The Nail, May 2019

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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

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 Sales & Marketing Council hosts Spring Mixer

The Sales & Marketing Council held a terrific Spring Mixer at the Arrington Vineyards pavilion last month.

10 Operation Finally Home Groundbreaking & Benefit

The Operation Finally Home project benefiting the Ferguson family held both a groundbreaking ceremony and a “Fun Shot Shoot Out� in April (see page twelve).

15 HBAMT Mixer at Fly South Nashville

The Metro/Nashville Chapter held a membership mixer at the popular destination for fly fishermen last month.

DEPARTMENTS

Advertise in

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6 News & Information 19 SPIKE Club Report 20 May Calendar 20 Chapters and Councils

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

ON THE COVER: The Operation Finally Home project for the Ferguson family held a groundbreaking ceremony last month in Charlotte, Tenn.

More details on page ten.

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news&info

Lower interest rates boost March new home sales

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ales of newly built, single-family homes rose to a seasonally adjusted annual rate of 692,000 units in March after a slightly revised February report, 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 November 2017.

“These numbers indicate that builders who can produce housing at affordable price points will experience sales growth,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn. “However, builders are still dealing with a shortage of construction workers and buildable lots, which limits housing affordability.”

“We saw a large gain at lower price points where demand is strong. In March of 2019, 50

These numbers indicate that builders who can produce housing at affordable price points will experience sales growth.

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percent of new home sales were priced below $300,000, compared to 39 percent in March of 2018,” said NAHB Chief Economist Robert Dietz. “These are the price points that are attractive for renters seeking to become homeowners.”

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 March reading of 692,000 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 344,000 in March, representing a 6 months’ supply. The median sales price was $302,700 with strong gains in homes sold at lower price points. The median price of a new home sale a year earlier was $335,400.

Regionally, and on a year to date basis, new home sales fell 17.6 percent in the Northeast, 8.1 percent in Midwest and 5.9 percent in the West. Sales rose 9.6 percent in the South, where 58 percent of new home sales occurred in March. n

Housing starts decline in March, builder confidence up

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otal housing starts fell 0.3 percent in March to a seasonally adjusted annual rate of 1.14 million units from a downwardly revised reading in February, 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 March reading of 1.14 million is the number of housing units builders would begin construction if they kept this pace for the next 12 months. Within this overall number, single-family starts fell 0.4 percent to 785,000 units. The multifamily sector, which includes apartment buildings and condos, remained flat at 354,000.

“Despite signs of stabilization of confidence in the marketplace, housing affordability continues to be a concern as housing construction weakens into March,” said Greg Ugalde, chairman of the NAHB. “Data in the early months of 2019 show single-family starts are off 5 percent from this time in 2018, with notable weakness in the Midwest and West,” said NAHB Chief Economist Robert Dietz. “Several factors are negatively affecting the housing market, including excessive regulations, a lack of buildable lots and ongoing labor shortages.

Recent declines in mortgage rates should help support the market in future months however.”

Regionally, combined single-family and

multifamily starts year to date declined 14.2 percent in the Northeast, 10.9 percent in the Midwest and 27.1 percent in the West. Starts posted a 1.5 percent increase in the South.

Overall permits, which are often a harbinger of future housing production, edged 1.7 percent lower in March to 1.27 million units.

Single-family permits fell 1.1 percent to an annualized pace of 808,000, while multifamily permits dropped 2.7 percent to an annual rate of 461,000.

Looking at regional permit data on a year to date basis, permits are down 3.7 percent in the Midwest, 0.4 percent in the South and 16.9 percent in the West. The Northeast remained unchanged.

Builder confidence edges higher in April Builder confidence in the market for newly-built single-family homes rose one point to 63 in April, according to the latest NAHB/ Wells Fargo Housing Market Index (HMI) released today. Sentiment levels have held in the

Remodelers’ confidence falls 3 points in first quarter of 2019

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he NAHB Remodeling Market Index (RMI) posted a reading of 54 in the first quarter of 2019, falling three points from the previous quarter. The RMI has been consistently above 50—indicating that more remodelers report market activity is higher compared to the prior quarter than report it is lower—since the second quarter of 2013. The overall RMI averages current remodeling activity and future indicators.

