MAY - JUNE 2020
ROCHESTER AREA BUILDERS, INC.
Sponsored by
OPEN HOUSE WEEKEND: MAY 30-31 from 10:00am to 6:00pm
RAB CALENDAR Virtual Meetings
2
Spring Showcase Listing of all the homes in the Showcase
MEMBER BENEFIT BAM Rebate information
10
23
D C
DEVELOPMENT COUNCIL a division of the Rochester Area Builders, Inc.
C OMMERCIAL C B UILDERS
OUNCIL
a division of Rochester Area Builders, Inc.
STAFF EXECUTIVE DIRECTOR John Eischen, John@RochesterAreaBuilders.com STAFF Shelly Bahlmann, Shelly@RochesterAreaBuilders.com Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update Audra Bolduan, Audra@RochesterAreaBuilders.com Builders Exchange Trustees and Showcase Committee Rebekah Nielsen, Rebekah@RochesterAreaBuilders.com Ambassadors, Awards, Community Relations, Education, Membership, Fashion Show, Program, Spike Club, Remodelers Council: Executive & Remodelers Tour, 40 Below GOVERNMENT & PUBLIC AFFAIRS CONSULTANT Rick Dold, Rick@GodwinDold.com
BOARD OF DIRECTORS PRESIDENT Alissa Moe, Bremer Bank VICE PRESIDENT Luke Stier, Stier Construction, Inc. SECRETARY Becky Holmen, Bright Ideas TREASURER Jesse Buhl, MedCity Consulting PAST PRESIDENT Jerry Jensen, Valor Mechanical, Inc. DIRECTORS Kenneth Bush, Rochester Asphalt & Concrete Adam Giannini, Meyer Borgman Johnson Spencer Holmen, TLS Companies Jennifer Lawver, ERH Developing, Inc. Tom Leimer, Knutson Construction Kevin Sternberg, Countryside Builders, LLC Kevin Reckinger, Bricewood, LLC Charlie Sweeney, Kraus-Anderson Construction Jennifer Mitchell, Edina Realty BUILDERS EXCHANGE COUNCIL REPRESENTATIVES John Honeck, Harris Company, (Chair) Kurt Hoeger, United Rentals, (Vice Chair) Jeremy Wohlfiel, Merit Contracting, Inc. (Past Chair) COMMERCIAL BUILDERS COUNCIL CHAIR Vanessa Hines, Eidseth Smith Nolting DEVELOPMENT COUNCIL CHAIR Hal Henderson, HGA Architects & Engineers REMODELERS COUNCIL CHAIR Jessica Markley, Elias Construction 40 BELOW CHAIR Katie Olson, Kimley-Horn & Associates, Inc. NATIONAL LIFE DIRECTORS Joe Weis, Weis Builders, Inc. Steve Buss, Cornerstone Builders & Real Estate, Inc. NATIONAL DIRECTORS Dana Hlebichuk, Widseth Smith Nolting Levi Kaiser, Alvin E. Benike, Inc., (Rep) Todd Severson, TLS Companies, LLC STATE DIRECTORS Mike Allen, Mike Allen Homes, LLC Jean DeWitz, DeWitz Home Builders, Inc. (Rep) Kathy Einck, Maplewood Homes.LLC John McGuine, JM Consulting David Pederson, Dunlap & Seeger Dan Severson, Dan Severson Builders, Inc.,
ROCHESTER AREA BUILDERS, INC. 2020 CALENDAR OF EVENTS JUNE 1 30
3 TBD 28
Office Closed - Independence Day NAHB Mid-Year Board Meeting – Minneapolis Member Appreciation Night @ Mayowood Stone Barn
Networking Night @ Tulip Tree & Valor Mechanical
RAB Golf Outing - POSTPONED Virtual Networking Night with 40 Below
JULY
AUGUST 25
SEPTEMBER
7 17 19-20 19-20,26-27 29
Office Closed – Labor Day Sporting Clay Shoot Remodelers Tour Fall Showcase of Homes General Membership Meeting @ DoubleTree by Hilton
OCTOBER
27
Networking Night @ Cambria
NOVEMBER
TBD 19 26-27
Past Presidents Dinner Celebration of Leaders Dinner Office Closed – Thanksgiving Holiday
DECEMBER 4 24-25
Holiday Party @ The Hilton Office Closed – Christmas Holiday
MISSION STATEMENT The Rochester Area Builders, Inc, chartered in 1953, is a professional organization of commercial & residential builders, remodelers, developers and associated businesses dedicated to advancing the building industry in Southeast Minnesota. We are the trusted voice of the industry, providing leadership, education, networking, and information resources to our members, community and government officials.
