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THE

NAIL The official magazine of Home Builders Association of Middle Tennessee President John Zelenak Vice President Keith Porterfield Secretary/Treasurer Justin Hicks Executive Vice President John Sheley Editor and Designer Jim Argo Staff Connie Nicley Charlotte Fischer Cilla Lamar 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 Preview Party kicks off a successful Parade

The Preview Party kicked off the Pinnacle Financial Partners Parade of Homes in style the Thursday prior to opening weekend.

11 Pinnacle Financial Partners Parade of Homes a hit! Big crowds flock to the Witherspoon community to see the amazing awardwinning homes first hand!

DEPARTMENTS 6 News & Information 14 SPIKE Club Report 14 November Calendar 16 Chapters and Councils

ON THE COVER: Poolside at the “Best of Show� winning Legend Homes Parade house. A complete listing of all the award winners can be found on page thirteen (13) of this issue. November, 2017

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news&info

New home sales pace in September hits ten year high

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ales of newly built, single-family homes in September rose 18.9 percent to a seasonally adjusted annual rate of 667,000 units from an upwardly revised August reading, 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 rate since October 2007. Year-to-date, new home sales are 8.6 percent above their level over the same period last year. “The September sales numbers show that there is solid, growing demand for new home

As existing home inventory remains tight, expect new homes sales to continue to make gains in the months ahead. 6 The NAIL

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construction,” said Granger MacDonald, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Kerrville, Texas. “However, builders need to continue to monitor rising construction costs to keep houses affordably priced.” “New home sales have bounced back from a few soft months and have returned to the strong growth trend we saw earlier this year,” said NAHB Chief Economist Robert Dietz. “As existing home inventory remains tight, we can expect new homes sales to continue to make gains in the months ahead.” The inventory of new homes for sale was 279,000 in September, which is a 5.0-month supply at the current sales pace. New home sales increased in all four regions. Sales rose 33.3 percent in the Northeast, 25.8 percent in the South, 10.6 percent in the Midwest and 2.9 percent in the West. n


Housing production down, builder confidence up four points

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ationwide housing starts fell 4.7 percent in September to a seasonally adjusted annual rate of 1.13 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Nationwide single-family production fell 4.6 percent to 829,000 units due to a 15.3 percent decline in the hurricane-ravaged South. All other regions posted gains in the single-family sector, and nationwide single-family permits increased 2.4 percent. “We are seeing the hurricanes take a toll on single-family production, but builder confidence is strong and production should bounce back as the recovery process gets underway,” said Granger MacDonald, NAHB chairman. “Looking at historical data, there is a pattern of decreased production immediately following natural disasters but economic fundamentals will drive the longer-term trend in housing starts,” said NAHB Senior Economist Michael Neal. “Nationwide single-family permits are up this month, and year-to-date single-family starts are 9.1 percent ahead of their level over the same period last year — two indicators that this sector continues to improve.” Regionally in September, combined singleand multifamily housing production rose 15.7 percent in the West. Starts fell 9.2 percent in

the Northeast, 9.3 percent in the South and 20.2 percent in the Midwest. Overall permit issuance in September was down 4.5 percent to a seasonally adjusted annual rate of 1.22 million units. Single-family permits rose 2.4 percent to 819,000 units while multifamily permits fell 16.1 percent to 396,000. Regionally, overall permits rose 9.2 percent in the Northeast and 0.5 percent in the Midwest. Permits fell 5.6 percent in the South and 9.2 percent in the West. Builder confidence up four points Builder confidence in the market for newly-built single-family homes rose four points to a level of 68 in October on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This was the highest reading since May. “This month’s report shows that home builders are rebounding from the initial shock of the hurricanes,” said MacDonald. “However, builders need to be mindful of long-term repercussions from the storms, such as intensified material price increases and labor shortages.” “It is encouraging to see builder confidence return to the high 60s levels we saw in the spring and summer,” said Dietz. “With a tight inventory of existing homes and promising

Construction job openings reach new cycle high

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he count of unfilled jobs in the construction sector continued to rise in August, reaching the highest level since February 2007. Given the significant need for repair and restoration work in the wake of Hurricanes Harvey and Irma, we can expect additional increases in the months ahead. According to the BLS Job Openings and Labor Turnover Survey (JOLTS) and NAHB analysis, the number of open construction sector jobs (on a seasonally adjusted basis) increased to 247,000 in August. This represents a 34% increase since August 2016. The open position rate (job openings as a percent of total employment) for August expanded to 3.5%. On a smoothed twelve-month

moving average basis, the open position rate for the construction sector increased to 2.7%. The overall trend for open construction jobs has been increasing since the end of the Great Recession. This is consistent with survey data indicating that access to labor remains a top business challenge for builders. However, after

