Builders Outlook 2018 Issue 10

www.elpasobuilders.com

Retirement Market 2019

National, State & Local Building Industry News 2018: Issue 10

Four Texas cities make list of best places to retire, El Paso just misses top ten desirability. The list also contains four places in Texas and three Pennsylvania communities that provide a high quality of life at an affordable price. Here’s a look at the Best Places to Retire in 2019:

According to a recent list published

by US News & World Report, four Texas cities rank in the top 25 locations to retire. Austin, Dallas and San Antonio rank within the top ten while El Paso narrowly misses the top ten at number eleven.

Excerpts from the article:

Best Places to Retire in 2019

These retirement spots provide the amenities seniors want at a reasonable cost.

Find your retirement spot.

Retirees have an opportunity to relocate to a place that better suits their interests and budget. The challenge is finding a place that will meet all of your

retirement needs. A new U.S. News analysis compared the 100 largest metropolitan areas in the United States as potential retirement spots. The study included data about housing affordability, happiness, desirability, retiree taxes, the job market and access to quality health care. The data was weighted based on a U.S. News online survey of people age 45 and older about their retirement preferences. Over half of the list contains cities from just three states: Florida, Texas and Pennsylvania. There are seven cities in Florida that made the 25 Best Places to Retire, largely due to affordable homes, low taxes and high ratings for happiness and

1. Lancaster, Pennsylvania Up from No. 2 in 2018, Lancaster now tops the list of Best Places to Retire due to increases in housing affordability, the overall happiness of its residents and access to health care.

This former capital of Pennsylvania is located between Philadelphia and Harrisburg. A variety of health care services are available at Lancaster General Hospital. The median home price for retirees is just $198,500, according to Census Bureau data. The area has many historic sites, including Wheatland, the home of former President James Buchanan, and the city played a key role in supplying munitions for the Revolutionary War. Surrounded by Amish farmland, old warehouses and buildings are being transformed into hip restaurants and bars, and you can catch a show at the ornate Fulton Theatre.

2. Fort Myers, Florida Fort Myers jumped in the 2019 ranking due to increases in desirability and happiness among residents.

There’s no state income tax in Florida, which can benefit retirees with taxable income sources. Located along Florida’s Gulf Coast and the Caloosahatchee River, Fort Myers is an ideal place for those looking to spend their retirement years fishing, boating or relaxing at the beach. Fort Myers has hot summers, but mild winters. Thomas Edison and Henry Ford both escaped from the cold at winter estates in the area. The median home price of

$233,100 makes it affordable for retirees to spend their winters or the entire year in the Fort Myers metro area.

3. Sarasota, Florida Sarasota fell from the No. 1 spot to No. 3, due to a slight decrease in overall happiness and desirability, according to surveys from U.S. News and Gallup-Healthways. In September 2017, the powerful winds of Hurricane Irma downed trees and upended vegetation, and the area has spent millions on the cleanup effort.

Nonetheless, housing remains affordable, with a median home price of $239,100 among people age 60 and older. Sarasota Memorial Health Care System and Doctors Hospital of Sarasota provide health care and jobs for the community. A bonus: There’s no state income tax in Florida.

4. Austin, Texas This state capital city is famous for its live music and carefully cultivated quirky culture. The area has a diverse economy, and is a hub for tech jobs, with major employers including Apple, Dell, IBM and Samsung. Seton Medical Center Austin and St. David's Medical Center are major health care providers for the area. Austin is also a college town that is welcoming to retirees who are interested in going back to school or exploring some of the amenities of the campus. Seniors age 65 and older can take up to six credit hours tuitionfree at the University of Texas—Austin.

Housing can be expensive and costs retirees a median of $283,500, but is considerably more affordable than home prices in coastal cities with similar amenities.

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5. Pittsburgh Sports fans can spend their retirement years rooting for the many professional sports teams in Pittsburgh, including the Penguins, Pirates and Steelers. The UPMC Presbyterian Shadyside hospital is rated 15th in the nation, according to the U.S. News Best Hospitals rankings. The area also has several colleges, including Carnegie Mellon University and the University of Pittsburgh, where retirees can take classes or enjoy sporting events.

Residents age 65 and older are eligible for free public transportation on the bus and rail systems, which makes it easier to get around if you are no longer able to drive.

Pittsburgh’s many amenities might draw you into the city, but it’s the low housing prices that make it easy to stay. The median home price among people age 60 and older is just $142,800.

6. Grand Rapids, Michigan Grand Rapids is a haven for artists. The entire city becomes an art gallery each fall, with works displayed throughout downtown, and the public and art experts vote to allocate over $500,000 in ArtPrize awards. Retirees with an interest in art might be able to take on a volunteer role at a museum, such as the Grand Rapids Art Museum or the Frederik Meijer Gardens and Sculpture Park. There are several options for health care, including the Mercy Health St. Mary's Campus and the Spectrum Health-Butterworth and Blodgett Campuses. Best of all, you don’t need a fortune to join the art community in Grand Rapids. The median home price among people age 60 and older is just $171,100.

Builders Outlook

7. Nashville, Tennessee Nashville is best known for its association with country music. Visitors often attend live performances at the Grand Ole Opry and visit the Country Music Hall of Fame and Museum.

Tennessee’s state capital city has many colleges and universities, including Tennessee State University and Vanderbilt University. Vanderbilt University Medical Center is ranked No. 17 on the U.S. News Best Hospitals Honor Roll. The city also supports several professional sports teams, including the Titans and Predators.

