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NAIL The official magazine of Home Builders Association of Middle Tennessee President John Zelenak Vice President Keith Porterfield Secretary/Treasurer Justin Hicks Executive Vice President John Sheley Editor and Designer Jim Argo Staff Connie Nicley Pat Newsome Charlotte Fischer
THE NAIL is published monthly by the Home Builders Association of Middle Tennessee, a non-profit trade association dedicated to promoting the American dream of homeownership to all residents of Middle Tennessee. SUBMISSIONS: THE NAIL welcomes manuscripts and photos related to the Middle Tennessee housing industry for publication. Editor reserves the right to edit due to content and space limitations. POSTMASTER: Please send address changes to: HBAMT, 9007 Overlook Boulevard, Brentwood, TN 37027. Phone: (615) 377-1055.
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FEATURES 9 Top design trends for the upcoming year at IBS
Top design trends offered at 2016 Best in American Living Awards (BALA) ceremony at the IBS.
10 2017 Home Show at the Fairgrounds Nashville
HBAMTâ€™s big event drew big crowds to the Fairgrounds Nashville during a busy three-day weekend last month.
DEPARTMENTS 6 News & Information 14 2017 HBAMT Application 15 SPIKE Club Report 16 February Calendar 16 Chapters and Councils
ON THE COVER: The 2017 Home Show was held last month at the Nashville Fairgrounds. More details on page ten. February, 2017
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Single family housing starts up 12.2 percent in 2016
ales of newly built, single-family homes rose 12.2 percent in 2016 to 563,000 units, the highest annual rate since 2007, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. New home sales fell 10.4 percent in December 2016 to a seasonally adjusted annual rate of 536,000 units. “We are encouraged by the growth in the housing sector last year, and by the fact that builders increased inventory by 10 percent in anticipation of future business,” said Robert
NAHB’s forecast calls for continued upward momentum this year, with housing starts expected to rise 10 percent over the course of 2017. 6 The NAIL
Dietz, chief economist of the National Association of Home Builders (NAHB). “NAHB’s forecast calls for continued upward momentum this year, with housing starts expected to rise 10 percent over the course of 2017.” “To ensure sales continue to move forward in 2017, builders need to price their homes competitively, especially given that mortgage interest rates are expected to rise this year,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas. The inventory of new home sales for sale was 259,000 in December, which is a 5.8-month supply at the current sales pace. The median sales price of new houses sold was $322,500. Regionally, new home sales increased 48.4 percent in the Northeast. Sales fell 1.3 percent in the West, 12.6 percent in the South and 41 percent in the Midwest. n
Housing ends year strong, builder confidence holds steady
surge in multifamily production resulted in overall nationwide housing starts rising 11.3 percent to a seasonally adjusted annual rate of 1.23 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Single-family starts dropped 4 percent to a seasonally adjusted annual rate of 795,000 units. “Despite the slight dip in single-family production, December’s rate is still the fourth highest single-family pace since the Great Recession, and single-family starts also posted solid gains for the year,” said Granger MacDonald, NAHB chairman. “Builders remain confident and we expect further growth in the single-family market in the year ahead.” “This report represents firm growth for housing in 2016, as single-family starts rose 9 percent and multifamily production was down slightly,” said NAHB Chief Economist Robert Dietz. “We expect that 2017 will be another year of gradual, steady improvement in the housing market. Multifamily starts have been volatile in recent months, but should level off as supply meets demand. Meanwhile, single-family production continues to gain momentum but is limited by supply-side headwinds.” Multifamily production jumped 57 percent
to 431,000 units in December. However, the monthly data for apartment production has exhibited strong volatility since August. Regionally in December, combined singleand multifamily housing production rose 31.2 percent in the Midwest, 23.5 percent in the West and 18.5 percent in the Northeast. The South posted a loss of 1.4 percent. Overall permit issuance edged 0.2 percent lower in December to 1.21 million units. Single-family permits rose 4.7 percent to 817,000 units, which was the highest level in 2016. Meanwhile, multifamily permits fell 9 percent to 393,000 units. Regionally, permits rose 3.3 percent in the West, 2.7 percent in the Northeast and 0.5 percent in the Midwest. The South declined 2.9 percent. Builder confidence on firm ground Builder confidence in the market for newly-built single-family homes remained on firm ground in January, down two points to a level of 67 from a downwardly revised December reading of 69 on the NAHB/Wells Fargo Housing Market Index (HMI). “Builders begin the year optimistic that a new Congress and administration will help create a better business climate for small businesses, particularly as it relates to streamlining and reforming the regulatory process,” said MacDonald.
