The Nail, May 2022

May, 2022

l

The NAIL 1

2 The NAIL

l May,

2022

May, 2022

l

The NAIL 3

THE

NAIL The official magazine of Home Builders Association of Middle Tennessee President Nick Wisniewski Vice President Brandon Rickman Secretary/Treasurer Jim Hysen 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.

4 The NAIL

l May,

2022

FEATURES 9 Celebrate National Home Remodeling Month

May is National Home Remodeling Month and there are many reasons to celebrate. Check out some of the top reasons here!

10 HBAMT Membership Mixer at Barrels & Brews

Members enjoyed tasting bourbon, beer, tequila, and other enticing brews at last month’s membership mixer sponsored by Irving Materials, Inc.

13 Network Like a Boss!

The Metro/Nashville Chapter held a special builder networking event last month in Nashville. Sponsored by Team Esquibel at CrossCountry Mortgage.

17 2022 Parade advertising and exhibiting opportunities

Advertise in

THE

NAIL For advertising rates and information, or to secure your ad, please email jargo@hbamt.org with your questions and requests.

The Pinnacle Financial Partners Parade of Homes returns this fall to Rosebrooke. Secure your planbook space today!

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

ON THE COVER: May is National Home Remodeling Month.

For reasons to celebrate, see page nine.

May, 2022

l

The NAIL 5

NEWS&INFO

New home sales fall on supply disruptions, higher rates

W

orsening affordability conditions stemming from growing supply chain disruptions and rising mortgage rates pushed new home sales lower in March.

Sales of newly built, single-family homes in March fell 8.6% to a 763,000 seasonally adjusted annual rate from an upwardly revised reading in February, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. New home sales are down 12.6% compared to March 2021.

“Growing affordability challenges are slowing new home sales and taking a toll on the housing market,” said Jerry Konter, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Savannah, Ga. “Mortgage rates jumped nearly a full percentage point between the end of February and March and builders continue to face escalating construction and development costs which are putting upward pressure on new home prices.”

“Buyers are facing sticker shock due to deteriorating affordability conditions and a lack of existing home inventory,” said NAHB Assistant

6 The NAIL

l May,

2022

Vice President of Forecasting and Analysis, Danushka Nanayakkara-Skillington. “Only 14% of new home sales in March were priced below $300,000. A year ago, it was 34%.”

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 763,000 units is the number of homes that would sell if this pace continued for the next 12 months.

New single-family home inventory was up 52.4% over last year, rising to a 6.4 months’ supply, with 407,000 available for sale. However, just 35,000 of those are completed and ready to occupy.

The median sales price rose to $436,700 in March from $421,600 in February and is up more than 21% compared to a year ago, due primarily to higher development costs, including materials.

Regionally, on a year-to-date basis, new home sales fell in two regions, down 9.2% in the Midwest and 13.9% in the South. New home sales were up 10.5% in the Northeast and 8.5% in the West. n

Single-family permits decline, builder confidence down

T

he single-family housing market continued to show signs of softening in March as permits and starts declined due to rising mortgage interest rates and ongoing supply chain bottlenecks that continue to delay construction projects and raise home building costs.

Due to strong multifamily production, overall housing starts increased 0.3% to a seasonally adjusted annual rate of 1.79 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

The March reading of 1.79 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 1.7% to a 1.20

million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, increased 4.6% to an annualized 593,000 pace.

“Higher mortgage interest rates and rising construction costs are pricing buyers out of the market, and these higher costs are particularly hurting entry-level and first-time buyers,” said Jerry Konter, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Savannah, Ga. “Policymakers must address building supply chain disruptions to help builders bring down construction costs and increase production to meet market demand.”

“The shift in affordability can be seen in the March data with strength for multifamily construction and some weakness for single-family

Remodeling market remains stable year-over-year

T

he NAHB released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the first quarter, posting a reading of 86, which remained unchanged compared to the first quarter of 2021. The finding is a signal of residential remodelers’ confidence in their markets, for projects of all sizes.

“Business remains strong for most remodelers at the beginning of 2022,” said NAHB Remodelers Chair Kurt Clason, a remodeler from Ossipee, N.H. “However, a few are starting to report that customers are reluctant to move forward on projects due to the delays and higher costs caused by supply chain problems.”

The NAHB/Westlake Royal Remodeling Market Index RMI survey asks remodelers to rate five components of the remodeling market as “good,&rdquo “fair&rdquo or “poor.” Each question is measured on a scale from 0 to 100, where an index number above 50 indicates that a higher share view conditions as good than poor.

The Current Conditions Index is an average of three components: the current market for large remodeling projects, moderately-sized projects and small projects. The Future Indicators Index is an average of two components: the current rate at which leads

and inquiries are coming in and the current backlog of remodeling projects. The overall RMI is calculated by averaging the Current Conditions Index and the Future Indicators Index. Any number over 50 indicates that more remodelers view remodeling market conditions as good than poor.

