Builders Outlook
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Baby boomers are people born during the demographic post–World War II baby boom approximately between the years 1946 and 1964. This includes people who are between 51 and 70 years old in 2016. According to the U.S. Census Bureau, the term "baby boomer" is also used in a cultural context.
National, State & Local Building Industry News 2016: Issue 2
Identifying the Housing Preferences of the Boomer Generation The National Association of Home Builders (NAHB) has had a long history of tracking the evolution of home buyer preferences. Builders and other industry professionals now have an opportunity to find out what baby boomers want compared to other home buyers in Housing Preferences of the Boomer Generation: How They Compare to Other Home Buyers, a study recently released by NAHB's publishing arm, BuilderBooks. Based on a comprehensive, nationwide survey of recent and prospective home buyers conducted in 2015, the study discusses how various designs influence the home purchase decision; the location, features and size of the homes consumers want, and the influence of certain events and people on the decision to move to another home. "This survey is a great resource for building professionals, as it provides an inside look at the things boomers, and other generations, are looking for in today's homes," said Rose Quint, NAHB's Assistant Vice President for Survey Research, and one of the study's authors. "As the housing market continues to recover, more consumers are in the position to purchase a home, and it's important for builders to have this knowledge about their customers." Here are some of the findings on what home buyers want:
• The majority of all buyers (65%), and boomers in particular (63%), would like to buy a single-family detached home.
• Most home buyers (64%) prefer a single-story home, but there is great variation by generation: Millennials (35%), gen X'ers (49%), boomers (75%) and seniors (88%). • Fifty-eight percent of home buyers want a full or partial basement, but the preference declines with age: Millennials
(77%), gen X'ers (67%), boomers (50%) and seniors (43%).
• When asked if they would buy a home without a living room, 37% of buyers say they would, 42% would not and 21% are not sure. The share of buyers willing to part with this formal space falls steadily with age: Millennials (43%), gen X (40%), baby boomers (37%) and seniors (26%).
And here are some of the findings on what most buyers do not want:
• Few buyers (8%) or boomers (7%) prefer a central city location. About two-thirds prefer a home in the suburbs (close-in or outlying) and just over a quarter prefer a rural area.
• Only 14% of buyers overall (and 13% of boomers) are willing to pay more for a home out of pure concern for the environment. Editor’s Note: This is part two of our series that focuses on housing preferences by generation. In our last issue we looked at how millennials are shaping the future of the housing industry. The article can be found in our digital edition by visiting: https://issuu.com/snappypublishing/docs/builde rsoutlook2016issue1
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Builders Outlook
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2016 issue 2
2016 issue 2
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Builders Outlook
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President’s Message
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El Paso, Permian Basin and Surrounding Area
Open Networks are Greatest Predictors of Career Success I read an interesting article this week on Network Science. In it, Ron Burt, one of the world’s top network scientist, explains how “according to multiple, peer reviewed studies, simply being in an open network instead of a closed one is the best predictor of career success”. The logic of this is that open networks expose you to new ideas, different perspectives, new information and experiences, while people in closed networks repeatedly hear the same ideas, “which reaffirm what you already believe” Specifically, the author mentioned four specific areas where it helps to participate in open networks: 1. More accurate view of reality: Being in an open network affords you different information sources so errors tend to cancel themselves out. 2. Timing control of information sharing: When you are part of an open network, it is more likely that you will receive more timely information than when you are a part of a closed network, you basically expand the probabilities of someone in your open network hearing about it first and sharing the information.
3. Becoming a connector between groups: Members of open network “can create value by serving as an intermediary by connecting organizations” that otherwise wouldn’t be connected.
4. More breakthrough ideas: By hearing ideas and information from different sources and people with different experiences, better ideas come about. Is this starting to sound familiar? Your local Building Association is a great Open Network connecting the top industry professionals in our field. Come and network with seasoned bankers, developers, builders and suppliers to improve your business. Last but not least, the Spring Home Buying Season is upon us, help us make bring awareness to the benefits of purchasing a new home over a used one, a great way to do this is by attending the upcoming Spring Home Show on March 11-13. Let’s make some noise!