2016 existing home sales best since 2006
xisting home sales, as reported by the National Association of Realtors (NAR), decreased 2.8% in December, but ended 2016 as the best year for existing sales since 2006. December sales were up a slight 0.7% from the same month a year ago. Total 2016 existing home sales reached 5.45 million, exceeding the 5.25 million in 2015. Total existing home sales include single-family homes, townhomes, condominiums and co-ops. December existing sales were unchanged in the South, but declined 3.8% in the Midwest, 4.8% in the West and 6.2% in the West. Yearover-year, existing sales increased 2.7% in the Northeast, 2.4% in the Midwest and 0.4% in the South, while declining 1.6% in the West. Total housing inventory decreased dramatically by 10.8% in December, and is at the low-
est level since the series was launched in 1999. Inventory has fallen for 19 straight months. At the current sales rate, the December unsold inventory represents a 3.6-month supply, compared to a 3.9-month supply in November. Homes stayed on the market for 52 days in December, an increase from 43 days in November, but down from 58 days last December. Some 37% of homes sold in December were on the market for less than a month. The December all-cash sales share was unchanged from November at 21%, but was down from 24% during the same month a year ago. Individual investors purchased a 15% share in December, up from 12% in November and unchanged from the same month a year ago. Some 59% of investors paid cash in December. The first-time home buyer share was 32%
“NAHB expects solid 10 percent growth in single-family construction in 2017, adding to the gains of 2016,” said Dietz. “Concerns going into the year include rising mortgage interest rates as well as a lack of lots and access to labor.” Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All three HMI components retreated in January. The component gauging current sales conditions fell three points to 72, the index charting sales expectations in the next six months registered a two-point decline to 76 and the component measuring buyer traffic edged one-point lower to 51. Looking at the three-month moving averages for regional HMI scores, the Northeast rose two points to 52 and the Midwest posted a three-point gain to 64. The South and West each held steady at 67 and 79, respectively. n Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.
in December, unchanged from November and last December. Distressed sales, comprised of foreclosures and short sales, increased to 7% in December, which was down from 8% in the same month a year ago. The December median sales price of $232,200 was 4.0% above the same month a year ago, and represents the 58th consecutive month of year-over-year increases. The median condominium/co-op price of $221,600 and is up 5.5% from the same month a year ago. The December decline in existing sales was consistent with the November drop in pending sales to the lowest level in a year. NAR cited “another year of insufficient home construction,” and urged action to “address the regulatory and cost burdens preventing builders from ramping up production.” However, builders continue to address the low inventory of homes as builder sentiment held firm in January. Both jobs and incomes are growing, suggesting an improving market for new single-family construction. n
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Remodeling market optimism ends year on a high note
he National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 53 in the fourth quarter of 2016, a decrease of four points from the previous quarter, but on par with levels seen in the first half of 2016. Remodeler confidence has held firm in positive territory for 15 straight quarters. An RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity. “Many remodelers are seeing consumers commit to larger, long-term home improvement projects,” said 2017 NAHB Remodelers Chair Dan Bawden, CAPS, GMB, CGR, CGP, a remodeler from Houston. “As Americans are seeing wages
HBAMT Remodelers Council hold fun-filled Afternoon Mixer last month!