“The demand for remodeling is strong in many parts of the country due to insufficient home construction and an aging housing

stock,” said NAHB Remodelers Chair Tim Ellis, CAPS, CGP, CGR, GMR, Master CGP, a remodeler from Bel Air, Md. “However, it can be difficult to find skilled labor for remodeling projects.”

Current market conditions dipped four points from the previous quarter to 53. Among its three major components, major additions and alterations fell seven points to 49, minor additions and alterations waned one point to 55 and the home maintenance and repair component decreased three points to 56.

The future market indicators dropped two

low 60s for the past three months.

“Builders report solid demand for new single-family homes but they are also grappling with affordability concerns stemming from a chronic shortage of construction workers and buildable lots,” said Ugalde.

“Ongoing job growth, favorable demographics and a low-interest rate environment will help to modestly spark sales growth in the near term,” said Dietz. “However, supply-side headwinds that are putting upward pressure on housing costs will limit more robust growth in the housing market.”

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.

The HMI index gauging current sales conditions increased one point to 69, and the component measuring traffic of prospective buyers rose three points to 47. The measure charting sales expectations in the next six months fell one point to 71.

Looking at the three-month moving averages for regional HMI scores, the Northeast posted a three-point gain to 51, the Midwest increased two points to 53, and the South was up one point to 67. The West remained unchanged at 69. n

points from the previous quarter to 54. Calls for bids fell three points to 54, amount of work committed for the next three months increased two points to 54, the backlog of remodeling jobs fell five points to 54 and appointments for proposals remained steady at 55.

“The Remodeling Market Index declined in the first quarter but remains over 50, indicating the market will continue to expand at modest rates,” said NAHB Chief Economist Robert Dietz. “NAHB’s forecast calls for slowing growth, given declining home price appreciation and existing home sales volume, combined with rising construction costs.”

For the full RMI tables, please visit www. nahb.org/rmi. For more information about remodeling, visit www.nahb.org/remodel. n May, 2019

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SMC Spring Mixer

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he Sales & Marketing held a festive Spring Mixer at the Arrington Vineyards pavilion last month. The beautiful scenery and perfect weather made the wine, hors d’oeuvres, and membership “mixing” all the more enjoyable!

A big thanks to our sponsors for making the event possible, including: James Hardie Building Products; Citizens One; Fergusons; and Highlands Mortgage, the Joseph LaManna team. n

Benjamin Prutianov, Zaynab Prutianov & Travis Chapman

Steve Shalibo & Brittney Campbell

Jessica Neal & Jeffrey Caruth

Tammy Chambers & Jimmy Franks

Jim Ford, Jr., Brooke Talmage, Eric Smith & Aaron Cook

Thank you sponsors!

Glenn Street, Mark Perry & Aliyah Loyd

Brooke Talmage & Kimberly Greenwell May, 2019

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Operation Finally Home Groundbreaking

Operation Finally Homes project officials and coordinators with the Ferguson family at the groundbreaking.

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peration FINALLY HOME along with Building Solutions

by Spann, LLC, and the Home Builders Association of Middle Tennessee (HBAMT) joined U.S. Army Sergeant First Class Josh Ferguson and his family to celebrate a groundbreaking ceremony at the site of the family’s future custom-built, mortgage-free home on Thursday, April 4. The home will be located in Charlotte, Tennessee.

The Fergusons were surprised with the news they were receiving a mortgage-free home at the Grand Ole Opry during a performance by country music entertainer Craig Morgan last year. During his performance, Morgan invited Ferguson, who is a long-time friend, and his family onto the stage and surprised them with the exciting news.

“Josh is a true American hero – and now a friend, and we’re grateful for the opportunity to provide such a deserving family a new place to call home,” said Mitzi Spann, Owner of Building Solutions

by Spann, LLC. During a deployment to Iraq, Josh’s vehicle was hit by an improved explosive device (IED). He sustained injuries which left him

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with an above the knee amputation, shrapnel pitted over his body, a surgically repaired leg, deteriorated hips, Traumatic Brain Injury (TBI), Post-Traumatic Stress Disorder (PTSD) and more. Josh’s military career continued in the Wounded Warrior Brigade. Josh was honored with awards including a Purple Heart, Combat Action Badge, GWOT Service Medal, Iraq Campaign Medal and many more.

