The Nail, November 2019 issue

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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 Solid gains for construction jobs in October

The Bureau of Labor Statistics Employment Situation Summary for October shows the job market is still showing solid gains.

10 2019 James Hardie Parade of Homes a winner

The 2019 James Hardie Parade of Homes at The Grove got underway last month with an awards-filled preview party.

DEPARTMENTS 6 News & Information 15 SPIKE Club Report

Advertise in

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16 November Calendar 16 Chapters and Councils

NAIL 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 2019 James Hardie Parade of Homes “Best of Show� winning Trace Construction house. See page ten for a complete look at all the award winning homes.

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news&info

New home sales remain stable in September

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ales of newly built, single-family homes decreased 0.7 percent to a seasonally adjusted annual rate of 701,000 units in September off a downwardly revised reading in August, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. On a year-to-date basis, new home sales for 2019 are 7.2 percent higher than the same period in 2018.

“New home sales inched down in September, but the ongoing trend remains positive as builders increase their production,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn.

Sales volume is expected to improve slightly in the coming months as more newly-built inventory arrives.

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“Sales volume is expected to improve slightly in the coming months as more newly-built inventory arrives,” said Jing Fu, NAHB’s Director of Forecasting and Analysis.

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 September reading of 701,000 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 321,000 in September, representing a 5.5 months’ supply. The median sales price was $299,400. The median price of a new home sale a year earlier was $328,300.

Regionally, and on a year-to-date basis, new home sales are 12.8 percent higher in the South and 7.3 percent higher in the West.

Sales are down 10.3 percent in the Northeast and 10.6 percent in the Midwest. n

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Single-family starts hold firm, builder confidence up

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ue to a decline in multifamily housing starts, total housing starts fell 9.4 percent in September to a seasonally adjusted annual rate of 1.26 million units, according to a report from the U.S. Housing and Urban Development and Commerce Department.

The September reading of 1.26 million starts is the number of housing units builders would begin if they kept this pace for the next 12 months. Within this overall number, single-family starts increased 0.3 percent to 918,000 units. The multifamily sector, which includes apartment buildings and condos, fell 28.2 percent to a 338,000 pace.

“Single-family builders continue to see positive conditions for housing, and this is reflected in NAHB’s Housing Market Index, which measures builder sentiment,” said Greg Ugalde, NAHB chairman. “However, builders are still being somewhat cautious as they continue to deal with supply-side challenges which impact housing affordability.”

“Multifamily housing starts fell from an unsustainably high level in August and are running at a solid pace despite the sharp monthly decline,” said NAHB Chief Economist Robert Dietz. “Meanwhile, the rebound for single-family construction continues. Single-family permits have increased since April, and single-family starts have posted gains since May. In another positive development, September marked the first monthly increase for the number of single-family homes cur-

rently under construction since January.”

On a regional and year-to-date basis, combined single-family and multifamily starts in September rose 6.0 percent in the South. Starts declined 0.6 percent in the Northeast, 6.2 percent in the Midwest and 12.2 percent in the West.

Overall permits, which are a harbinger of future housing production, fell 2.7 percent to a 1.39 million unit annualized rate in September.

Single-family permits increased 0.8 percent to an 882,000 rate while multifamily permits declined 8.2 percent to a 505,000 pace.

Looking at regional permit data on a yearto-date basis, permits rose 8.1 percent in the Northeast and 3.4 percent in the South. Permits fell 4.9 percent in the Midwest and 3.5 percent in the West.

Builder confidence hits 20 month high Builder confidence in the market for newly-built single-family homes rose three points to 71 in October, according to the latest NAHB/

Remodelers’ confidence holds steady in third quarter

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he National Association of Home Builders’ (NAHB) Remodeling Market Index (RMI) posted a reading of 55 in the third quarter of 2019, remaining stable 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.

“Remodelers are reporting increased

activity, especially in areas of the country impacted by recent natural disasters,” said NAHB Remodelers Chair Tim Ellis, CAPS, CGP, CGR, GMR, Master CGP, a remodeler from Bel Air, Md. Current market conditions fell one point from the previous quarter to 54. Among its three major components, major additions and alterations dropped one point to 52, minor additions and alterations decreased by two points to 53 and the home maintenance and repair component rose one point to 57.

