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NAIL The official magazine of Home Builders Association of Middle Tennessee President Justin Hicks Vice President David Hughes Secretary/Treasurer Steve Shalibo Executive Vice President John Sheley Editor and Designer Jim Argo Staff Connie Nicley Hannah Garrard
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 HBAMT online directory updates underway
The HBAMT is in the process of updating its online directory of members. Help us improve the feature by providing additional details about your business.
10 Spring Showcase House program wraps first effort
The pilot project of the Spring Showcase House program ended its successful first year run with a celebratory open house last month.
15 Promotional opportunities at the 2019 Parade
Sign up now to participate as an advertiser or exhibitor at the 2019 James Hardie Parade of Homes at The Grove.
6 News & Information 17 SPIKE Club Report 18 April Calendar 18 Chapters and Councils
Visit http://www.hbamt.org/nail.html and click The NAIL Advertising Rates (pdf) to download rates and registration form Email firstname.lastname@example.org for more details
ON THE COVER: The 2019 Showcase House constructed by Tennessee Valley Homes in Thompsons Station. More details on page ten. April, 2019
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New home sales end the year 1.5 percent up
ales of newly built, single-family homes posted a yearly gain of 1.5 percent in 2018, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The December sales numbers rose 3.7 percent to a seasonally adjusted annual rate of 621,000 units after a downwardly revised November report. The sales report was delayed due to the partial government shutdown. “The slight gain for 2018 new home sales reflects solid underlying demand for homeownership,” said NAHB Chairman Greg Ugalde, a home builder and developer from Torrington, Conn. “Housing affordability remains a challenge across the country, but conditions have improved in early 2019, as illustrated by the recent uptick in builder confidence.” “Despite a period of weakness in the fall, new home sales ended the year with a small gain,” said NAHB Chief Economist Robert Dietz. “While the December sales pace improved
The slight gain for 2018 new home sales reflects solid underlying demand for home ownership. 6 The NAIL
on a monthly basis, the current rate of sales remains off the post-Great Recession trend due to housing affordability concerns made worse by the rise in mortgage interest rates at the end of the year. We expect lower mortgage rates in the early months of 2019 will lead to additional new home demand.” 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 December reading of 621,000 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 continued to rise in December to 344,000 homes available for sale. A year prior, new single-family home inventory stood at 294,000. The median sales price increased in December to $318,600, although it is lower than a year ago when the median sales price was $343,300. This is primarily due to the rising use of price incentives and a slow change toward additional entry-level inventory. Regionally, on a total year basis for 2018, new home sales declined 16 percent in the Northeast and one percent in the West. Sales rose four percent in the South and six percent in the Midwest. n
Housing starts rebound, permit growth stable
otal housing starts rose 18.6 percent in January to a seasonally adjusted annual rate of 1.23 million units from a downwardly revised reading in December, according to a report from the U.S. Housing and Urban Development and Commerce Department that was delayed due to the partial government shutdown. The January reading of 1.23 million is the number of housing units builders would begin if they kept this pace for the next 12 months. Within this overall number, single-family starts surged 25.1 percent to 926,000 units. Meanwhile, the multifamily sector, which includes apartment buildings and condos, increased 2.4 percent to 304,000. “The bounce back in single-family starts mirrors our builder confidence surveys, as sentiment fell in the latter part of 2018 but rebounded in January after mortgage rates showed a notable decline,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn. “Some single-family projects that were on pause in December, meaning they were authorized but not started, went online in January. However, builders remain cautious as single-family permit numbers in January were somewhat soft,” said NAHB Chief Economist Robert Dietz. Regionally, combined single-family and multifamily starts in January rose 58.5 percent
in the Northeast, 29.3 percent in the West and 13.8 percent in the South. Starts fell 5.7 percent in the Midwest. Overall permits, which are often a harbinger of future housing production, rose 1.4 percent to 1.35 million units in January. Single-family permits fell 2.1 percent to 812,000, the lowest level since August 2017. Multifamily permits increased 7.2 percent to 533,000. Looking at regional permit data, permits rose 33.1 percent in the Midwest and 26.4 percent in the Northeast. Permits fell 8.9 percent in the West and 3.5 percent in the South. n Permit growth stable in December Over the year 2018, the total number of single-family permits issued year-to-date (YTD) nationwide reached 852,856. On a year-over-year basis, this is a 4.3% increase over the December 2017 level of 817,319. The preliminary results from the New Residential Construction Survey are similar, year-to-date single-family permits for the year 2018, was 852,700 which is 4.0% ahead of its level over the same period of 2017, 820,000. Year-to-date ending in December, single-family permits grew in the Southern and the Western regions of the country, while the Midwest and Northeast declined by 3.6% and 2.1% respectively, compared to the same time period in 2017. The Western region had the highest growth in single-family (8.2%) while
2018 custom home building flat
AHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates custom home building was effectively flat over the course of 2018. There were 36,000 total custom starts for the fourth quarter of 2018. This was down compared to the final quarter of 2017 (40,000). Over the course of 2018, custom housing starts totaled 170,000. This was a 1.2% decline compared to 2017 (172,000). Note that this definition of custom home building does not include homes intended for sale, so the analysis uses a narrow definition of the sector. As measured on a one-year moving aver-
age, the market share of custom home building in terms of total single-family starts is now 19%, down from a cycle high of 31.5% set during the second quarter of 2009. The onset of the housing crisis and the Great Recession interrupted a 15-year long trend away from homes built on the eventual owner’s land. As housing production slowed in 2006 and 2007, the market share of this notfor-sale new housing increased as the number of single-family starts declined. The share increased because the credit crunch made it more difficult for builders to obtain AD&C credit, thus producing relatively greater production declines of for-sale single-family housing.
