Issue 5 | Nov. 14, 2016
Permits Plus + A bi-monthly statistics and advocacy update for HBA of F-M members FOR YOUR CALENDAR:
Nov. 17 - Lunch Session: Fair Labor Standards Act & Overtime Rule Nov. 29-30 - NRASP Annual Safety Conference Dec. 12 - Safety Training: Fall Protection Dec. 13 - Lunch Session: Business 101 - Business Secrets Jan. 23 - Safety Training: CPR/First Aid/AED Jan. 27 - Education Summit: MN Building Contractor, Plumbing, PLT Continuing Education Feb. 1-2 - Certified Aging in Place Specialist Courses Feb. 10 - MN Building Contractor Continuing Education Visit the calendar at hbafm.com for details.
HBA EXPANDS BUILDING PERMIT REPORT:
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
building remains strong through third quarter
According to the Home Builders Association of F-M’s third-quarter building permit report, new housing activity remains steady compared to this time last year. With 923 housing permits taken through the end of September, the F-M metro community encompassing Dilworth, Moorhead, Fargo and West Fargo experienced a 1 percent increase compared to last year’s 917 housing permits, and an 8 percent increase in value, coming in at nearly $216.5 million. HBA President Tom Spaeth, Accent Contracting, says, “Through second quarter, housing permits were down about 7 percent compared to last year, so the industry made a strong push from July through September to bridge that gap, despite a little rainy weather during that period.” Single-family homes increased by 127 permits community-wide, while twinhome and townhouse construction decreased. Third quarter saw 12 duplex permits for 24 units, while the past two years have had none. Housing permit values grew by over $15.5 million. Residential remodeling permits and value both increased, 6 percent and 17 percent, respectively. “In the past 15 years, single-family homes have only cracked the 700-permit level through third quarter three times: in 2004, 2013 and now in 2016,” Spaeth says. “It just goes to show that the different types of housing tend to increase and decrease depending on available land to build, demand and other factors.”
HOUSING TYPES THROUGH THIRD QUARTER
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.
VISIT WWW.HBAFM.COM TO READ THE FULL RELEASE. PERMIT REPORTS ARE ENCLOSED IN THIS ISSUE. HBA OF F-M + 1802 32ND AVE S + FARGO ND 58103 + (701) 232-5846 + HBAFM.COM + INFO@HBAFM.COM
2016 COMPARED TO JANUARY - SEPTEMBER 2015 HOUSING STARTS +1%
MULTI FAMILY -28%
NEW COMMERCIAL -11%
January - September Housing Permits By City
RESIDENTIAL REMODEL +6%
COMMERCIAL REMODEL +8%
PUBLIC PROJECTS -3%
F-M Metro Housing January - September 2016
Chart below shows permit and value growth January through September 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
Jan - Sept 2016 Jan - Sept 2015 21 24 146 181 363 365 393 347 923 917 $4,775,900 $6,630,850 $28,818,300 $36,143,899 $95,111,952 $79,653,825 $87,727,060 $78,428,571 $216,433,212 $200,857,145 923 917 28 39 105 118 1770 1673 432 401 34 35 453 363 3745 3546 $216,433,212 $200,857,145 $68,569,401 $94,940,483 $139,682,208 $87,252,400 $26,970,407 $23,068,955 $153,206,828 $93,244,307 $74,787,978 $137,590,251 $35,601,672 $29,428,894 $715,251,706 $666,382,435
Difference -3 -35 -2 46 6 -$1,854,950 -$7,325,599 $15,458,127 $9,298,489 $15,576,067 6 -11 -13 97 31 -1 90 199 $15,576,067 -$26,371,082 $52,429,808 $3,901,452 $59,962,521 -$62,802,273 $6,172,778 $48,869,271
HBA of F-M’s monthly building permit report is prepared by Fiebiger, Swanson, West & Co.
Percentage Difference -13% -19% -1% 13% 1% -28% -20% 19% 12% 8% 1% -28% -11% 6% 8% -3% 25% 6% 8% -28% 60% 17% 64% -46% 21% 7%
Permits Plus
SEASONALLY ADJUSTED UNEMPLOYMENT RATES Sept. 2016
Aug. 2016
Minnesota
Sept. 2015
Source: bls.gov
4.0%
North Dakota
4.0%
3.6%
3.1%
2.7%
4.9%
5.1%
2.5%
2.3%
Source: bls.gov
3.0%
United States Source: bls.gov
5.0%
Fargo-Moorhead Source: bls.gov
2.6%
SINGLE AND MULTI-FAMILY BUILDING PERMITS Aug. 2016
Aug. 2015
Minnesota
% change
Source: NAHB
14,325
13,840
4%
4,327
-39%
791,293
0%
1,902
-20%
North Dakota Source: NAHB
2,625
United States Source: NAHB
791,513
Fargo-Moorhead Source: HBA of F-M
1,527
MORTGAGE RATES
Source: Wells Fargo as of Nov. 7, 2016
30-Year Fixed
3.750%
15-Year Fixed
3.000%
30-Year Jumbo
3.625%
30-Year Fixed FHA
3.500%
FRAMING LUMBER PRICES Source: National Association of Home Builders
Date
Per 1,000 Board Ft.
