The Nail, July 2019

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Secure your place in the 2019 Parade Plan Book and reach your future customers for years to come!

THE

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

At the 2019 Parade, each attendee will be handed a magazine as they walk through the front gate the Parade Plan Book!

The Plan Book is a tremen­dous opportunity to put your message into the hands of prequalified customers who refer to the book for months, even years after the Parade is over!

Find more details and your registration form on page 15 of this issue of The Nail. www.theparadeofhomes.org 4 The NAIL

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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.

FEATURES 9 Top barrier to home ownership may be easing

Affordability trending down in reasons buyers are reluctant to pull the trigger on a new home purchase.

10 HBAMT FISH FRY

Jimmy Franks and Rick Olszewski hosted a delicious, fun-filled fish fry at their gorgeous house at the Nashville Golf and Athletic Club.

12 HBAMT’s 2019 Golf Event set for August 15th

The HBAMT’s big summer event is right around the corner! Sign up now for the James Hardie Golf Tournament this August at the Legends Golf Club.

15 James Hardie Parade of Homes at The Grove

Advertise in

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NAIL Visit http://www.hbamt.org/nail.html and click The NAIL Advertising Rates (pdf) to download rates and registration form Email jargo@hbamt.org for more details

The popular annual event returns this fall for a two-week, three weekend run at The Grove.

Sign up now to participate as an advertiser or exhibitor during the Parade.

DEPARTMENTS 6 News & Information 17 SPIKE Club Report 18 July Calendar 18 Chapters and Councils

ON THE COVER: Housing affordability trending down on list of reasons buyers choose not to buy.

More details on page nine.

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news&info

New home sales fall 7.8 percent in May

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ales of newly built, single-family homes fell 7.8 percent to a seasonally adjusted annual rate of 626,000 units in May, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. On a year-to-date basis however, new home sales for 2019 are 4 percent higher than the same period in 2018.

“The report shows growth in sales in the $200,000-300,000 price range, which indicates middle-class demand for housing is being supported by low rates and solid employment,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn.

“The May numbers are a bit surprising

Given lower interest rates and builder confidence data, we expect June new home sales figures will show a rebound.

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given lower mortgage interest rates and solid builder confidence data,” said NAHB Chief Economist Robert Dietz. “Based on these conditions, we expect June new home sales figures will show a rebound.”

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 May reading of 626,000 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 was 333,000 in May, representing a 6.4 months’ supply. The median sales price was $308,200.

The median price of a new home sale a year earlier was $316,700.

Regionally, and on a year to date basis, new home sales are 7.5 percent higher in the South and 3.4 percent higher in the West. Sales are down 13.3 percent in the Northeast and 3.2 percent in the Midwest. n

Housing starts flat in May, a slight dip in builder confidence

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otal housing starts declined 0.9 percent in May to a seasonally adjusted annual rate of 1.27 million units from an upwardly revised reading in April, according to a report from the U.S. Housing and Urban Development and Commerce Department.

The May reading of 1.27 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 fell 6.4 percent to 820,000 units. The multifamily sector, which includes apartment buildings and condos, increased 10.9 percent to a 449,000 pace.

“The rise in single-family permits echoes the stabilization we are seeing in our builder confidence survey,” said Greg Ugalde, NAHB chairman. “While the increase in permits is a positive sign for the housing market, there are still affordability concerns throughout the country, especially in high-cost areas.”

“The decline in single-family starts is off a solid upward revision in April,” said Danushka Nanayakkara-Skillington, NAHB assistant vice president of forecasting and analysis. “This is another indicator that ongoing builder supply-side concerns are making it more difficult to build homes at affordable price points. We expect single-family housing starts to remain flat through 2019.”

Regionally, combined single-family and multifamily starts in May rose 11.2 percent in the South. Starts declined 45.5 percent in

the Northeast, 8.0 percent in the Midwest and 2.4 percent in the West.

Overall permits, which are a harbinger of future housing production, edged up 0.3 percent to a 1.3 million unit annualized rate in May. Single-family permits increased 3.7 percent to 815,000, the first increase since November 2018. Multifamily permits fell 5.0 percent to 479,000.

Looking at regional permit data, permits rose 6.8 percent in the South and 1.8 percent in the West. Permits fell 24.6 percent in the Northeast and 8.4 percent in the Midwest.

Builder confidence edges down in June Builder confidence in the market for newly-built single-family homes fell two points to 64 in June, according to the latest NAHB/ Wells Fargo Housing Market Index (HMI) released today. Sentiment levels have held at a solid range in the low- to mid-60s for the past five months.

Skilled Labor Fund grants bring shop back to high schools

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he Skilled Labor Fund, designed to address the lack of skilled labor entering the residential construction industry, awarded more than $200,000 in grants to 42 local HBAs across the country to provide skills training to high school students.