7
STUDS, STRUTS & ST ET TOS
15 16
23
9 RAB CALENDAR................................................... 4
June 2020
LETTER FROM RAB PRESIDENT............................ 5
Alissa Moe, Bremer Bank, 2020 RAB President
SEMR HISTORICAL OVERVIEW............................. 19 April 2020
NAHB EYE ON HOUSING...................................... 24
Small Gain for Custom Home Building During 1Q20
MEMBERSHIP REPORT......................................... 6
April 2020
NAHB EYE ON HOUSING....................................... 6
Builder Confidence Posts Solid Gain After Historic Drop
STUDS, STRUTS & STILETTOS.............................07
Postponed until 2021
WELCOME NEW RAB MEMBER...............................8
May New Member
ROCHESTER AREA BUILDERS
WEBINAR REPLAY
SPRING SHOWCASE OF HOMES 2020...............9-13
May 30-31
NAHB EYE ON HOUSING......................................16
Purchasing Activity Recovers from April Lows
ROCHESTER BUILDING PERMITS......................... 18
April 2020
You can watch the following recorded webinars on our YouTube Channel:
BYRON BUILDING PERMITS................................. 18
“COVID-19: A Checklist for Returning to Work”
April 2020
OLMSTED BUILDING PERMITS ............................ 19
April 2020
“Sanitary Sewer Rate Study Update”
4 | MAY-JUNE 2020
JUNE 2020 SUNDAY
MONDAY
TUESDAY
WEDNESDAY
1
2
10:00 AM 8:00 AM Government Affairs Remodelers Committee Meeting Council Executive Meeting 11:00 AM Executive Committee Meeting 7
8 3:30 PM Builders Exchange Board of Trustees Meeting
14
15
9 3:00 PM Board of Directors Meeting
16
3 7:30 AM Commercial Builders Council General Meeting
THURSDAY
FRIDAY 4
SATURDAY 5
6
11
12
13
18
19
20
26
27
10:00 AM Program Committee Meeting
10 4:30 PM 40 Below Executive Meeting
17
10:00 AM 7:30 AM 10:00 AM 7:30 AM Fashion Show Green Building Ambassadors Membership Committee Meeting Committee Meeting Committee Meeting Committee Meeting
21
22
23
10:00 AM Home Show Committee Meeting
28
29
24
25
3:00 PM Development Services Advisory Committee Meeting
10:00 AM Community Relations Committee Meeting
30 4:30 PM Virtual Networking Night - with 40 Below
We are using GoToMeeting to conduct our remote meetings until further notice. If you have a scheduled meeting you will receive an invitation from John. Please download and register ahead of time by going to https://www.gotomeeting.com/ ***Calendar may change at any given time. Check the for most current information.
5 | FOUNDATIONS NEWSLTR
FROM THE PRESIDENT Hello, hello, hello! Believe it or not, writing a letter for a monthly newsletter while all events have either been postponed or canceled is unbelievably challenging. Now that the sun has been peeking through and the warmer temperatures have been sticking around, I have been devoting free time to playing golf and peaceful walks around the lake by my home.
Another interesting analytic that we have been able to pull from the first week of the Virtual Showcase is the average number of unique visits per price range.
Virtual Showcase of Homes
It also delights me to tell you that according to the state update, open houses will be allowed, but our members must adopt a plan that incorporates site-specific best practices. The best practices are focused on health and wellness, social distancing, cleaning, sanitation and protection, and communications that keep the client and visitors in mind. This will not be business as usual, however, it does offer our builders a chance to share their work with potential clientele. I would encourage our members to collaborate with each other on ideas to maintain a space that promotes health and wellness! Feel free to share what you are planning to do with myself, the RAB Staff, and your fellow members.
We are two weeks into the Virtual Spring Showcase and I have some positive news and statistics to share with our membership! The first week of the virtual tour brought: • 3,294 unique visitors • 4,178 visits • 4,708 impressions If you’re not a marketing guru, “unique visitors” stands for the number of people who have visited our webpage at least once during the reporting period — this number does not increase if a previous visitor returns to a page multiple times. So, if you visit RochesterAreaBuilders.com 10 times in a day, it is recorded as one unique visitor and 10 visits. If you even refresh a page 10 times, it is counted as 10 visits, one unique visitor. Impressions, on the other hand, are not necessarily action based, but rather are defined by the potential of a user seeing an advertisement about the Spring Showcase. I think I captured the general idea of these terms, but if any marketing gurus wish to correct me, I welcome the feedback.