Wells Fargo Housing Market Index (HMI) released today. Sentiment levels are at their highest point since February 2018.

“The housing rebound that began in the spring continues, supported by low mortgage rates, solid job growth and a reduction in new home inventory,” said Ugalde.

“The second half of 2019 has seen steady gains in single-family construction, and this is mirrored by the gradual uptick in builder sentiment over the past few months,” said Dietz.

“However, builders continue to remain cautious due to ongoing supply side constraints and concerns about a slowing economy.”

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 the HMI indices posted gains in October.

The HMI index gauging current sales conditions increased three points to 78, the component measuring sales expectations in the next six months jumped six points to 76 and the measure charting traffic of prospective buyers rose four points to 54.

Looking at the three-month moving averages for regional HMI scores, the Northeast posted a one-point gain to 60, the Midwest was up a single point to 58, the South registered a three-point increase to 73 and the West was also up three points to 78. n

The future market indicators gained two points from the previous quarter to 57. Calls for bids increased by one to 55, amount of work committed for the next three months gained two points to 54, the backlog of remodeling jobs increased one point to 59 and appointments for proposals jumped by five points to 60.

“The demand for remodeling is fueled by a healthy labor market and low interest rates,” said NAHB Chief Economist Robert Dietz. “However, the remodeling market is still constrained by high costs and lack of skilled labor.”

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

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Solid gains for construction jobs

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he October job gains suggests the job market is still showing solid gains. Total employment increased by 128,000 and the unemployment rate inched up 0.1 percentage points to 3.6%.

Residential construction employment increased by 5,100 in October, after an increase of 5,500 jobs in September (revised). Total construction industry (both residential and nonresidential) employment totaled about 7.5 million in October.

The Bureau of Labor Statistics released the Employment Situation Summary for October. Total nonfarm payroll employment rose by 128,000 in October, following an increase of 180,000 jobs in September.

Job gains in September and August were revised higher. The September increase was revised upward to 180,000, while the August increase was revised upward to 219,000. With the upward revisions, job gains in the previous two months increased by 95,000 totally. Monthly employment growth has averaged 167,000 per month for the first ten months of 2019, compared with the average monthly growth of 223,000 over all of 2018. Over the past twelve months, total nonfarm payroll employment rose by 2.1 million, with the average monthly growth of 174,000.

In October, the unemployment rate inched up 0.1 percentage points to 3.6%. Over the month, the number of unemployed persons was little changed (+86,000) and the number of employed persons increased by 241,000. Meanwhile, the labor force participation rate, the proportion of the population either looking for a job or already with a job, ticked up by 0.1 percentage points to 63.3% in October.

Additionally, monthly employment data released by the BLS Establishment Survey indicates that employment in the overall construction sector increased by 10,000 in October. The number of residential construction jobs rose by 5,100 in October, following an increase of 5,500 jobs in September.

Residential construction employment now stands at 2.9 million in October, broken down as 847,000 builders and 2.1 million residential specialty trade contractors. The 6-month moving average of job gains for residential construction is 4,167 a month. Over the last 12 months, home builders and remodelers added 53,700 jobs on a net basis. Since the low point following the Great Recession, residential construction has gained 939,000 positions.

In October, the unemployment rate for construction workers rose to 4.7% on a seasonally adjusted basis, from 3.9% in September. Despite the monthly volatility, the unemployment rate for the construction sector remains historically low. n

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Parade Chairman David Crane awards the “Best of Show” winning Trace Construction team. From left: Crane, Amber Brown, Brad Dixson, and Bradley Rickman.

2019 Parade a winner!

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he 2019 James Hardie Parade of Homes drew big crowds during a successful two-week run last month at The Grove in College Grove. Long lines formed daily to see the five incredible homes and interior designs that generated strong word-of-mouth endorsements throughout the show. 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 Trace Construction took home the “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

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during a live remote on 96.3 Jack FM. Trace Construction took home twelve of the sixteen awards including “Best of Show.”