The Current Conditions Index averaged 89, remaining unchanged compared to the first quarter of 2021. The component measuring large remodeling projects ($50,000 or more) rose four points to 89, while the component measuring moderately-sized remodeling projects (at least $20,000 but less than $50,000) fell one point to 89, and the com-

permits,” said NAHB Chief Economist Robert Dietz. “Our builder surveys show that confidence levels in the single-family market have declined for four straight months as affordability conditions continue to worsen, and this is a sign that single-family production will face challenges moving forward.”

On a regional and year-to-date basis, combined single-family and multifamily starts are 17.3% higher in the Northeast, 6.6% higher in the Midwest, 11.2% higher in the South and 7.5% higher in the West.

Overall permits increased 0.4% to a 1.87 million unit annualized rate in March. Single-family permits decreased 4.8% to a 1.15 million unit rate. Multifamily permits increased 10.0% to an annualized 726,000 pace.

Looking at regional permit data on a year-to-date basis, permits are 5.5% higher in the Northeast, 4.0% higher in the Midwest, 7.5% higher in the South and 4.9% higher in the West. (continued on page 19)

ponent measuring small remodeling projects (under $20,000) declined by two points to 90.

The Future Indicators Index edged down two points to 82 compared to the first quarter of 2021. The component measuring the current rate at which leads and inquiries are coming in fell six points to 80, while the component measuring the backlog of remodeling jobs increased two points to 84.

“An overall RMI of 86 indicates positive remodeler sentiment and is consistent with NAHB’s projection of moderate growth in the remodeling market for 2022,” said NAHB Chief Economist Robert Dietz. “Nevertheless, rising interest rates and the high cost of materials are significant headwinds to the remodeling industry and the housing industry at large.”

The NAHB/Westlake Royal Remodeling Market Index RMI was redesigned in 2020 to ease respondent burden and improve its ability to interpret and track industry trends. As a result, readings cannot be compared quarter to quarter until enough data are collected to seasonally adjust the series. To track quarterly trends, the redesigned RMI survey asks remodelers to compare market conditions to three months earlier, using a “better,” “about the same,” “worse” scale. Seventy-two percent of respondents said the remodeling market is “about the same” as it was three months earlier.

For the full RMI tables, please visit http:// www.nahb.org/rmi. n May, 2022

l

The NAIL 7

8 The NAIL

l May,

2022

Incentives for celebrating Home Remodeling Month

A

s the residential construction industry gets into full swing, it is the perfect time to celebrate National Home Remodeling Month in May. The annual event is an opportunity to showcase the expertise of professional remodelers and the craftsmanship that sets them apart from the average contractor.

And in 2022, there’s even more reason to celebrate because the home improvement sector is stronger than ever. In a recent issue of Professional Remodeler, 2022 NAHB Remodelers Chair Kurt Clason outlined some top reasons for celebrating.

DEMAND REMAINS HIGH With increased home values, a growing number of home owners are flush with home equity and are yearning to re-invest in home improvements. And although COVID-19 may have spurred more demand for remodeling projects (e.g., home offices, gyms and outdoor living spaces), those trends only continue to gain in popularity even as the pandemic has subsided.

“Extended time at home meant home owners focused on projects that may have [otherwise] been put off,” Clason wrote in the article. “Many decided to stay in their homes longer, seeking out aging-in-place or universal design projects, or to put off moving due to rapidly increasing new home prices and limited inventory. As a results, our industry has not just survived the pandemic, but it has thrived.”

sionalism, quality workmanship, reliable service and ethical business practices.”

NAHB offers a wealth of user-friendly resources for remodelers and HBAs as they look to promote National Home Remodeling Month. Customizable press releases, articles and public service announcements are all available in a consolidated tool kit.

The HBAMT Remodelers Council (RMC) meets on the third Thursday of the month at varying locations. Contact RMC President Eli Routh at eli.routh@midtnco.com for information about upcoming events or to sponsor a council meeting. Contact the HBAMT at 615-377-1055 about doing business with an HBAMT Remodeler. And visit nahb.org/remodelingmonth for even more information, tips and resources. n

NETWORKING OPPORTUNITIES ARE PLENTIFUL As post-pandemic life gradually returns to normal, business-boosting events are increasingly coming back to in-person settings. These events afford the industry’s best opportunity to gather together to network, share ideas and learn from one another.

“Every NAHB member is part of a powerful network of more than 140,000 residential construction professionals,” wrote Clason. “[This] network is key to building relationships with fellow remodelers, builders and suppliers. Connections made through local associations and national events like the International Builders’ Show become a sounding board to expand your knowledge and grow your business.”