the South recorded the highest multifamily permits growth (16.3%) during the last 12 months. The South was the only region to record growth in multifamily permits during this time. Between December 2017 YTD and December 2018 YTD, 29 states saw growth in single-family permits issued while 20 states and the District of Columbia registered a decline. There was no change in the number of permits issued in Ohio. Colorado recorded the highest growth rate during this time at 15.7% while single-family permits in the District of Columbia declined by 68.2%, from 352 in 2017 to 112 in 2018. The 10 states issuing the highest number of single-family permits combined accounted for 60.0% of the total single-family permits issued. Year-to-date, ending in December 2018, the total number of multifamily permits issued nationwide reached 465,039. This is 4.1% ahead of its level over the year 2017, 446,732. The preliminary results from the New Residential Construction Survey show a small decline of 0.9% in multifamily permits over the year 2018, 458,000 compared to the same period of 2017, 462,000. Between December 2017 YTD and December 2018 YTD, 25 states recorded growth while 25 states and the District of Columbia recorded a decline in multifamily permits. Rhode Island lead the way with a sharp rise in multifamily permits from 159 to 306, while Delaware had the largest decline of 57.2% from 1472 to 630. The 10 states issuing the highest number of multifamily permits combined accounted for 64.6% of the multifamily permits issued. n
Recent declines in market share are due to an acceleration in overall single-family construction, especially in spec home building. As this part of the market cools due to declining affordability, the market share for custom homes will likely stabilize. n
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Help us update the HBAMT directory
he association is currently in the process of updating and improving the HBAMT Membership Directory. We are on track to have the directory back online by the end of May. In an effort to enhance your ability to find and communicate with fellow HBAMT members, businesses, and services, we will be adding additional details to each listing to improve its effectiveness. This will also help the general public quickly identify your business when searching the directory. You should have received emails and letters from us detailing this information. If not, please take time to review the requested information below and respond with your preferred listing details.
PLEASE REPLY TO THE HBAMT WITH THE FOLLOWING THREE (3) PIECES OF INFORMATION: 1) Your website address. Please send us the exact URL that will link members and consumers directly to the page you want them to visit when they’re seeking you or your products and services.
2) A one-sentence description of your company. Please send us a one-sentence description of your company and the products and services you provide. For example: “XYZ Supply provides building supplies for both small and large construction projects throughout Tennessee.” Descriptions should be short and concise and not exceed more than 40-50 words. 3) The trade/service you would like your company’s listing to be found in the directory. Please let us know which trades and services would best serve your company in a directory. You may respond with up to three choices. Please list the BEST, most applicable listing for your company first. For example: “Building Supply, Lumber, Drywall Supply.” Your listing will still appear in directory search queries if we don’t receive your reply. We will add these new details when we receive your responses. If you’ve already responded to the emails or letters we’ve sent, thank you! If not, please take the time to return these details to us at your earliest convenience.
Return your responses to email@example.com or via mail to: HBAMT, 9007 Overlook Blvd., Brentwood, TN 37027. n 1. Your website address: ___________________ _______________________________________ 2. One sentence description of your company: _______________________________________ _______________________________________ _______________________________________ _______________________________________ 3. The trade/service you would like your company’s listing to be found: ______________ _______________________________________ _______________________________________ April, 2019
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Spring Showcase house at Bridgemore!
ennessee Valley Homes held an open house and dedication ceremony for the pilot project of the Spring Showcase House last month at the Bridgemore community in Thompsons Station. The project, spearheaded by Jimmy Franks and featuring a home built by Tennessee Valley Homes, raises funds through the sale of the house for the association to continue its support of the local home building industry.