The much coveted “Best Interior Design” award went to Hatcliff Construction’s Southern Living team at the Preview Party. Cara Brock, Cara Brock Interiors, took home the People’s Choice “Best Interior Design” award.

For a complete listing of all the winners from each of the award presentations see page 12 of this issue.

A big thanks to our title sponsor James Hardie Building Products for their support. Thanks also to The Grove for hosting the event, and to our benefiting charity, Memories of Honor. n

Master Suite Stonegate Homes

Lower Level Entertainment Area Trace Construction

Crane presents Stonegate Homes’ “Best Master Suite” award to Christy Huff, Todd Jones, Julie McCoy, and Paul Huff.

Mary Hatcliff and Patrick Hatcliff accept the “Best Foyer” award for Hatcliff Construction from Crane.

Crane presents Legend Homes’ “Best Front Elevation” award to Stacey Wessner, Doug Herman, Marie-Joe Bouffard, and Andy Ferguson.

Jill Luna, Jay Luna, Summer Ignagni, and Brad Davis accept the “Best Child’s Room” award for Luna Custom Homes.

Preview Party emcee Mark Enderle brings Amy Cotta to the stage to talk about benefitting charity, Memories of Honor.

Joe Dalton addresses the crowd on behalf of 2019 Parade of Homes title sponsor James Hardie Building Products.

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Best of Show Awards Presented at the Preview Party

Best Front Elevation Legend Homes

Best Child’s Room Luna Homes

Best Draperies Hatcliff Construction

Best Landscaping Hatcliff Construction

Best Laundry Room Stonegate Homes

Best Craftsmanship Hatcliff Construction

Best Foyer Hatcliff Construction

Best Outdoor Living Area Trace Construction

Best Interior Design Hatcliff Construction

Best Kitchen Trace Construction

Most Livable Legend Homes

Best Master Suite Stonegate Homes

Best Wall Treatment Luna Homes

Best Floorplan Legend Homes

Best Home Technology Trace Construction

Best of Show

Trace Construction

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

Best Front Elevation Legend Homes

Best Child’s Room Luna Homes

Best Draperies Trace Construction

Best Landscaping Trace Construction

Best Laundry Room Trace Construction

Best Craftsmanship Trace Construction

Best Foyer Hatcliff Construction

Best Outdoor Living Area Trace Construction

Best Interior Design Trace Construction

Best Kitchen Trace Construction

Most Livable Trace Construction

Best Master Suite Stonegate Homes

Best Wall Treatment Trace Construction

Best Floorplan Trace Construction

Best Home Technology Trace Construction

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Dining Room Hatcliff Construction

Best of Show

Trace Construction

Outdoor Living Area Trace Construction

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The 2019 HBAMT Installation & Awards Banquet

SPONSORSHIPS AVAILABLE! - Logo on all printed material - Two tickets to Installation & Awards Banquet - Recognition at Banquet

$600

PLATINUM r SPONSOR

- Larger logo on all printed material - Two (2) tickets to Installation & Awards Banquet - Ten (10) beverage tickets of your choice - Increased recognition at Banquet

$1,000

RECEPTIONS r SPONSOR (2 available)

- Dual logos on all printed material - Signage at Reception and Banquet - Four (4) tickets to Installation & Awards Banquet - Forty (40) beverage tickets of your choice - Increased recognition at Banquet

$5,000

TITLE r SPONSOR (1 available)

- Headliner on all printed material with logo at Reception and Banquet - Welcome everyone & introduce entertainment - Table at Installation & Awards Banquet (8 tickets) - Sixty (60) beverage tickets of your choice

$7,500

r

GENERAL SPONSOR

Yes, I want to sponsor the 2019 Installation & Awards Banquet at the level checked above.

Company name: _____________________________________________________________ Your Name: _________________________________________________________________ Your number: ________________________ Your email: ______________________________

Return this form and your company’s logo via email to cnicley@hbamt.org Fax: 615-377-1077 | Mail: HBAMT 9007 Overlook Blvd, Brentwood, TN 37027

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SPIKE REPORT Davis Lamb 207 Jackson Downey 182 Tim Ferguson 177 Jim McLean 164

Twenty-two 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, 2019.

Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 772 Terry Cobb 570 Jim Fischer 566 John Whitaker 563 Trey Lewis 461 James Carbine 398 Jennifer Earnest 371 David Crane 325 Kevin Hale 300 Jimmy Franks 298 Reese Smith III 261 Steve Moody 219 Sonny Shackelford 219

Life Spikes Harry Johnson 146 Tonya Esquibel 143 Steve Cates 142 Randall Smith 139 C.W. Bartlett 138 Sam Carbine 136 Kevin Woodward 130 David Hughes 122 Jordan Clark 121 Helmet Mundt 121 B.J. Hanson 120 Steve Hewlett 119 Carmen Ryan 119 John Zelenak 116 Dave McGowan 108 Edsel Charles 107 Michael Dillon 104 Justin Hicks 104 Wiggs Thompson 104 Duane Vanhook 101 Nick Wisniewski 94 Joe Morgan 89 Jeff Zeitlin 87 Christina Cunningham 84 Erin Richardson 77 Keith Porterfield 73 Beth Sturm 73

Lori Fisk-Conners 70 Steve Shalibo 70 Jeff Slusher 70 Sam Henley 67 Ron Schroeder 65 Jody Derrick 64 Don Bruce 62 Eugene James 62 Marty Maitland 60 Brandon Rickman 59 John Broderick 55 Andrew Neuman 53 Derenda Sircy 52 John Ganschow 49 Rick Olszewski 47 Ashley Crews 45 Phillip Smith 46 Ricky Scott 45 Bryan Edwards 44 Christina James 35 Frank Jones 33 Frank Tyree 31 Don Mahone 30 Spikes Joe Dalton 21 Jeffrey Caruth 18 Perry Pratt 17 Nicole Bird 15 Ryan Meade 15 Tammy Chambers 12 Eric DeBerry 12 Rob Pease 12

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NOVEMBER Calendar Sunday

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Sales & Marketing Council meeting

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Membership Council “Thankfully Blessed” event

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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, November 19.

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.

Topic: to be announced.

FREE w/RSVP pending sponsorship.

Please RSVP for Maury County Chapter meetings to Connie Nicley - cnicley@hbamt.org.

GENERAL MEMBERSHIP MEETING Chapter President - Tonya Esquibel The General Membership meeting is held on the fourth Thursday of the month, 11:30 a.m. at the HBAMT offices.

Next meeting: Tuesday, November 19 - 4:30 to 7:00 p.m.

Topic: “Thankfully Blessed” charity event at Avery in Brentwood. 6458 Penrose Drive, Brentwood, TN 37027.

First 50 FREE with RSVP thanks to event sponsor Hidden Valley Homes.

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Price: $10 per person w/RSVP; $15 w/o.

Chapter RSVP Line: 615/377-9651, ext. 261 See page ** of this issue for more details.

ROBERTSON COUNTY CHAPTER Next meeting: to be announced.

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

SUMNER COUNTY CHAPTER Chapter President - Joe Dalton: 615/972-7149 The Sumner County Chapter meets on the fourth Tuesday of the month, 11:30 a.m. at the new Hendersonville Library.

Next meeting: to be announced.

Chapter RSVP Line: 615/377-9651, ext. 262 WILLIAMSON COUNTY CHAPTER Chapter President - 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.

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.

Price: free for Green Building Council members pending sponsorship; $20 for non-members with RSVP ($25 w/o).

Council RSVP Line: 615/377-9651, ext. 308 HBAMT REMODELERS COUNCIL Council President - David Crane.

The HBAMT Remodelers Council meets on the third Wednesday of the month at varying locations.

Next meeting: to be announced. 11 a.m. to 12:30 p.m. at a location to be determined.

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 - Jeffrey Caruth.

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

Next meeting: Thursday, November 10, 9:00 a.m. at the HBAMT offices - 9007 Overlook Blvd., Brentwood, TN 37027 Topic: “Cyber Crimes Prevention,” with Laura Perry, Homeland Title.

SMC members free thanks to Willow Branch Partners; nonSMC members $25 w/RSVP, $35 w/o RSVP Council RSVP Line: 615/377-9651, ext. 260.

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