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NAIL The official magazine of Home Builders Association of Middle Tennessee President Randall Smith Vice President John Zelenak Secretary/Treasurer Keith Porterfield Executive Vice President John Sheley Editor and Designer Jim Argo Staff Connie Nicley Pat Newsome Charlotte Fischer
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 Six ways to get the most out of your time at the IBS Here are six ways to get the most out of your time at the upcoming 2017 International Builders’ Show (IBS) in Orlando.
11 2016 James Hardie Parade of Homes winners!
The James Hardie Parade of Homes kicked off with the Preview Party where “Best of Show” winners were recognized. Check here for all the winners from that night and following the results of the “People’s Choice Awards.”
DEPARTMENTS 6 News & Information 17 SPIKE Club Report 18 November Calendar 18 Chapters and Councils
ON THE COVER: Woodridge Homes’ Parade house, Best of Show winner at both the Preview Party and the People’s Choice Awards! More details on page eleven. November, 2016
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New home sales continue yearlong upward trend in September
ales of newly built, single-family homes rose 3.1 percent in September from a downwardly revised August reading to a seasonally adjusted annual rate of 593,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. “New home sales have been trending upward all year, and this gradual increase is in line with other positive signals, including
Low mortgage rates, continued job growth and tight inventory levels are all factors that point to increased housing production as we move into 2017. 6 The NAIL
rising single-family starts and solid builder sentiment,” said Ed Brady, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Bloomington, Ill. “Low mortgage rates, continued job growth and tight inventory levels are all factors that point to increased housing production as we move into 2017,” said NAHB Chief Economist Robert Dietz. The inventory of new home sales for sale was 235,000 in September, which is a 4.8-month supply at the current sales pace. The median sales price of new houses sold was $313,500. Regionally, new home sales increased 33.3 percent in the Northeast, 8.6 percent in the Midwest and 3.4 percent in the South. Sales fell 4.5 percent in the West. n
Remodeling market optimism strengthens in third quarter
he NAHB’s Remodeling Market Index (RMI) posted a reading of 57 in the third quarter of 2016, an increase of four points from the previous quarter and also a return to levels seen consistently throughout 2015. An RMI above 50 indicates that more remodelers report market activity is higher (compared to the prior quarter) than report it is lower. The overall RMI averages ratings of current remodeling activity with indicators of future remodeling activity. “Remodelers nationwide are seeing increased demand for major and minor addition jobs and calls for bids, leading to an increase in both current and future market indicators,” said 2016 NAHB Remodelers Chair Tim Shigley, CAPS, CGP, GMB, GMR, a remodeler from Wichita, Kan. “However, ongoing labor
shortages continue to challenge their ability to meet the increased demand.” The RMI’s current market conditions index rose to 56, up two points from the previous quarter. Among its components, major additions and alterations also gained two points, rising to 54. The component measuring demand for smaller remodeling projects increased by three points to 56 and the home maintenance and repair component rose by three points to 59. Indicating optimism in market strength, the RMI’s future market indicators increased by five points from the previous quarter to 58. Among its four components, calls for bids and appointments for proposals both increased six points to 59 and 58, respectively, the backlog of remodeling jobs increased five points to 58
Housing production down nine percent in September
sharp decline in multifamily production brought overall nationwide housing starts down 9 percent in September, according to newly released data from the U.S. Housing and Urban Development and the Commerce Department. However, both single-family production and overall permit issuance posted solid gains. “Single-family starts posted their highest level since February and are consistent with builder sentiment, which has remained firm in recent months,” said Ed Brady, NAHB chairman. “Low mortgage rates, along with solid permit and job growth should keep demand for single-family housing moving forward in the months ahead.” “After strong readings during the summer, multifamily production pulled back in September,” said NAHB Chief Economist Robert Dietz. “Still, we expect the multifamily sector to post a good year in 2016, though down a bit from last year, which was likely the peak year for this cycle.” Single-family starts rose 8.1 percent in September to a seasonally adjusted annual rate of 783,000 units while multifamily production declined 38 percent to 264,000 units. Combined single- and multifamily starts fell in three of the four regions in August. The Northeast, Midwest and South posted losses of