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Companies contributing to the construction of the house were recognized during the event and presented plaques of appreciation by Franks. A big thanks to everyone for your support of the project and the association. See page fourteen for a full list of these companies. And a very big thanks to Jimmy and the entire Tennessee Valley Homes team for their efforts in getting the project off the ground and making it such a successful endeavor in its first year. Way to go! n
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Ryan Meade, Ferguson Enterprises, accepts the companyâ€™s appreciation award from Jimmy Franks.
Kevin Anderson, Beth Taylor, Franks, and Greg Binkley from Kohler.
Zach Spencer, Markraft.
Nathan Paul, PPG Paint, Inc.
Matt Dryden, Irving Materials, Inc.
Lauren Elder, Rosemary Home.
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Lisa Steltemeier, Vulcan Materials.
Linda Walsh, Cosentino North America.
Danny Campbell, Guardian Systems.
Sean McConnell, ProSource. With John Sheley.
Roger Russell, Associated Masonry Products.
Trey Strickland, Waynes, Inc.
Tonya Esquibel, InterLinc Mortgage.
MacKenzie Curtis, Citizens One Bank.
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Thank you Spring Showcase House contributors! Ferguson Enterprises Huskey Truss Irving Materials, Inc. James Hardie Building Products Kohler Markraft PPG Paint, Inc. Rosemary Home Schlage Lock Company Whirlpool American Heating & Cooling Cosentino North America Granite & Stone Design, Inc. Guardian Systems Harpeth True Value ProSource Wholesale, Inc. Roofing Supply Group Vulcan Materials Associated Masonry Products Bozman Signs CD Door Company Central Woodwork Citizens One Bank Fancy Vents, Inc. Installed Building Products, Inc JL Classic Carpentry L&W Supply Middle Tennessee Lumber Co., Inc Nashville Fireplace Parksite Rome Electric Waynes, Inc. 14 The NAIL
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James Hardie Parade of Homes The 2019 Parade of Homes at The Grove
ADVERTISE & EXHIBIT
If your company depends on new homes or related products, furnishings or services, here’s one opportunity you can’t pass up -- the 2019 James Hardie Parade of Homes at The Grove! Secure your space in the Plan Book or reserve an Exhibit Booth today.
THE PARADE PLAN BOOK
THE PARADE EXHIBIT BOOTH
At every Parade event each attendee is handed a magazine as they walk through the front gate - the Parade Plan Book.
Here’s your chance to demonstrate your product or service to the thousands of qualified prospects who pass through the Parade of Homes exhibit center when they enter and leave the show. As with Plan Book advertising, the exhibit center produces virtually all pre-qualified customers!
The Plan Book is a tremendous opportunity to put your message into the hands of pre-qualified customers who refer to the book several months after the Parade of Homes is over! Plan Book Advertising Rates Half Page 7.5” x4.75” (Horizontal) Full Page 7.5”x10” 8.75”x 11.25” (B1eed) *Page One 7.5”x10” 8.75”x11.25” (Bleed) *Inside Front Cover Inside Back Cover *Double Truck Back Cover
$800 $1,200 $1,600 $2,100 $2,300 $2,840 $3,250
*specialty locations sold. Email firstname.lastname@example.org for ad specs and availability.
It’s like opening up shop and having thousands of prospects visit your showroom the first two weeks you’re in business. What other medium could come close to producing those kinds of results? The Parade ranks first of all home shows in the nation and you can take advantage of the prestige this show enjoys. Exhibit Booth Price? $750 Each booth in the Parade of Homes exhibit center measures 10’ x 6’ at the front entrance where patrons must enter and exit -- perfect for eye-popping kiosks and marketing publications!
2019 PARADE OF HOMES - PROMOTIONAL OPPORTUNITIES COMMITMENT FORM
Return completed form to: HBAMT, 9007 Overlook Blvd., Brentwood, TN 37027 | Fax: 615/377-1077 | Email: email@example.com
PLAN BOOK AD - please check the size of ad you would like to secure in the 2019 Plan Book:
r Half Page
r Full Page
r Page One
r Inside Front
r Inside Back
r Back Cover
r 2-Page Spread
EXHIBIT BOOTH SPACE - please check here to secure your 2019 Exhibit Booth Space: r Your name: ____________________________________ Company: _____________________________________ Cell: _________________________________________ Email: _________________________________________ Total amount being paid: $___________ Credit Card _______________________ Credit Card # _______________________________ Exp. ____________ Credit Card V-Code _______________
The “v-code” is found on the back of the card, usually printed or embossed atop or near the signature strip.