“Working with local home builder associations, we can bring the shop back into our high schools and offer career fairs to change lives and create the future workforce for home building,” said Ted Mahoney, a member of the Fund’s Operating Committee and chairman-elect of the National Housing Endowment, the philanthrop-

ic arm of NAHB. The Building Careers grant offers support for training programs provided largely by the Home Builders Institute and Career Connections funds career fairs and events. These programs will take place over the next two years and impact an estimated 24,000 students across the country.

“This initiative was made possible through a partnership with the NAHB and the generous gifts of our donors and partners. It is a great start and we need to do more,” said Rick Judson, chair of the Endowment.

The Skilled Labor Fund, managed by the

“While demand for single-family homes remains sound, builders continue to report rising development and construction costs, with some additional concerns over trade issues,” said Ugalde.

“Despite lower mortgage rates, home prices remain somewhat high relative to incomes, which is particularly challenging for entry-level buyers,” said NAHB Chief Economist Robert Dietz. “And while new home sales picked up in March and April, builders continue to grapple with excessive regulations, a shortage of lots and lack of skilled labor that are hurting affordability and depressing supply.”

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.

All the HMI indices inched lower in June.

The index measuring current sales conditions fell one point to 71, the component gauging expectations in the next six months moved two points lower to 70 and the metric charting buyer traffic dropped one point to 48.

Looking at the three-month moving averages for regional HMI scores, the Northeast posted a three-point gain to 60 and the Midwest was also up three points to 57. The West held steady at 71 and the South fell a single point to 67. n

Endowment, is a partnership of NAHB, the National Association of the Remodeling Industry, the National Kitchen & Bath Association, SGC Horizon and Hydrogen Advertising. The Fund focuses solely on skilled labor for the residential market. n

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Is top barrier to home ownership easing?

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recent NAHB study revealed that 53% of buyers actively searching for a home to buy in the first quarter of 2019 have been looking unsuccessfully for at least three months.

Why is it taking these buyers so long to pull the trigger?

The most important reason is they can’t find a home at a price they can afford (46%), followed by not finding a home in the neighborhood of their choice (40%) and not being able to find a home with the features they want (38%). Comparing these findings to similar data from a year earlier shows a 5-point drop in the share of buyers who consider high prices their biggest barrier to homeownership.

These were the findings from the most recent Housing Trends Report (HTR), a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for sale in their

markets. The HTR is produced quarterly to track changes in buyers’ perceptions over time.

If the right home remains elusive for these buyers in the months ahead, these house hunters reported they will do the following: n

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56% will continue looking for the ‘right’ home in the same preferred location, 41% will expand their search area, 30% is willing to accept a smaller/older home, and 21% might buy a more expensive home.

Giving up on homeownership is the least likely outcome, as only 14% will stop trying to find a home. Future polls will determine how this propensity to postpone homeownership will change, if at all, given the changing dynamics (e.g. interest rates, home prices) of the housing market. n

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HBAMT Fish Fry!

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ig fun last month at the HBAMT Fish! The event was hosted

by HBAT President Jimmy Franks and HBAMT Director Rick Olszewski at their beautiful home at the Nashville Golf and Athletic Club in Brentwood. Catered by Bob’s Fish Fry, the evening was a fun mix of friends and southern fried fixin’s.

Thanks to all our sponsors, including: Citizens One; Spec Building Materials; Ferguson; and PPG Paints. And a big thanks to Jimmy and Rick for hosting the event! n

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

ALL COMPANIES & SINGLE PLAYERS ENTERING MUST BE A MEMBER OF THE HBAMT.

CONTACT ________________________________ COMPANY _____________________________________ EMAIL ___________________________________ PHONE ________________________________________ Print names of players. Four (4) players per team ($220.00 per player). Players reserving for ONE only ($235.00) 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 _______ No. of players x $220.00 or One (1) player for $235.00 | Make checks payable to HBAMT; call 377-1055 to pay by cc Return: HBAMT - 9007 Overlook Blvd, Brentwood, TN 37027 | Fax: 615-377-1077 | Email: cnicley@hbamt.net

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2019 Golf Tournament Sponsorships!