36 percent, 14.1 percent and 5.3 percent, respectively. Starts remained unchanged in the West. Overall permit issuance, which is a harbinger of future building activity, rose 6.3 percent to a seasonally adjusted annual rate of 1.23 million. Single-family permits edged up 0.4 percent in September to a rate of 739,000 while multifamily permits rose 16.8 percent to 486,000. Permit issuance increased 23.6 percent in the Northeast, 15.8 percent in the West and 2.6 percent in the South. Meanwhile, the Midwest posted a loss of 5.2 percent.. Builder confidence remains solid Builder confidence in the market for newly constructed single-family homes remained on firm ground in October, down two points to a level of 63 on the NAHB/Wells Fargo Housing Market Index (HMI). “Even with this month’s drop, builder confidence stands at its second-highest level in 2016, a sign that the housing recovery continues to make solid progress,” said Brady. “However, builders in many markets continue to express concerns about shortages of lots and labor.” “The October reading represents a mild pullback from a jump in September, and indicates that the housing market continues to make slow and steady gains,” said Dietz. “Moreover, mortgage rates remain low and the HMI index mea-
and the amount of work committed rose two points to 55. “The Remodeling Market Index is consistent with NAHB’s forecast of gradual and steady improvements in residential remodeling activity,” said NAHB Chief Economist Robert Dietz. “This segment of our industry is being supported by rising home values and steady consumer confidence.” For the full RMI tables, please visit www. nahb.org/rmi. For more information about remodeling, visit www.nahb.org/remodel. n
suring future sales expectations has been over 70 for the past two months. These factors will sustain continued growth in the single-family market in the months ahead.” 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. Two of the three HMI components posted losses in October. The component gauging current sales conditions dropped two points to 69 and the index charting buyer traffic fell one point to 46. Meanwhile, the index measuring sales expectations in the next six months rose one point to 72. Looking at the three-month moving averages for regional HMI scores, the West increased two points to 75 while the Northeast, Midwest and South each posted one-point gains to 43, 56 and 65, respectively. n Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at nahb.org/hmi. More information on housing statistics is also available at housingeconomics.com.
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Six ways to get the most out of your time at IBS
hen it comes to a successful business recipe, the ingredient that makes a person successful is the ability to connect with others. Networking is one of the best ways to connect and increase “your sphere of influence,” said S. Robert August, president and founder of North Star Synergies, Inc., a national, real estate sales, marketing and training consulting firm in Centennial, Colo. And the upcoming 2017 International Builders’ Show (IBS) in Orlando is a great place to do it. Here are six ways to get the most out of the show.
Plan ahead. Many attendees do not plan for IBS; they just show up and usually become overwhelmed. That’s especially true in the exhibit hall, which this year will feature 550,000 net square feet of exhibits and more than 1,400 manufacturers and suppliers of the latest and most in-demand products and services. Plotting out which exhibits to visit, education programs to take advantage of and events to participate in early on can save a significant amount of time while at the show. Check out the exhibit hall. Make sure to review the floor plan in advance. It helps to figure out where exhibits of interest are located ahead of time since the show floor is so massive. Ask around to see when key decision makers will be on hand at the booths, and read the guide to see when free or discounted products and services, giveaways or special promotions that may help your business are taking place. Get involved. Don’t shy away from the council and committee meetings. They are a great source of information about the association and what’s going on in various segments of the home building industry.
As the industry continues to recover from the recession, NAHB needs more active participants to step up, offer feedback and be take proactive measures to move the ball forward. Member input helps association leaders choose the best programs and services for members today and in the future. Take advantage of the education programs. There are dozens of continuing education opportunities to be found at IBS. This year, 80% of the content will be fresh, original programming, and nearly half of the speakers will be presenting at IBS for the first time. More than 130 Building Knowledge & Spotlight sessions–a mix of 30-, 60- and 90-minute presentations that cover the entire scope of the building industry–will be available over the three-day period. There will also be five in-depth, Advanced Master sessions on topics like negotiating techniques, labor shortage and leadership, and Builder Clinic sessions that offer live demonstrations of various building techniques. Sit in on the award programs. Most of the awards ceremonies are open to all members. Sitting in the audience is a great way to meet and network with accomplished industry professionals. Network, network, network. Introduce yourself often, greeting each person with a firm handshake, a warm friendly smile, eye contact and your business card. Expanding your business network at committee and council meetings, and education sessions, and other events and activities could lead to many new friendships, mentorships and business development opportunities. Don’t forget to follow up with individuals post-show and keep in touch. Preparing for IBS in advance will help you enjoy continued and new business development opportunities. Register now at http://www.buildersshow.com/Home/. n
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Jame Hardie Parade of Homes a winner!