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Builders Outlook
2016 Issue 2
Executive’s Message Ray Adauto, Executive Vice President EPAB The Pope visited Juarez and it created some unusual business challenges. Not just in Juarez but in El Paso. First of all the business community, including our industries, were not sure what to expect since there didn’t appear to be solid information on what would happen in El Paso. Now remember, there was never any indication that the Pope would visit El Paso but because of his visit to New York and Pennsylvania the talk was that there may be thousands or hundreds of thousands of visitors coming here to get a glimpse of his Holiness. The city, state and feds decided that they could take any chances with an international incident. So parts of the city was shut down, roads closed, and schools closed. What was business to do? Our builders
Papal visit creates unusual challenges reported loss of workers either because they went to be with the crowds or because it was hard to get to work. I suspect that we’ll never know the huge monetary costs to this city. It cost our industry at a time we can least afford it. Was it worth it? Hard to say but if the worker felt the need then productivity would have suffered otherwise. Someday a study will be done and the results may show the costs were higher than we’d been led to believe dollar wise. But if it gave the region some kind of a mental lift then maybe it was worth it. Only time will tell. As you read this I’m in the beginning stage of knee replacement recovery. Some of you know what I’m going through. It’s not for wimps and the older one gets the harder recovery gets. I
elpasotimes.com
want to thank Margaret for pulling double duty, at work and long difficult hours at home. My doctor is James Bean, M.D., a world class man with incredible skills. So you’ll see me back soon as long as everything progresses well. My new knee and opportunity to feel less pain will be worth it. At least that’s what I’m saying right now trying to get through this pain. Lots of things coming up: Home and Garden Show March 11-13 with
our Parade of Homes builders showing off baths and kitchens; April 8 is the day for our fun spring golf outing at Painted Dunes brought to you by StrucSure Home Warranty; and then our showcase consumer event the Parade of Homes ready to kick off May27. So yeah we are busy and yeah we got a lot to do. Looking forward to sharing these events with you. Be safe, be productive. Go build El Paso.
2016 issue 2
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Builders Outlook
National Builder News New Home Sales Fall 9.2 Percent in January
n Sales of newly built, single-family homes dropped 9.2 percent in January to a seasonally adjusted annual rate of 494,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. “After an unusually high December reading, some pullback is to be expected,” said Ed Brady, chairman of the National Association of Home Builders (NAHB) and home builder and developer from Bloomington, Ill. “On the positive side, builders are adding inventory in anticipation of future business.” “Consumers are exhibiting caution in the face of some uncertain market conditions,” said NAHB Chief Economist David Crowe. “The average of the December-January reports shows that housing is moving forward at a modest pace, buoyed by relatively low interest rates and ongoing job creation.” The inventory of new homes for sale rose to 238,000 in January, which is a 5.8month supply at the current sales pace and the highest level since October 2009. Regionally, new home sales rose 3.4 percent in the Northeast and 1.8 percent in the South. Sales dropped 5.9 percent in the Midwest and 32.1 percent in the West.
The inventory of new homes for sale rose to 238,000 in January, which is a 5.8month supply at the current sales pace and the highest level since October 2009.
Housing Recovery Continues at Modest Pace
n Markets in 117 of the approximately 340
metro areas nationwide returned to or exceeded their last normal levels of economic and housing activity in the fourth quarter of 2015, according to the National Association of Home Builders/First American Leading Markets Index (LMI) released today. This represents a year-
BUILDING
over-year net gain of 52 markets. The index’s nationwide score inched up to .94, meaning that based on current permit, price and employment data, the nationwide average is running at 94 percent of normal economic and housing activity. Meanwhile, 90 percent of markets have shown an improvement year-overyear. “Housing markets are strengthening gradually as the economy firms and job creation continues,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “While some areas are recovering at a faster rate than others, the large majority of metros are moving in the right direction.” “Among the LMI components, house prices continue to show the most extensive recovery, with 322 markets having returned to or exceeded their last normal levels. Meanwhile, 76 metros have reached or exceeded normal employment activity,” said NAHB Chief Economist David Crowe. “Single-family permits are edging forward, but remain at only 48 percent of normal activity.” “The number of markets on this quarter’s Leading Markets Index at or above 90 percent has reached 217—almost 65 percent of all markets nationwide,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company, which co-sponsors the LMI report. “This demonstrates that the breadth of the housing recovery continues to grow.”
El Pa aso
Baton Rouge, La., continues to top the list of major metros on the LMI, with a score of 1.52 – or 52 percent better than its last normal market level. Other major metros leading the list include Austin, Texas; Honolulu; Houston; and San Jose, Calif. Rounding out the top 10 are Oklahoma City; Los Angeles; Nashville, Tenn.; Salt Lake City and Charleston, S.C. Looking at smaller metros, both Midland and Odessa, Texas, have LMI scores of 2.0 or better, meaning that their markets are now at double their strength prior to the recession. Also at the top of the list of smaller metros are Wheeling, W.Va.; Manhattan, Kan.; and Walla Walla, Wash.; respectively. The LMI identifies those areas that are now approaching and exceeding their previous normal levels of economic and housing activity. Approximately 340 metro areas are scored by taking their average permit, price and employment levels for the past 12 months and dividing each by their annual average over the last period of normal growth. For single-family permits and home prices, 2000-2003 is used as the last normal period, and for employment, 2007 is the base comparison. The three components are then averaged to provide an overall score for each market; a national score is calculated based on national measures of the three metrics. An index value above one indicates that a market has advanced beyond its previous normal level of economic activity.
SINCE 1950
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Builders Outlook
Financial Perspective
Elliot Eisenberg Economic & Policy Blog
House prices are once again regularly in the news and have been rising for 43 straight months. In cities such as Boston, Denver and San Francisco, prices today are higher than they were during the peak of the housing boom. In other cities, while prices have not regained the ground they lost during the housing bust, they are rising smartly and are not far off the peak prices of last decade. That said, a housing bubble does not appear to be forming, and even if one is on the horizon, it certainly is not being credit-fueled, and thus is far less dangerous than what we recently experienced.
