The Nail - July, 2014

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The 2014 HBAMT

Golf Tournament

& Summer Blowout!

LEGENDS GOLF COURSE

Friday, August 15

1st Round: 8:00 AM | 2nd Round: 1:30 PM

The HBAMT;’s answer to the summertime blues is returning - don’t miss the 3rd Annual HBAMT Golf Tournament & Summer Blowout! Two spirited rounds of golf, valuable prizes, delicious food fresh from the grill and live entertainment sure to keep you dancing into the evening! Gather your customers and coworkers and join us at the Legends Golf Course Friday, August 15th.

BEST BALL, 4-MAN SCRAMBLE $195.00 per player (team) | $205.00 per single Golfers registration fees include:

Green & Cart Fees, Beverages, Hole Prizes, Awards and two tickets to the Summer Blowout, where you’ll enjoy tasty grilled treats & live entertainment.

LIVE

MUSIC!

Please return your completed registration form (provided below) to e HBAMT to enter.

ALL COMPANIES AND SINGLE PLAYERS ENTERING MUST BE A MEMBER OF THE HBAMT. CONTACT ________________________________ COMPANY _____________________________________ EMAIL ___________________________________ PHONE ________________________________________ Print names of players. Four (4) players per team ($195.00 per player). Players reserving for ONE only ($205.00) will be assigned a foursome.

1.) _________________________________________ 2.) _____________________________________________ 3.) _________________________________________ 4.) _____________________________________________ Check your preference (to accommodate all golfers we are hosting two rounds): r Morning Round | r Afternoon Round _____________ Number of players x $195.00 or One (1) player for $205.00 | Make checks payable to HBAMT; to pay by credit card call 377-1055.

Return entries to: HBAMT - 9007 Overlook Blvd, Brentwood, TN 37027 | Fax: (615) 377-1077 | Email: receptionist@hbamt.net

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THE

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 9 Green homes show growth during market recovery

New report, “Green Multifamily & Single Family Homes: Growth in a Recovering Market,� surveys builder and remodeler members of the NAHB.

10 Third Fishing Tournament in the books

The third 2014 Piedmont Natural Gas Bass Trail Tournament was held last month at Bull Creek Marina in Gallatin, Tenn.

DEPARTMENTS 6 News & Information 13 SPIKE Club Report 14 July Calendar 14 Chapters and Councils

ON THE COVER: New home construction showed big growth in May according to the NAHB. Fore more see the full story on page six.

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news&info

Robin Ziegler from Metro’s Historic Zoning Commission spoke at the June meeting of the Metro/Nashville Chapter. Ziegler talked about Metro’s historic guidelines for new construction.

The chapter’s next meeting is schedulded for Monday, July 28th.

New home sales up 18.6 percent in May

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ales of newly built, single-family homes rose 18.6 percent to a seasonally adjusted annual rate of 504,000 units in May, 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 rate since May 2008.

“These numbers are in line with our recent builder surveys, which indicate that more consumers are getting off the fence and coming

As job creation continues expect further release of pentup demand and continued gradual growth in the housing recovery.

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back into the marketplace,” said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del. “This increase is a welcome sign after a slow start to 2014,” said NAHB Chief Economist David Crowe. “As job creation continues, we can expect further release of pent-up demand and continued gradual growth in the housing recovery.”

Regionally, new-home sales were up across the board. Sales rose 54.5 percent in the Northeast, 34 percent in the West, 14.2 percent in the South and 1.4 percent in the Midwest.

The inventory of new homes for sale held steady at 189,000 units in May. This is a 4.5-month supply at the current sales pace. n

A panel of sales professionals including Ray Khayatt, Coldwell Banker Barnes, and Greg Crockett, Reliant Realty, led the Sales and Marketing Council’s June meeting, “Understanding Buyers from other Cultures.” A big thanks to US Bank for sponsoring the meeting. The next SMC meeting will not be held until Thursday, August 7 at the HBAMT.

Aerial Development’s Jeremy Leggo spoke to the large crowd that attended the Infill Builder’s Council meeting June 19 at the HBAMT. The association’s newest council will meet next in August.