Housing in this musical city costs retirees age 60 and older a median of $234,000.

The state of Tennessee doesn’t tax earned income, but will tax your dividends and interest.

8. San Antonio The scenic vineyards and beautiful green hills dotted with wildflowers of the Texas Hill Country make for a peaceful retirement spot. If you settle in San Antonio, you get the benefits of the sprawling countryside as wells as the amenities of the city. Health care is provided by University Hospital, Methodist Hospital and the Baptist Medical Center.

Retirees may be able to find a volunteer role at the San Antonio Missions, including the Alamo, a World Heritage Site. Housing is affordable, costing retirees age 60 and older a median of $161,800. There’s also no state income tax in Texas.

9. Dallas-Fort Worth, Texas Dallas has a surprisingly affordable cost of living for a large metro area. The median home price among people age 60 and older is $200,500, and the median rent among retirees is $993 per month. The state of Texas doesn’t have an income tax,

but property tax should be factored into housing decisions. Health care options include the UT Southwestern Medical Center and Baylor University Medical Center. Sports fans will love the many professional sports teams including the Cowboys, Mavericks, Rangers and Stars.

10. Lakeland, Florida Waterfront property is a big draw to this inland Florida area with 38 named lakes.

The water views are affordable in Lakeland, where the median home price for people age 60 and older is just $146,500. Lakeland is the home of Florida Polytechnic University, an institution focused on STEM, which has an all-digital library and supercomputer. Retirees should be prepared for hot and humid summers, but winters are typically pleasant and mild.

2018 Issue 10

Located between Tampa and Orlando, both cities are within an hour’s drive from Lakeland.

11. El Paso, Texas El Paso is located in the westernmost part of Texas and borders Mexico and New Mexico. The Rio Grande separates the area from the Mexican city of Ciudad Juarez. El Paso scored particularly well on the happiness metric, with many residents saying they like what they do each day and feel motivated to achieve their goals, according to a Gallup-Healthways survey.

Low housing costs add to the appeal for retirees. The median home price is just $107,600.

View the complete list at:

https://money.usnews.com/money/retirement/ slideshows/the-best-places-to-retire?onepage

2018 Issue 10

Builders Outlook

President’s Message Edmundo Dena

President el Paso association of Builders

it seems like we’ve gotten into and out of october quickly. Time is flying and with it you would think we’d slow down, but frankly all of us are busy.

That’s good for us and the market as we continue to see people willing and wanting to buy a new house. i’ve been involved in the Festival of Homes this year and the turn out has been solid. again, this shows that the market is willing if things are going right. For now, we’ll take all we can get because those of us who’ve been in the business for any length of time understand that there will be a down cycle that can happen anytime. So, get it while the getting is good. i want to thank all who supported the golf tournament with your purchase of tee box signage or putting a team in there. our partners in this deserve a lot of

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PRINT & INTERNET PUBLISHING

Fall in the air, still busy time for all

thanks for stepping up. Haskins electric continues its tradition of Presenting Partner while HUnT and Morrison find ways to feed the throng. legacy Real estate sponsored the drinks. and a note on that for a fun fact. as the tournament was starting the drink cart was making its way up the driveway and because of weight it must go at a good clip. Somebody stepped in front of it just as it got to the top and the driver had to step on the brakes. only problem was the brakes couldn’t hold all the weight at the angle of the slope so with a slight bang the cart hit the wall and couldn’t move. it took a little bit before the tractor came out to pull it up and out. We’d already started play but that’s ok because we had a story to tell about it. everything worked out, no one was hurt, and

everybody got a beer sooner of later.

By the way thanks to Ray and Margaret for getting this done again, and to luis Rosas and Patrick Tuttle for heading up the event.

We have the installation and recognition awards event coming up december 7. Ray is sending you information and you can start reserving your seats now. Join us in installing Sergio cuartas as your next President. He’s been working hard to get the year off to a great start. Support the end of year installation. We’ll name the outstanding builder member of the year, associate of the year, special recognition awards and maybe a surprise or two. Mark your calendar for Friday, december 7. 6-9:30 at the Marriott airport. See you there.

Social Media & WeBSiTe conTenT ManageMenT e-Mail neWSleTTeRS coMMUnicaTion STRaTegY ediToRial SeRViceS

Get Creative. Make it Snappy.

915•820•2800 www.snappypublishing.com

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Executive’s Message Ray Adauto, Executive Vice President EPAB

Builders Outlook

2018 Issue 10

Fall in El Paso: Great weather, great time for golf Of all the times that I really like around El Paso is this time, October and November. Seems like the days are so nice, not too hot, not too cold. This year we got some much-needed rain from a hurricane in the Baja. That storm hit El Paso two days before the Fall Golf tournament.

The weather on golf day was spectacular, a real Chamber of Commerce day.

My thanks go to all our members who bought partnerships. Presenting Partner Haskins Electric; Lunch partner HUNT; breakfast partner Morrison Supply; beverages by Legacy Real Estate; the Hole in One giveaway by Franklin Building Materials; long drives BIC Homes and GECU; closest to the pin by Hanson Asset Management. All

18 tee boxes were supported as well. Thanks golfers and volunteers. I know we had a good time.

