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NAIL The official magazine of Home Builders Association of Middle Tennessee President Trey Lewis Vice President Randall Smith Secretary/Treasurer John Zelenak 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 9 Efficiency & sustainability key for new home buyers
NAHB surveys show that more and more new homes are increasingly offering energy efficient features.
10 HBAMT Halloween Cruise to set sail this October!
Get your passports ready! The HBAMT Halloween Cruise sets sail this October for an 8-day tour of the Caribbean.
DEPARTMENTS 6 News & Information 11 SPIKE Club Report 12 April Calendar 12 Chapters and Councils
ON THE COVER: Thereâ€™s no better time to buy, or sell, a new home than New Homes Month this April! April, 2015
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New home sales rise 7.8 percent in February
ales of newly built, single-family homes rose 7.8 percent in February to a seasonally adjusted annual rate of 539,000 units from an upwardly revised January reading, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest sales pace since February 2008. “These numbers are a great start to the spring buying season,” said Tom Woods,
Most sales activity continues to be among existing home owners who are trading up to new construction and taking advantage of low mortgage rates. 6 The NAIL
chairman of the National Association of Home Builders (NAHB) and a home builder from Blue Springs, Mo. “Hopefully, this is an indicator of how the rest of the year will fare.” “Most sales activity continues to be among existing home owners who are trading up to new construction and taking advantage of low mortgage rates,” said NAHB Chief Economist David Crowe. “First-time home buyers remain absent from the market, restricted by tight lending conditions.” The inventory of new homes for sale was at 210,000 in February, which is a 4.7-month supply at the current sales pace. Regionally, new home sales increased 152.9 percent in the Northeast and 10.1 percent in the South. Sales dropped 6 percent in the West and 12.9 percent in the Midwest. n
Compare compensation against industry standards
newly released publication from BuilderBooks, the book publishing arm of the National Association of Home Builders (NAHB) gives homes builders an inside look at building industry employee compensation trends across the country. The 2014 Single-Family Builder Compensation Study provides compensation and benefits data for 39 common positions at single-family home building companies including Controller, Director of IT, Estimator, and Office Manager. The study, which was based on data collected in July from builders across the coun-
try, is divided into two sections that present the survey findings from different perspectives. The first section provides a broad view of the full-time positions that currently exist at single-family building companies, as well as a comparison of average total compensation and benefits across positions. The second part of the study offers a more detailed view of each individual position’s average compensation and benefits. Builders can use the results to benchmark what they pay their employees against current industry averages. The study shows av-
Housing starts, builder confidence dips in February
ationwide housing starts dropped 17 percent to a seasonally adjusted annual rate of 897,000 units in February, according to newly released data from the U.S. Commerce Department. “This drop is not surprising based on our recent surveys, but our builders continue to show cautious optimism in the months ahead,” said NAHB Chairman Tom Woods. “February’s numbers indicate that wavering consumer confidence continues to impact the housing recovery,” said NAHB Chief Economist David Crowe. “Buyers are waiting for a stronger, more reliable economy before making a home purchase, and builders are responding to their reluctance. Even with this month’s drop in production, we expect the housing market to move forward this year in step with an improving economy.” Single-family housing production fell 14.9 percent to a seasonally adjusted annual rate of 593,000 in February while multifamily starts dropped 20.8 percent to 304,000 units. Combined single- and multifamily starts decreased in all regions of the country, with the Northeast, Midwest, South and West posting respective declines of 56.5 percent, 37 percent, 2.5 percent and 18.2 percent. Overall permit issuance was up 3 percent in February to a rate of 1.092 million. Single-family permits decreased 6.2 percent to 620,000 units; multifamily permits rose 18.3 percent to a rate of 472,000 units. Regionally, the Midwest, South and West registered permit gains of 6.1 percent, 7.3 per-
cent and 2.2 percent, respectively, while the Northeast posted a 17.4 percent loss.. Builder confidence slightly lower Builder confidence in the market for newly built, single-family homes in March fell two points to a level of 53 on the NAHB/Wells Fargo Housing Market Index (HMI) released recently. “Even with this slight slip, the HMI remains in positive territory and we expect the market to improve as we enter the spring buying season,”
erage total compensation and the prevalence of benefits offered to each position by geographic region, 2014 dollar volume, number of single-family units started in 2013, and the number of employees on payroll. The 2014 Single-Family Builder Compensation Study is available for purchase ($149.95 Retail/$79.95 NAHB Member, ISBN 978-0-86718-737-3) at BuilderBooks.com or by calling 800-223-2665. The eBook is available at ebooks.builderbooks.com ($89.99 Retail/$55.99 for NAHB Members). [Editor’s Notes: Editors interested in receiving a review copy of the 2014 Single-Family Builder Compensation Study, may contact Patricia Potts at 202-266-8224 or firstname.lastname@example.org.] n
said NAHB Chairman Tom Woods, a home builder from Blue Springs, Mo. “The drop in builder confidence is largely attributable to supply chain issues, such as lot and labor shortages as well as tight underwriting standards,” said NAHB Chief Economist David Crowe. “These obstacles notwithstanding, we are expecting solid gains in the housing market this year, buoyed by sustained job growth, low mortgage interest rates and pent-up demand.” Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/ Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. Two of the three HMI components posted losses in March. The component gauging current sales conditions fell three points to 58 while the component measuring buyer traffic dropped two points to 37. The gauge charting sales expectations in the next six months held steady at 59. Looking at the three-month moving averages for regional HMI scores, the Northeast and South each posted a two-point drop to 43 and 55, respectively. The Midwest rose two points to 56, while the West fell seven points to 61. 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
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Efficiency key for new home buyers
NAHB surveys show that more and more new homes are increasingly offering energy efficient features.
