The Nail, June 2021

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NAIL The official magazine of Home Builders Association of Middle Tennessee President Steve Shalibo Vice President Nick Wisniewski Secretary/Treasurer Brandon Rickman 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 Spring Fling & Builders Show a big hit!

The HBAMT Spring Fling & Builders Show drew big crowds to the association’s offices last month.

12 Sign up now to sponsor the 2021 golf event

The James Hardie Golf Tournament is right around the corner. Register now to sponsor the big event and secure your space at the tournament.

13 Speed networking with top builders event

The Metro/Nashville Chapter held a special networking event at the Erik Skoldberg Studios in Nashville last month.

Advertise in

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NAIL Email jargo@hbamt.org for more details!

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

ON THE COVER: The HBAMT Spring Fling and Builders Show was held last month at the HBAMT. See page nine (9) for more details.

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NEWS&INFO

New home sales soften in April, affordability concerns grow

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ising building materials costs and low inventory have caused new home sales prices to jump 20% on a year-overyear basis, harming housing affordability and driving down the pace of new home sales.

Sales of newly built, single-family homes fell 5.9%, following a significant downward revision of the March estimate, to a 863,000 seasonally adjusted annual rate, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

“Affordability factors are clearly affecting new home sales,” said NAHB Chairman Chuck Fowke. “A growing number of builders are limiting sales in order to manage supply chains, including access and cost factors associated with lumber, appliances and other building materials. Policymakers need to find ways to improve the supply chain, by facilitating more domestic production, or in cases

After a period of builders holding back prices increases, new home prices were 20% higher year-over-year.

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where that cannot be done, suspending tariffs to allow for more imports.”

“After a period of builders holding back price increases, new home prices were 20% higher year-over-year per the April Census data,” said NAHB Chief Economist Robert Dietz. “Higher prices have priced out buyers, particularly at the lower end of the market. A year ago, 45% of new home sales were priced below $300,000. In April 2021, only 27% of new home sales were priced below $300,000.”

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 April reading of 863,000 units is the number of homes that would sell if this pace continued for the next 12 months.

Inventory remains low at a 4.4 month supply, with 316,000 new single-family homes for sale, 33.3% lower than April 2020. Completed homes continue to fall as a share of the market, representing only about 11% of the inventory in April, compared to 24% a year ago.

The median sales price was $372,400, up from the $310,100 median sales price posted a year earlier. n

Housing production cools, builder confidence holds steady

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ousing production fell in April due to the increased costs of building materials that have priced out potential home buyers. Overall housing starts decreased 9.5% to a seasonally adjusted annual rate of 1.57 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

The April reading of 1.57 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 13.4% to a 1.09 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, increased 0.8% to a 482,000 pace.

“Housing starts and permits posted a monthly decline in April, as escalating prices for lumber and other building materials price out some home buyers from an otherwise hot housing market,” said NAHB Chairman Chuck Fowke. “Policymakers need to prioritize the U.S. supply chain for items like building materials to ensure builders can add the additional inventory the housing market desperately needs.”

“The decline in single-family permits indicates that builders are slowing construction activity as costs rise,” said NAHB Chief Economist Robert Dietz. “While housing starts were strong at the beginning of the year, due to home builders constructing homes that were sold pre-construction, higher costs and limited availability of building materials have now paused some projects.”

Overall permits increased 0.3% to a 1.76

million unit annualized rate in April. Single-family permits decreased 3.8% to a 1.15 million unit rate. Multifamily permits increased 8.9% to a 611,000 pace.

Looking at regional permit data compared to the previous month, permits are 8.4% higher in the Northeast, 9.9% lower in the Midwest, 3.9% higher in the South and 4.1% lower in the West.

The number of single-family homes permitted but not started construction continued to increase in April, rising to 131,000 units.

This is 47% higher than a year ago, as building material cost increases and delays slow some home building.

Builder confidence holds steady Builder confidence held stable in May, despite growing concerns over the price and availability of most building materials, including lumber. The latest NAHB/Wells Fargo Housing Market Index (HMI) released today shows that builder confidence in the market for newly built single-family homes is 83 in May, unchanged from April.

“Builder confidence in the market remains strong due to a lack of resale inventory, low mortgage interest rates, and a growing demographic of prospective home buyers,” said Fowke. “However, first-time and first-generation home buyers are particularly at risk for losing a purchase due to cost hikes associated with increasingly scarce material availability.

Policymakers must take note and find ways to increase production of domestic building materials, including lumber and steel, and suspend tariffs on imports of construction materials.”