CME Futures
Oct. 28
$350
$305.1
Oct. 14
$358
Oct. 21
Single-issue: $85 Annual: $415
Contact Allison Weckman at (701) 232-5846 or allisonw@hbafm.com for more info.
3.750%
5-Year ARM VA
Nov. 4
SEE YOUR AD HERE
$345 $356
$311.1
$308.0 $328.0
LOCAL REAL ESTATE Source: F-M Area Association of Realtors
Oct. 2016
Oct. 2015
% change
$232,252
$209,767
10.719%
$744,332,904
$712,373054
4.486%
$143,828,801
$139,774,058
2.901%
$538,348,598
$522,632,223
3.007%
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)
Oct. 3
Oct. 10
Oct. 17
Oct. 24
Oct. 31
$2.161
$2.205
$2.143
$2.089
$2.067
$2.184
Issue 5 | Nov. 14, 2016
$2.216
$2.198
$2.175
$2.159
3
Home Builders Association of F-M 1802 32nd Ave. S. Fargo, N.D. 58103
Pluses
and
Minuses
Minnesota Fire Sprinklers - The HBA of F-M plans to send a letter to the Minnesota Department of Labor and Industry this month suggesting a change to the definition of a twin home in the Minnesota code. If DOLI will not change the code, the Association requests fact-based reasons why its leaders believe fire sprinklers are needed in twin homes and not duplexes. Fargo Overdimensional Policy - Fargo is updating its Overdimensional Policy and the HBA of F-M requested feedback from members earlier this month. Volunteers who have reviewed the new policy believe the changes may adversely affect many members including lumber yards, building material suppliers, concrete companies, truss companies, sand and gravel suppliers, appliance suppliers, landscapers, etc. Fargo Two-Year Tax Exemption - The HBA of F-M is currently working with the city of Fargo’s Tax Exempt Review Committee as it discusses the two-year tax exemption on new construction, and potential changes. Fargo Land Development Code - The HBA of F-M has requested a deeper look at proposed changes to Fargo’s Land Development Code based on concern from developers on its vagueness, flexibility and turnaround time in plan review. Sales Tax Extensions for Diversion Funding - The Association was active with the Citizens for Fair Diversion Funding in managing a campaign promoting a Yes vote on the sales tax extensions in Fargo and Cass County. The approval of the extensions people are already paying provides permanent flood protection for the people, communities and businesses of our region. Sales taxes will stay at the current level they are today. They include future generations who will benefit most from the diversion; eliminates the need for flood-related property taxes and special assessments; and avoids costly flood insurance increases. If the project is paid for before 2084 the tax will expire. Jan. 26 | Radisson Hotel SAVE THE EVENING: New Year Celebration CITY NIGHT • YEAR IN REVIEW • INTERACTIVE MAYORAL PANEL Register: hbafm.memberzone.com/events/calendar or email tahra@hbafm.com
Permits Plus
4
Home Builders Association of Fargo-Moorhead 2016 Permit Report - YTD (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
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
24 20 4 0 0 0 3 48 4 0 11 90
$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
181 133 48 0 0 11 25 393 75 0 40 725
Units
2016 Value Permits
21 21 0 0 0 0 0 55 1 0 18 95
$36,143,899 $28,037,899 $8,106,000 $0 $0 $21,226,880 $9,992,714 $3,775,265 $8,441,403 $0 $899,375 $80,479,536
3-Yr Avg Value
Permits
$4,775,900 $4,775,900 $0 $0 $0 $0 $0 $367,356 $750,000 $0 $166,800 $6,060,056
22 20 2 0 0 0 2 45 3 0 17 89
146 118 4 0 12 6 26 404 59 0 58 699
$28,818,300 $24,468,300 $750,000 0 $0 24 $3,600,000 126 $9,933,755 $31,995,215 $4,839,877 $73,502,276 $0 $485,593 $149,575,016
167 121 29 2 4 7 24 387 70 0 49 702
$79,653,825 363 $63,661,005 310 $5,735,490 34 73 $10,257,330 19 0 $0 0 805 $68,954,603 22 $40,398,056 45 $12,603,132 917 $62,699,792 310 $128,995,154 26 $19,802,695 361 $413,107,257 2,044