Elections are heating up and the rhetoric is way too high. Our concern is to make sure candidates are running and elected that support new home construction in El Paso. I recently sent out a request for contributions to Build PAC. This is the political arm that makes us known to the politicians and others for what we stand for.

Build PAC needs each member to contribute so that we can support those that support you.

You don’t have to be a builder to contribute, anyone can, and we encourage you to do so generously. Build PAC is the entity to put your contributions to

locally. We also encourage donating to HomePAC at the TAB level. These midterm elections are more heated than ever, yet we need to focus on who’s helping and who’s hurting your industry. Be informed, give to Build PAC, and vote. Vote for candidates that help the industry.

YES, it’s that important.

Finally, we are finalizing three important end of year projects.

The nomination and election of the 2019 Board of Directors. The Installation Banquet and Awards night; and of course, the Real Texas Builder Awards. RTB. Stay tuned to emails and messages in November for all these things and much more.

National Builder News

2018 Issue 10

New Home Sales Fall 5.5 Percent, Affordability Issues Continue

n Sales of newly built, singlefamily homes fell to a seasonally adjusted annual rate of 553,000 units after downwardly revised August, July and June reports, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the lowest sales pace since December 2016. However, on a year-to-date basis, sales are up 3.5 percent from this time in 2017.

“New home sales activity has slowed this summer as housing affordability remains a serious issue,” said Randy Noel, chairman of the National Association of Home Builders (NAHB) and a custom home builder from LaPlace, La. “However, sales are up from this time last year and builders continue to report consumer interest in housing.”

“Home price gains and rising interest rates are slowing down the housing market, particularly in highcost areas and among entry-level buyers who are sensitive to price increases,” said NAHB Chief Economist Robert Dietz. “Builders need to provide homes at different price points to address these affordability concerns. Meanwhile, overall job and economic growth should help support the housing market in the months ahead as it adjusts to higher mortgage interest rates.”

A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the September reading of 553,000 units is the number of homes that would sell if this pace continued for the next 12 months.

The inventory of new homes for sale was 327,000 in September.

The median sales price was $320,000. Meanwhile, the median home price in September 2017 was $331,500, as the market has shifted to lower-cost homes.

Regionally, new home sales rose 6.9 percent in the Midwest. Sales fell 1.5 percent in the South, 12 percent in the West and 40.6 percent in the Northeast. On a year-to-date basis, home sales are higher in all regions expect the Northeast, which has registered a 16.5 percent decrease in sales volume.

Builders Outlook

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Mortgage & Banking

themortgagereports.com

Mortgage rates are rising — as if trying to reach 5% predictions cast at the beginning of 2018.

As we head toward 2019, the fivepercent mortgage is imminent and is indeed already a reality for many applicants.

It’s a big psychological barrier, but perhaps not a financial one.

The difference between 4.875% and 5% is less than $20 per month on the average mortgage size.

Plus, as rates rise, home prices often fall. Buyers may not need to make skyhigh offers to get a home.

There’s good news for refinance shoppers, too. Lenders are so desperate for business that they are ready to give you the lowest rate possible.

Think today’s market is all doom and gloom because of higher rates? Think again

November 2018 mortgage rates forecast Builders Outlook

It’s a “workers market,” and that’s good for people in general, because — just taking a wild guess here — most of us would rather have income than an ultra-low mortgage rate.

But it’s not so good for those looking to buy or refinance.

This worker shortage will eventually lead to inflation as companies pay more to hire and retain workers. These firms then pass on those costs via higher priced products.

Higher prices for goods and services is the very definition of inflation.

Related: How inflation changes mortgage rates [Chart] Inflation is bad for mortgage rates.

The simple equation emerges: Hot economy = inflation = higher mortgage rates

So what’s a home mortgage shopper to do? Simply lock in as soon as you can. We won’t be getting off this economic tour de force for a while.

The Fed meets again in November The most recent meeting of the Federal Open Market Committee (aka “The Fed”) ended September 26. As everyone expected, the group hiked its benchmark federal funds rate.

While the action didn’t directly affect mortgage rates, it did lend to an overall environment of rising rates, which certainly doesn’t help the mortgage rate shopper.

The Fed meets again November 7-8.

No one expects a rate move at this meeting.

However, the group will look closely at results from the November 2

2018 Issue10

Employment Situation report. It will look at the total “non-farm payrolls” number — the increase or decrease in the number of non-agricultural jobs in the last month.

The group will also consider the yearover-year change in hourly earnings. If wages are rising, likely so is inflation. To curb inflation, the Fed raises rates.

But even if the Employment Situation report is lackluster, expect another rate hike in December, at the group’s final meeting of the year. Twelve of the 16 Fed meeting participants predict one more hike in 2018. That would make a total of four rate increases in 2018.

Predictions for November and beyond There is no shortage of marketmoving news in November.

Developments now will impact your ability to buy or refinance this month and in the remainder of the year.

Rate forecasts at the beginning of the year have pretty much come true. Most major housing and financial authorities predicted rates somewhere between 4.7% and 5.0% for 2018.

According to Freddie Mac, the average 30-year fixed rate for an ideal candidate jumped to 4.90% before settling back at 4.86% at the end of October. That’s even higher than the rough 4.75% you get when you average predictions from seven agencies like Realtor.com and the National Association of Home Builders.

The good news is that we are not very likely to see any more huge jumps for the remainder of the year if forecasts are accurate.

But, we are very likely to see a gradual increase going into January 2019, starting the year in the high 4s or even low 5s.