$659k – $1.4m
129
$549k – $640k
155
$439k – $530k
53
$275k – $415k
52
Committee Meetings Thank you all for your patience as we have postponed committee meetings. We have been holding crucial meetings via GoToMeeting, a secure digital platform. We have decided to resume our committee meetings and will do so using this platform. You will be receiving an invitation to the meeting from John Eischen. Please be sure to register and mark your calendars.
Alissa Moe President Rochester Area Builders, Inc Studs, Struts and Stilettos After much reflection and discussion, our fashion show committee has come to the difficult decision to postpone the show until April 8th, 2021. The theme, Strut Through History, will remain the same. With the additional time, I would encourage you to think about contributing to the future event through sponsorship or through creating a design to showcase! That’s all for now! I look forward to joining our virtual committee meetings in the near future to stay connected with all of you. Please stay tuned for additional details surrounding the golf outing, as this is still being monitored for possible changes. Also stay tuned for a possible June Virtual Networking event! Communications will be sent out when more details are finalized.
Alissa Moe Bremer Bank 2020 RAB President
6 | MAY-JUNE 2020
ROCHESTER AREA BUILDERS, INC.
MEMBERSHIP REPORT APRIL 2020
BUILDER CONFIDENCE POSTS SOLID GAIN AFTER HISTORIC DROP
MEMBERSHIP TOTAL: 453 RETENTION RATE: 89.3 As of April 30, 2020 ONE TO FOUR YEARS Innovilla Custom Homes..........................................2019 J.Luxe Interiors, LLC.................................................2019 Jim Kostroski Construction, LLC.............................2019 Junge’s Flooring........................................................2019 Kendell Doors & Hardware, Inc...............................2018 Moneycap, LLC representing Globe Life - Family Heritage Products.....................................................2018 Ryan Companies US, Inc...........................................2018 Godwin Dold...............................................................2017 Molin Concrete Products Company........................2017 Norbord.......................................................................2017 MedCity Consulting...................................................2016 Zillgitt Civil Design....................................................2016
FIVE TO NINE YEARS Destination Building Center.....................................2015 Kimley-Horn & Associates, Inc................................2015 Range Custom Homes, LLC......................................2013 R. Fleming Construction, Inc....................................2012 Advanced Building Center, Inc.................................2011 Braun Intertec Corporation......................................2011 Lacina Siding & Windows, Inc..................................2011
TEN TO 19 YEARS Burdick Builders, Inc.................................................2010 Beckley’s Office Products.........................................2009 Data-Smart Computers, Inc.....................................2008 Kirkland Enterprises, LLC........................................2007 Dolan’s Landscape Center, Inc.................................2006 Majestic Homes, Inc..................................................2006 Med City Builders of Rochester, LLC.......................2006 Michael Jack, LLC......................................................2006 Anderson Construction.............................................2005 Scott Berberich Construction, LLC..........................2004 Expert Insulation, Inc................................................2001 Golden Tee Development..........................................2001
20 YEARS & MORE AKTTC / KXLT-TV......................................................2000 American Waterworks..............................................1999 Rochester Area Appraisals, LLC..............................1999 CHS, Inc.......................................................................1998 HGA Architects and Engineers................................1997 Sterling State Bank...................................................1993 Grinde & Dicke Law Firm P.A...................................1990 Countryside Builders, LLC........................................1989 People’s Energy Cooperative...................................1987 Thomas Tool & Supply..............................................1987 North Risk Partners..................................................1970
In a signal that the housing market is showing signs of stabilizing and gradually moving forward in the wake of the COVID-19 pandemic, builder confidence in the market for newly-built single-family homes increased seven points to 37 in May, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The rise in builder sentiment follows the largest single monthly decline in the history of the index in April. The designation of home construction as an essential business during the crisis helped keep most residential construction workers on the job, which is reflected in the May HMI. At the same time, builders are showing flexibility in this new business environment by making sure buyers have the knowledge and access to the homes they are seeking through innovative measures such as social media, virtual tours and online closings. Jurisdictions are also adapting to the new environment with thirdparty and virtual inspection rules. Low interest rates are helping to sustain demand. As many states and localities across the nation lift stay-at-home orders and more furloughed workers return to their jobs, we expect this demand will strengthen. Other indicators that suggest a housing rebound include mortgage application data that has posted four weeks of gains and signs that buyer traffic has improved in housing markets in recent weeks. However, high unemployment and supply-side challenges including builder loan access and building material availability are near-term limiting factors.
Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All the HMI indices posted gains in May. The HMI index gauging current sales conditions increased six points to 42, the component measuring sales expectations in the next six months jumped 10 points to 46 and the measure charting traffic of prospective buyers rose eight points to 21. Looking at the monthly average regional HMI scores, the Midwest increased seven point to 32, the South rose eight points to 42 and West posted a 12-point gain to 44. The Northeast fell two points to 17.
7 | FOUNDATIONS NEWSLTR
STUDS, STRUTS & STILETTOS UPDATE
S
PO
N O P T
E
1 2 0 D2
Every year for the last 7 years we’ve looked forward to bringing a unique and exciting event to the Rochester community with Studs, Struts & Stilettos. Unfortunately, given the concerns around COVID-19, we’ve made the difficult decision to postpone the event until April 8th, 2021. We will be keeping the same theme, Strut through History, and look forward to using this time to make it an incredible show for you all. We understand it may be challenging times for some financially, therefore, if you would like a refund for your design entry or sponsorship that can be arranged. However, if you would like to continue supporting the event we would be happy to put it toward the 2021 show. Please let us know what you would prefer. In the meantime, thank you for your patience and understanding -- we look forward to Studs, Struts & Stilettos 2021!!
PRESENTED BY:
A BENEFIT FOR:
POSTPONED TO APRIL 8, 2021
Find us on Facebook! Click here to view pictures from past events and stay up to date with the latest news on Studs, Struts & Stilettos!
Follow us on STUDS, STRUTS & ST ET TOS
8 | MAY-JUNE 2020
WELCOME NEW RAB MEMBERS MAY 2020
HARMONY INSURANCE GROUP
As a member of RAB, you have an opportunity to join one of our popular Councils. We also have many Committees to get involved with. Below is a list of ones that have openings. We would love to have you! Email us!
COMMITTEES
JIM LUTES
Insurance Agency (507) 280-8300 harmonyinsurancegroup.com
• Ambassadors Club
• Home Show
• Sporting Clay Shoot
• Community Relations
• Membership & Retention
• Education
• Program
• Golf Outing
• Remodelers Tour
• Green Building
• Showcase
COUNCILS C OMMERCIAL C B UILDERS
OUNCIL
a division of Rochester Area Builders, Inc.
D C
DEVELOPMENT COUNCIL a division of the Rochester Area Builders, Inc.
9 | FOUNDATIONS NEWSLTR
2020
Spring Showcase of
10 | MAY-JUNE 2020
Otis Custom Homes, LLC
Med City Builders of Rochester, LLC
Rymark Construction, LLC
2346 Brandwood Rd SW
4998 Cash Ln SW
Riley Ln SW- (DEVELOPMENT)
5
5
Finished Sqft: 4782
1
5
3.5
Finished Sqft: 3579
2
3
Distinguished Homes by Mitch Hagen, LLC
Keller Homes
Zen Custom Homes
5241 Millie Rd SW
1903 - 31st St SW
2949 Alderock Ln SW
6
4.5
Finished Sqft: 4396
4
5
3
Finished Sqft: 3714
5
6
5
Finished Sqft: 6276
Custom Homes by Bradley
R&M Development Company
DeWitz Home Builders, Inc.
2710 Galena Pl SW
5008 - 8th St SW- (DEVELOPMENT)
6052 Sandstone St NW
6
4
Finished Sqft: 4200
NOTES FOR OPEN HOUSE WEEKEND: MAY 30-31 from 10:00am to 6:00pm
7
8 • The hours of 10:00 AM to Noon are reserved for those medically-atrisk individuals • Everyone must wear a face mask, including builders and builder’s representatives. • All social distancing guidelines will be followed.
4
3
Finished Sqft: 2166
6
9
• Only 10 people allowed in the house at one time. • Visitors may need to wait to enter.
11 | FOUNDATIONS NEWSLTR
Bigelow Homes
Bigelow Homes
Maplewood Custom Homes
5502 Harvest Lake Dr NW
5195 - 56th St NW
Summit Pine Ln NW
2
2
Finished Sqft: 1544
10
2
2
Finished Sqft: 1277
11
(#12 is not open for the show.)
H&H Company of Rochester, LLC
Exclusive Home Builders & Remodelers
Penz Custom Homes, Inc.
6376 Summit Pine Rd NW
6353 Summit Pine Rd NW
4244 Genevieve Pl NW
4
3
Finished Sqft: 3332
13
5
3
Finished Sqft: 3462
14
4
3
Finished Sqft: 2908
12
15
Derby Builders
Majestic Homes, Inc.