“We continue to be humbled by those who selflessly serve to protect our country,” said Rusty Carroll, Operation FINALLY HOME Executive Director. “We’re honored to provide a small thank you to the Ferguson family for their sacrifice.”

Once the foundation of the home is in place, the community will be invited to write inspirational “Notes of Love” on the studs before they are wrapped in drywall. This will allow the family to feel the support of their community each time they enter their home. Upon completion, a dedication ceremony will be held for the family to receive their keys and view their home for the first time. The home is expected to be completed by September, 2019. n

Rusty Carroll

Mitzi Spann & Todd Spann

Justin Hicks

Josh Ferguson

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Fun Shot Shoot-Out!

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peration Finally Home and the HBAMT hosted a terrific event at Royal Range USA April 4th benefiting the organization’s most recent home building effort. The “Fun Shot Shoot Out” drew a strong group of the association’s best marksmen who were joined by U.S. Army SFC Josh Ferguson, recipient of their latest project in Charlotte, Tenn.

A big thanks to all the sponsors for stepping up and making the event possible. And a big thanks to Sam Carbine for taking some great photographs at the event! See page 14 for a full list of our Fun Shot Shoot Out sponsors. n

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Coby Comer, Tammy Chambers & Tonya Esquibel

Jon Morrissey, Jeremy Lyons & Jimmy Johnson

HBAMT Mixer at Fly South Nashville

Thank you sponsors!

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reat time last month at the Metro/Nashville Chapter’s HBAMT Membership Mixer at Fly South in Nashville. The popular fly fishing shop was a great spot for mixing and mingling while enjoying wine and hors d’ oeuvres. Check out all our door prize winners below!

A big thanks to our sponsors for making the event possible, including: Bell Law Settlement Services; Fergusons; and The Tile Shop. n

Chris Stevenson & Lindsay Elliott

Door prize winners (l to r): Lindsay Elliott, Mike Overley and Natalie Rokes.

With Chapter President Tonya Esquibel (in back).

Connie Nicley & Tonya Esquibel

Esquibel with the big door prize winner of the evening, Chris Marchetti, who took home a fly fishing rod and reel.

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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 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 March 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 441 James Carbine 394 Jennifer Earnest 368 David Crane 320 Kevin Hale 300 Jimmy Franks 282 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 131 Kevin Woodward 123 Jordan Clark 119 B.J. Hanson 119 Steve Hewlett 119 Carmen Ryan 117 Helmet Mundt 115 John Zelenak 114 David Hughes 108 Dave McGowan 108 Edsel Charles 105 Wiggs Thompson 103 Michael Dillon 100 Justin Hicks 100 Duane Vanhook 100 Jeff Zeitlin 87 Joe Morgan 84 Christina Cunningham 83 Erin Richardson 77 Beth Sturm 72 Keith Porterfield 70 Jeff Slusher 70

Lori Fisk-Conners 69 Sam Henley 65 Don Bruce 62 Eugene James 61 Ron Schroeder 61 Nick Wisniewski 61 Marty Maitland 60 Jody Derrick 57 John Broderick 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 42 Don Mahone 30 Frank Tyree 30 Brandon Rickman 28 Christina James 27 Frank Jones 26 Spikes Joe Dalton 17 Nicole Bird 15 Perry Pratt 15 Jeffrey Caruth 11 Rob Pease 11 Tammy Chambers 10 Will Montgomery 10 Eric DeBerry 9

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MAY Calendar Sunday

Monday

Tuesday

Wednesday

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Thursday

Friday

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Saturday

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Sales & Marketing Council meeting

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Dickson County Chapter meeting

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 Tuesday of the month, 12:00 p.m. at Colton’s Steakhouse in Dickson.

Next meeting: Tuesday, May 21.

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, May 23.

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, May 2, 9:00 a.m. at the HBAMT. Topic: “Million Dollar Follow-Up,” with Coach Michael Burt.

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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