Single- and multi-family permits post gains across the country

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he total number of single-family permits issued year-to-date nationwide reached 276,110 in March, up 25.3% over the March 2020 level of 220,416. In addition, gains were reported in all four regions of the country, with the Midwest reporting an increase of 40.0%, followed by the Northeast (27.3%), the West (23.9%), and the South (23.1%).

Multifamily permits were also robust across

the country in March compared to last year with the South (22.1%), Northeast (21.3%),

“Low interest rates are supporting housing affordability in a market where the cost of most materials is rising,” said Dietz. “In recent months, aggregate residential construction material costs were up 12% year over year, and our surveys suggest those costs are rising further. Some builders are slowing sales to manage their own supply chains, which means growing affordability challenges for a market in critical need of more inventory.”

With labor and lot availability a challenge in many markets, Dietz cautioned that “home buyers should expect rising prices throughout 2021 as the cost of materials, land and labor continue to rise.”

Derived from a monthly survey that NAHB has been conducting for 35 years, the NAHB/ Wells Fargo HMI 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.

The HMI index gauging current sales conditions held steady at 88, and the gauge charting sales expectations in the next six months rose one point to 81. The component measuring traffic of prospective buyers fell one point to 73.

Looking at the three-month moving averages for regional HMI scores, the South rose one point to 84, and the West held steady at 90. The Northeast fell four points to 82, and the Midwest posted a three-point drop to 75.

HMI tables can be found at nahb.org/hmi.

More information on housing statistics is also available at housingeconomics.com. n

West (20.3%) and Midwest (13.5%) all showing double digit percentage gains.

Of the top 10 metropolitan areas that issued the highest number of single-family permits, three were in Texas; Dallas-Fort Worth-Arlington (13,094), Houston-The Woodlands-Sugarland (12,745) and Austin-Round Rock (6,189), and two were in Florida; Tampa-St. Petersburg-Clearwater (5,219) and Jacksonville (3,391).

The largest number of multifamily permits were issued in the New York-Newark-Jersey City area (9,222), with the second highest number in Austin-Round Rock (7,359). n

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Spring Fling & Builders Show!

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he association’s Spring Fling & Builders Show drew big crowds last month to the HBAMT offices. Over 40 vendors took part in the big show hosting exhibit booths underneath the big tent.

A big thanks to all the Builders Show exhibitors and sponsors for making the event such a success. For a full list of event vendors please see page seventeen. n June, 2021

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Builders who took part in the speed networking event pose with Metro/Nashville Chapter President Tonya Esquibel. From left, David McGowan, Brandon Rickman, John Floyd, Austin Pennington, Esquibel, David Hughes, Randall Smith, Jimmie Johnson, and Bruce McNeilage.

Builder Networking!

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he Metro/Nashville Chapter’s “Buying Time with Builders” event was held last month at the Erik Skoldberg Studios in Nashville. The speed networking event allowed attendees to meet with nine of the industry’s top builders during face-to-face sessions stationed throughout the studio. Participants enjoyed a Mix & Mingle social event following the networking sessions.

Builders participating in the event included: John Floyd, Ole South Properties; David McGowan, Regent Homes; Randall Smith, Celebration Homes; David Hughes, HND Homes, Jimmie Johnson, The Landon Group; Nick Wisniewski, Landmark Homes; Austin Pennington, Barlow Builders; Brandon Rickman, Paran Homes; and Bruce McNeilage, Kinloch Partners.

A big thanks to Bell Law Settlement Services and First Bank Mortgage for sponsoring the Mix & Mingle event. And a big thanks to Erik Skoldberg and the Erik Skoldberg Studios for hosting both of the chapter’s event. More about the studio here: https://erikskoldberg.com/. n

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SHOWCASE HOUSE Fundraiser Program The HBAMT Showcase House program is an effort to generate funds to help fuel the association’s daily efforts to promote the home building industry and defend its builders against unjust legislative activity.

We currently have TWO projects underway: - The Showcase House at Nature’s Landing - The Showcase House at Hardeman Springs See the brochures below for a complete list of materials and labor needed for each project. Contact information for donating to each of the programs is listed below the brochure links.

SEE INSIDE FOR A COMPLETE LIST OF MATERIALS AND LABOR NEEDED FOR THE PROJECT. Visit https://hbamt.org/natures-landing/ for updated lists on needed materials/labor.

SEE INSIDE FOR A COMPLETE LIST OF MATERIALS AND LABOR NEEDED FOR THE PROJECT. Visit

For specific details regarding materials please contact Jimmy Franks: 615-794-7415 or franco314@aol.com; or Blake Parks: 615-243-6373 or blake@tennesseevalleyhomes.com

For specific details regarding materials please contact Steve Shalibo: 615-772-1019 or shalibo42@gmail.com

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https://hbamt.org/hardeman-springs/ for updated lists on needed materials/labor.

