NAIL The official magazine of Home Builders Association of Middle Tennessee President Dan Strebel Vice President James Franks Secretary/Treasurer Michael Dillon Executive Vice President John Sheley
Editor and Designer Jim Argo Staff Connie Nicley Pat Newsome
CONFERENCE Rooms Available Need space for an upcoming meeting, seminar or special event? Call the Home Builders Association and reserve one (or both) of the spacious, first-floor conference areas. Located in the heart of Brentwood at the HBA’s first-class office building, each room makes an ideal venue for both business and social engagements alike.
Boardroom Members Non-members -
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.
Classroom Members Non-members -
Rooms are reserved on a first-come, first-serve basis. Call (615) 377-1055 for availability and reservation information. *Each room requires a deposit of $100 (refundable) and half the amount of the rental fee due prior to date of occupancy. Boardroom furniture may not be taken from the room or rearranged. The Home Builders Association of Middle Tennessee
9007 Overlook Blvd., Brentwood, TN 37027 615/377-1055 Fax: 377-1077
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FEATURES 8 2012 Bass Trail concludes with Grand Finale The Piedmont Natural Gas Bass Trail Tournament wrapped up 2012 with the Grand Finale at Goose Pond Marina.
10 Parade of Homes attendees award best of show There was no shortage of voters for the People’s Choice Awards as the popular event drew big crowds during its two-week run at Kings’ Chapel in Arrington, Tennessee.
DEPARTMENTS 6 News & Information 17 SPIKE Club Report 18 November Calendar 18 Chapters and Councils
ON THE COVER: Parade of Homes devotees fill the streets at Kings’ Chapel during a typically busy day at the 2012 event. Attendees cast their votes for their favorite homes and determined the winners of this year’s People’s Choice Awards. For more details see page ten.
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New home sales rise 5.7 percent in September ales of newly built, single-family homes rose 5.7 percent to a seasonally adjusted annual rate of 389,000 units in September, according to newly released figures from HUD and the U.S. Census Bureau. This is the fastest sales pace recorded since April of 2010. “Combined with consistent, positive reports on housing starts, permits, prices and builder confidence in recent months, today’s data provides further confirmation that a gradual but steady housing recovery is underway across much of the nation,” said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. “Consumers who have been on the sidelines during the past few years are deciding now is the time to go forward with a new-home purchase,
Consumers who have been on the sidelines during the past few years are deciding now is the time to go forward with a new-home purchaser. 6 The NAIL z November 2012
assuming they can qualify for a good mortgage under today’s exceedingly stringent guidelines.” “New-home sales this year have consistently and significantly out-paced their year-ago levels as favorable interest rates, rising prices and improving consumer confidence have driven demand higher,” noted NAHB Chief Economist David Crowe. “Meanwhile, despite a small increase in the inventory of new homes on the market in September, the number of completed new homes for sale is now at an all-time low and the month’s supply is at its tightest since October 2005. This is an indication that builders continue to have a tough time obtaining construction credit, even as demand for new homes increases.” Three out of four regions registered substantial gains in new-home sales this September, including the Northeast’s 16.7 percent increase, the South’s 16.8 percent increase and the West’s 3.9 percent increase. The Midwest was the exception to the rule, with a 37.3 percent decline. Meanwhile, the inventory of new homes for sale inched slightly upward to a still-low 145,000 units in September, which is a 4.5month supply at the current sales pace.
Home price appreciation helps housing’s road to recovery parked by rising home prices across much of the nation, the housing recovery is now under way, but fiscal uncertainties and other challenges could result in a bumpy ride in the coming months, according to economists participating in NAHB’s recent webinar on the construction and economic outlook. “We’re seeing a more robust housing sector than many other parts of the economy,” said NAHB Chief Economist David Crowe. “One of the reasons is we have finally begun to see on a national scale that house prices are picking up again.” Crowe cited a number of factors that are carrying the housing momentum forward, including: • Pent-up household formations • Rising consumer confidence • Increasing builder confidence in all three legs of the industry: remodeling, multifamily and single-family construction • Growing rental demand • More than 100 metros currently on the NAHB Improving Markets Index However, Crowe offered several cautionary factors that continue to put a drag on housing activity at this time – including builders who are experiencing difficulties in obtaining production credit, qualified buyers who are unable to obtain loans, inaccurate appraisals, delinquent mortgages that are at least 90 days late or in foreclosure, and a limited inventory of developed lots in certain markets. Other causes contributing to uncertainty in the marketplace include the looming “fiscal cliff” that will trigger mandatory budget cuts and tax increases at the beginning of next year, pending DoddFrank Act regulations that are making financial institutions hesitant to lend since they don’t know how the new rules will affect them, tax reform, and the future role of Fannie Mae and Freddie Mac in the nation’s housing finance system. NAHB is forecasting a 21 percent increase in single-family starts this year to 528,000 units and a further 26 percent climb to 665,000 units in 2013.