uring New Homes Month in April, the NAHB is showing how new homes increasingly offer the energy-efficient features home buyers seek. Surveys indicate that efficiency is among the most-wanted features of home buyers and that builders are responding to this demand. “Our builder members are telling us that more and more buyers are looking at new homes for their efficiency in design and functionality,” said NAHB chairman Tom Woods. “Whether it’s improved insulation or sustainable building materials, today’s new homes can reach higher energy performance and greater durability than was possible even 20 years ago. And programs like the National Green Building Standard help consumers achieve their efficiency needs.” As more Millennials enter the housing market, they are sharing what features are most likely to affect their home buying decisions. An NAHB survey revealed that Energy Star certifications are a priority for these home buyers. In fact, 84 percent of this group is willing to pay 2-3 percent more for an energy-efficient home as long as they can see a return on their power bills. NAHB also surveyed home builders about the features they are most likely to include in new homes they build this year. Four of the top 10 features focused on energy efficiency: low-E windows, Energy Star-rated appliances and windows and programmable thermostats. “Many of these building professionals turn to national certification
programs and rating systems to help structure their efforts,” says Erik Daugherty, founder and owner of E3 INNOVATE, a Nashville-based, integrated home-performance company that provides home certification services. “By following an ENERGY STAR or LEED for Homes process -- methods that include early energy-modeling, design reviews, team-building, smart building practices, inspections, diagnostic testing and achieving a solid HERS score (Home Energy Rating System) -- builders ensure that they’re constructing a house that will exceed the expectations and desires of a consumer seeking a high-performance healthy green home.” Some home buyers are looking for even more sustainable features, prompting an increasing number of single-family and multifamily builders to deliver green homes. Green builders incorporate energy, water and resource efficiency; improved indoor environmental quality and sustainable and locally sourced products into their projects. An NAHB survey of single-family home builders revealed that nearly 25 percent of builders installed alternative energy-producing equipment in new construction. This includes geothermal heat pumps and photovoltaic solar panels. The current 30-percent tax credit available for homeowners who install this equipment is set to expire at the end of 2016, which makes this a good time for interested buyers to consider purchases. Home buyers can access home buying and home building information and resources at nahb.org/forconsumers. n April, 2015
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SPIKE REPORT Life Spikes
Eighteen 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 February 28, 2015. Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 691 Terry Cobb 566 Jim Fischer 566 John Whitaker 415 James Carbine 339 Jennifer Earnest 334 Dan Stern 306 Kevin Hale 287 Tonya Jones 271 Reese Smith III 260 David Crane 259 Steve Moody 219 Sonny Shackelford 218 Trey Lewis 200 Davis Lamb 189 Cyril Evers 182 Jackson Downey 174
Tim Ferguson 172 Jim McLean 164 Louise Stark 163 Harry Johnson 146 James Franks 141 Steve Cates 140 C.W. Bartlett 138 Tonya Alexander 128 Sam Carbine 123 Steve Hewlett 119 Carmen Butner 108 B.J. Hanson 102 Dave McGowan 102 Johnny Watson 101 Julie DuPree 88 Duane Vanhook 87 Jeff Zeitlin 87 Jordan Clark 86 Erin Richardson 76 Jeff Slusher 70 John Baugh 68 Wiggs Thompson 68 Don Bruce 62 Jim Ford, Jr. 62 Hill McAlister 57 Beth Sturm 55 Michael Dillon 54 Joe Morgan 54 John Broderick 53 Gerald Bucy 53 Lori Fisk-Conners 52 David Hughes 50 Al Davis 47 Sheila Rawlings 47 Bernie Laine 46 Greg Langley 46 Andrew Neuman 46
Benny Sullivan 46 Bryan Edwards 44 Kay Russell 44 John Ganschow 42 Peggy Krebs 40 David Lippe 38 Andy Wyatt 37 Chuck Clarkson 36 Christina Cunningham 36 Frank Miller 36 Brad Butler 35 Al Hacker 34 Ray Edwards 32 Dan Strebel 32 Steve Wheeley 30 Alvin Basel 29 Spikes Justin Hicks 21 Don Mahone 20 Marty Maitland 20 Derenda Sircy 19 Tracy Lomax 14 Frank Tyree 14 Pam Smith 10 Randall Smith 10 Don Alexander 9 Ashley Crews 7 Gina Hewlett 6 John Zelenak 6
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APRIL Calendar Sunday
Sales & Marketing Council meeting
Remodelers Council meeting
Dickson County Chapter meeting
Metro/Nashville Chapter meeting
Sales & Marketing 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, April 20 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: Monday, April 27 Topic: “Understanding Why and Importance of UL,” with representatives from Metro Codes. Builders Free thanks to Hermitage Lighting Gallery. 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, 11:00 a.m. at varying locations. Next meeting: Wednesday, April 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 - Derenda Sircy. The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, April 2. Topic: “Don’t Be Blindsided in 2015,” with a special appraisal panel led by Tonya Esquibel from Summit Funding. SMC members FREE with RSVP thanks to Summit Funding; non-SMC members $25 w/RSVP, $35 w/o RSVP Council RSVP Line: 615/377-9651, ext. 302.
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The April, 2015 issue of The Nail, the official monthly publication of the Home Builders Association of Middle Tennessee (HBAMT).