SPIKE REPORT Jackson Downey Randall Smith Jim McLean

Fifteen 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 April 30, 2021.

Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Mitzi Spann 789 Bill King 776 Terry Cobb 570 Jim Fischer 567 John Whitaker 565 Trey Lewis 517 James Carbine 410 Jennifer Earnest 379 Jimmy Franks 355 David Crane 339 Kevin Hale 302 Reese Smith III 261 Steve Moody 221 Sonny Shackelford 219 Davis Lamb 218

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Life Spikes David Hughes 159 Tonya Esquibel 151 Harry Johnson 146 Nick Wisniewski 143 Steve Cates 142 C.W. Bartlett 138 Steve Shalibo 126 Jordan Clark 125 B.J. Hanson 122 Carmen Ryan 121 Steve Hewlett 119 John Zelenak 118 Michael Dillon 115 Justin Hicks 113 Dave McGowan 113 Brandon Rickman 111 Edsel Charles 110 Wiggs Thompson 106 Duane Vanhook 103 Joe Morgan 94 Jeff Zeitlin 87 Keith Porterfield 82 Erin Richardson 77 Jody Derrick 75 Sam Henley 74 Beth Sturm 74 Lori Fisk-Conners 70 Jeff Slusher 70

Ron Schroeder 69 Andrew Neuman 63 Christina James 57 Brian Sebring 56 John Broderick 55 Rick Olszewski 52 John Ganschow 51 Phillip Smith 47 Ricky Scott 45 Joe Dalton 44 Frank Jones 42 Rachel Holloway 39 Ryan Meade 38 Frank Tyree 33 Don Mahone 31 Jeffrey Caruth 26 Spikes Maverick Green 20 Perry Pratt 20 Margaret Tolbert 18 Tammy Chambers 16 Nicole Bird 15 Jim Hysen 14 Rob Pease 14 Eric DeBerry 12 John Nehrenz 12 MacKenzie Curtis 10 Will Montgomery 10 Chris Richey 10 Bob Bellenfant 8 Clint Mitchell 8 Matt Dryden 7

SPRING FLING & BUILDERS SHOW!

Thanks to all the vendors & sponsors who participated in the HBAMT’s big spring event!

EXHIBITORS Accurate Mortgage Angel Oak Home Loans AZEK Building Products Bell Law Settlement Services Binkley Designed, LLC Boise Cascade Carpet Den CMG Financial Contract Lumber Ferguson Fisher & Paykel GAF Henley Supply Hermitage Huber Engineered Woods

Integrity AV Jeffco Flooring Kenny & Company Kohler LP Building Products Markraft Cabinets Metro Carpets New South Services Ox Engineered Products Parksite PDI PPG Pulley & Associates Real Wood Floors Remain Safe SC Design Center

Schluter Systems Sherwin -Williams Smash My Trash T-Square Engineering Timberland Cabinets Tolbert Marketing & Events US Bank US Lumber United Structural Systems VaVia SPONSORS CrossCountry Mortgage Farmington Mortgage James Hardie Building Products Pyles Concrete June, 2021

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JUNE CALENDAR Sunday

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Thursday

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Saturday

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Sales & Marketing Council 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: to be announced.

Topic: to be announced.

Price: 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: to be announced.

Topic: to be announced.

Builders Free pending sponsorship.

Price: $10 per person with RSVP ($20 w/o RSVP).

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.

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 WILLIAMSON COUNTY CHAPTER Chapter President - John Nehrenz 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 Chapter President - Nick Wisniewski The Wilson County Chapter meets on the second Wednesday of the month, 11:30 a.m. at the Lebanon Wilson County Chamber of Commerce in Lebanon.

Next meeting: to be announced.

Topic: 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 sponsorship; $20 for non-members with RSVP ($25 w/o).

Council RSVP Line: 615/377-9651, ext. 308 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.

Topic: to be announced.

Price: free with RSVP. Council RSVP Line: 615/377-9651, ext. 263 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 - Christina James.

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

Next meeting: Thursday, June 3rd.

Topic: “Using Social Media in a Fast Moving Market,” with Margaret Tolbert, Tolbert Marketing & Events.

SMC Members FREE w/RSVP thanks to Glade Estates, Celebration Homes, and Landmark Homes Non-SMC members: $15 with RSVP; $20 w/o RSVP RSVP REQUIRED - LIMITED SEATING RSVP to cnicley@hbamt.org Council RSVP Line: 615/377-9651, ext. 260.

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