growth in household formation, we can expect the new home market continue to strengthen at a modest rate 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. All three HMI components posted gains in October. The component gauging current sales conditions rose five points to 75 and the index charting sales expectations in the next six months increased five points to 78. Meanwhile, the component measuring buyer traffic ticked up a single point to 48. Looking at the three-month moving averages for regional HMI scores, the South rose two points to 68 and the Northeast rose one point to 50. Both the West and Midwest remained unchanged at 77 and 63, respectively. 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. n

a spate of data at the start of the year indicate a leveling off of the count of unfilled construction jobs, open positions are again on the rise. The construction sector hiring rate, as measured on a twelve-month moving average basis, was effectively unchanged at 5.3% in August, while the monthly rate increased to 5.6%. The twelve-month moving average for layoffs was steady (2.7%), remaining in a range set in 2014. The quits rate remained at 2%. Overall, the uptick in hiring along with rise in job openings is consistent with a construction market that is supply-side constrained. Overall, the labor market for construction workers remains tight as it continues to expand. Home builders and remodelers added 80,600 jobs over the last 12 months, and industry employment has increased by more than 710,000 since the low point after the recession. As single-family housing starts continue to increase more workers will be needed in the construction sector. n November, 2017

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Remodeling market indicators maintain strength

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he National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 57 in the third quarter of 2017, up two points from the previous quarter. For 18 consecutive quarters, the RMI has been at or above 50, which 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 are seeing higher demand in residential repairs, and expect to be busy well into the new year with jumps in work backlog, call for bids and proposal appointments, likely due in part to the significant damage caused by hurricanes across the southern states,” said NAHB Remodelers Chairman Dan Bawden, CAPS, GMB, CGR, CGP, a remodeler from Houston. “However, the ongoing labor shortage is constraining how quickly the repairs can be completed.”

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Remodelers are finding it more difficult to find skilled labor; over 90 percent of respondents stated that there is a shortage of finish carpenters. This is a significant increase from the third quarter of 2013, when only 44 per-

cent of respondents reported a shortage of finish carpenters. Current market conditions increased one point from the second quarter of 2017 to 56. Among its three major components, major additions and alterations waned one point to 53, minor additions and alterations increased three points to 56, and the home maintenance and repair component rose one point to 58. The future market indicators index rose three points from the previous quarter to 58. Calls for bids increased two points to 58, amount of work rose three points to 56, the backlog of remodeling jobs gained two points to 60 and appointments for proposals increased four points to 59. “In addition to the labor shortage, the cost of materials is becoming a pressing issue for remodelers,” said NAHB Chief Economist Robert Dietz. “Both of these issues are constraining remodelers’ ability to complete projects in a timely and cost-effective manner, especially moving forward after natural disasters.” For the full RMI tables, please visit www. nahb.org/rmi. For more information about remodeling, visit www.nahb.org/remodel. n


Preview Party

kicks off 2017 Pinnacle Financial Partners Parade of Homes in style! The 2017 Pinnacle Financial Partners Parade of Homes Preview Party drew a big crowd at the Witherspoon community in Brentwood. Held the Thursday evening prior to the opening weekend of the show, the elegant yet fun-filled party proved to be a fitting kick-off to an amazing Parade of Homes. Attendees enjoyed tasty food, cold beverages, great music and the presentation of the “Best of Show� awards before getting the first look at the six incredible Parade homes! A big thanks to the CPS Land team for organizing and hosting the Preview Party. n

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Big wins at the Parade!

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he 2017 Pinnacle Financial Partners Parade of Homes drew the largest attendance numbers for the event in ten years during a successful two-week run last month at the Witherspoon community in Brentwood. Big crowds lined up daily to see the six incredible homes and interior designs that generated strong word-of-mouth endorsements throughout the event. The stunning homes didn’t disappoint and received a bevy of well-deserved awards, beginning with the annual Preview Party event prior to opening weekend where the Legend Homes team was presented a tightly contested “Best of Show Award.” Parade attendees cast their votes during the first week of the show leading to the announcement of the People’s Choice award winners

Kitchen Legend Homes

during a live remote on 92.9 Mix Radio. Ford Custom Classic Homes took home five of the eleven awards including “Best of Show.” The much coveted “Best Interior Design Award” went to Autumnflora Miklich, Bella Vita Interiors, and the Ford Custom Classic Homes team at both the Preview Party and the presentation of the People’s Choice Awards. For a complete listing of all the winners from each of the award presentations see page 13 of this issue. A big thanks to our title sponsor Pinnacle Financial Partners for their support. Thanks also to the developers who hosted the event, CPS Land and Ford Custom Classic Homes, and to our benefiting charity, the Williamson County Animal Center. n

Study Legend Homes

Family Room Legend Homes

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David Crane presents Legend Homes’ “Best Front Elevation” award to Stacey Wessner during the preview party.

Keith Schumacher accepts the “Best Craftsmanship” award for Schumacher Homes from Crane.

Austin Pennington accepts the “Best Kitchen” award for Barlow Builders from Crane.