MEMBERSHIP MAKES MARKETING EASIER Members of NAHB Remodelers also enjoy the significant advantage of having “NAHB Remodeler member” attached to their name. For consumers looking for the most qualified and trustworthy remodeler to do business with, there is significant peace of mind in hiring a professional.

“Membership comes with prestige,” Clason wrote. “It means a home owner hiring a member can have confidence in that choice. It’s a name that comes with a commitment to profesMay, 2022

l

The NAIL 9

Membership Mixer at Bourbon & Brews!

A

n HBAMT Membership Mixer was held at Barrels & Brews last month courtesy of event sponsors Irving Materials, Inc. The popular establishment is owned by HBAMT Past President Jimmy Franks. Attendees enjoyed tasting a variety of bourbons, brews, tequilas, and wines while mingling with friends and visiting the hors d’oeuvres station.

A big thanks again to event sponsors, Irving Materials, Inc.! n At left, from left: Event sponsor B.J. Hanson from Irving Materials, Inc, with Jimmy Franks, owner, Barrels & Brews, Andrew Bales, IMI, and Stephen Penney, IMI.

Event sponsored by:

10 The NAIL

l May,

2022

May, 2022

l

The NAIL 11

12 The NAIL

l May,

2022

Network Like a Boss!

Builders who took part in the speed networking event pose with Metro/Nashville Chapter President Tonya Esquibel. From left, Randall Smith, Jimmy Franks, Brandon Rickman, David McGowan, Tonya Esquibel, Nick Wisniewski, John Floyd, and Jimmy Johnson. David Hughes participated but is not shown here.

T

he Metro/Nashville Chapter’s “Network Like a Boss” event was held last month at the Horton Sobro Building in Nashville. The fun-filled speed networking event allowed attendees to meet with eight of the industry’s top builders during face-to-face sessions stationed throughout the building. Participants enjoyed spending time with all the builders and were treated to an open bar and hors d’oeurvres.

Builders participating in the event included: John Floyd, Ole South Properties; David McGowan, Regent Homes; Jimmy Franks, Tennessee Valley Homes; Randall Smith, Celebration Homes; David Hughes, 2020 HBAMT President; Jimmie Johnson, The Landon Group; Nick Wisniewski, Landmark Homes; and Brandon Rickman, Gehan Homes.

A big thanks to Team Esquibel at CrossCountry Mortgage for sponsoring the event. n

May, 2022

l

The NAIL 13

14 The NAIL

l May,

2022

Event sponsored by:

May, 2022

l

The NAIL 15

16 The NAIL

l May,

2022

Pinnacle Financial Partners Parade of Homes The 2022 Parade of Homes at Rosebrooke

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 2022 Pinnacle Financial Partners Parade of Homes at Rosebrooke! 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.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!

2022 PARADE OF HOMES - PROMOTIONAL OPPORTUNITIES COMMITMENT FORM Return completed form to: HBAMT, 9007 Overlook Blvd., Brentwood, TN 37027 | Email: jargo@hbamt.org

PLAN BOOK AD - please check the size of ad you would like to secure in the 2022 Plan Book:

r Half Page

r Full Page

r Back Cover

r 2-Page Spread

EXHIBIT BOOTH SPACE - please check here to secure your 2022 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 ____________________________________________________________________________________ May, 2022

l

The NAIL 17

18 The NAIL

l May,

2022

SPIKE REPORT David Hughes Randall Smith Nick Wisniewski Steve Shalibo

Twenty-one 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, 2022.

Top 20 Big Spikes Jim Ford 912 Mitzi Spann 793 Bill King 776 Terry Cobb 570 Jim Fischer 567 Trey Lewis 534 James Carbine 433 Jimmy Franks 391 Jennifer Earnest 381 David Crane 346 Kevin Hale 302 Reese Smith III 261 Davis Lamb 224 Steve Moody 221 Sonny Shackelford 219 Jackson Downey 182

Single-family permits authorized but not started stood at 149,000 and are up 14.6% year-over-year as higher construction costs and material delays slow previously permitted projects. (continued from page 7)

Builder confidence down Rapidly rising interest rates combined with ongoing home price increases and higher construction costs continue to take a toll on builder confidence and housing affordability.

Builder confidence in the market for newly built single-family homes moved two points lower to 77 in April, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released today. This is the fourth straight month that builder sentiment has declined.