Derby Builders
89 Majestic Rd NW
296 Majestic Rd NW
6300 West River Rd NW - (DEVELOPMENT)
5
4
Finished Sqft: 3103
16
4
3
Finished Sqft: 2206
18
17
Dan Severson Builders, Inc.
Bigelow Homes
Meier Companies, Inc.
888 Picadilly Ln NW
1909 Hadley Creek Dr NE
2489 Hadley Hills Dr NE
2
2
Finished Sqft: 1503
19
4
3
Finished Sqft: 2725
20
3
2
Finished Sqft: 1862
21
12 | MAY-JUNE 2020
M.P. Kaye Builders, Inc.
M.P. Kaye Builders, Inc.
Countryside Builders, LLC
Stone Point Dr NE
4227 Stone Point Dr NE
2305 Nickel Rd NE- (DEVELOPMENT)
(#22 is not open for the show.)
22
3
2
Finished Sqft: 1936
23
24
Countryside Builders, LLC
Centurion Ridge, LLC
Maplewood Custom Homes
2243 Glady Ln NE
2227 Centurion Ct NE
2022 Shannon Oaks Blvd NE
5
3
Finished Sqft: 3051
25
4
3
Finished Sqft: 3734
26
5
3
Finished Sqft: 4284
Meier Companies, Inc.
Meier Companies, Inc.
R. Fleming Construction, Inc.
3170 Scanlan Ln NE
Alison Ct NE - (DEVELOPMENT)
3133 Bella Terra Ln NE
5
3
Finished Sqft: 3085
28
29
4
3
Finished Sqft: 2595
R. Fleming Construction, Inc.
Exclusive Home Builders & Remodelers
Elias Construction, LLC
2637 Tee Time Rd SE
853 Haar Ln NE * Byron
813 Grand Ridge Dr NE * Byron
4
3
Finished Sqft: 2530
NOTES FOR OPEN HOUSE WEEKEND: MAY 30-31 from 10:00am to 6:00pm
31
5
3
Finished Sqft: 3404
32
• The hours of 10:00 AM to Noon are reserved for those medically-atrisk individuals • Everyone must wear a face mask, including builders and builder’s representatives. • All social distancing guidelines will be followed.
3
3
Finished Sqft: 2100
27
30
33
• Only 10 people allowed in the house at one time. • Visitors may need to wait to enter.
13 | FOUNDATIONS NEWSLTR
Cordes Construction, LLC
Golden Tee Development
Chris Fritsch Custom Homes, LLC
858 Grand Ridge Dr NE * Byron
975 Somerby Pkwy NE * Byron- (DEVELOPMENT)
913 Somerby Pkwy NE * Byron
3
2.5
Finished Sqft: 2627
34
35
4
3
Finished Sqft: 3115
36
Distinguished Homes by Mitch Hagen, LLC
Bigelow Homes
Exclusive Home Builders & Remodelers
921 Bridgeford Pl NE * Byron
289 Lehman Dr NE * Byron
Riverwood Ct SW * Oronoco
4
3
Finished Sqft: 3786
37
4
3
Finished Sqft: 2851
38
(#39 is not open for the show.)
Barton Brothers Construction, LLC
Seth Friese Construction
Derby Builders
Zumbro Oaks Ln NW * Oronoco
410 Keystone Dr NE * Pine Island
731 - 9th St SW * Pine Island
(#40 is not open for the show.)
40
2
2
Finished Sqft: 1210
41
3
3
Finished Sqft: 1500
39
42
Derby Builders
Madery Construction, LLC
Cornerstone Builders & Real Estate, Inc
SW Campbell Ct * Pine Island - (DEVELOPMENT)
County Hwy 24 * West Concord
501 Cedar Dr * Lake City
43
(#44 is not open for the show.)
