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NAIL The official magazine of Home Builders Association of Middle Tennessee President Michael Dillon Vice President Trey Lewis Secretary/Treasurer Randall Smith Executive Vice President John Sheley Editor and Designer Jim Argo Staff Connie Nicley Pat Newsome
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 7 Home Show returns this month to AgEXPOPark
The annual Home Show will return for its annual three day weekend beginning Friday, February 21 at the Williamson County AgEXPOPark in Franklin, Tenn.
10 2014 Home Show registration form
The annual event is weeks away but thereâ€™s still time to secure your space at the show but act FAST. Find your registration form here.
DEPARTMENTS 4 News & Information 11 SPIKE Club Report 12 February Calendar 12 Chapters and Councils
ON THE COVER: The Annual Home Show returns next month to the Williamson County AgEXPOPark. See page ten (10) of this issue to reserve your exhibit space today. February, 2014
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The Sales and Marketing Council held their first meeting of the year last month at the HBAMT offices. Representatives from the Tennessee Housing Development Agency spoke to attendees about the Dodd Frank Act and other loan programs available in 2014.
Housing production just under 1 million units in December
ollowing an unusual surge in housing starts in November, nationwide housing production fell 9.8 percent to a seasonally adjusted annual rate of 999,000 units in December, according to newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. “Total housing starts of just under 1 million units in December was the third-highest monthly level of production in 2013,” said Rick Judson, chairman of the National Association of Home Builders (NAHB) and a home builder from Charlotte, N.C. “This rate is in line with our builder surveys, and tells us we are seeing a return to trend after a strong November.” “Last year was a good year for home building, with overall production up 18 percent from 2012,” said NAHB Chief Economist David Crowe. “As pent-up demand is unlocked and the labor mar-
As pent-up demand is unlocked and the labor market improves, 2014 should be and even better year for home construction. 4 The NAIL
ket improves, we anticipate that 2014 should be an even better year for home construction. That’s good news for economic growth, as each new home that is built creates three full-time jobs and contributes to the tax base of local communities.” Single-family housing starts fell 7 percent to a seasonally adjusted annual rate of 667,000 units in December. Except for November, this was the highest monthly total for single-family starts in 2013. Meanwhile, multifamily starts fell 17.9 percent to 312,000 units in December. Regionally in December, combined singleand multifamily housing production rose 15 percent in the West but fell 33.5 percent in the Midwest and 12.3 percent in the South. Production was unchanged in the Northeast. Overall permit issuance fell 3 percent to 986,000 units in December. Single-family permits dipped 4.8 percent to 610,000 units from a strong pace the previous month, while multifamily permits were unchanged at 376,000 units. The Northeast and West posted gains of 11.2 percent and 10.5 percent in permitting activity for December, while Midwest and South registered declines of 18.8 percent and 7.4 percent, respectively. n
Special guest speaker Brent Chance from Ivey Insurance talks with 2014 RMC President Jason Broderick prior to the council’s January meeting at the HBAMT. Chance fielded questions from council members about insurance coverage issues in the upcoming year.
Robert Karesh (standing), Statewide Stormwater Coordinator with the Tennessee Department of Environment and Conservation, was the guest speaker at the Metro/Nashville Chapterr’s first meeting of the year last month. Karesh covered new storm water regulations for 2014 and answered questions from meeting attendees.
Down in December, new home sales up 16.4 for the year
ales of newly built, single-family homes fell 7 percent to a seasonally adjusted annual rate of 414,000 units in December, according to newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Despite the monthly drop, home sales in 2013 were up 16.4 percent over the previous year. “December’s decline in new-home sales follows elevated levels in the previous two months and means the fourth quarter was still much stronger than the third,” said Rick Judson, NAHB chairman. “While we expect sales to gain strength in 2014, builders still face considerable constraints, including tight credit conditions for home buyers, and a limited supply of labor and buildable lots.” “Consumers are getting used to more realistic mortgage rates, which still remain favorable on a historical basis,” said NAHB Chief Economist David Crowe. “As household formations and pent-up demand continue to emerge, we anticipate that 2014 will be a strong year for housing.” Regionally, new-home sales activity fell 36.4 percent in the weather-battered Northeast, 7.3 percent in the South and 8.8 percent in the West. The Midwest posted a gain of 17.6 percent.