“Despite low existing inventory, builders report sales traffic and current sales conditions have declined to their lowest points since last summer as a sharp jump in mortgage rates and persistent supply chain disruptions continue to unsettle the housing market,” said NAHB Chairman Jerry Konter, a builder and developer from Savannah, Ga. “Policymakers must take proactive steps to fix supply chain issues that will reduce the cost of development, stem the

179 178 174 168

Life Spikes Jim McLean 165 Tonya Esquibel 153 Brandon Rickman 150 Steve Cates 146 Harry Johnson 146 C.W. Bartlett 138 Jordan Clark 129 Michael Dillon 123 B.J. Hanson 122 Steve Hewlett 119 John Zelenak 118 Dave McGowan 117 Justin Hicks 116 Edsel Charles 112 Wiggs Thompson 108 Duane Vanhook 108 Keith Porterfield 84 Sam Henley 80 Jody Derrick 79 Erin Richardson 77 Beth Sturm 75 Ron Schroeder 72 Nelson Bordeau 71 Lori Fisk-Conners 70 Christina James 66 Andrew Neuman 66 Joe Dalton 60

rise in home prices and allow builders to increase production.”

“The housing market faces an inflection point as an unexpectedly quick rise in interest rates, rising home prices and escalating material costs have significantly decreased housing affordability conditions, particularly in the crucial entry-level market,” said NAHB Chief Economist Robert Dietz.

Brian Sebring 56 John Broderick 55 Rick Olszewski 54 John Ganschow 51 Rachel Holloway 51 Ryan Meade 50 Frank Jones 46 Ricky Scott 45 Jim Hysen 34 Don Mahone 31 Jeffrey Caruth 28 Maverick Green 25 Spikes Perry Pratt 23 Margaret Tolbert 22 Lisa Underwood 20 Tammy Chambers 18 Nicole Bird 15 Rob Pease 15 John Nehrenz 14 Danny Clawson 12 Chris Richey 11 Curt Haynes 11 Eli Routh 11 George Simpson 10 Bob Bellenfant 8 Clint Mitchell 8 Matt Dryden 7 McClain Franks 6

Mortgage interest rates have jumped more than 1.9 percentage points since the start of the year and currently stand at 5%, the highest level in more than a decade.

Derived from a monthly survey that NAHB has been conducting for more than 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 fell two points to 85 and the component charting traffic of prospective buyers posted a six-point decline to 60. The gauge measuring sales expectations in the next six months increased three points to 73 following a 10-point drop in March.

Looking at the three-month moving averages for regional HMI scores, the Northeast posted a onepoint gain to 72 while the Midwest dropped three points to 69, the South fell two points to 82 and the West edged one-point lower to 89. n May, 2022

l

The NAIL 19

MAY CALENDAR Sunday

1

Monday

2

Tuesday

3

Wednesday

4

Thursday

Friday

5

Saturday

6

7

13

14

Sales & Marketing Council meeting

8

9

10

11

12

Spring Fling & Builders Show at the HBAMT! BUILDERS ONLY EVENT

Wilson County Chapter meeting/event

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

1

2

3

4

5

6

7

8

9

10

11

CHAPTERS & COUNCILS CHAPTERS

Robertson County RSVP line: 615-377-9651, ext. 313.

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

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

DICKSON COUNTY CHAPTER Chapter President - Mark Denney: 615/446-2873.

The Dickson County Chapter meets on the third Monday of the month, 12:00 p.m. at Colton’s Steakhouse in Dickson.

Next meeting: to be announced.

Price: FREE, lunch dutch treat.

Chapter RSVP Line: 615/377-9651, ext. 264 MAURY COUNTY CHAPTER Chapter President - Kelly Beasley.

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

Next meeting: to be announced.

Topic: to be announced.

Price: to be announced.

RSVP to: cnicley@hbamt.org.

ROBERTSON COUNTY CHAPTER Next meeting: to be announced.

20 The NAIL

l May,

2022

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 - Margaret Tolbert The Wilson County Chapter meets on the second Thursday of the month, 9:00 a.m. at the Mt. Juliet Chamber of Commerce: 2055 N. Mt. Juliet Road, #200 - 37122.

Next meeting: Thursday, May 12, starting at 9:00 a.m.

Topic: The Homes for Homes Foundation. The H4H Foundation builds homes and communities for people living in poverty.

H4H brings together local leaders, labor, and materials, to transform communities.

RSVP to: cnicley@hbamt.org.

COUNCILS HBAMT REMODELERS COUNCIL Council President - Eli Routh.

The HBAMT Remodelers Council meets on the third Thursday 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 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 - Lisa Underwood.

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

Next meeting: Thursday, May 5, 9:00 a.m. at the HBAMT. Topic: “Growing Your Business with TikToks and Reels,” with special guest speaker Margaret Tolbert, Tolbert Marketing & Events.

SMC members free thanks to Open Door; non-SMC members $20 w/RSVP, $25 w/o RSVP RSVP to: cnicley@hbamt.org.

May, 2022

l

The NAIL 21

22 The NAIL

l May,

2022