44
2
2
Finished Sqft: 1878
45
14 | MAY-JUNE 2020
15 | FOUNDATIONS NEWSLTR
Jenna Bowman | Communications & Engagement Manager Cell: 507-250-3045 | E-mail: jbowman@rochestermn.gov FOR IMMEDIATE RELEASE
City of Rochester Announces Suspension of Large Public Events through August 16, 2020 Due to Ongoing Safety Effort May 22, 2020 – ROCHESTER, MINN. – With health and safety as a top
priority and as part of ongoing efforts to reduce the spread of the coronavirus (COVID-19), the City of Rochester announced today its decision to suspend all large public events in City facilities and on City grounds through August 16, 2020. This impacts three specific summer events. Suspended events include: Rochester Police Department’s “Safe City Nights” program Rochester Civic Music’s “Down by the Riverside” and “forWARD” free concert series Rochester Downtown Alliance’s “Thursdays Downtown” street market and music festival “This decision was not made without great thought and consideration. We continue to maintain a focus on the health and safety of our community. Teammates will work with local organizations to identifying creative opportunities to create and celebrate our community while we navigate the ongoing impacts of this unprecedented pandemic,” shares City Administrator Steve Rymer. While remaining in compliance with Governor Tim Walz’s phased “Stay Safe MN” program, event organizers are working together to explore ways to bring engaging and creative opportunities to community members in the coming months. Mayor Kim Norton said, "While it is unfortunate that we will not be able to go forward with these events in their typical format, it is the best decision we can make to keep everyone safe. We know community events add such vibrancy to our community and we are working hard on alternative opportunities." The City continues to monitor public health conditions, with their partners at Olmsted County Public Health, and will share further updates for events and activities scheduled after August 16, 2020 as more information becomes available. # # #
16 | MAY-JUNE 2020
Purchasing Activity Recovers from April Lows BY LITIC MURALI on MAY 20, 2020
Current mortgage activity, as indicated by the Mortgage Bankers Association’s latest Weekly Application Survey, indicates a slight rise in purchasing activity and slight decline in refinancings of existing home loans, each by about 6% on a seasonally adjusted basis.
continue to recover from April’s sizeable drop and have now increased for five consecutive weeks. In a similar vein, on the supply side, the HMI, indicating builders’ confidence, posted a solid gain in May after the historic drop owing the outbreak of COVID-19.
Overall, the Market Composite Index decreased by about 2.6%. The contract rate as determined by the Primary Mortgage Market Survey slid by 2 basis points to 3.41% from the previous week, still hovering near the record low for the series that was reached at the beginning of this month.
On a year-over-year basis, as the above figure shows, purchasing of homes rebounded from the low reached in April, though in the latest week it was still 1.5% lower than it was the same week one year ago. Refinancing, compared to a year ago, is higher and continues to maintain its upward trajectory looking at the series of its year-over-year gains.
Applications for home purchases
According to Fannie Mae, the refinance volume of applications is poised to reach a 17-year high as it forecasts mortgage rates to tumble further. The refinance share of mortgage activity decreased to 64.3 percent of total applications from 67.0 percent the previous week.
17 | FOUNDATIONS NEWSLTR
GREAT TIME TO LOCK IN YOUR RATE
R E F I NAN C E YO U R H O M E GREG JOHNSON
JEANNE STRUCKMANN
LOAN ORIGINATOR
LOAN ORIGINATOR
Direct Line 507-258-2192 Email gjohnson@altra.org NMLS# 516974
Direct Line 507-421-7655 Email jstruckmann@altra.org NMLS# 411311
3833 Cascade Creek Rd. NW
(Corner of 19th St. & West Circle Drive)
123 16th Ave. SW, Suite 500 Rochester, MN
507-258-4500 • 800-755-0055 www.altra.org Contact Altra for more information. Equal Housing Lender. Federally insured by NCUA.
18 | MAY-JUNE 2020
ROCHESTER BUILDING PERMITS 2020
VALUATION 2019
APRIL 2020
2011 2012 2013 2014 2015 2016 2017 2018
VALUATION
2019 2020
NEW RESIDENTIAL Single Family Dwelling Townhome Dwelling
January
17
5,155,849
23
6,265,557
0
0
0
0
February
3
6
19
11
20
25
15
19
6
17
8
20
15
14
19
15
20
24
32
29
28
30
31
44
16
5
13
25
27
32
Two-Family Houses
2
490,000
0
0
March
Manufactured Home
0
0
0
0
April
19
29
39
25
22
33
45
40
23
19
Multi-Family Bldgs (Units)
0
0
0
0
TOTAL
35
58
63
53
69
71
79
60
61
81
May
14
22
27
35
19
56
43
28
27
June
26
32
33
47
51
41
52
38
31
July
8
39
39
38
29
44
45
36
26
August
18
38
21
60
33
47
30
31
24
September
19
22
22
23
27
52
35
39
12
October
16
23
34
35
49
25
36
29
27
November
20
22
26
26
23
12
41
21
47
December
16
14
22
27
42
37
33
25
34
*total may differ been voided. TOTAL 191as permits 299 may 326 have369 369 418
429
347
289
EXISTING RESIDENTIAL Deck Addition
11
76,000
26
140,552
Room Addition
2
140,000
2
135,000
Porch Additions
0
0
3
44,000
Other Additions
1
32,376
1
13,000
Basement Finish
8
202,000
28
446,938
24
335,139
45
542,256
Multi-Family Addition
0
0
0
0
Multi-Family Alterations
9
1,747,533
8
314,536
Assembly (Church)
0
0
0
0
Assembly (General)
0
0
1
375,000 0
Alterations
81
*total may differ as permits may have been voided.