2016 Issue 2
No Housing Bubble While in a few cities home prices are at or above the highs of the housing boom, on average, home prices are still well below their previous peaks. Depending upon the house price index used, sales prices are currently 5% to 10% below their 2006 peaks, and at levels first observed in early to middle 2005, six to 12 months before they peaked. Moreover, after adjusting for inflation, house prices are about 20% off their all-time highs. At the current rate of house price appreciation, it will take another four years for inflationadjusted house prices to fully regain their 2006 levels. Despite the rhetoric, house prices are not nearly as high as they are being made out to be. In addition, back in 2006, housing affordability was dismal. At that time, a family earning the median income barely had enough income to qualify for a conventional conforming mortgage for the US median-priced home. Today, that same household has almost 170% of the income needed to qualify for the median-priced
US home. This is because house prices are lower and interest rates are substantially lower than they were almost a decade ago. Two esoteric but very important financial measures reinforce the conclusions above. Both the price-torent ratio and the mortgage debt-toGDP ratio have fallen precipitously. The price-to-rent ratio is similar to the price-to-earnings ratio for equities, and the higher it is, the more homebuyers are willing to pay up front to receive a flow of future rent payments. At the peak, the price-to-rent ratio was easily 50% above what it averaged between 1983 and 2000. Today it is about 10% above the 1983 to 2000 average level, and almost 30% below the 2006 peak. The ratio of all debt (most of which is mortgage debt) to GDP has fallen from 100% of GDP to 80% of GDP. Moreover, despite the recent run up in house prices, the mortgage debt-to GDP ratio has continued to decline. This reflects a return to prudent lending standards and reduced
household leverage. Collectively the improvement in these ratios strongly suggest that we are not in the midst of a credit-induced lending bubble. In addition, housing starts remain about half of what they were during the prior peak. This means that our economy is far less dependent on residential construction activity than it was then. To review, while house prices are up, inflation-adjusted prices are still years away from their peak levels. In addition, affordability remains high and both the price-to-rent and mortgage debt-to-GDP ratios are much lower than they were. These four indicators collectively indicate that there is probably no housing bubble, and even if there is one, it is not the result of increased household leverage, which is what primarily precipitated the last housing bust.
Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net. His daily 70 word economics and policy blog can be seen at www.econ70.com.
The world economy
Global growth is in slow mode, but a recession seems unlikely
Bad, worse, or as good as it gets Uncertainty and pessimism have dominated the economic and business news in recent months. While at face value the mood seems justified as many negative factors (China’s financial gyrations, volatility in oil prices, and the further weakening of the US economy) are colluding, the recent developments by themselves do not yet signal an imminent global economic recession. Yet, the recent challenges to the global economy, have led to some significant adjustments in this first quarterly update The Conference Board’s Global Economic Outlook for 2016. Global GDP growth is now projected at 2.5 percent, which is 0.3 percentage point lower than our November outlook. The largest downward adjustments are seen in emerging markets, of which Brazil and Russia are the most pronounced, as their economic outlook has deteriorated more rapidly than we expected US: Will it continue to be a bright spot in a weak global economy? GDP growth for the United States is adjusted downward by 0.4 percentage points to 2.0 percent, as the GDP growth in the 4th quarter and jobs growth over the past months have been somewhat disappointing. Solid domestic demand will help overall GDP growth at 2.0 percent in 2016, which is slightly lower than 2015
growth rate. Raising profits will become increasingly difficult for companies as labor costs accelerate, labor productivity growth is modest, and interest rates are rising.
EURO-AREA: Recovery is likely to get better Despite increased political risks, the short-term economic environment in Europe has actually improved faster than we expected in our last update. As is the case in the US, domestic demand continues to drive the current moderate recovery. Investment and productivity are projected to improve in the coming decade, paving the way for somewhat of an acceleration in growth.
ASIA-PACIFIC: Growth is unlikely to improve Growth rates of China, India and Southeast Asia are unlikely to see significant improvement in 2016 compared to last year. Chinese growth in 2016 is expected to stay the same as that of 2015 at 3.7 percent (Alternative China GDP Series FAQ) After adjusting for China’s overstated official growth rates, India has already overtaken China as the growth champion of the region, but we do not expect an improvement in India’s growth performance in 2016 relative to 2015.
LATIN AMERICA: Losing the race? Rapid falls in oil and commodity prices negatively impacted Latin American economies, and exacerbated the ongoing troubles in the biggest economy in the region, Brazil. To help lift economic potential and drive productivity growth, more private sector and foreign investment is needed as well as integration of the informal sector into large and modern business practices. AFRICA: Positive, but uncertain The prolonged decline in commodity
prices, as well as weak growth in Nigeria and South Africa, will cause overall growth for the region in 2016 to come in at 3.7 percent – which is, though still an improvement from 2015, well below the average growth of the last few years. The region still has a lot of potential for economic expansion in the medium to long run, mainly due to its demographic dividend, and there is ample room for catch-up, but several political and institutional constraints offer significant uncertainty.