Been looking for a good rate on a refinance or home purchase? Now might be the time to lock.

The economy appears unstoppable, and that’s bad for rates A hot economy is an enemy to low rates, and there’s little doubt we’re in a hot economy.

The unemployment rate is at 3.7% — the lowest in about 50 years. There is now less than one unemployed worker for every available job. In other words, there are more jobs than workers to fill them.

Compare that with 2009, when there were more than 6 unemployed workers for every available job.

www.nahb.or

2018 Issue 10

Economic Forescast

Elliot Eisenberg Economic & Policy Blog

Over the past few decades, the term “gentrification,” i.e. high-income persons and households moving into poor minority neighborhoods, who, in doing so, push out significantly poorer lifelong residents, has become one of the most negatively loaded words in urban circles. Almost everyone has heard about a formerly inexpensive community that over a decade became very pricy and celebrated its recovery with the arrival of a Whole Foods selling overpriced kombucha and GMO-free produce.

As appealing and as plausible as this story may be, it’s an urban myth.

The best empirical analyses conducted by urban economists have failed to detect a rise in displacements within gentrifying neighborhoods. This finding goes so much against conventional wisdom it seems impossible, but it’s true. As a matter of fact, researchers find that poor residents are more likely to stay put as their neighborhood improves.

Moreover, the benefits of gentrification, in terms of reduced crime and better amenities, more employment opportunities, and

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Builders Outlook

Gentrification is Good

reduced commutes are rarely, if ever, considered by naysayers.

There are three primary reasons why many believe that the poor suffer when wealthier residents move in. The first is that while all Americans move quite a bit, on average about 11.5 times during their lifetime, not everyone moves an equal amount. For example, from 2012 to 2013, 28 million Americans over age 15 moved: 11% of the population. Among households with incomes over $100,000, the percentage that moved was just 7%, compared to 13% for those with incomes below $5,000 excluding government benefits. As a result, merely observing that there are

fewer poor in a neighborhood in no way suggests that gentrification is to blame.

A second explanation is that poor neighborhoods have had so little investment for so long, there is considerable slack in both their residential and commercial property markets. In most middle- and upperclass neighborhoods, virtually all housing units, store fronts and office spaces are occupied. So, the arrival of a new household or business means the departure of another. But in poorer neighborhoods there are many vacant storefronts and apartments, so much so that relatively large numbers of wealthier households can move in and not push out existing residents or businesses. One study calculated that a low-income New York City neighborhood could go from a population that is 30% poor to 12% poor over a decade without displacing anyone.

Another reason the poor are not as adversely impacted as one would expect is that local governments often promote affordable housing programs such as rent control, inclusionary

zoning, or other rent stabilization programs in neighborhoods that experience rapidly rising rents.

Moreover, in neighborhoods experiencing rapid price appreciation, some market rate units are also built.

Because of this increase in supply, rents rise less quickly.

Separately, but closely related to the above, many persons who bemoan gentrification simultaneously lament racial segregation and the lack of investment in non-white neighborhoods. The introduction of wealthier residents lessens the percentage of poor persons, and that has been shown to reduce teen pregnancy and incarceration rates and other such negative outcomes.

Moreover, in these communities these improved social outcomes happen through market forces and frequently absent governmental intervention. To argue against gentrification is to encourage the status quo and insist that poor neighborhoods remain poor and segregated, and needlessly cut off from opportunity.

Your retirement gets closer every single day.

Will you be ready?

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CFPA, C(k)P® Certified 401(k) Professional

512-796-1205

Email: rrivera@bukaty.com

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BUILDERS OUTLOOK • EPAB ON THE SCENE

Fall Golf has great turnout, great weather

Butterfield Trail Golf Course. The turnout was great with 20 teams taking on the challenge. Winning team after a scorecard playoff was the WestStar Team.

The weather was beautiful, one of the most perfect golfing days in the history of the tournaments. That allowed our players a great round of golf. Course pro Tim Krebs and his staff did a really nice job hosting the association members. “We enjoy having you guys come out and look forward to hosting again,� he told the Outlook.

President Edmundo Dena, playing on the Sherwin Williams team had nothing but praise for the event. “I think we have some really good days normally but today was just picture perfect,� he said. “I want to thank all the partners, especially Haskins Electric, Morrison Supply and HUNT for the food, Legacy Real Estate for the beverages,� he continued. “Please tell Margaret and her volunteers’ thanks as well,� Dena said.

Like every event that needs help the volunteers were ready for whatever was needed. First time volunteer Susan Flores with Keller Williams (a new member) was happy

2018 Issue 10

to be a part of the golf. “I enjoyed being asked to help and am glad I could, great time!� she said. Josie Ledesma (Massey Johnson) and Sandra Lucero (Builders Source Appliance Gallery) also talked about volunteering. “We have had times when it was just Margaret and me, but this time we had a really good turnout to help with the goodie bags.

It was awesome. “Sandra said. “We are glad to be a part of this tournament, had a blast,� Josie said.

Massey Johnson donated the grand prize golf bag among other cool items.

Luis Rosas, co-chairman of the event was on hand to greet the players and thank the volunteers. “We are so grateful to the members for coming out, buying partnerships, buying tee box advertising and providing us with goodies,� Rosas said. “Couldn’t be as successful without them, but thanks also to Ray and Margaret for putting it together,� he concluded.