Julie Davis, Crane, and Paul Huff accepting the “Best Child’s Room” award for Stonegate Homes.

Alan Looney accepts the “Best Home Technology” award for Castle Homes from Crane.

Autumnflora Miklich, Crane, and Thomas Edmondson accepting the “Best Interior Design” award for Ford Custom Classic Homes.

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Best of Show Awards Presented at the Preview Party

Best Front Elevation Legend Homes

Best Floorplan Ford Custom Classic Homes

Best Home Technology Castle Homes

Best Landscaping Schumacher Homes

Best Child’s Room Stonegate Homes

Best Draperies Stonegate Homes

Best Foyer Schumacher Homes

Best Outdoor Living Area Barlow Builders

Best Craftsmanship Schumacher Homes

Best Kitchen Barlow Builders

Best Interior Design Ford Custom Classic Homes

Best of Show Legend Homes Best of Show

Best Master Suite Ford Custom Classic Homes

Most Livable Castle Homes

Legend Homes

PEOPLE’S CHOICE Awards Determined by votes cast by Parade attendees

Best Front Elevation Legend Homes

Best Floorplan Ford Custom Classic Homes

Most Livable Castle Homes

Best Landscaping Stonegate Homes

Best Child’s Room Barlow Builders

Best Craftsmanship Schumacher Homes

Best Kitchen Ford Custom Classic Homes

Best Outdoor Living Area Barlow Builders

Best Master Suite Ford Custom Classic Homes

Best Interior Design Ford Custom Classic Homes

Ford Custom Classic Homes

Bonus Room Ford Custom Classic Homes

Kitchen Ford Custom Classic Homes

Master Bedroom Ford Custom Classic Homes

Best of Show Best of Show Legend Homes

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SPIKE REPORT Tim Ferguson Jim McLean Louise Stark Harry Johnson Steve Cates C.W. Bartlett

Twenty 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, 2017. Top 20 Big Spikes Mitzi Spann Terry Cobb Jim Fischer John Whitaker James Carbine Trey Lewis Jennifer Earnest Kevin Hale David Crane Reese Smith III James Franks Steve Moody Davis Lamb Jackson Downey

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753 570 566 538 379 371 357 299 298 261 230 219 201 182

177 164 163 146 142 138

Life Spikes Sam Carbine 132 Tonya Esquibel 131 Steve Hewlett 119 B.J. Hanson 117 Jordan Clark 115 Carmen Ryan 114 Dave McGowan 106 Wiggs Thompson 98 Duane Vanhook 97 John Zelenak 96 Randall Smith 94 Helmut Mundt 90 Jeff Zeitlin 87 Michael Dillon 85 Christina Cunningham 76 Erin Richardson 76 David Hughes 69 Lori Fisk-Conners 66 Beth Sturm 63 Don Bruce 62 Justin Hicks 61 Marty Maitland 57 John Broderick 54

Joe Morgan 54 Ron Schroeder 51 Andrew Neuman 50 John Ganschow 49 Bryan Edwards 44 Derenda Sircy 44 Keith Porterfield 43 Ricky Scott 38 Ashley Crews 33 Phillip Smith 33 Jody Derrick 30 Don Mahone 27 Frank Tyree 25 Rick Olszewski 25 Spikes Jay Elisar 19 Steve Shalibo 19 Frank Jones 17 John Burns 16 Kenny Burd 10 Perry Pratt 10 Will Montgomery 10 Bob Bellenfant 8 Stacy DeSoto 7 Rob Pease 7 McClain Franks 6 Jim McCann 6


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NOVEMBER Calendar Sunday

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Sales & Marketing Council meeting

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14 General Elections and Chili Cook-off!

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HBAMT Remodelers Council meeting

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Dickson County Chapter 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 Monday of the month, 12:00 p.m. at the Ponderosa Restaurant in Dickson. Next meeting: Monday, November 20. Topic: to be announced. Price: FREE, lunch dutch treat. Chapter RSVP Line: 615/377-9651, ext. 307 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: 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. 304 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 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

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 15. Location: Hermitage Lighting Gallery - 531 Lafayette St, Nashville, 37203 Topic: “Building Codes Update,” with Terry Cobb, Metro Codes Director. Price: free for RMC members with RSVP thanks to our sponsor, Hermitage Lighting Gallery; $15 for non-members with RSVP ($20 w/o). Council RSVP Line: 615/377-9651, ext. 301

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. Topic: 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. 303 - or to cnicley@hbamt.net MIDDLE TENN SALES & MARKETING COUNCIL Council President - Ashley Crews. The SMC typically meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: Thursday, November 9, 9:00 a.m. at the HBAMT. Topic: ““Millenials - Promise of Peril,” with Jill Wise, Digital Marketing Consultant. 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 Nail, November 2017  

The November 2017 issue of The Nail, the official monthly publication of the Home Builders Association of Middle Tennessee (HBAMT).