NEW COMMERCIAL
Assembly (Restaurant/Bar)
0
0
0
Business
0
0
0
0
Education
0
0
0
0
Factory/Industrial
0
0
0
0
BUILDING PERMITS ISSUED TO DATE
0
0
0 0
Institution
0
Mercantile
0
0
0
Miscellaneous
0
0
0
0
Residential (Apartment)
0
0
0
0 0
Residential (Care/Assisted Living)
0
0
0
Residential (Care/Hotel/Motel)
0
0
0
0
Storage (General)
0
0
0
0
Storage (Parking Garage)
0
0
0
0
Storage (Warehouse)
0
0
0
0
Utility (General)
0
0
1
197,000
Utility (Private Garage)
0
0
0
0
2
5,134,059
2
680,859
15
4,507,471
35
27,601,116
Structural Shell
0
0
0
0
“White Box”
0
0
0
0 0 0
Alterations
Interior Demolition Only
2
502,500
0
Other Phased Permits
0
0
0
OTHER CONSTRUCTION Business Signs
3
23,668
7
60,385
Advertising Signs
0
0
0
0
Footings & Foundations
1
75,000
0
0
Demolition
3
0
1
0
Information and downloads available at Rochester Building Safety Department’s website: https://www.rochestermn.gov/departments/building-safety/reports-building-permits/ building-permits-2019
2020 VALUATION
NO.
2019 VALUATION
488
130,791,680
580
122,443,673
Single Family Dwelling
71
21,413,370
57
16,067,481
Multi-Family Buildings Total Units: 76
1
10,640,000
3
4,025,262
TRADE PERMITS ISSUED TO DATE
2878
42,546,540
2824
38,501,277
Electrical
1078
19,213,587
1099
18,499,706
Electrical (Temp. Service)
86
38,950
71
57,976
Mechanical (HVAC)
672
11,851,370
710
9,787,068
Mechanical (Gas Piping)
191
352,610
160
254,271
Mechanical (Fireplace)
104
445,750
85
412,350
Mechanical (Hydronic)
67
1,999,612
56
3,931,099
680
8,644,661
643
5,558,837
3366
173,338,200
3404
160,944,950
Plumbing
EXISTING COMMERCIAL Addition
YEAR TO DATE STATISTICS
NO.
TOTAL PERMITS YTD
APRIL 2020
BYRON
BUILDING PERMITS
NUMBER
VALUATION
Single Family Attached
NEW RESIDENTIAL
0
0
Single Family Detached
4
1,495,000
Basement Finish
0
0
Deck Addition
3
51,490
Existing Residential
19 | FOUNDATIONS NEWSLTR
OLMSTED COUNTY PERMITS YTD
2020
VALUATION
2019
VALUATION
9
Single Family-Detached
5
Addition
1,497,446
0
0
0
0
Garage
5
2251,320
1
30,982
4
20,580
6
12,863
2
24,960
1
35,000
32
685,751
18
289,418
9,612
2
40,673
RESIDENTIAL
2019
VALUATION
1
422,867
0
0 22,420
Alterations
1
2,850
3
Re-roofing
2
8,250
0
0
2
88,383
4
121,000
26
0
15
0
Mechanical
67
952,194
43
374,472
Plumbing
42
774,221
19
142,777
196
12,162,948
118
2,872,957
OTHER STRUCTURES
Deck Addition Alterations Garage Addition
1
Pool, Retaining Wall, etc. Manufactured Homes
MISCELLANEOUS PERMITS
NEW COMMERCIAL/INDUSTRIAL Recreational
0
0
0
0
Church/Religious
0
0
0
0
Industrial/Warehouse
0
0
1
305,907
Store/Restaurant
0
0
0
0
Nonresidential Building
1
355,968
0
0
Service/Repair Station
0
0
0
0
VALUATION $0 PERMITS 0
VALUATION
COMMERCIAL/INDUSTRIAL
2,250,364
Single Family-Attached
2019
2020
NEW RESIDENTIAL
APRIL 2020
TOTAL PERMITS
OLMSTED COUNTY PERMITS APRIL
2020
VALUATION $432,595 PERMITS 5
EYOTA
VALUATION $177,259 PERMITS 11
VALUATION $143,153 PERMITS 11
VALUATION $6,063 PERMITS 17
MARION
VALUATION $740,915 PERMITS 39
VALUATION $0 PERMITS 0
ORONOCO TWP
VALUATION $416,084 PERMITS 11
VALUATION $0 PERMITS 0
QUINCY
VALUATION $7,840,812 PERMITS 26
STEWARTVILLE
Activity Overview Key metrics by report month and for year-to-date (YTD) starting from the first of the year.