Source: https://www.conference-board.org/data/globaloutlook/
2016 ISSUE 2
Builders Outlook On the Scene
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Builders Outlook
General meeting features State Rep Joe Pickett
The first general meeting of the year took place at the Marriott Hotel on February 10. The guest speaker was State Representative Joe Pickett, the senior legislator from El Paso. Pickett, one of housings most ardent supporters, gave the audience a sneak peak into what the off season is getting ready for next year. At the top of the list according to Pickett is the new funding available to fix and maintain Texas roadways. This came about after a broad coalition of support voted for a way to fund transportation without increasing taxes. As the higher mileage autos and trucks continue to populate Texas roads less gasoline and diesel are being sold and that source of Texas road funds needed to be supplemented or reinforced. Pickett told the audience that his work on the road issues will keep Texas at the forefront of road improvement. Growing the economy means having to have roads that can transport the goods and services we need. “I have to say that as Texas has grown our need to have good roads and bridges is paramount,” Pickett said. “We are spending a lot of money in El Paso over the next few years to bring completion to Loop 375 and make the west side connected to east side,” he told the Outlook. Bobby Bowling IV said this to the Outlook: “Joe Pickett has supported builders throughout his career at the capital because he knows the industry,” “He is one of the hardest working as well as diversified with his work on roads,” he continued. Carlos Villalobos, President of the association went a little further. “I really appreciate Mr. Pickett coming out to give us an update because his work for us in the legislature is important,” “I expect that we will need his leadership in the next session, so I’m glad he came to speak to us,” Villalobos continued. The meeting also had our first visit by the National Association of Home Builders regional team. The reps told the audience about the NAHB Member Advantage programs designed to get discounts on services and goods used by our members. The announced a new $500 discount on cars and trucks from Chrysler Fiat Dodge. This program joins the one GM offers but with some very interesting twists. For more on this and other programs available to members contact us at the EPAB office.
El Paso Development News
Builders Outlook 2016 Issue 2 www.elpasodevnews.com
Dave & Buster's Details Emerge, Now Hiring 200 Employees for Bassett Place Location
Renderings Reveal Look of Future Northgate Transfer Center
By Armando Landin The Northgate Transfer Center is considered a "catalyst" by the City of El Paso for the future transit-oriented Metro 31 smart growth community, which will be adjacent to this project. It will be used as the terminus of the Dyer Corridor of the Brio Rapid Transit System, currently under development. In all, 31 acres will be developed at the former location of Northpark Mall at the corner of Dyer Street and Diana Drive. According to the architect's website, the transfer center will itself be a
mixed-use development, with retail spaces and a 181-space parking garage planned. Renderings show the parking structure possible hidden by liner facades, which could include the retail spaces. These would face a "Main Street" leading into the smart growth development. Renderings also show a circular community plaza that could possibly be used for public art and community events. Ponding park areas are located behind the structures in a preliminary site plan. The layout of the Northgate Transfer Center and the larger Metro 31 development are subject to change, as has been seen in multiple iterations of each project. Metro 31 is being developed by Hunt Companies of El Paso. No construction start date has been announced for either project.
The interior of the upcoming Dave & Buster's location at Bassett Place in El Paso will be "upscale and modern," according to a press release. The company is looking to fill 200 positions for the new entertainment and dining venue located in East-Central El Paso, which opens April 11, 2016. Dave & Buster's El Paso location will include over 30 big screen, high definition televisions and a 360-degree sports bar. This is the "Watch" part of the company's "Eat, Drink, Play & Watch" slogan. A "Million Dollar Midway" will include more than 160 arcade games in areas such as the "Jurassic Park Arcade, Angry Birds Arcade and SpongeBob Pineapple Arcade." Guests will be able to redeem tickets for various prizes, including Xbox games and sports memorabilia. Food-wise, the menu will include items such as, "Pepperoni Pretzel Pull Apart, Three Cheese Grilled Cheese Sticks, Bacon-Wrapped Shrimp & Chicken with Creamy Lobster Sauce, Bang Bang Chicken with Spicy Thai Peanut Noodles and the Cheesy Mac Stack where shredded short ribs are
topped with creamy macaroni & cheese and sandwiched between two slices of toasted bread," according to the press release. Cocktails will include "Tiki Drinks, the Original CoronaRita, Adult Snow Cones, the Strawberry Watermelon Margarita poured over strawberry ice cubes, Glow Kones featuring a multicolored, flashing cube, and the allnew tequila infused South of the Border Sangrias." The company is hiring 200 employees for the El Paso location, including positions for servers, bartenders, hosts, cooks, and service support roles.
For the latest in breaking development news, visit: elpasodevenews.com
The value of your EPAB Membership just got even better!