The HBAMT Remodelers Council enjoyed an afternoon mixer hosted by ProSource at their show room on Sidco Drive last month. Door prizes, great food and beverages were served up by the generous hosts. Thanks ProSource!
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and home values rise overall, it gives them greater confidence to go ahead and invest in their homes.” Returning to levels seen early last year, the RMI’s current market conditions index dipped to 53, down three points from the pre-
vious quarter. Among its components, major additions and alterations waned one point to 53, demand for smaller remodeling projects decreased by four points to 52, and the home maintenance and repair component declined by five points to 54. The index measuring future market indicators reached 52, about the same level as early 2016, but six points lower than in the third quarter. Among its four components, calls for bids and appointments for proposals fell to 49 and 54, respectively, the backlog of remodeling jobs dropped three points to 55, and the amount of work committed declined five points to 50. “At 53, the Remodeling Market Index is consistent with NAHB’s forecast that remodeling market activity will continue to grow over the next two years, but at a more moderate annual rate of 1 to 2%,” said NAHB Chief Economist Robert Dietz. For the full RMI tables, please visit www. nahb.org/rmi. For more information about remodeling, visit www.nahb.org/remodel. n
IBS forecasts trends for 2017 and beyond
Top design trends offered at 2016 Best in American Living Awards (BALA) ceremony at the NAHB International Builders’ Show.
here were 127 single-family, multifamily, remodeling and community projects honored at the 2016 Best in American Living Awards (BALA) ceremony Wednesday night at the NAHB International Builders’ Show in Orlando, Fla. That means there were 127 examples of the top design trends that home buyers expect to see over the next several years in your building and remodeling projects. They include:
BENCHES AND NOOKS In single-family custom and production homes, architects and designers include benches and nooks because they’re cozy, chic and practical, serving as places to snuggle up with the kids or a good book.
BIG SHOWERS AND TUBS Showers continue to get larger and free-standing tubs more luxurious. Walk-in showers feature wall-towall glass and universal design features.
BOARD AND BATTEN You’ll see a lot of this siding on the exteriors of this year’s winners, and they also add a classic touch to today’s contemporary interiors. Some winners add a unique spin by adjusting the width of the boards, giving homes a more customized, one-of-a-kind feel.
Dark door and window frames On custom and production homes, architects and designers are choosing dark brown or black frames around windows and doors. Windows pop on white or light siding, and dark frames add a striking effect from the interior looking out.
Modern farmhouse We’re seeing farmhouse sinks, reused wood siding in interior design details and barn doors that are customized to have a more contemporary feel, incorporating glass, white tints and metal hardware.
Metal roofs Metal roofs are featured on custom homes across the country, from more traditional homes to modern farmhouse and distinctively modern homes.
Natural wood beams From remodels to new homes, wood beams left in their original state add a natural touch and create a focal point in interiors.
Natural wood ceilings Hardwood floors have always been popular with home owners, but this year’s winners included an unusual number of homes with natural wood ceilings. These ceilings add warmth and can be used in traditional and more contemporary designs.
Shiplap inside and out Horizontal shiplap is increasingly chosen for exteriors and is featured in entryways, bathrooms, living rooms and more.
Under-stair storage Architects and designers did not let spaces under the staircases go to waste. Often, these spaces include shelves for books and works of art. One winner included an entire bar under the living room stairs.
UNIQUE WINE STORAGE Wine storage is now a prominent feature. Kitchens include floorto-ceiling open or glass-enclosed wine storage, and customized wine racks appear in many of this year’s winners. One team included an extensive wine collection by uniquely utilizing the under-the-stair trend.
White on white This trend is back in 2017 and appears universally across homes. Perhaps most prominently, white on white is showcased beautifully in kitchens.