Preparations are under way for the Spring Golf Tournament scheduled for April 2019. The committee will evaluate the location and confirm the date. Stay tuned for information on how you can participate.

s e m o h new . . . o s a p l e r o f e r e h d n u o f y easil February 2017 •

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#Real Texas builders

Builders Outlook

2018 Issue 10

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The El Paso Association of Builders encourages you to work with our members.

Builder members as of September 1, 2018 Bain Construction Scott Bain Althon Investments, LLC Jose Luis Martin Bella Vista Custom Homes, Inc. Edgar Garcia BIC Homes Antonio Cervantes Blue Sage Homes, LLC Jaime Gonzalez Blue Star Construction Carlos Villasana Bowling Construction Randy Bowling Carefree Homes Richard Aguilar Casas De Leon, LLC Nick Bombach Cisco Homes LLC Francisco Arroyos III Classic American Homes Priscilla Hernandez Crown Heritage Homes Lydia Mlouhi Cullers & Caldwell Builders John Cullers Cullers Homes Jason R. Cullers D B Innovations LLC Dan Berry Dawco Home Builders Walter O. Lujan Deal 2 Deal Custom Homes Delton Deal Del Rio Engineering, Inc. Sal Masoud Diamond Homes, LLC Valerie Baquera Donald Ward Builder, Inc. Donald Ward E. Valencia Land Development LLC Eddie Valencia Eclat Homes & Designs Veronica Guerra Edward's Homes, Inc. Eduardo Fernandez EPT Bella Custom Dream Homes Leti & Javier Navarette EPT Land Communities David Bogas Everest Homes Edmundo Dena, Jr. Fortune Custom Homes Javier Andrade Gaddy Construction Charles Gaddy GMF Custom Homes, LP Frank Torres Guel Construction Rudy Guel Hakes Brothers, LLC Chris Hakes Hanson Asset Management, LP Russell Hanson Homes by Design Leslie Driggers Hoard Hunt Communities, LLC Kathy Parry ICON Custom Builder, LLC. Carlos Garcia Industrial Realty Group Incorporated Brent D. Harris JER Custom Homes, LLC Jorge E. Rodriguez Kayton Lee Residential, Inc. Brianna Barnes Lloyd Hamilton Contruction Lloyd Hamilton, III LMJ Construction Co., LLC Mike Lopez Loyalty Homes Gustavo Loy M A Builders & Design, LLC Mustafa Ali Maravilla Homes Victor Robles Medlock Commercial Contractors LLC Steve Medlock Metro Homes, Inc. Judith Arrunada, Fernando Torres

Millennium Homes Dan Ruth Pacifica Homes, Inc. Juan Jose Vasquez Padilla Homes Misael Navarrete Palo Verde Homes Edgar Montiel Pointe Homes Carlos Villalobos Porter Homes Albert Porter R.C. Baeza & Associates Robert C. Baeza R.E. Welch Contractor Gordon Welch Rassette Homes, Inc. Donald Rassette Rosewood Design and Build Brianna Barnes Santana Custom Homes Fernando Santana Southwest Land Development Serv.

Doug Schwartz Spanish Oaks Custom Homes Juan R. Saenz The Heritage Group David Bingham Trejo Construction Co. Juan Trejo Tropicana Building Corp.

Bobby Bowling IV Tropicana Development Greg Bowling Tropicana Homes Randy Bowling Tropicana Properties Demetrio Jimenez Vallance Construction LLC Oswaldo Prieto Villagi Homes, LLC Kristi Eddings Vista del Sol Archetectural Design Luis J. Lopez Will Harvey Development Will S. Harvey Winton/Flair/Accent Homes Herschel Stringfield Associate members as of September 1, 2018

150 Sunset Danny Heredia 2-10 Home Buyers Warranty James Hebert 4 Tech A/C Service Enrique Hernandez 84 Lumber Ernie Chavez 915 Siteworks, LLC Hugo Jasso A C Refrigeration, LLC Angel Cabrera A Plus Remodeling & Repairs Martin Arroyos ABC Supply Co., Inc. Larry Eck Acme Brick Company Steve Bush Adams Moulding & Lumber Tom Swahlen Agustin Favela Concrete Agustin Favela Alden R & R Services, LLC Alejandro Dena Allbrite Electrical Carlos Nunez Alvarado Plastering & Stucco, LLC Jose Enrique Alvarado Amelia's Janitorial Services Amelia Gomez Area Iron & Steel Works, Inc. Fred L. Edmonston Jr. Atrium Homes Ricardo Bocardo Jr. Bank of Texas Ray Owen Baron Supply David Trammell Barragan & Associates Benito Barragan

Barraza Drywall Corp.