Optimistic Housing Outlook Expressing a more bullish outlook on housing and economic growth, Mark Zandi, chief economist for Moody’s Analytics, forecast that GDP growth will range in the 2 percent range this year and next and “double that growth closer to 4 percent in 2014 and 2015.” At the same time, he expects job growth to go from two million per year to closer to 3 million in 2014 and 2015. “A big part of this optimism is the housing market,” said Zandi. “I expect 1.1 million total housing starts in 2013, 1.7 million to 1.8 million in 2014 and over 1.8 million in 2015.” Zandi noted a range of assumptions behind this rosy forecast, including the expectation that mortgage rates would remain very low, the availability
of housing credit will improve as private mortgage lending begins to pick up, and the job market gains traction as policymakers work to resolve fiscal issues, which will ease market uncertainties. Specifically, Zandi cited three critical fiscal policy concerns: • The fiscal cliff. If policymakers do nothing, the combination of pending tax increases and spending cuts set to take effect in January could produce a fiscal drag of four percentage points, Zandi said, which would throw the economy back into recession. “Hiring will remain weak until this is resolved,” he said. • Treasury debt ceiling. By late February or early March, the Treasury is expected to hit its debt ceiling. A failure to raise the ceiling would prevent the U.S. government to borrow to meet its existing legal obligations, including the issuance of monthly Social Security checks. • Achieve fiscal sustainability. Zandi said that federal government expenditures as a percentage of GDP is 24 percent and revenues is 17 percent. He said this sevenpoint gap needs to be slashed to closer to two percentage points of GDP. “We need spending cuts and tax revenues to narrow future deficits,” he said. “If we can’t do that, bad things will happen.” Acknowledging that these challenges won’t be easy, Zandi said his forecast is based on the assumption that Democrats and Republicans will eventually strike a deal on these contentious issues because each side has much to lose. Democrats, he said, don’t want to see tax cuts for the wealthiest; Republicans don’t like the defense cuts mandated by sequestration. If the nation has the “political will to address the fiscal issues in a reasonable way, I think we will be off and running,” said Zandi.
A gradual climb to normal Delving into the state statistics behind the national numbers, Robert Denk, NAHB’s assistant vice president for forecasting and analysis, cited a range of differences among the states in the amount of pain suffered during the recession and the progress that is being made in recovering. The hardest hit states – such as Arizona, Florida, California and Nevada – bottomed out the furthest and still have much ground to make up. Meanwhile, several energy producing states – North Dakota, Texas, Oklahoma, Montana and Wyoming – will be back to normal levels of housing production by the end of 2014. On a national basis, housing starts are projected to get back to 55 percent of normal production by the end of next year and 70 percent of normal by the end of 2014, Denk said.
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Champs of the trail The 2012 Piedmont Natural Gas Bass Trail wraps up with championship round.
Jim Ford presents Karl Burr and Mylan Burr the 2012 tournament’s first place trophies. The Burr duo topped the field with a weigh-in of 18.96 lbs while representing the Enterprise Electric boat.
he 2012 Piedmont Natural Gas Bass Trail Fishing Tournament came to its conclusion as the Grand Finale was held October 1 at Goose Pond Marina in Gunthersville, Alabama. Open only to those teams who met qualifying criteria during the year-long tournament, the finale determined 2012’s champions. With a weigh-in totaling 18.96 lbs, Karl Burr and Mylan Burr of the Enterprise Electric boat took home this year’s Grand Prize. The Burr duo were presented the 2012 Grand Champion Plaques and took home $3,000.00 in First Place cash prize money. Second place honors for the championship round went to McKenzie Construction’s John Bornstein and David Gnewikow who weighed in with catches totaling18.61 lbs. The Joe Haas Construction team of Joe Haas and Rusty Rust took home third place honors with 17.40 lbs of catches. Fourth place went to Trey Bain and Nathan Vaughn who weighed in with 13.67 lbs for the Benchmark Construction boat. The JS Earhart Plumbing team of Bobby Colson and Jody Earhart weighed in with a score of 13.12 lbs to secure fifth place honors. And Dennis Jenkins and Mark Reavis of the Piedmont Natural Gas boat earned sixth place honors with a weigh-in totaling 12.89 lbs. The “Big Fish” award went to the Piedmont Natural Gas duo of Matt Brown and Charlie Hooper for a catch weighing 6.67 lbs. Thanks to all of the participants for making the tournament a competitive and fun-filled event. And a very special thanks to Piedmont Natural Gas and all of our 2012 Bass Trail Tournament sponsors.