The inventory of new homes fell to 171,000 units in February, which is a five-month supply at the current sales pace. Although this is an increase over the previous month, it is due to the slower sales pace in December.) Builder Confidence slips slightly Builder confidence in the market for newly built, single-family homes fell one point to 56 in January from a revised December reading of 57 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), released today. “Following an unexpected jump last month, builder confidence has essentially leveled out and is holding at a solid level,” said Judson. “Many markets continue to improve and this bodes well for future home sales.” “Rising home prices, historically low mortgage rates and significant pent-up demand will drive a continuing, gradual recovery in the year ahead,” said Crowe. “However, the pace of the recovery could be stronger were it not for rising construction costs and inaccurate appraisals that are keeping some home sales from going through.” Derived from a monthly survey that
Remodeling Market Index steady at historical high
ccording to the NAHB, the Remodeling Market Index (RMI) held steady at 57 in the fourth quarter of 2013. This is the same level as the third quarter of 2013 and the highest reading since the first quarter of 2004. 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. “The remodeling industry ends 2013 on a high note as remodeler confidence holds steady at a historically high level,” said NAHB Remodelers Chairman Bill Shaw, GMR, GMB, CGP, a remodeler from Houston. “We expect to keep this positive momentum going in 2014 as more home owners will continue to take on remodels and repairs that had been postponed in the downturn.” The RMI’s future market conditions index rose from 56 in the previous quarter to
58, the highest reading since the inception of the series in 2005. Three of the four major components of the RMI’s future market conditions index increased in the final quarter of 2013. Calls for bids increased from 56 to 59, the amount of work committed for the next three months from 52 to 54 and appointments for proposals from 55 to 59. The backlog of
NAHB has been conducting for 25 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. All three HMI components declined in January. The index gauging current sales conditions edged one point lower to 62, while the index gauging expectations for future sales fell two points to 60. The index gauging traffic of prospective buyers fell three points to 40. Looking at the three-month moving averages for regional HMI scores, the Northeast and West each rose four points to 42 and 63, respectively, while the South held steady at 56. The Midwest fell a single point to 58. 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. n
remodeling jobs fell one point to 59. The current market conditions component of the RMI declined two points to 56 this quarter. “Steady existing home sales, historically favorable interest rates for home buyers and rising home equity have combined to release some of the pent up demand for home remodeling from the past few years,” said NAHB Chief Economist David Crowe. “This quarter’s RMI reading shows that the slow but steady improvement in the remodeling market will continue in 2014.” n
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A busy day at the Home Show unfolds at the Williamson County AgEXPOPark last year.
Home Show opens this month The annual event is only weeks away but there’s still time to secure your place at the show!
f you are in the market for home improvement products or services, or if you are a company that provides home improvement products and services, don’t miss the 2014 Home Show! The annual event will open for a busy three-day weekend Friday, February 21 at the Williamson County Ag Expo Park in Franklin, Tennessee. The Home Show is an annual event and has been a middle Tennessee tradition for over forty years. Everyone enjoys attending the show and taking part in the wide variety of activities that are available each day. In addition to all the vendor exhibit booths, attendees will find informative product demonstrations and daily educational seminars covering a variety of home care and home décor topics. “The Home Show is designed to offer consumers a variety of product information,” says B.J. Hanson, Home Show Chairman. “That means you don’t have to be a home owner to benefit. Those living in houses, apartments, condominiums, or any type of home, will get good ideas and information at the Show.” Which means the show is an ideal place for businesses to market their products and services. But interested parties should act fast if they want to take advantage of the large crowds the event historically enjoys.
“We’ve got a terrific lineup of exhibitors that loyal patrons and new visitors aren’t going to want to miss,” says Hanson. “Still, we’re working to fill every inch that we can of the Expo Park with new and exciting products and services for homes of every size and style.” This will mark the fourth consecutive year the Home Show will be held at the spacious venue, home to the Williamson County Fair. Hanson says that having such an abundance of open space has been very beneficial to the show and a welcomed challenge for its staff. “The Ag Expo Park is immensely comfortable for both visitors and exhibitors alike,” the event chairman explains. “No matter how many booths and exhibits we’ve prepared in past years its always felt like we could have included even more.” If you are interested in purchasing exhibit space at the 2014 Home Show please visit www.hbamt.org and download the registration forms, or find the one-page form on page twelve of this issue. A layout of the event show floor indicating booth availability (at time of this publication) can be found on pages ten and eleven of this issue. For more exhibit booth information please contact Connie Nicley at firstname.lastname@example.org. For more information about the show, in at www.hbamt.org. n February, 2014
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Booths shaded in RED indicate a sold space. (Unshaded booths not guaranteed to still be available at publishing date of this issue.)