Ignacio Barraza Barrett Airworks Alexandro Castro Bassett Woodworks Danny Murillo Beasley, Mitchell & Co., LLP Brad Beasley Bella Vista Realty Grisel Ortega Belmont's Air Conditioning, Inc. Rafael Belmonte Big A Construction Thelma Vasquez BMC Select David Quintana Boise Cascade Mike Flores Border Construction Specialties Ricardo Yvellez Border Solar Javier Ruiz Bordertown Carpets Brian M. Abraham Builders Source Appliance Gallery Sandra Lucero Bukaty Financial Companies Group Ruth Rivera C. D. Lee/Britton Insurance & Bonding Anthony Landavazo/Lisa Daniels Cabinet Masters Mike Robles Carpet Warehouse Erez Belkin Casa Ford & Casa Nissan Luke Lowenfield Castillo Electric Jose Del Val CEA Engineering Group Jorge L. Azcarate Central Texas Metal Roofing Supply Co.,Inc. Ben Garza, III Centricity Brent R. Morgan Century 21 The Edge Scott Kesner Citizens Loan Center Jim Easley City Bank Texas Bob Kotarski City Lights Thomas Brown CMF Carlos Munoz Cognent, Inc. Martin Paredes Commercial Insurance Brokers, Inc. Ken Foster Conde, Inc. Conrad Conde Copenhagen Imports Flemming Carlsen CQC Testing and Engineering,LLC Jaime Rojas David Hernandez Cabinets David Hernandez David J. Ellis Fee Office for Sierra Title David J. Ellis De La Torre Iron Works Alfredo de la Torre Delek US dba 7 Eleven Sonja Scanlan Demcon Disposal Management, LLC Maria Elena (Nena) Gomez Desert Quest Plumbing Hector Gonzalez Designer's Mart Valerie Edmiston Diaz Services, Inc. Emmanuel Diaz Dominguez Insurance Agency Victoria Dominguez Doors and More Miguel Moran Dorney Security John Dorney Dunn-Edwards Paints Nathan Gordon DWS Building Supply Sabrina Voorhies E.F. Building Materials, Inc Efren Fraire

Eagle Custom Cabinets Juan Benabidez Eagle Roofing Products Scott Aguilar Edgar's Flooring Edgar Enriquez EDLR Platering Eduardo De La Rosa Edmund Esper Edmund Esper El Paso Audio Video by Design Joe Gutierrez El Paso Building Materials Ken Wade El Paso Disposal Irma Parsons El Paso Mortgage Bankers Association Gilbert Pedregon El Paso Times Sal Hernandez, Justin Riley El Paso Truss Luis Mendiola El Paso Winnelson Rene Goldfien Electrolux NA Adger Colley Elizardo Garcia Electric Elizardo Garcia ERA Sellers & Buyers Karla Reyes ESS Environmental and Safety Solutions Jose L. Garcia Ramirez EZE-R-DESIGNS Leticia Mata Farmers Ins.-Mercedes Ruiz Mercedes Ruiz Felipe Rocha Construction Felipe Rocha Ferguson Enterprises Inc. Albert Holguin Fire Smoke N' Grill Bill Owen First American Bank Louis Sauceda First Light Federal Credit Union Lorenzo Revelez First National 1870 Haley Merritt Firth, Johnston, Bunn & Kerr Jay Kerr Forge Factory Strength & Conditioning Edmundo Portillo Foxworth Galbraith Lumber Dan Villarreal Franklin Building Materials Ricardo Aguilar or Cristina Sheldon G & G Enterprises Gen. Contractor Juan F. Garcia G2 Ram Electric Luis Cano GCC Sun City Materials,LLC Antonio "Tony" Chavez GE Appliances Christine R. Villanueva GECU- Greater El Paso Credit Union Danny Galindo GEPAR-Greater El Paso Assoc. of Realtors Jason Sanchez Go Pro Refrigeration Humberto Diaz Goodman Mfg. Jorge Guajardo Great American Insurance Group Julie Tomlinson Greater El Paso Chamber of Commerce David Michael Jerome H P Roofing & Construction Heriberto Prieto Harris Real Estate Group Lane Harris Haskins Electric Charles B. Haskins, Jr. Hector De.La Canal Real Estate Group Hector De. La Canal Hector Phillips fee Office for Sierra Title Hector Phillips Hercules Industries John Chaney Hernandez Roofing Concepcion Hernandez Home of Texas Amanda Eason

2018 Issue 10

Home Pros Real Estate Group Penny Moore Homes of El Paso Riley Stephens HUB International Luis Rosas Imperial Construction Alexandro Garcia Inter National Bank Natalie Ojeda Interceramic Tile & Stone Gallery David Holguin J & H Concrete & Post Tension Jorge Herrera J. B. Laminates Gina Rodriguez J. C. Balcorta Painting Cruz Balcorta J. F. Plastering Juan Florez Jack White Building Specialties Claudia Lardizabal James L. Ellis, CPA, PC Jim Ellis JFM Enterprises, Inc. Jaime Flores Jimmy Garza Emergency Water Removal Jimmy Garza Jobe Materials, LP Charlie Tellez Joe Bernal Insurance & Financial Services, Inc. Joe M. Bernal Jose Moreno Dry Wall Jose Moreno Juan Carlos Perez Grading Juan Carlos Perez Keenan Supply Nancy Rivas Keller Williams Mo Goodarzi Keller Williams Susan Flores L & P Building Supply Denise McConnell LCR Resource, Inc. Ralph Sanchez Legacy Real Estate Services/TTi Prop. Man. Patrick Tuttle Leon Real Estate Jorge Leon LOI Engineers Bernardino Olague Lone Star Title Co. of El Paso Sam Trimble Love Engineering, Inc. Montez Love Lowes Home Improvement Johnny Rodriguez Loyas Shutters Alfredo Loya MagicStone Marco Gomez Majestic Realtors Patti Musshorn