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generally can’t have total debt-to-income ratios higher than 43 percent, and they need FICO credit scores of 660 or higher. FHA, by contrast, goes as low as FICO 580 on loans with 3.5 percent down and is often more generous on debt-to-income and previous credit issues. Some Affordable Loan Solution applicants, including all first-time buyers, will need to participate in home buyer education sessions conducted by housing counselors. D. Steve Boland, Bank of America’s consumer lending executive, stressed in an interview that this is a program designed for people “who have established histories of paying debts,” even if not all their histories show up in the national credit bureau files. The Affordable Loan Solution plan joins two other relatively recent efforts to reach out to creditworthy moderateincome renters who don’t have a lot of cash on hand. Fannie Mae’s
HomeReady and Freddie Mac’s Home Possible programs, which both offer 3 percent minimum down payments and flexible underwriting terms, are available through multiple lenders nationwide. If you think you might fit the profile, get in touch with several lenders and learn what they’ve got to offer. You just might be surprised. Ken Harney’s email address is kenharney@earthlink.net. For more Ken Harney columns, visit washingtonpost.com/people/Kenneth-RHarney.
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Lee Trevino Dr.
So you say you want to buy a home but you’re locked out of the market because you don’t have enough money for a down payment. Or you don’t have adequate savings to meet lenders’ requirements on financial reserves. Or you have a thin credit file that lenders find tough to score and accept. Understood. But have you checked out what’s been going on in the mortgage market lately? Are you aware of the multiple low-down-payment, consumerfriendly options that have been launched recently — the latest just within the past week? Maybe not, so here’s a quick overview. Pushed by regulators and consumer groups to expand home-loan opportunities for first-time and moderateincome buyers, major mortgage players have come out with nationwide programs designed to turn renters who are creditworthy — but don’t have big down payments or closing-cost cash — into homeowners. The newest option, known as the Affordable Loan Solution plan, launched Feb. 22. It allows for down payments as low as 3 percent, no minimum cash reserves and loan amounts as high as $417,000 — and, unlike other low-downpayment mortgages, there are no charges for traditional private mortgage insurance. Just by itself, such insurance can sometimes add hundreds of dollars a month to buyers’ costs and make ownership difficult to afford, so this is a big deal. For applicants with thin or no credit bureau files, the program allows for consideration of nontraditional forms of credit history, such as monthly rent payments, utility bills and the like. Also, there is no minimum required contribution toward the down payment and closing costs, so applicants can supplement their own cash with gifts — from parents, for example — or even use grants or secondary financing that is available through some local government agencies. Significantly, applications won’t go through the usual automated underwriting systems that generate instantaneous approval-disapproval decisions. Instead, they’ll be handled the old-fashioned, “manual” way, allowing for more individualized evaluation — and verification — of applicants’ situations. The program is a joint effort of Bank of America, giant mortgage investor Freddie Mac and the Self-Help Ventures Fund, an affiliate of Self-Help Credit Union, a community development lender. Starting Feb. 22, Bank of America began offering these mortgages through its network of 4,800 local financial centers around the country as well as through its online and call-center channels. The bank plans to sell the mortgages to SelfHelp, which will provide earlyintervention servicing to borrowers who experience payment difficulties. Freddie Mac will ultimately purchase the loans. Self-Help will provide a financial
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By Kenneth R. Harney , The Washingtom Post
backstop to cover default losses in lieu of traditional private mortgage insurance coverage. Affordable Loan Solution mortgages are likely to compete with Federal Housing Administration loans, which offer minimum down payments of 3.5 percent. For many applicants, the new program could prove to be the superior choice. Take this hypothetical case provided by Bank of America: On a $150,000 mortgage with prevailing rates as of midFebruary, FHA’s 30-year fixed rate loan with a 3.5 percent down payment and mortgage insurance would require monthly payments of $887.31, exclusive of taxes and hazard insurance. An Affordable Loan Solution mortgage in the same amount with 3 percent down would cost the borrower nearly $105 less per month — $782.47. However, there are important restrictions that come with the new loans. Borrowers can’t have incomes higher than the area median, they
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A joint effort by Bank of America, Freddie Mac and the Self-Help Ventures Fund will offer home buyers low down payments and give applicants credit for having paid their rent on time.
Mortgage lenders try to turn more renters into homeowners
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Lending
2016 issue 2
6068 Gateway East 6 E Paso, TX 79905 El P Phone: (915) 782-2400
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2290 Trawood El Paso, so, TX 79905 Phone: (915) 782-2470
C re of $50 to open. Each account is insured by FDIC up to $250,000. Servicess vary depending on account. unt. See bank representative tative for more details.