It is comprised of three digits found to the right of a longer number.
Signature ____________________________________________________________________________________ 16 The NAIL
SPIKE REPORT Davis Lamb 206 Jackson Downey 182 Tim Ferguson 177 Jim McLean 164
Twenty-four 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, 2019. Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 767 Terry Cobb 570 Jim Fischer 566 John Whitaker 559 Trey Lewis 432 James Carbine 394 Jennifer Earnest 368 David Crane 319 Kevin Hale 300 Jimmy Franks 279 Reese Smith III 261 Steve Moody 219 Sonny Shackelford 219
Life Spikes Harry Johnson 146 Steve Cates 142 C.W. Bartlett 138 Tonya Esquibel 137 Sam Carbine 136 Randall Smith 128 Kevin Woodward 122 Jordan Clark 119 B.J. Hanson 119 Steve Hewlett 119 Carmen Ryan 117 John Zelenak 113 Helmet Mundt 110 Dave McGowan 108 David Hughes 106 Edsel Charles 105 Wiggs Thompson 103 Michael Dillon 100 Duane Vanhook 100 Justin Hicks 96 Jeff Zeitlin 87 Joe Morgan 83 Christina Cunningham 82 Erin Richardson 77 Beth Sturm 72 Keith Porterfield 70 Jeff Slusher 70
Lori Fisk-Conners 69 Sam Henley 64 Don Bruce 62 Eugene James 61 Marty Maitland 60 Ron Schroeder 60 Nick Wisniewski 57 John Broderick 55 Jody Derrick 55 Derenda Sircy 52 Andrew Neuman 50 John Ganschow 49 Steve Shalibo 47 Ashley Crews 45 Phillip Smith 45 Bryan Edwards 44 Ricky Scott 44 Rick Olszewski 40 Don Mahone 30 Frank Tyree 29 Christina James 27 Brandon Rickman 27 Frank Jones 26 Spikes Joe Dalton 16 Nicole Bird 15 Perry Pratt 14 Rob Pease 11 Jeffrey Caruth 10 Tammy Chambers 10 Will Montgomery 10 Bob Bellenfant 8
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April Calendar Sunday
Sales & Marketing Council meeting
Dickson County Chapter meeting
Metro/Nashville Chapter meeting
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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 Tuesday of the month, 12:00 p.m. at Colton’s Steakhouse in Dickson. Next meeting: Tuesday, April 23. Topic: to be announced. Price: Meeting FREE, lunch dutch treat. Chapter RSVP Line: 615/377-9651, ext. 264 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 - Tonya Esquibel The Metro/Nashville Chapter meets on the fourth Monday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: Thursday, April 25. Topic: to be announced. Builders Free pending sponsorship. Price: to be determined. Chapter RSVP Line: 615/377-9651, ext. 261 ROBERTSON COUNTY CHAPTER
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Next meeting: to be announced. Robertson County RSVP line: 615-377-9651, ext. 313.
sponsorship; $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 308
SUMNER COUNTY CHAPTER Chapter President - Joe Dalton: 615/972-7149 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. 262
HBAMT REMODELERS COUNCIL Council President - David Crane. The HBAMT Remodelers Council meets on the third Wednesday of the month at varying locations. Next meeting: to be announced. 11 a.m. to 12:30 p.m. at a location to be determined. Topic: to be announced. Price: free with RSVP. Council RSVP Line: 615/377-9651, ext. 263
WILLIAMSON COUNTY CHAPTER Chapter President - B.J. 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. Price: free for Green Building Council members pending
INFILL BUILDERS COUNCIL The Infill Builders Council typically meets on the third Thursday of the month, 11:30 a.m. at the HBAMT offices Next meeting: to be announced. Price: to be announced. RSVP to: 615/377-9651, ext. 265. MIDDLE TENN SALES & MARKETING COUNCIL Council President - Jeffrey Caruth. The SMC typically meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, April 4, 9:00 a.m. at the HBAMT. Topic: “Selling Homes in a Multi-cultural Market,” with a panel of sales and marketing experts. SMC members free thanks to Witherspoon; non-SMC members $25 w/RSVP, $35 w/o RSVP Council RSVP Line: 615/377-9651, ext. 260.
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The April 2019 issue of The Nail, the official monthly publication of the Home Builders Association of Middle Tennessee (HBAMT).