,318,925 $3,240,000 $0 $7,160,000 $8,226,597 $4,904,256 $14,719,600 $0 $300,180 $67,422,272
145 97 48 0 0 10 16 303 54 0 27 555
Units
0 0 0
2016 Value Permits
$5,990,850 $5,050,850 $940,000 $0 $0 $0 $120,000 $213,684 $605,000 $0 $15,689 $6,945,223
14 14 0 0 0 0 0 43 1 0 11 69
$28,753,499 $20,647,499 $8,106,000 $0 $0 $20,226,880 $8,340,714 $3,043,074 $6,647,001 $0 $674,300 $67,685,468
113 85 4 0 12 4 15 317 49 0 23 521
Units
0 0 0
Value
$3,475,900 $3,475,900 $0 $0 $0 $0 $0 $331,867 $750,000 $0 $73,000 $4,630,767
MOORHEAD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
173 113 36 6 0 3 20 363 76 0 48 683
24 0 86
0 0 240
0 24 36
$22,124,200 $17,774,200 $750,000 $0 $3,600,000 $2,783,755 $12,112,758 $4,022,940 $40,928,947 $0 $312,593 $82,285,193
FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
312 255 26 31 0 31 51 815 292 48 342 1,891
$68,935,976 252 $58,991,976 173 $5,294,000 20 31 $4,650,000 59 0 $0 0 1297 $106,280,000 10 $217,913,749 43 $12,957,367 679 $93,034,353 218 $101,377,075 27 $31,350,149 187 $631,848,669 1,416
$53,201,120 295 $42,476,300 252 $3,407,490 24 59 $7,317,330 19 0 $0 0 450 $38,528,540 11 $26,587,191 30 $9,806,016 693 $54,937,753 210 $119,791,754 25 $12,162,133 224 $315,014,507 1,488
$73,931,952 $64,923,680 $3,414,600 19 $5,593,672 0 $0 403 $32,728,900 $44,590,573 $12,523,103 $42,205,925 $37,885,436 $17,298,409 $261,164,298
WEST FARGO Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
435 258 100 13 0 11 31 254 47 5 55 838
$87,854,337 $64,639,337 $13,245,000 77 $9,970,000 0 $0 384 $28,100,000 $51,690,301 $4,229,206 $6,027,536 $16,387,951 $1,794,212 $196,083,543
283 185 48 18 0 2 14 249 22 6 27 603
$62,382,111 $48,151,111 $6,905,000 50 $7,326,000 0 $0 12 $1,350,000 $25,098,480 $4,532,412 $7,971,020 $8,595,097 $1,942,500 $111,871,620
265 200 34 8 0 0 26 308 53 6 14 672
$63,476,983 $50,869,650 $8,267,333 31 $4,340,000 0 $0 0 $0 $40,950,860 $4,534,551 $5,218,425 $29,629,090 $3,275,718 $147,085,627
$150,327,580 687 $116,325,760 551 $19,358,490 62 109 $14,643,330 27 0 $0 12 702 $60,105,420 15 $60,146,385 71 $17,595,186 1361 $70,160,774 313 $128,386,851 31 $14,794,622 272 $501,516,818 2,750
$163,009,035 $137,043,430 $12,431,933 50 $9,933,672 24 $3,600,000 439 $35,512,655 $97,654,191 $21,412,461 $89,103,297 $67,514,526 $20,959,720 $495,165,885
TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
8/9/2016
940 644 164 50 0 46 105 1464 419 53 468 3,495
$193,676,952 701 $151,559,027 472 $24,257,925 120 132 $17,860,000 77 0 $0 0 1767 $143,140,000 22 $279,028,647 75 $22,473,668 1264 $116,821,489 298 $117,765,026 33 $34,041,040 248 $906,946,822 2,641
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.
Home Builders Association of Fargo-Moorhead 2016 Permit Report - YTD (July) 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
10 10 0 0 0 0 0 31 5 0 18 64
Units
0 0 0
Value
$2,643,000 $2,643,000 $0 $0 $0 $0 $0 $389,480 $60,500 $0 $127,591 $3,220,571
HAWLEY Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Permits
4 3 0 0 1 0 1 4 0 0 4 13
Units
0 1 0
Value
$1,050,000 $800,000 $0 $0 $250,000 $0 $615,333 $11,100 $0 $0 $20,900 $1,697,333
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
1 1 0 0 0 0 1 24 2 1 3 32
Units
0 0 0
Value
$311,000 $311,000 $0 $0 $0 $0 $50,000 $282,115 $52,000 $1,470,600 $52,000 $2,217,715
HARWOOD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
8/9/2016
Permits
2 2 0 0 0 0 0 6 0 0 0 8
Units
0 0 0
Value
$387,000 $387,000 $0 $0 $0 $0 $0 $459,400 $0 $0 $0 $846,400
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
25 11 14 0 0 0 1 11 1 0 0 38
0 0 0
$4,480,743 $2,891,743 $1,589,000 $0 $0 $0 $650,000 $110,846 $30,670 $0 $0 $5,272,259
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.
7 7 0 0 0 0 1 1 0 0 0 9
0 0 0
$5,242,000 $5,242,000 $0 $0 $0 $0 $1,300,000 $18,000 $0 $0 $0 $6,560,000