he 2016 James Hardie Parade of Homes at the Hideaway at Arrington performed strongly during a successful two-week run last month drawing large crowds who flocked to the show to see the stunning homes and interior designs first hand. The amazing homes didn’t disappoint and received a bevy of awards, beginning with the annual Preview Party event prior to the opening weekend where the Woodridge Homes team was presented a tightly contested “Best of Show Award.” Parade attendees agreed with those results. A week later, following the collection of ballots cast by Parade visitors, Woodridge Homes would also receive the People’s Choice “Best of Show” award during a live
remote on 92.9 Mix Radio. Woodridge took home three of the eleven People’s Choice awards to match the total they picked up at the Preview Party. For a complete listing of all the winners from each of the award presentations see page 12 of this issue. The much coveted “Best Interior Decorating Award” went to Dana Dashiell and Heritage Homes at the Preview Party, and to Woodridge Homes (see below) at the People’s Choice presentations. A big thanks to our title sponsor James Hardie Building Products for their support. And thanks to all the Parade sponsors, including Builders First Source, Ferguson, Franklin Synergy Bank, RE/MAX Elite and Renasant Bank. n
The Woodridge Homes winning team accepts the “Best of Show” award during the Parade Preview Party. From left; Kristen Vaughn, Jordan Vaughn, Parade Chairman David Crane, Ted Pratt, Amber Pratt and Jennifer Early.
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Doug Herman, Legend Homes, accepts an award from Parade Chairman David Crane.
Zach Todd and Brian Layton, Britt Development.
Randall Smith, Dana Dashiell and Corey Craig, Heritage Homes.
Jack Wiesner and Jock Wiesner, Wiesner Custom Homes.
McClain Franks, Tennessee Valley Homes.
Steve Ernst, Arthur Rutenberg Homes.
Chris Franks, Tennessee Valley Homes.
Stacey Wessener, Legend Homes.
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Preview Party kicks off show in fun style! The James Hardie Parade of Homes packed the house for a fun night the Thursday before opening weekend. Attendees enjoyed great food, cold beverages and the presentation of the “Best of Show” awards before getting the first look at the show’s seven great homes! n
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Best of Show Awards Presented at the Preview Party
Best Front Exterior Legend Homes
Best Game Room Britt Development Group
Best Interior Lighting Legend Homes
Best Landscaping Britt Development Group
Best Closets Legend Homes
Best View Tennessee Valley Homes
Best Front Porch Britt Development Group
Best Outdoor Living Area Arthur Rutenberg Homes
Craftsmanship Wiesner Custom Homes
Best Foyer Wiesner Custom Homes
Best Floor Plan Tennessee Valley Homes
Best Interior Decorating Heritage Homes
Best Kitchen Woodridge Homes
Best Draperies Heritage Homes
BEST OF SHOW Woodridge Homes
Best Master Suite Woodridge Homes
Most Livable Tennessee Valley Homes
Best Child’s Room Wiesner Custom Homes
Best for Entertaining Arthur Rutenberg Homes
PEOPLE’S CHOICE Awards Determined by votes cast by Parade attendees
Best Front Exterior Legend Homes
Best Child’s Room Woodridge Homes
Craftsmanship Wiesner Custom Homes
Best Landscaping Britt Development Group
Best Outdoor Living Area Britt Development Group
Best Interior Decorating Woodridge Homes
Best Kitchen Heritage Homes
Best Floor Plan Arthur Rutenberg Homes
BEST OF SHOW Woodridge Homes
Best Master Suite Heritage Homes
Most Livable Tennessee Valley Homes
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SPIKE REPORT Life Spikes