Builders Outlook

MAK Roofing & Construction Felix Vizarreta Marlo Building Services Roberto Martinez Masco Contract Serv dba Gale Insul William Homan Massey Johnson Josie Ledesma McCoy's Building Supplies Doug Danner Merrill Lynch Thomas Gabriel Miguel Sanchez Cano Miguel Sanchez Cano Minerva Al-Tabbaa Realtor Minerva Al-Tabbaa Mini Concrete Materials Joe Soto Moen Frank Graf Monster Link Marketing Raul Mendoza Moreno Cardenas, Inc. Roberto Moreno Morrison Supply Sam Shallenberger MTI Ready Mix, Inc. Tony Mullen New American Funding Tania Guzman New Era Foam George Tollen New Start Insulation Jose Carreon Oropeza Concrete Angel Oropeza Parra's A/C and Heating Service Aureliano Parra Pate & Appleby, LLP Richard De Santos Patriot Mortgage Randy Bowling Pella Windows Jason Bates Performance Glass & Aluminum Hector Hernandez Perl Mortgage Stephen Sepulveda, Gilbret Pedregon Polar Mechanical LLC Francisco Amezquita Post Tension Steel Dennis Moore Powerfoam Insulation Arnie Pedersen Prewire of El Paso, Inc. Steven Drury Pride industries dba Pride Ascend Dr. Lonny Wright Q Martins Plumbing Jose Martinez Quality Granite Hector Porras Ramon Romero Painting Ramon Romero

Randall Smith, CPA Randall Smith Rebath of El Paso/Las Cruces Lisa Walling Remcon Self Storage Will Harvey Rey Construction Manuel Reyes RGR Roofing, LLC Marco Rodriguez Richman Group Affordable Housing Corp.

Kevin Hoffman Rito Magallanes Rito Magallanes Rocky Mountain Mortgage Company Dean Inniss Roe, Brad Bradley Roe Rudolph Chevrolet Mike Ruffin S & J Drywall, LLC Yair Jalil & Sergio Jalil Saldivar Electric, Inc. Martin A. Saldivar Sarabias Blue Sanitation Monica Brown SBNG, P.C. Tyler Smith Segura Framing Erika Segura Senercon Javier Ruiz Senpai Training and Development Leonardo Corral Sergio Herrera Framing Sergio Herrera Serrano's Construction Juan Serrano Service Master Commercial Heidi Avedician Sherwin Williams Paint Cruz Lopez Sierra Title Company /Lawyers Title Angelique Roman, Marielsa Pulido Simpson Strong-Tie Company, Inc. Ken Donham Snappy Publishing Ted Escobedo Soil Mechanics Lorenza Escareno Solar Smart Living Larry Perea Southwest Décor El Paso Corporation Chris Matthews Southwestern Prewire Joe Trejo Spectrum Technologies Miled Daou St. Mary's Custom Shutters Dolores Lopez Startech Heating and Air Conditioning Luis Procter Stewart Title of El Paso Cindy Bilbe

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Stone City Rocks Chris Baca StrucSure Home Warranty Scott Whisenant Su Casa Magazine Bob Skolnick Supreme Lending Lisa Wren Sun City International Doors Jorge Carmona Sun City Spray Foam Fred Reynolds Sun City Winnelson Dean Moore Sun West Windows and Glass Ernie Hernandez Texas Gas Services Mica Short Texas Title Company Steve Raney TFCU Yolie Melendez-Estrada The Dorian Group/Ocean Gallery USA Miguel Angel Mercado The Home Systems Heating & Cooling, Inc. Jesus Chain The Iron Snail Inc. David Zuniga Trane Residential Solutions Robert Meske/ Kathleen Chacon TRE & Associates Linda Troncoso Trim Team Juan & Kris Hernandez USA General Contractors Javier Olmos Value Stone Isabel Chacon Vision Consultants, Inc. Kelly Sorenson VMP Painting Victor Prieto W.W. Sales Eric Hoppes Western Heritage Bank Kathy Carrillo WestStar Home Loans Cinco Houghton WestStar Bank David Osborn WestStar Title Rachel Valles Whirlpool Gwen Walker Wolf Air Arturo Alcantar X Construction Emmanuel Chavarria

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12

Builders Outlook

2018 Issue 10

Save the Date!

EPAB Installation and special recognition set for December 7 It’s that time of year when we begin our transition from one administration to another. The EPAB will host the Installation of the new board and executive on December 7 at the Marriott Hotel on Airway at Montana. The event will also allow the association to thank outstanding members with special recognition including the Builder Member of the Year, Associate Member of the Year, the life award ChaneyShallenberger Award, special recognition to others and a surprise or two.

Reservations for the event are being taken at the office and normally this sells out fast. Seats are on sale for $65 person or reserved table of 10 for $600.

A delicious meal is included as well as a Happy Hour sponsored by MTI Ready Mix from six to 7 pm.

“I want to invite all of you to come to the installation and enjoy a great time with all of your friends,” said Sergio Cuartas, incoming President. “I know that a good time will be had by all”, he concluded.

Traditionally the EPAB asks that you

bring an unwrapped toy for a child.

Those toys go out into the community through the Junior Women’s Club who have the difficult task of choosing who is the benefactor of the toys and clothing.

“We try really hard to make sure that our members donation is put to good use, and with the smiles we’ve seen year after year we know the toys are the hit of the kids Christmas season,” said Angelique Roman, a member of the JWC. “These children have very little, and our selection committee does a great job finding those folks that might otherwise fall through the cracks,” she said. Any gift you bring should be unwrapped, so we can determine boy or girl gift.