$95,111,952 $84,613,680 $4,904,600 19 $5,593,672 0 $0 656 $58,635,646 $61,756,573 $16,120,730 $69,598,727 $37,897,436 $31,333,561 $370,454,625
347 274 31 41 0 26 53 874 297 34 328 1,959
393 322 40 8 0 0 34 394 62 8 16 907
$87,727,060 $74,438,727 $8,948,333 31 $4,340,000 0 $0 0 $0 $45,930,420 $5,642,444 $9,355,825 $36,890,542 $3,615,718 $189,162,009
392 271 64 17 0 5 31 330 47 6 34 845
$200,857,145 923 $158,810,325 771 $22,546,490 78 135 $19,500,330 27 0 $0 12 1101 $94,940,483 28 $87,252,400 105 $23,068,955 1770 $93,244,307 432 $137,590,251 34 $29,428,894 453 $666,382,435 3,745
$216,433,212 $188,296,607 $14,602,933 50 $9,933,672 24 $3,600,000 782 $68,569,401 $139,682,208 $26,970,407 $153,206,828 $74,787,978 $35,601,672 $715,251,706
0 0 0
$6,630,850 $5,690,850 $940,000 $0 $0 $0 $422,000 $290,870 $605,000 $0 $36,689 $7,985,409
Units
0 0 0
Units
0 0 0
Value
5,393,917 4,947,250 446,667 0 0 533,333 540,000 347,022 1,465,000 0 266,663 8,545,934
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 0 254
8 8 155
32,357,946 25,352,971 4,724,975 1,080,000 1,200,000 12,773,545 16,738,175 4,506,466 32,221,093 0 561,716 99,158,941
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
$68,935,976 365 $58,991,976 258 $5,294,000 34 31 $4,650,000 73 0 $0 0 1297 $106,280,000 25 $217,913,749 62 $12,957,367 891 $93,034,353 289 $101,377,075 29 $31,350,149 281 $631,848,669 1,942
41 0 919
81,233,918 69,088,887 5,311,363 6,833,667 0 77,956,750 106,689,459 13,893,743 75,110,957 89,423,222 27,495,468 471,803,517
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
347 233 52 30 0 3 28 341 33 6 31 789
$78,428,571 $61,420,571 $7,765,000 62 $9,243,000 0 $0 42 $4,759,000 $36,439,630 $6,399,688 $21,498,112 $8,595,097 $8,690,135 $164,810,233
57 0 142
84,669,989 66,832,878 9,986,111 7,851,000 0 10,953,000 44,686,784 5,423,779 12,293,824 20,624,530 4,700,022 183,351,928
TOTAL Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
10/13/2016
940 644 164 50 0 46 105 1464 419 53 468 3,495
$193,676,952 917 $151,559,027 644 $24,257,925 138 132 $17,860,000 103 0 $0 0 1767 $143,140,000 39 $279,028,647 118 $22,473,668 1673 $116,821,489 401 $117,765,026 35 $34,041,040 363 $906,946,822 3,546
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.
927 686 127 60 106 4 8 38 1,217 109 1,636 417 41 428 3,595
203,655,770 166,221,986 20,469,116 15,764,667 1,200,000 102,216,628 168,654,418 24,171,010 121,090,875 110,047,752 33,023,869 $762,860,321
Home Builders Association of Fargo-Moorhead 2016 Permit Report - YTD (September) 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
11 11 0 0 0 0 0 44 5 0 18 78
Units
0 0 0
Value
$2,833,000 $2,833,000 $0 $0 $0 $0 $0 $506,376 $60,500 $0 $127,591 $3,527,467
HAWLEY Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
Permits
6 5 0 0 1 0 1 4 0 0 15 26
Units
0 1 0
Value
$1,460,000 $1,210,000 $0 $0 $250,000 $0 $615,333 $11,100 $0 $0 $96,350 $2,182,783
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 2 29 2 1 3 38
Units
0 0 0
Value
$311,000 $311,000 $0 $0 $0 $0 $202,000 $431,115 $52,000 $1,470,600 $52,000 $2,518,715
HARWOOD Total Housing Starts Single Family Twin Home Row / Town House Duplex Multi-Family New Commercial Residential Remodel Commercial Remodel Public Miscellaneous Total
10/13/2016
Permits
3 3 0 0 0 0 0 8 0 0 0 11
Units
0 0 0
Value
$607,000 $607,000 $0 $0 $0 $0 $0 $519,400 $0 $0 $0 $1,126,400
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
37 15 22 0 0 0 1 12 1 1 0 52
0 0 0
$7,015,743 $4,066,743 $2,949,000 $0 $0 $0 $650,000 $132,846 $30,670 $6,439,325 $0 $14,268,584
OXBOW 1 1 0 0 0 0 0 8 1 0 2 12
0 0 0
$305,000 $305,000 $0 $0 $0 $0 $0 $266,336 $75,000 $0 $44,500 $690,836
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.
9 9 0 0 0 0 1 1 0 0 0 11
0 0 0
$8,742,000 $8,742,000 $0 $0 $0 $0 $1,300,000 $18,000 $0 $0 $0 $10,060,000