Twelve 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 September 30, 2016. Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 740 Terry Cobb 568 Jim Fischer 566 John Whitaker 497 James Carbine 366 Jennifer Earnest 350 Trey Lewis 314 Kevin Hale 294 David Crane 286 Tonya Jones 271 Reese Smith III 261 Steve Moody 219 Sonny Shackelford 219 Davis Lamb 198 James Franks 197 Jackson Downey 182 Tim Ferguson 177
Jim McLean 164 Louise Stark 163 Harry Johnson 146 Steve Cates 141 C.W. Bartlett 138 Sam Carbine 130 Tonya Alexander 128 Steve Hewlett 119 B.J. Hanson 114 Carmen Ryan 113 Jordan Clark 108 Dave McGowan 104 Johnny Watson 101 Julie DuPree 97 Wiggs Thompson 92 Duane Vanhook 92 Jeff Zeitlin 87 John Zelenak 78 Helmut Mundt 77 Erin Richardson 76 Michael Dillon 73 Jeff Slusher 70 Christina Cunningham 69 John Baugh 68 Don Bruce 62 Jim Ford, Jr. 62 Randall Smith 62 Beth Sturm 60 Lori Fisk-Conners 57 Hill McAlister 57 Justin Hicks 56 David Hughes 55 Joe Morgan 54 John Broderick 54 Gerald Bucy 53 Andrew Neuman 50 Al Davis 47
John Ganschow 47 Benny Sullivan 46 Ron Schroeder 45 Marty Maitland 44 Kay Russell 44 Peggy Krebs 40 David Lippe 38 Derenda Sircy 38 Andy Wyatt 37 Chuck Clarkson 36 Frank Miller 36 Brad Butler 35 Al Hacker 34 Ray Edwards 32 Keith Porterfield 28 Ricky Scott 27 Don Mahone 25 Spikes Ashley Crews 19 Frank Tyree 19 Jay Elisar 18 Rick Olszewski 15 Phillip Smith 13 Frank Jones 12 Gina Hewlett 10 Pam Smith 10 Don Alexander 9 Kenny Burd 9 Will Montgomery 9 Bob Bellenfant 7 Tonya Esquibel 6 McClain Franks 6 Rob Pease 6
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NOVEMBER Calendar Sunday
Sales & Marketing Council meeting
HBAMT Elections and Chili Cook-off
Remodelers Council meeting
Dickson County Chapter meeting
Metro/Nashville Chapter meeting
Chapters & Councils CHAPTERS
Robertson County RSVP line: 615-377-9651, ext. 313.
Council RSVP Line: 615/377-9651, ext. 308
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 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. 306
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 the Ponderosa Restaurant in Dickson. Next meeting: Monday, November 21. Price: FREE, lunch dutch treat. Chapter RSVP Line: 615/377-9651, ext. 307
WILLIAMSON COUNTY CHAPTER Chapter President - BJ 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
HBAMT REMODELERS COUNCIL Council President - Ricky Scott. The HBAMT Remodelers Council meets on the third Wednesday of the month at varying locations. Next meeting: Wednesday, November 16, 5:00 p.m. Location: Hermitage Lighting Gallery. Topic: Metro Codes Director Terry Cobb is the special guest. Price: free for RMC members with RSVP; $15 for non-members with RSVP ($20 w/o). Council RSVP Line: 615/377-9651, ext. 301
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 - John Whitaker: 615/843-3300. The Metro/Nashville Chapter meets on the fourth Monday of the month, 11:30 a.m. at the HBAMT offices. Next meeting: Monday, November 28. 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. 304 ROBERTSON COUNTY CHAPTER Next meeting: to be announced.
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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. Topic: to be announced. Price: free for Green Building Council members pending sponsorship; $20 for non-members with RSVP ($25 w/o).
INFILL BUILDERS COUNCIL The Infill Builders meets on the third Thursday of the month, 11:30 a.m. at the HBAMT offices until further notice. Next meeting: to be announced. Council RSVP Line: 615/377-9651, ext. 311 MIDDLE TENN SALES & MARKETING COUNCIL Council President - Jody Derrick. The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, November 3, 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. 302.
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The November, 2016 issue of The Nail, the official monthly magazine of the Home Builders Association of Middle Tennessee( HBAMT).