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2016 issue 2
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Builders Outlook
In History
Famous Houses Born in Chihuahua, Mexico and educated in Kentucky and Missouri, Joseph Magoffin (1837–1923) first came to the El Paso area in 1856 to work in his father’s mercantile shop at Magoffinsville. After service in the U.S. Civil War, he returned with his family and became an advocate for the development of El Paso and the region. Using his extensive landholdings, he helped bring railroads, utilities and new businesses to town, increasing his personal fortune. He was a cofounder of the State National Bank, where he served as vice president for 40 years. He also served as county judge, four terms as mayor, collector of customs and in numerous other public offices. His wife Octavia (1845–1906) was a social leader in the community and active in Catholic charities. They had two children, Jim (J.W.) Magoffin (1864–1913) and Josephine (Josie) Magoffin Glasgow (1873–1968). When Joseph and Octavia Magoffin moved into their new home in 1877, El Paso was a small frontier town. Joseph built the home on property he had obtained from his late father. The adobe construction reflects typical Spanish and Territorial architecture found in the Southwest borderlands and the influence of the Greek Revival style popular in other parts of the United States. In 1887, the El Paso Times described the homestead, “The grounds surrounding it comprise twenty acres, embraced in lawns, flower gardens, fruit orchards, vegetable beds, grass plats and small grain divisions.” The couple was well known for their hospitality and entertained guests frequently in the home. The Magoffin’s son, Jim, grew up in El Paso and attended school in San Antonio and the University of Notre Dame. Interested in business, Jim was often associated with his father’s activities, including working in the El Paso Customs Office, as a railroad freight agent and in other commercial ventures. In 1897, he married Anne Buford (1875–1962), the daughter of the American Consul in nearby Juarez. They and their four children lived in the Magoffin Home at various times. J.W. unexpectedly died at age 49 after an appendectomy. Anne and her children cared for Joseph in the home until his death in 1923. Joseph and Octavia had their second child, Josephine, shortly before they constructed the Magoffin Home. After attending the first public school in El Paso, Josephine (Josie) continued her education in Washington and Europe. She returned in 1891 and became active in the social life of the city. Her marriage to William J. Glasgow (1866–1967) in 1896 was described as the most fashionable in El Paso’s history. Glasgow, a graduate of West Point, served with distinction in the Spanish-American War, the Pershing Expedition and World War I, and retired in 1926 with the rank of brigadier general. Josie and their five children followed Glasgow from post to post, which influenced two of the boys to pursue their own military careers. The Glagows moved into the Magoffin Home after Joseph’s death and lived there for the next four decades. Their daughter, Octavia, continued to live in the home until her death in 1986. Magoffinsville Joseph’s father, James Wiley Magoffin (1799–1868) left Kentucky for Mexico in the 1820s seeking adventure and opportunity. He became a widely respected trader and businessman, known locally as “Don Santiago,” in Matamoros and on the Chihuahua-Santa Fe Trail. His influence extended into politics, as he arranged the peaceful surrender of Santa Fe during the American invasion of Nuevo Mexico in 1846. After the Mexican-American War, he made extensive land purchases along the Rio Grande and created the settlement of Magoffinsville, a forerunner of present-day El Paso and an early site of Fort Bliss. In 1867, floods destroyed his hacienda and trading post, located about 11 blocks east of the
The Magoffin Home provides window into our past
The Magoffin Home is located at 1120 Magoffin Ave in El Paso, Texas. It was placed on the National Register of Historic Places in 1971. The surrounding area was declared the Magoffin Historic District on February 19, 1985. Magoffin Home. James met his wife, Maria Gertrudis Valdez, in Saltillo, Mexico. They married in Chihuahua in 1839 and had eight children.
Did You Know? • The Magoffin Home is not on the same site as the early settlement of Magoffinsville, created by Joseph Magoffin’s father, James Wiley Magoffin. Magoffinsville, one of the earliest settlements in the area, and an early site of Fort Bliss (1854–1862) is about 10 blocks east of the Magoffin Home. • Magoffin family members served in the Mexican–American War, the American Civil War, the Spanish–American War, the Pershing Expedition and both World Wars. Military service is an important part of the family history. • Magoffin family members and their descendents lived in the home for more than 100 years.
• The exterior walls of the Magoffin Home, made of adobe brick, are between two to three feet thick. The interior walls are about two feet thick.
• The ceilings in the north and part of the east wing are composed of milled wood beams. This wood was apparently brought by wagon from the Sacramento mountains of New Mexico. • Some of the tongue and groove wood floors in the home were laid directly on the ground.
• Different parts of the home portray different time periods. For example, some rooms represent the 1890s and others the 1930s. Their decor reflects styles popular at those times.
- See more at: http://www.thc.state.tx.us/historicsites/magoffin-home/magoffin-homehistory#sthash.LfmCqoAj.dpuf
Welcome Photo by Jody Polk Schwartz
Our Doors Are Open On Satur S days All branches open on Saturdays 9:00 am to 1:00 00 pm. Se habla espanol.
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12
Builders Outlook
Introductions
2016 issue 1
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Meet your board member
The Builders Outlook asked EPAB Board Members some interesting questions There responses were even more interesting!
Sam Trimble
If you had 1,000,000 dollars to give away, how would you do it? Let’s just say my church, family, friends and waiters would like me a lot more.
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What was your first paying job? Busboy and dishwasher at the Riveria Restaurant. What makes you feel old? Going to 6th Street in Austin.
Who do you admire as a leader? Ronal Reagan.