More information about this year’s winners can be found at bestinamericanliving.com. n February, 2017
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2017 Home Show at the Fairgrounds! Busy three-day weekend for the HBAMT’s annual event.
he 2017 Home Show opened January 13 at the Fairgrounds Nashville enjoying steady crowds throughout a busy threeday weekend. Attendees of the event found a wealth of home improvement products and services and helpful vendors. Returning in style to this year’s Home Show was the Second Annual “Builders and Brewers” Beer Garden, held the second day of the event. Participating brewers included: Black Abbey, Blackstone, Cool Springs Brewery, Czann’s, Delmonico Winery, Granite City, Mantra, Millcreek, Music City Beer, Natchez Hill Winery, Rob’s Cider Beer, Tailgate, Tennessee Brew Works and Yazoo. Builders included: Aspen Homes, Broderick Builders, Building Masters, Celebration Homes, Drees Homes, HND, Regent Homes, Ole South Properties, Tennessee Valley Homes, The Jones Company of TN and Woodridge Homes. The 2018 Home Show is already signing up vendors for next year’s event scheduled for another three-day run January 19-21. Call the HBAMT at (615) 377-1055 to request your 2018 Home Show registration form. Or visit the event’s page at www.hbamt.org for a downloadable one-page registration form. n
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HBAMT leaders took to the airwaves to promote the big Home Show weekend at the Fairground. Trey Lewis (left) talked with Meryll Rose during a segment on Channel 5â€™s Talk of the Town. And Home Show Chairman Marty Maitland went live on air during Channel 4â€™s Today in Nashville.
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SPIKE REPORT Life Spikes
Twenty SPIKES (in bold) increased their recruitment numbers last month. What is a SPIKE? SPIKES recruit new members and help the association retain members. Here is the latest SPIKE report as of December 31, 2016. Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 743 Terry Cobb 568 Jim Fischer 566 John Whitaker 501 James Carbine 371 Jennifer Earnest 352 Trey Lewis 332 Kevin Hale 294 David Crane 289 Tonya Jones 271 Reese Smith III 261 Steve Moody 219 Sonny Shackelford 219 James Franks 213 Davis Lamb 200 Jackson Downey 182 Tim Ferguson 177
Jim McLean 164 Louise Stark 163 Harry Johnson 146 Steve Cates 141 C.W. Bartlett 138 Sam Carbine 131 Tonya Alexander 128 Tonya Esquibel 126 Steve Hewlett 119 B.J. Hanson 114 Carmen Ryan 113 Jordan Clark 109 Dave McGowan 106 Johnny Watson 101 Julie DuPree 97 Duane Vanhook 94 Wiggs Thompson 93 Jeff Zeitlin 87 John Zelenak 85 Helmut Mundt 81 Michael Dillon 77 Erin Richardson 76 Randall Smith 71 Christina Cunningham 70 Jeff Slusher 70 John Baugh 68 Lori Fisk-Conners 64 Don Bruce 62 Jim Ford, Jr. 62 Beth Sturm 60 Justin Hicks 58 Hill McAlister 57 David Hughes 56 Joe Morgan 54 John Broderick 54 Gerald Bucy 53 Andrew Neuman 50
Marty Maitland 48 Al Davis 47 John Ganschow 47 Ron Schroeder 45 Kay Russell 44 Derenda Sircy 40 Peggy Krebs 40 David Lippe 38 Andy Wyatt 37 Chuck Clarkson 36 Frank Miller 36 Brad Butler 35 Al Hacker 34 Keith Porterfield 34 Ray Edwards 32 Ricky Scott 29 Don Mahone 25 Spikes Ashley Crews 24 Frank Tyree 23 Rick Olszewski 19 Phillip Smith 19 Jay Elisar 18 John Burns 15 Jody Derrick 15 Frank Jones 15 Gina Hewlett 10 Pam Smith 10 Kenny Burd 9 Will Montgomery 9 Perry Pratt 8 Bob Bellenfant 7 McClain Franks 6 Rob Pease 6
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FEBRUARY Calendar Sunday
Sales and Marketing Council meeting
HBAMT Remodelers Council meeting
Metro/Nashville Chapter meeting
Dickson County Chapter meeting