The installation will include the new board of directors for 2019. They and the executive team will be installed by Texas Association of Builders Vice President Randy Bowling. “I’m honored to be asked to give the oath of office to my home association members,” Bowling told the Outlook.

To reserve your seats, contact Margaret at 915-778-5387

AND THE WINNER IS...

CELEBRATING THE BEST OF OUR INDUSTRY

Real TexaS builder AWARDS EL PASO ASSOCIATION OF BUILDERS

JANUARY 17, 2019

©

2018 Issue 10

13

Builders Outlook

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Builders Outlook

Market Watch nahb.org

Millennial Homeownership Rate Rises to 37%

According to the Census Bureau’s Housing Vacancy Survey (HVS), the U.S. homeownership rate was 64.4% in the third quarter of 2018, which is not statistically different from its last quarter reading. The national homeownership rate demonstrated stability during a quarter in which housing markets softened due to declining affordability conditions. This follows the rate dropping to a cycle low of 62.9% in the second quarter 2016. Compared to the peak of 69.2% in 2004, however, the homeownership rate is still lower by almost five percentage points.

The count of total households, however, increased to 121 million in the third quarter of 2018 from 119 million a year ago. Newly-gained households are predominantly owner households, while renter households only increased by 60,000.

The homeownership rates among all age groups under 64 increased over the last year. Millennial households, mostly first-time homebuyers, registered the largest gains among all households, a 1.2 percentage point increase from a year ago. Millennials are gradually returning to the for-sale housing market, where gains in home price are slowing down. The homeownership rates of households ages 45-54 and 55-64 experienced a 0.8 percentage point increase.

The nonseasonally adjusted homeowner vacancy rate remained low at 1.6% in the third quarter 2018.

At the same time, the national rental vacancy rate went up to 7.1%, up by 0.3% from the last quarter.

The HVS also provides a timely measure of household formations – the key driver of housing demand.

Although it is not perfectly consistent with other Census Bureau surveys (Current Population Survey’s March ASEC, American Community Survey, and Decennial Census), the HVS remains a useful source of relatively real-time data.

The housing stock-based HVS revealed that the number of households increased to 121.4 million in the third quarter of 2018, 1.6 million higher than a year ago.

The gains are largely due to strong owner household formation. Indeed, the number of homeowner households has been rising since the third quarter 2016, while the number of renter households has been on the downward trend. In the third quarter 2018, the number of homeowners increased by 1.5 million, while the number of renter

2018 Issue 10

Builders Outlook

2018 Issue 10

6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038

â– ExEcuTivE OFFicERS PRESiDENT Edmundo Dena vicE PRESiDENT Sergio Cuartas SEcRETARY Edgar Garcia ASSOCIATES VICE PRESIDENT Sam Shallenberger ExEcuTivE vicE PRESiDENT Ray Adauto PAST PRESiDENT Don Rassette â– cOMMiTTEE cHAiRS Membership Ted Escobedo Patrick Tuttle

El Paso Disposal

772-7495

Luis Rosas, HUB International Brenda Aguirre, Rocky Mountain Mortgage Sandra Lucero, Builders Source Ted Escobedo, Snappy Publishing Jorge Herrera, J&H Post Concrete & Post Tension Angelique Roman, Sierra Title Patrick Tuttle, Legacy Real Estate Sam Trimble, Lone Star Title Patricia Martinez, Stewart Title Randall Smith, Randall Smith, CPA ■TAB STATE DiREcTORS Randy Bowling - Life Director Sam Shallenberger Edmundo Dena

â– NATiONAL DiREcTORS Bobby Bowling, III Demetrio Jimenez Leslie Driggers Hoard -Alternate Antonio Cervantes - Alternate

Finance committee Kathy Carrillo/Treasurer Henry Tinajero

Honorary Life Members Mark Dyer Wayne Grinnell Don Henderson Anna Gill Brad Roe Rudy Guel

Community Outreach Angelique Roman Brenda Aguirre Patricia Martinez

Land Use Council Sal Masoud

Education Kelly Sorenson Delton Deal

■ADviSORY TO THE BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr

■BOARD OF DiREcTORS Builders: Delton Deal, Deal 2 Deal J.J. Vasquez, Pacifica Homes Leti Navarrete, Bella Custom Dream Homes Bud Foster, Southwest Land Development Kathy Parry, HUNT Communities Lee Gillett, Classic American Laura Loy, Loyalty Homes Walter Lujan, Dawco Homes Fernando Torres, Metro Homes Leslie Driggers Hoard, Homes by Design Carlos Garcia, ICON Custom Sal Masoud, Del Rio Development Fernando Santana, Santana Custom Homes Associates: Joe Bernal, Joe Bernal Insurance Henry Tinajero, WestStar Bank Kathy Carillo, Pioneer Bank John Chaney, Hercules Industries

2017 Member Of The Year Don Rassette Rassette Homes

Past Presidents committed to Serve Edmundo Dena Edgar Montiel Frank Torres Frank Arroyos Greg Bowling Randy Bowling Bobby Bowling IV Doug Schwartz John Cullers Robert Baeza Mark Dyer Kelly Sorenson Rudy Guel Brad Roe Herschel Stringfield Bob Bowling III Pat Woods Carlos Villalobos

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. Š 2018 Builder’s Outlook is published and distributed for the El Paso Association of Builders

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