If you could have a drink with someone from history who would it be? Benjamin Franklin
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PARADE The El Paso Association of Builders presents
HOMES Enchanted Hills of
May 28-June 12
Preview Party May 27
Development by: Southwest Land Development Beautiful Homes by: BIC, Palo Verde, Pointe Homes, DR Horton, CTU Metro Homes, Pacifica Homes, Deal 2 Deal, Trinity Homes and Edwards Homes
2016 Issue 2
Association News & Events
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Builders Outlook
If you have an event or meeting that you would like to share with EPAB members, please submit your information to: margaret1@elpasobuilders.com
SODA SPONSOR UPCOMING EVENTS MARCH 9 BOARD MEETING 12 NOON EPAB OFFICE MARCH 11-13 HOME & GARDEN SHOW CONVENTION CENTER MARCH 23 LUNCH & LEARN EPAB OFFICE
NEW MEMBERS TREJO CONSTRUCTION CO. CONTACT: JUAN TREJO 13909 ALAMEDA CLINT, TEXAS 79836 915-637-5193 WELCOME BACK: TRINITY HOMES CONTACT: DANNY ANDRUS 1346 LEE TREVINO#206 EL PASO, TEXAS 79936 915-494-5580 DWS BUILDING SUPPLY CONTACT: SABRINA VOOHIES 6050 LUCKETT COURT EL PASO, TEXAS 79932 915-351-7300
FIRST LIGHT FCU
Connect to the El Paso Association of Builders: www.elpasobuilders.com
14
Builders Outlook
Who Needs Life Insurance
Expert Advice
Joe Bernal
Employer Benefits of El Paso
You might wonder whether to buy life insurance or not. Do you need death coverage, or is it just an additional expense? You might think you don’t need life insurance if you do not have children. But that is not always the case. If someone depends on you financially, then you definitely need life insurance. This could be anyone in your life who will have financial trouble in the event of your premature death. It could be your spouse, kids or aging parents. Life insurance can prove valuable to people in any of the following scenarios: You Are Single: Yes, contrary to what people think, singles may also need life insurance, depending on their life stories and struggles. Many singles provide financial support to their parents and siblings who might have special needs. Even if they don’t have financial responsibility to anyone in particular, what happens if they carry a lot of debt? In the event of their death, that debt will pass to
Associates Council
their family. Life insurance can avert this problem. Life insurance can also help you make the world a better place. Do you want to leave this world with something good when you die? Are you passionate about helping others and funding charities? Life insurance makes it possible for you to leave a substantial legacy to the charities of your choice for just the cost of your premiums. Buying life insurance while you are young and healthy lets you get coverage at the best rates available. Depending on the type of policy you buy, you can lock in rates for five years, ten years or even your lifetime. While rates are locked, your premiums won’t change regardless of your health condition. You Own a Small Business: If you are a business owner or entrepreneur, life insurance can help you protect your business. In the event of your, a partner’s or a key employee’s death, what would happen to your business? Life insurance provides an acceptable solution to this problem in various ways: • Key person life insurance: In the event of death of a key employee, key person life insurance provides funds that help the owners hire a replacement or any alternative solution. • Buy/sell insurance: This coverage gives the other owners of the business the cash needed to buy the shares of the deceased partner on a pre-agreed price, according to a buy/sell agreement. You Are Married: If you are married
without children and think you don’t need life insurance, think again. With utility bills, car loans, mortgage or your monthly rent, credit card balances and so many other expenses, how will your spouse manage it all alone if you were to die tomorrow? Even if your spouse has a good income, monthly expenses could be a great financial burden. Life insurance can replace your lost income so your spouse can continue to live the same lifestyle. You Are Married with Children: Having children means you have more mouths to feed. You likely want to ensure their educational future as well. But what would happen to the dreams you have for your children if you were to die suddenly? If the costs of a college education increase five percent per year, a four-year education at a private college could cost nearly $400,000 by the time a baby born this year is ready to enroll. Life insurance can make sure that your dream lives on even after your death. You Are a Stay-at-home Parent: Don’t think that the efforts of a stay-at-home parent are easily replaceable. Cooking, cleaning, transportation, helping your kids with homework and spending quality time with them by managing their everyday routines are mostly underappreciated tasks. Even with you gone, your family will still want someone to perform these services. Life insurance provides your family a way to maintain their living standards and minimize some of the changes and stresses caused by the untimely death of a parent.
You Are a Single Parent: When you are a single parent, too much responsibility falls on your shoulders. You act as both mother and father to your children. You have to take care of them day after day and provide everything they need, from food to college tuition. What would happen to your children if you die before they’re independent? You Have Grown-up Children: Once you are free of college expenses and mortgage payments, do you still need life insurance? Answer this question by thinking how your spouse will maintain the quality of life that you have grown accustomed to after working so hard. Would you want your spouse to struggle with financial troubles after your death? You Are Retired: If correctly structured, your beneficiaries will receive the proceeds of a life insurance policy free of income tax. Unlike an estate, which might have to go through probate, proceeds of a life insurance policy are immediately payable. This lets your family take care of funeral and burial costs, debts and estate taxes immediately without liquidating assets.
better place to live. The relationships within our membership are important in achieving this goal. We all must work together to strengthen these bonds if we wish to succeed both in business and for the betterment of our neighborhoods. This association creates the homes and neighborhoods that makes El Paso a great place to raise children and to enjoy our families. One of my goals for this association is to get more participation from our associate members. They help contribute money, volunteers, and support for lobbying for governmental changes. They offer a strengthening in our numbers and help to make our voice heard. They play a very important role. When members remember to "prefer" our associates in business dealings, this strengthens our Association and will help to grow our membership. We will begin to hold quarterly Associate Council meeting soon, if you are interested in being involved, please e-mail me at john@dorneysecurity.com. We would be glad to see you there!