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SPIKE REPORT Life Spikes
Twenty-one 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, 2013. Top 20 Big Spikes Jim Ford 912 Virgil Ray 819 Bill King 776 Mitzi Spann 664 Jim Fischer 566 Terry Cobb 565 John Whitaker 366 James Carbine 331 Jennifer Earnest 314 Dan Stern 306 Bruce Hancock 297 Kevin Hale 286 Tonya Jones 271 Reese Smith III 259 David Crane 234 Steve Moody 219 Sonny Shackelford 216 Michael Apple 185 Cyril Evers 181 Davis Lamb 179
Jackson Downey 174 Jim McLean 164 Tim Ferguson 163 Louise Stark 163 Harry Johnson 146 Steve Cates 140 C.W. Bartlett 138 Trey Lewis 129 Tonya Alexander 125 Steve Hewlett 119 Tom Kelley 115 Sam Carbine 111 Carmen Butner 104 James Franks 102 Johnny Watson 101 Bill Kottas 97 Dave McGowan 97 Lee Santiago 95 B.J. Hanson 92 Kim Dykes 89 Jeff Zeitlin 87 Duane Vanhook 82 Jordan Clark 80 Erin Richardson 76 Randy Parker 75 Jeff Slusher 70 John Baugh 68 Don Bruce 62 Jim Ford, Jr. 62 Wiggs Thompson 60 Hill McAlister 57 Joe Morgan 54 Gerald Bucy 53 John Broderick 52 Beth Sturm 51 David Hughes 48 Al Davis 47
Sheila Rawlings 47 Bernie Laine 46 Greg Langley 46 Benny Sullivan 46 Kim Nichols 45 Andrew Neuman 45 Bryan Edwards 44 Kay Russell 44 Lori Fisk-Conners 41 Peggy Krebs 39 John Ganschow 37 Chuck Clarkson 36 Andy Wyatt 36 Brad Butler 35 David Lippe 35 Al Hacker 34 Frank Miller 34 Ray Edwards 32 Dan Strebel 32 Steve Wheeley 30 Alvin Basel 29 Matt Burnett 25 Spikes Michael Dillon 21 Christina Cunningham 20 Jess Dillon 16 Don Mahone 15 Marty Maitland 15 Tracy Lomax 14 Frank Tyree 11 Pam Smith 10 Don Alexander 7 Derenda Sircy 7
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FEBRUARY Calendar Sunday
6 NAHB International Builders Show
NAHB International Builders Show
NAHB International Builders Show
Sales & Marketing Council meeting
18 Dickson County Chapter meeting
HBAMT Home Show Williamson County AgEXPOPark
HBAMT Home Show Williamson County AgEXPOPark
Green Building Council meeting
HBAMT Home Show Williamson County AgEXPOPark
HBAMT Remodelers Council 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 17. Topic: to be announced. 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: Friday, February 21 at the Williamson County AgEXPOPark. Topic: special guest Melissa Blackburn, General Sessions Judge candidate, and a visit to the 2014 Home Show. Price: Builders Free thanks to Stonegate Mortgage; $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. 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 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: Friday, February 21 at the Williamson County AgEXPOPark. Topic: special guest Melissa Blackburn, General Sessions Judge candidate, and a visit to the 2014 Home Show. Price: Builders Free thanks to Stonegate Mortgage; $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 CUSTOM BUILDERS COUNCIL The CBC meets on the second Tuesday of the month, 11:30 a.m. at the HBAMT offices.
Next meeting: to be announced. Council RSVP Line: 615/377-9651, ext. 311 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: Wednesday, February 26. Topic: to be announced. 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 HBAMT REMODELERS COUNCIL Council President - Jason Broderick. The HBAMT Remodelers Council meets on the third Wednesday of the month, 11:00 a.m. at varying locations. Next meeting: Wednesday, February 19. 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 MIDDLE TENN SALES & MARKETING COUNCIL Council President - Trey Lewis. The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, February 13. Topic:”Diagnosing Your Purchasing Power,” with tax expert Dr. Friday and mortgage expert Tonya Esquibel. Price: SMC members free thanks to Piedmont Natural Gas ($10 w/o RSVP); $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 302.
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The February, 2014 issue of The Nail, the official online publication of the Home Builders Association of Middle Tennessee.