Index shows 56 metros at or above normal levels in June

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f the approximately 350 metro markets nationwide, 56 returned to or exceeded their last normal levels of economic and housing activity, according to the National Association of Home Builders/First American Leading Markets Index (LMI), released recently. This represents a net gain of nine metros year over year.

The index’s nationwide score of .88 held steady from the previous month. This means that based on current permit, price and employment data, the nationwide average is running at 88 percent of normal economic and housing activity. Meanwhile, 30 percent of metro areas saw their score rise this month and 83 percent have shown an improvement over the past year.

“Markets are gradually returning to normal levels of housing and economic activity,” said NAHB Chairman Kevin Kelly. “When we see more sustainable levels of job growth, this will unleash pent-up demand and bring more buyers into the marketplace.”

Baton Rouge, La., continues to top the list of major metros on the LMI, with a score of 1.4 – or 40 percent better than its last normal market level. Other major metros at the top of the list include Honolulu; Oklahoma City; Austin, Texas and Houston. Rounding out the top 10 are Los Angeles; San Jose, Calif.; Harrisburg, Pa.; Pittsburgh and Salt Lake City – all of whose

LMI scores indicate that their market activity now equals or exceeds previous norms.

“Of the three components in the LMI, the one lagging is single-family housing permits, which is only 43 percent of the way back to normal while home prices are 26 percent above their last normal level and employment is at 95 percent of its previous norm,” said NAHB Chief Economist David Crowe. “In the 22 metros where permits are at or above normal, the

overall index indicates that these markets have fully recovered.”

“Well over one-third of all markets are operating at a level of at least 90 percent of previous norms, and this bodes well for a continuing housing recovery in the year ahead,”

Builder confidence rises four points in June

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uilder confidence in the market for newly built, single-family homes rose four points in to reach a level of 49 on the National Association of Home Builders/ Wells Fargo Housing Market Index (HMI) released recently. It remains one point shy of the threshold for what is considered good building conditions.

“After several months of little fluctuation, a four-point uptick in builder sentiment is a welcome sign and shows some renewed confidence in the industry,” said NAHB Chairman Kevin Kelly. “However, builders are facing strong headwinds, including the limited availability of labor.”

“Consumers are still hesitant, and are waiting for clear signals of full-fledged economic

recovery before making a home purchase,” said NAHB Chief Economist David Crowe. “Builders are reacting accordingly, and are moving cautiously in adding inventory.”

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

said Kurt Pfotenhauer, vice chairman of First American Title Insurance Co., which co-sponsors the LMI report.

Looking at smaller metros, both Odessa and Midland, Texas, boast LMI scores of 2.0 or better, meaning their markets are now at double their strength prior to the recession. Also at the top of the list of smaller metros are Bismarck, N.D.; Casper, Wyo.; and Grand Forks, N.D., respectively.

The LMI shifts the focus from identifying markets that have recently begun to recover, which was the aim of a previous gauge known as the Improving Markets Index, to identifying those areas that are now approaching and exceeding their previous normal levels of economic and housing activity. More than 350 metro areas are scored by taking their average permit, price and employment levels for the past 12 months and dividing each by their annual average over the last period of normal growth. For single-family permits and home prices, 20002003 is used as the last normal period, and for employment, 2007 is the base comparison. The three components are then averaged to provide an overall score for each market; a national score is calculated based on national measures of the three metrics. An index value above one indicates that a market has advanced beyond its previous normal level of economic activity.

In calculating the LMI, NAHB utilizes employment data from the Bureau of Labor Statistics, house price appreciation data from Freddie Mac and single-family housing permits from the U.S. Census Bureau. For historical information and charts, please go to nahb.org/lmi. n

indicates that more builders view conditions as good than poor.

All three index components posted gains in June. Most notably, the component gauging current sales conditions increased six points to 54. The component gauging sales expectations in the next six months rose three points to 59 and the component measuring buyer traffic increased by three to 36.