The calendar for the next 90 days is below: March Mar 9 Board meeting at the EPAB office, Mar 11-13 Home Garden Show daily starting at 1100 o'clock in the morning until 7 PM, Mar 23 Speed networking 2pm through 4 pm
April Apr 8 Friday spring golf tournament at painted dunes 0830 show up 1000 shot gun, Apr 13 Board and General meeting Late Apr Young Designers identified May May11 Board Meeting May 27 through 12 Jun Parade of Homes ( Westside)
Loyalty to Community
John Dorney
Associates Council Chair
This is my first article for The Builder's Outlook. As a recently retired Soldier, I want to thank this association and all its members for their support to our Fort Bliss community. Being loyal to your community and to individuals is one way to try to make a difference for our community. This is one of the primary reasons that I joined this association. I believe we each must be active participants in our community if we want to be proud to call El Paso home. One of the primary goals of the Associates Council is to bring Builders and Associates together to make El Paso a
2016 issue 2
Jaime’s Courier Service,Inc.
For a review of your financial situation and assistance in developing your financial plan, please contact us. Employer Benefits of El Paso (915) 542-0900 joe@employeebenefitsep.com w.employeebenefitsofelpaso.com
El Paso Disposal
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915-549-4533 or 915-478-2404 Bonded, insured for your peace of mind.
Builders Outlook
15
2016 Issue 2
6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038
■ EXECUTIVE OFFICERS
PRESIDENT
Carlos Villalobos
VICE PRESIDENT
NATIONAL ASSOCIATION OF HOME BUILDERS
(800) 368-5242
Don Rassette
SECRETARY/TREASURER
TEXAS ASSOCIATION OF
Kathy Parry
BUILDERS
(800)252-3625
ASSOCIATES CHAIR John Dorney
ECECUTIVE VICE PRESIDENT Ray Adauto
PAST PRESIDENT Edgar Montiel
Membership Retentiion Patrick Tuttle
Finance Committee Kathy Carrillo
Henry Tinajero
■ ADVISORY TO THE BOARD
Jay Kerr, Firth, Johnston, Bunn & Kerr
James Martinez, Law Office of James Martinez
2015 Builder Member Of The Year Edgar Montiel
Palo Verde Homes 2015 Associate Of The Year Interceramic Tile
Mark Dyer
Wayne Grinnell
Don Henderson
Chester Lovelady Cliff C. Anthes Anna Gill
Brad Roe
Walter Lujan, Dawco Home Builders
Samira Gonzalez, ICON Custom Homes Sal Masoud, DRE Development
Joe Bernal, Employer Benefits Of El Paso Linda Troncoso, TRE & Associates
Bret Thompson, Foxworth Galbraith Lumber Ted Escobedo, Snappy Publishing, LLC Patrick Tuttle, Legacy Real Estate Sam Trimble, Lone Star Title
Luis Rosas, HUB International Gilbert Pedregon, GECU
Gregg Davis, First Light FCU ■ TAB STATE DIRECTORS
Randy Bowling Greg Bowling
Sam Shallenberger ■ NATIONAL DIRECTORS
Bobby Bowling IV.
Demetrio Jimenez
Now more than ever, El Paso home buyers are planning for the future.
E H Baeza
Bud Foster, Southwest Land Development Services
Jason Cullers, Cullers Homes
Give your customers the ‘option of the sun’
Rudy Guel
Robert Najera, Joseph Custom Homes
Mark Winton, Mark Winton Homes, Inc.
915-208-9313 602-708-7560
Honorary Life Members
Leti Navarrete, Dream Homes/Bella Homes
Edgar Garcia, Bella Vista Cutom Homes
Total Customer Satisfaction
Bradley Roe
Antonio Cervantes, BIC Homes
Leslie Driggers-Hoard, Homes By Design
Residential Specialists Tract Homes • Custom Homes
2015 John Shatzman Award
■ BOARD OF DIRECTORS
Fernando Torres, CTU Metro Homes
For All Your Electrical Needs
Past Presidents
Committed to Serve
Greg Bowling
Kelly Sorenson Mark Dyer
Mike Santamaria
Bobby Bowling, IV Rudy Guel Anna Gil
Bradley Roe
John Cullers
Bob Bowling, III
Doug Schwartz
Hershel Stringfield
Randy Bowling Robert Baeza
Edmundo Dena Pat Woods
EPAB Mission Statement: The El Paso Association of Builders is a federated professional organization representing the home building industry, committed to enhancing the quality of life in our community by providing affordable homes of excellence and value. The El Paso Association of Builders is a 501C(6) trade organization. © 2015 Builder’s Outlook is published and distributed for the El Paso Association of Builders by Ted Escobedo, Snappy Publishing, LLC ted@snappypublishing.com El Paso • Texas • 915-820-2800
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