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Karl Burr & Mylan Burr
John Bornstein & David Gnewikow
Joe Haas Construction
Joe Haas & Rusty Rust
Trey Bain & Nathan Vaughn
JS Earhart Plumbing
Bobby Colson & Jody Earhart
Piedmont Natural Gas
Dennis Jenkins & Mark Reavis
Piedmont Natural Gas
JP Hooper & Jason Pernell
Bob Kennedy Builders
Bob Kennedy & Donnie Kennedy
Building Solutions by Spann Todd Spann & Bill Terry
Piedmont Natural Gas
Jerry Bell & Rob Hall
American Heating & Cooling Roger Dunn & Kevin Israel
Spencer Mill Woodworks
Ronald Collins & Barry Welch
Piedmont Natural Gas
Jimmy Capps & Danny Talley
Piedmont Natural Gas
Jerry Deal & Kevin Tidwell
Burr and Burr at the weigh-in.
John Bornstein and David Gnewikow.
Joe Haas and Rusty Rust.
Jody Earhart and Bobby Colson.
Mark Reavis and Dennis Jenkins.
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The Woodridge Home’s Parade house won 12 of the 16 People’s Choice Awards following a busy first week at Kings’ Chapel.
Big crowds tab winners People’s Choice Awards highlight final week of the Parade of Homes at Kings’ Chapel. he 2012 Parade of Homes™ at Kings’ Chapel kicked off the last week of the event with strong attendance numbers and the presentation of the “People’s Choice Awards” Friday, October 12th. The winners were announced that afternoon on Mix 92.9 and Jack 96.3. While all of the homes got glowing reviews and votes as the show’s best from attendees, Woodridge Homes was the most favored among their favorites, earning “Best of Show” honors and 12 of the 16 awards in total. Builders Ted and Amber Pratt accepted the awards for the Woodridge Parade team that included interior designer Dana Dashiell, Dana Dashiell Interiors.
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Aspen Construction took home the “Best Master Suite” Award for John Zelenak and interior designer Kathleen Evers, K Evers Interiors. Norfolk Homes’ Kevin Dattilo and Linda Totok earned “Best Outdoor Living Area” honors. Southern Heritage Company took home “Best Home Mural” for Kevin Atwood, designer Lee Shacklock and artist Leigh Ann Agee. And Tradition Homes’ Daniel Green and designer Marie-Joe Bouffard were presented the “Best Front Elevation” Award. A complete list of the “People’s Choice Awards” results are listed on the opposite page.
PARADE OF HOMES - AWARD WINNERS THE 2012 PARADE OF HOMES PEOPLE’S CHOICE AWARDS Best Front Elevation: Tradition Homes Best Landscaping: Woodridge Homes Best Foyer: Woodridge Homes Best Kitchen: Woodridge Homes Best Master Suite: Aspen Construction Best Floor Plan: Woodridge Homes Best Child’s Room: Woodridge Homes Best Outdoor Living Area: Norfolk Homes
Kitchen, Woodridge Homes.
Best Home Mural: Southern Heritage Company Best Interior Decorating: Woodridge Homes Most Livable: Woodridge Homes Best Home Theater: Woodridge Homes Best Draperies: Woodridge Homes Craftsmanship: Woodridge Homes Best Faux Finishing: Woodridge Homes BEST of SHOW Woodridge Homes
Left: Builders Amber Pratt and Ted Pratt (front) and designer Dana Dashiell (back) accept the People’s Choice “Best of Show” Award at the Woodridge Homes Parade house. Right: “Boy’s Room”, Woodridge Homes.
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Aspen Construction Master bedroom, outdoor living area, dining room, kitchen and foyer.
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Woodridge Homes Family room, master bedroom, coffered kitchen ceiling with pecky cypress wood, foyer and media room.
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Tradition Homes Master bedroom, dining room, front outdoor living area, foyer and family room.
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Southern Heritage Company Dining Room, powder room with “Croc” faux treatment, breakfast nook, view from second floor into family room, and girl’s room with “Girl in the Moon” mural.
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Norfolk Homes Outdoor living area, study, kitchen, dining room and the â€œspoolâ€? featured in the outdoor living area.