The 8th Annual HBAMT Golf Tournament returns Thursday, August 15 to The Legends Club in Franklin. Sign up now to sponsor at one of the following levels! selection

sponsorship level

price/# available benefits

TITLE SPONSOR

$10,000 1 available

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Company name featured as headliner on all materials Booth at registration, awards wrap-up & course hole Opportunity to hand out promotional materials Signage provided

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Lunch Sponsor

$5,000 1 available

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Company name featured as Lunch Sponsor on all material Booth at check-in and Golf Tournament course hole Opportunity to hand out promotional materials Four (4) tickets to Wrap-up and Kick-off Party

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Breakfast Sponsor

$2,500 1 available

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Company name featured as Breakfast Sponsor on all material Booth at check-in and Golf Tournament course hole Your booth will be breakfast ticket pick up point for all golfers Opportunity to hand out promotional materials Two (2) tickets to Wrap-up and Kick-off Party

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KICK-OFF EVENT

$5,000 1 available

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Company name featured on all Kick-off event materials Booth at Kick-off event & on Golf Tournament course hole Hand out promo materials at Kick-off event & course hole Signage at Kick-off event and Golf Tournament provided Four (4) tickets to Kick-off Event

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$1,200 5 available

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Company name featured as headliner on all materials Booth at wrap-up & course hole Opportunity to hand out promotional materials at hole Signage at tournament provided Two (2) tickets to wrap-up and Kick-off event

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$1,000 9 available

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Single hole sponsor for both morning & afternoon rounds Opportunity to hand out promotional materials at hole Signage at tournament provided Opportunity to hand out information & goodies Two (2) tickets to wrap-up and Kick-off event

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Silver Sponsor

$600

l Hole sponsor for both morning & afternoon rounds l Opportunity to hand out promotional materials at hole l Two (2) tickets to wrap-up and Kick-off event

Hospitality Cart

$1,500 2 available

l Hospitality cart with your name on it l Opportunity to ride cart in morning & afternoon rounds moving freely within the course handing out beverages & goodies

Wrap-up Party Sponsor

$2,500 1 available

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(pre tournament party)

Title Sponsor

Platinum

Gold Sponsor

SOLD

Company name featured as Wrap-up Sponsor on all material Booth at check-in and Golf Tournament course hole Opportunity to hand out promotional materials Two (2) tickets to Breakfast and Kick-off Party

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Indicate which of the seven (7) sponsorship levels shown above you selected and return the completed form below to the HBAMT to sign up today! (List company EXACTLY as you want it to appear on signage.)

CONTACT _________________________________ COMPANY ___________________________________ EMAIL ____________________________________ PHONE ______________________________________ Your Name (print) ____________________________ Signature ____________________________________ Return to: HBAMT - 9007 Overlook Blvd, Brentwood, TN 37027 l Fax: (615) 377-1077 l Email: cnicley@hbamt.net

HBAMT does not allow subletting of any of services, products, promotional opportunities or memberships. **A 3% convenience fee is applied to all credit card transactions.** July, 2019 l The NAIL 13

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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 jargo@hbamt.net 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: jargo@hbamt.org

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.

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SPIKE REPORT Davis Lamb 207 Jackson Downey 182 Tim Ferguson 177 Jim McLean 164

Twenty-three 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, 2019.

Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 769 Terry Cobb 570 Jim Fischer 566 John Whitaker 561 Trey Lewis 453 James Carbine 395 Jennifer Earnest 368 David Crane 322 Kevin Hale 300 Jimmy Franks 289 Reese Smith III 261 Steve Moody 219 Sonny Shackelford 219

Life Spikes Harry Johnson 146 Steve Cates 142 Tonya Esquibel 142 C.W. Bartlett 138 Sam Carbine 136 Randall Smith 132 Kevin Woodward 128 B.J. Hanson 120 Jordan Clark 119 Steve Hewlett 119 Carmen Ryan 117 Helmet Mundt 116 David Hughes 114 John Zelenak 114 Dave McGowan 108 Edsel Charles 107 Wiggs Thompson 103 Justin Hicks 102 Michael Dillon 101 Duane Vanhook 100 Joe Morgan 89 Jeff Zeitlin 87 Christina Cunningham 84 Erin Richardson 77 Beth Sturm 73 Keith Porterfield 72 Jeff Slusher 70

Lori Fisk-Conners 69 Nick Wisniewski 67 Sam Henley 65 Don Bruce 62 Jody Derrick 62 Eugene James 61 Ron Schroeder 61 Marty Maitland 60 Steve Shalibo 57 John Broderick 55 Derenda Sircy 52 Andrew Neuman 50 John Ganschow 49 Ashley Crews 45 Phillip Smith 45 Bryan Edwards 44 Rick Olszewski 44 Ricky Scott 44 Christina James 32 Don Mahone 30 Frank Tyree 30 Brandon Rickman 29 Frank Jones 26 Spikes Joe Dalton 19 Jeffrey Caruth 16 Perry Pratt 16 Nicole Bird 15 Eric DeBerry 12 Rob Pease 11 Tammy Chambers 10 MacKenzie Curtis 10

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JULY Calendar Sunday

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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, August 20.

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 Thursday of the month, 11:30 a.m. at the HBAMT offices.

Next meeting: Thursday, August 22.

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, August 1, 9:00 a.m. at the HBAMT. Topic: to be announced.

SMC members free pending sponsorship; non-SMC members $25 w/RSVP, $35 w/o RSVP Council RSVP Line: 615/377-9651, ext. 260.

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