Chapters & Councils CHAPTERS CHEATHAM COUNTY CHAPTER Chapter President - Roy Miles: 615/646-3303 Cheatham County Chapter details are being planned. Next meeting: to be announced. Chapter RSVP Line: 615/377-9651, ext. 310 DICKSON COUNTY CHAPTER Chapter President - Mark Denney: 615/446-2873. The Dickson County Chapter meets on the third Monday of the month, 12:00 p.m. at the Ponderosa Restaurant in Dickson. Next meeting: Monday, February 27. Due to President’s Day, the February meeting is being held on the fourth Monday. Price: FREE, lunch dutch treat. Chapter RSVP Line: 615/377-9651, ext. 307 MAURY COUNTY CHAPTER Maury County Chapter details are currently being planned. Next meeting: to be announced. Chapter RSVP line: 615-377-9651, ext. 312; for callers outside the 615 area code, 1-800-571-9995, ext. 312 METRO/NASHVILLE CHAPTER Chapter President - John Whitaker: 615/843-3300. The Metro/Nashville Chapter meets on the fourth Monday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: Monday, February 20. Topic: Special guest Elena Lightfoot, territory manager, Ingersoll-Rand, Trane. Builders Free pending sponsorship. Price: $10 per person with RSVP ($20 w/o RSVP). Chapter RSVP Line: 615/377-9651, ext. 304
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ROBERTSON COUNTY CHAPTER Next meeting: to be announced. Robertson County RSVP line: 615-377-9651, ext. 313.
Price: free for Green Building Council members pending sponsorship; $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 308
SUMNER COUNTY CHAPTER The Sumner County Chapter meets on the fourth Tuesday of the month, 11:30 a.m. at the new Hendersonville Library. Next meeting: to be announced. Chapter RSVP Line: 615/377-9651, ext. 306
HBAMT REMODELERS COUNCIL Council President - Ricky Scott. The HBAMT Remodelers Council meets on the third Wednesday of the month at varying locations. Next meeting: Wednesday, February 15. Location: to be announced. Topic: to be announced. Price: free for RMC members with RSVP; $15 for non-members with RSVP ($20 w/o). Council RSVP Line: 615/377-9651, ext. 301
WILLIAMSON COUNTY CHAPTER Chapter President - BJ Hanson: 615/884-4935. The Williamson County Chapter meets on the third Tuesday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: to be announced. Builders Free pending sponsorship. Price: $10 per person with RSVP ($20 w/o RSVP). Chapter RSVP Line: 615/377-9651, ext. 305 WILSON COUNTY CHAPTER The Wilson County Chapter meets on the second Thursday of the month, 11:30 a.m. at the Five Oaks Golf & Country Club in Lebanon. Next meeting: to be announced. Chapter RSVP Line: 615/377-9651, ext. 309 COUNCILS GREEN BUILDING COUNCIL Council President - Erin Richardson: 615/883-8526. The Green Building Council meets on the fourth Wednesday of the month, 11:00 a.m. Next meeting: to be announced. Topic: to be announced.
INFILL BUILDERS COUNCIL The Infill Builders meets on the third Thursday of the month, 11:30 a.m. at the HBAMT offices until further notice. Next meeting: to be announced. Council RSVP Line: 615/377-9651, ext. 311 MIDDLE TENN SALES & MARKETING COUNCIL Council President - Ashley Crews. The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, February 2, 9:00 a.m. at the HBAMT. Topic: “Integrating Consumer Segmentation Intelligence and a Housing Market Forecast,” with MetroStuday. SMC members free thanks to Piedmont Natural Gas; nonSMC members $25 w/RSVP, $35 w/o RSVP Council RSVP Line: 615/377-9651, ext. 302.
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The February, 2017 issue of The Nail, the official monthly publication of the Home Builders Association of Middle Tennessee (HBAMT).