Key Metrics
Historical Sparkbars
New Listings 4-2017
4-2018
4-2019
4-2020
4-2017
4-2018
4-2019
4-2020
4-2017
4-2018
4-2019
4-2020
4-2017
4-2018
4-2019
4-2020
4-2017
4-2018
4-2019
4-2020
4-2017
4-2018
4-2019
4-2020
4-2017
4-2018
4-2019
4-2020
4-2017
4-2018
4-2019
4-2020
4-2017
4-2018
4-2019
4-2020
4-2017
4-2018
4-2019
4-2020
Pending Sales
Closed Sales
Days on Market
Median Sales Price
Avg. Sales Price
Pct. of Orig. Price Received
Affordability Index
Homes for Sale
Months Supply
4-2019
4-2020
Percent Change
YTD 2019 YTD 2020
829
579
- 30.2%
2,236
2,104
- 5.9%
624
520
- 16.7%
1,799
1,889
+ 5.0%
419
435
+ 3.8%
1,365
1,526
+ 11.8%
66
64
- 3.0%
68
70
+ 2.9%
$197,250
$217,750
+ 10.4%
$192,400
$210,000
+ 9.1%
$217,450
$236,149
+ 8.6%
$211,161
$235,809
+ 11.7%
96.6%
97.8%
+ 1.2%
96.0%
96.4%
+ 0.4%
195
193
- 1.0%
200
201
+ 0.5%
1,379
1,123
- 18.6%
--
--
--
2.8
2.1
- 25.0%
--
--
--
Percent Change
Current as of May 4, 2020. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2020 ShowingTime. | 2
20 | MAY-JUNE 2020
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USING THE PRIVATE OFFER FOR NAHB MEMBERS IS EASY: 1. Get your NAHB Proof of Membership by logging into NAHB.org and obtaining your verification form. 2. Visit your local Chevrolet dealer and mention this Private Offer. 3. Select an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership. For even more value, combine this offer with the National Fleet Purchase Program and Business Choice Offers. For full details on the Private Offer, NAHB members should visit nahb.org/gm. Example offer for NAHB members who are business owners purchasing a 2018 Chevrolet Express 2500 Cargo Van. Up to
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21 | FOUNDATIONS NEWSLTR
22 | MAY-JUNE 2020
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23 | FOUNDATIONS NEWSLTR
24 | MAY-JUNE 2020
Small Gain for Custom Home Building During 1Q20 BY ROBERT DIETZ on MAY 19, 2020 NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates custom home building posted a small increase during the first three months of the year, supported by low interest rates and unseasonably mild weather in January and February. While housing construction starts declined in March, and considerably more in April, on net the first quarter was a positive one for custom home builders. There were 32,000 total custom building starts during the first quarter of 2020. This marks a 10% gain over the first quarter 2019 total of 29,000. Over the last four quarters, custom housing starts totaled 180,000, which was a 3% increase over the prior four quarter total of 170,000 starts. As measured on a one-year moving average, the market share of custom home building in terms of total single-family starts is now 20%, down from a cycle high of 31.5% set during the second quarter of 2009. Note that this definition of custom home building does not include homes intended for sale, so the analysis uses a narrow definition of the sector.
The onset of the housing crisis and the Great Recession interrupted a 15-year long trend away from homes built on the eventual owner’s land. As housing production slowed in 2006 and 2007, the market share of this notfor-sale new housing increased as the number of single-family starts declined. The share increased because the credit crunch made it more difficult for builders to obtain AD&C credit, thus producing relatively greater production declines of for-sale single-family housing. As the economy experiences a recession in 2020 due to
government-imposed lockdowns for virus mitigation, singlefamily spec construction will slow more than custom building. Thus, we can expect an increase in the share of custom building for single-family starts in the quarters ahead.
25 | FOUNDATIONS NEWSLTR
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