Looking at the three-month moving averages for regional HMI scores, the South and Northeast each edged up one point to 49 and 34, respectively, while the West held steady at 47. The Midwest fell a single point to 46..

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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Green homes show growth in recovering market

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esidential construction is a key engine behind economic growth in the United States. According to McGraw Hill Construction’s Dodge Construction Market Forecast, single and multifamily housing projects account for about 45% of the value of all construction projects started in theUnited States in 2014. With that market forecasted to grow rapidly in coming years, the green activity and drivers in the market are critical. The new SmartMarket Report of the single and multifamily builder and remodeler community released recently by McGraw Hill Construction (http://www.construction. com/) contains this critical intelligence.

The report, “Green Multifamily & Single Family Homes: Growth in a Recovering Market,” surveys builder and remodeler members of the National Association of Home Builders and reveals the evolution of green building for single family homes from boom to bust to recovery through comparisons with previous studies from 2006 to 2011, and includes new data on multifamily housing to provide a comprehensive review of the sector.

According to the latest study: • 62% of firms building new single family homes report that they are doing more than 15% of their projects green. By 2018, 84% of them expect this level of green activity.

• 54% of firms building new multifamily projects report that they are doing more than 15% of their projects green. There is also growth expected—with 79% reporting the same level of activity anticipated by 2018.

• In the single family market, the most striking shift is in those firms dedicated to green building (doing more than 90% of their projects green). That percentage is already at 19%, and by 2018, it is expected to double (to 38%).

The study finds that builders and remodelers in both the single family and multifamily sectors report that the market is recognizing the value of green: 73% of single family (continued on page 13) July, 2014

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Fishing tournament sails towards end

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he third Piedmont Natural Gas Fishing Tournament of the year took place June 17 on Old Hickory Lake at Bull Creek Marina in Gallatin, Tenn.

Robert E. Lee and Rocky Lee from Piedmont Natural Gas took home first place honors for reeling in 14.90 lbs worth of catches.

Joe Haas and Rusty Rust weighed in with 12.11 lbs to earn second place honors for the Joe Haas Waterproofing boat.

And the Piedmont Natural Gas team of Donnie Whitaker and Luke Whitaker reeled in 11.75 lbs worth of catches to secure third place honors.

Robert E. Lee and Rocky Lee also won the “Big Fish� award for a catch weighing 5.44 lbs.

Special thanks to title sponsor Piedmont Natural Gas; platinum sponsors ABC Supply Company and Petersen & Sons; and silver sponsors American Heating and Cooling, Reliance Heat & Air and Stonegate Mortgage.

Next stop: Monday, September 15 at Goose Pond Marina. n

Company Boat

Fisherman

Wt.

Piedmont Natural Gas

Robert E. Lee & Rocky Lee

14.90

Joe Haas Waterproofing

Joe Haas & Rusty Rust

12.11

Piedmont Natural Gas

Donnie Whitaker & Luke Whitaker

11.75

Piedmont Natural Gas

Lamar Morgan & Joe Reese

11.34

Piedmont Natural Gas

Jerry Bell & Rob Hall

10.89

Mid Tenn Flooring

Hassan Moghdom & Donnie Rubel

10.79

Piedmont Natural Gas

Tommy Lynch & Scott Mrzena

10.53

Jeffco Flooring

Oliver Bradley & Jeff Johnson

10.38

Inter-Vac Systems

Jody Smith & Randy Summers

8.68

Piedmont Natural Gas

Kevin Dennis & Dennis Jenkins

7.24

Robert E. Lee and Rocky Lee took home first place honors following the third Piedmont Natural Gas Fishing Tournament of 2014.

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Above: Donnie Whitaker and Luke Whitaker, thrid place winners from one of the Piedmont Natural Gas boats.

At left: Rusty Rust and Joe Haas, second place winners from the Joe Haas Waterproofing boat.

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SPIKE REPORT Life Spikes

Thirteen 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 May 31, 2014.

Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 676 Jim Fischer 566 Terry Cobb 565 John Whitaker 389 James Carbine 331 Jennifer Earnest 325 Dan Stern 306 Kevin Hale 286 Tonya Jones 271 Reese Smith III 260 David Crane 246 Steve Moody 219 Sonny Shackelford 216 Davis Lamb 183 Cyril Evers 181 Jackson Downey 174 Tim Ferguson 167

(cont’d from page 9) builders (up from 61%

since the last report) and 68% of multifamily builders say consumers will pay more for green homes.

“Greater consumer interest in green homes has contributed to the ongoing growth, leading us to anticipate that by 2016, the green single family housing market alone will represent approximately 26% to 33% of the market, translating to an $80 billion to $101 billion opportunity based on current forecasts. The findings also suggest that lenders and appraisers may be starting to recognize the value of green homes, making it a factor that could help encourage the market to grow if there is more widespread awareness across the U.S.,” said Harvey Bernstein, vice president, Industry Insights and Alliances for McGraw Hill Construction.

The study also examines the triggers for green building activity. “This new study demonstrates phenomenal growth in green building, with more builders engaging in sustainable building practices than ever before,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Del. “While growth in green in the single family market is driven more by high quality and customer demand, the multifamily market is more driven by cost factors such as the availability of government or utility incentives, as well as enhancing their competitive position and corporate

Jim McLean 164 Louise Stark 163 Trey Lewis 152 Harry Johnson 146 Steve Cates 140 C.W. Bartlett 138 Tonya Alexander 127 Steve Hewlett 119 Sam Carbine 117 James Franks 117 Carmen Butner 105 Johnny Watson 101 Dave McGowan 99 B.J. Hanson 97 Jeff Zeitlin 87 Duane Vanhook 83 Jordan Clark 81 Julie DuPree 77 Erin Richardson 76 Jeff Slusher 70 John Baugh 68 Wiggs Thompson 63 Don Bruce 62 Jim Ford, Jr. 62 Hill McAlister 57 Joe Morgan 54 Gerald Bucy 53 Beth Sturm 53 John Broderick 52 David Hughes 49 Al Davis 47 Sheila Rawlings 47 Bernie Laine 46 Greg Langley 46 Benny Sullivan 46 Lori Fisk-Conners 45 Andrew Neuman 45

Bryan Edwards 44 Kay Russell 44 Peggy Krebs 39 John Ganschow 38 David Lippe 38 Michael Dillon 37 Andy Wyatt 37 Chuck Clarkson 36 Frank Miller 36 Brad Butler 35 Al Hacker 34 Ray Edwards 32 Dan Strebel 32 Steve Wheeley 30 Alvin Basel 29 Christina Cunningham 25 Spikes Don Mahone 17 Marty Maitland 17 Jess Dillon 16 Tracy Lomax 14 Frank Tyree 12 Justin Hicks 11 Derenda Sircy 11 Pam Smith 10 Don Alexander 9

image. All are compelling reasons for the industry to engage with this continuously growing market.”

The SmartMarket Report also reveals a vigorous and growing renewables market in the residential sector. 65% of the respondents – both single family and multifamily – currently use renewables on at least some of their projects, and the percentage that incorporate them in all of their projects is expected to grow from 8% in 2013 to 20% by 2016.

“Green Multifamily &Single Family Homes: Growth in a Recovering Market” was produced

by McGraw Hill Construction in partnership with the NationalAssociation of Home Builders, with the support of Waste Management and Menck Windows. View the full report here: http://analyticsstore.construction.com/2014GreenHomesSMR?sourcekey=PRESREL. n

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JULY Calendar Sunday

Monday

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Metro/Nashville Chapter meeting

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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, August 18.

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, July 28.

Topic: to be announced.

Price: Builders Free pending sponsorship; $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 - Jason Broderick.

The HBAMT Remodelers Council meets on the third Wednesday of the month, 11:00 a.m. at varying locations.

Next meeting: Wednesday, August 20.

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.

Price: Builders Free pending sponsorship; $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 - Trey Lewis.

The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices.

Next meeting: Thursday, August 7.

Topic: to be announced.

Price: SMC members free pending sponsorship! ($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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