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SPIKE REPORT Life Spikes
Fourteen 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, 2012. Top 20 Big Spikes Jim Ford Virgil Ray Bill King Mitzi Spann Jim Fischer Terry Cobb James Carbine Dan Stern John Whitaker Bruce Hancock Kevin Hale Jennifer Earnest Tonya Jones Bill Towe Reese Smith III Steve Moody Sonny Shackelford David Crane Michael Apple Cyril Evers
910 813 776 616 566 563 322 306 303 297 285 277 271 262 256 219 210 192 185 181
Anne McKnight Jackson Downey Jim McLean Louise Stark Davis Lamb Harry Johnson Steve Cates C.W. Bartlett Tim Ferguson Tonya Alexander Steve Hewlett Tom Kelley Johnny Watson Carmen Butner Bill Kottas Lee Santiago Dave McGowan Kim Dykes B.J. Hanson Randy Parker Sam Carbine Erin Richardson Duane Vanhook Jordan Clark Jeff Slusher John Baugh Don Bruce Jim Ford, Jr. Hill McAlister Joe Morgan Gerald Bucy John Broderick Beth Sturm Al Davis Sheila Rawlings
179 171 164 163 161 146 140 138 125 121 119 115 101 98 97 95 91 89 84 75 73 72 72 71 70 68 62 62 57 54 53 51 49 47 47
Bernie Laine Greg Langley Benny Sullivan James Franks Kim Nichols Bryan Edwards David Hughes Trey Lewis Andrew Neuman Kay Russell Wiggs Thompson Peggy Krebs Chuck Clarkson Brad Butler Andy Wyatt Al Hacker David Lippe Ray Edwards John Ganschow Dan Strebel Lori Fisk-Connors Steve Wheeley Alvin Basel Matt Burnett
46 46 46 45 45 44 44 44 44 44 40 39 36 35 35 34 33 32 32 32 30 30 29 25
Spikes Jess Dillon Christina Cunningham Tracy Lomax Don Mahone Marty Maitland Frank Tyree Pam Smith Kelvey Benward Ron Myers Bridget Thompson
16 14 14 9 9 9 8 7 7 6
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NOVEMBER CALENDAR SUNDAY
Williamson County Chapter
Sales & Marketing Council
Dickson County Chapter
Green Building Council
CHAPTERS & COUNCILS CHAPTERS CHEATHAM COUNTY CHAPTER Chapter President - Roy Miles: 615/646-3303 Cheatham County Chapter details are currently being planned. Next meeting: to be announced. Topic: 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 19. 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. Price*: 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 26. Topic: “Radon Issues in Tennessee,” with Vaughn Cassidy, Office of Sustainable Practices, Jackson Environmental Field Office. HBAMT members: $20 with RSVP; $25 w/o RSVP. Builders Free pending sponsorship. Chapter RSVP Line: 615/377-9651, ext. 304 ROBERTSON COUNTY CHAPTER Next meeting: to be announced. Topic: to be announced.
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Price*: to be announced. Robertson County RSVP line: 615-377-9651, ext. 313. 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. Topic: to be announced. Price*: to be announced. Chapter RSVP Line: 615/377-9651, ext. 306 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: Wednesday, November 7. Topic: “Outlook for Growth in Williamson County,” with Matt Largen, Director of the Office of Economic Development for Williamson County. HBAMT members: $20 with RSVP; $25 w/o RSVP BUILDERS FREE with RSVP thanks to Irving Materials, Inc! 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. Topic: to be announced. Price*: to be announced. Chapter RSVP Line: 615/377-9651, ext. 309 *Builders free pending sponsorship. COUNCILS CUSTOM BUILDERS COUNCIL Council President - Alan Looney: 615/309-8200. The CBC meets on the second Tuesday of the month, 11:30 a.m. at
the HBAMT offices. Next meeting: to be announced. Topic: to be announced. Council RSVP Line: 615/377-9651, ext. 311 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. at the HBAMT offices. Next meeting: Wednesday, November 28. Topic: to be announced. Price: free for Green Building Council members thanks to our annual sponsors Trus Joist and E3 Innovate; $20 for non-members with RSVP ($25 w/o). Council RSVP Line: 615/377-9651, ext. 308 HBAMT REMODELERS COUNCIL Council President - Don Mahone. The HBAMT Remodelers Council meets on the third Wednesday of the month, 11:00 a.m. at varying locations. Next meeting: Wednesday, November 21. Topic: to be announced.. Price: free for RMC members with RSVP; $15 for non-members with RSVP ($20 w/o). Council RSVP Line: 615/377-9651, ext. 301 MIDDLE TENN SALES & MARKETING COUNCIL Council President - David Lippe. The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices. Next meeting: to be announced. Topic: to be announced. FREE for SMC members with RSVP pending sponsorship; ($10 w/o RSVP). $20.00 for Non-SMC members with RSVP ($25 w/o RSVP). Council RSVP Line: 615/377-9651, ext. 302.