The NAIL 1
2 The NAIL
The NAIL 3
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.
4 The NAIL
FEATURES 9 MARGARITEEVILLE Golf Kick-off Party!
The 2016 Golf Kick-off Party was a funfilled, Caribbean flavored affair last month at the HBAMT offices!
10 LP Building Products Golf Tournament a big hit
The 2016 LP Building Products Golf Tournament teed off last month at the Legends Golf Club in Franklin resulting in a full dayâ€™s worth of big winners. An equally big thanks to our title sponsor LP Building Products and to all our event sponsors (see page fifteen)!
DEPARTMENTS 6 News & Information 13 SPIKE Club Report 14 September Calendar 14 Chapters and Councils
ON THE COVER: The Vanderbilt Legends Golf Club, site of the 2016 LP Building Products Golf Tournament. More on page ten. September, 2016
The NAIL 5
New home sales climb to highest level since October, 2007
ales of newly built, single-family homes rose 12.4 percent in July from a downwardly revised June reading to a seasonally adjusted annual rate of 654,000 units, 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 reading in almost nine years. “This rise in new home sales is consistent with our builders’ reports that market conditions have been improving,” said NAHB Chairman Ed Brady, a home builder and developer from
This uptick in demand should translate into increased housing production throughout 2016 and into next year. 6 The NAIL
Bloomington, Ill. “As existing home inventory remains flat, we should see more consumers turning to new construction.” “July’s positive report shows there is a need for new single-family homes, buoyed by increased household formation, job gains and attractive mortgage rates,” said NAHB Chief Economist Robert Dietz. “This uptick in demand should translate into increased housing production throughout 2016 and into next year.” The inventory of new homes for sale was 233,000 in July, which is a 4.3-month supply at the current sales pace. The median sales price of new houses sold was $294,600. Regionally, new home sales rose by 40 percent in the Northeast, 18.1 percent in the South, and 1.2 percent in the Midwest. Sales remained unchanged in the West. n
Housing starts continue to rise, builder confidence up two points
ationwide housing starts rose 2.1 percent in July to a seasonally adjusted annual rate of 1.21 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. This is the highest reading since February. Multifamily housing was up 5 percent to a seasonally adjusted annual rate of 441,000 units in July while single-family production edged up 0.5 percent to 770,000 units. “New household formations are upping the demand for rental housing, which in turn is spurring the growth of multifamily production,” said NAHB Chairman Ed Brady. “Meanwhile, single-family housing continues to hold firm.” “Single-family starts, on a year-to-date basis, are up 10.6 percent and builders are cautiously optimistic about market conditions,” said NAHB Chief Economist Robert Dietz. “However, the permit trends indicate that supply-side headwinds, such as shortages of lots and labor, continue to affect the housing sector.” Regionally in July, combined single- and multifamily starts increased in the Northeast, Midwest and South, with respective gains of 15.5 percent, 2.3 percent and 3.5 percent. The West registered a 5.9 percent loss. Overall permit issuance inched down 0.1 percent to a seasonally adjusted annual rate of 1.15 million. Multifamily permits increased
6.3 percent to a rate of 441,000, while single-family permits fell 3.7 percent to 711,000. Permit issuance increased 10.5 percent in the Midwest and 2.6 percent in the South. Meanwhile, the West and Northeast posted respective losses of 8 percent and 10.2 percent. Builder confidence rises two points Builder confidence in the market for newly constructed single-family homes in August rose two points to 60 from a downwardly revised reading of 58 in July on the NAHB/Wells Fargo Housing Market Index (HMI). “New construction and new home sales are on the rise in most areas of the country, and this is helping to boost builder sentiment,” said Brady “Builder confidence remains solid in the aftermath of weak GDP reports that were offset by
HOI down three percent in second quarter of 2016
olid home price appreciation more than offset a modest reduction in mortgage interest rates to push housing affordability lower in the second quarter of 2016, according to the NAHB/Wells Fargo Housing Opportunity Index (HOI) released recently. “Firm job growth, historically low interest rates and healthy price appreciation in many markets are all positive signs that the housing recovery continues to move forward,” said NAHB Chairman Ed Brady. “At the same time, regulatory hurdles and rising costs for buildable lots and skilled labor continue to put upward pressure on the cost of building a home.” “Though we have seen a modest drop in affordability in the second quarter, the HOI is still fairly high by historical standards,” said NAHB Chief Economist Robert Dietz. “Ris-
ing employment, favorable mortgage rates and increasing household formations will keep the housing market on a gradual, upward path during the rest of the year.” In all, 62 percent of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income of $65,700. This is down from the 65 percent of homes sold that were affordable to median-income earners in the first quarter. The national median home price increased from $223,000 in the first quarter to $240,000 in the second. Average mortgage rates dropped from 4.05 percent to 3.88 percent in the same period. For the third consecutive quarter, Youngstown- Warren-Boardman, Ohio-Pa.
positive job growth in July,” said Dietz. “Historically low mortgage rates, increased household formations and a firming labor market will help keep housing on an upward path during the rest of the year.” 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 gains in August. The component gauging current sales conditions rose two points to 65, while the index charting sales expectations in the next six months increased one point to 67. The component measuring buyer traffic fell one point to 44. Looking at the three-month moving averages for regional HMI scores, the South registered a two-point uptick to 63, the Northeast rose two points to 41 while the West was unchanged at 69. The Midwest dropped two points to 55. 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
was rated the nation’s most affordable major housing market. Ninety one percent of all new and existing homes sold in the second quarter were affordable to families earning the area’s median income of $53,900. Kokomo, Ind. claimed the title of most affordable small housing market in the quarter. There, 98.2 percent of homes sold were affordable to families earning the median income of $60,900. For the 15th consecutive quarter, San Francisco-Redwood San Francisco, Calif. was the nation’s least affordable major housing market. Just 8.5 percent of homes sold were affordable to families earning the median income of $104,700. The five least affordable small housing markets were also in California. At the very bottom of the affordability chart was Santa Cruz-Watsonville, where 14.7 percent of all new and existing homes sold were affordable to families earning the area’s median income of $85,100. n
The NAIL 7
8 The NAIL
Randall Smith and Chris Apple.
James Carbine, Rick McCreadie and Jeff Devereaux.
The annual golf tournament kick-off party was a real blast this year as MargariTEEville hit the HBAMT offices Wednesday, August 10th! Steel drums, margaritas, cold beverages and a cool Caribbean vibe helped turn the association into a terrific island party worthy of its name. A big thanks to Superior Walls for sponsoring the event. And thanks also to Summit Funding, Benchmark Realty and Carbine Development for sponsoring the margarita and beverages bars, Cenwood Appliance, and to everyone who donated to the always successful silent auction! n
Marty Maitland and Devereaux.
The NAIL 9
Big winners at the LP Building Golf Tournament
he LP Building Products Golf Tournament was held Thursday, August 11 at the Legends Golf Club in Franklin. Over two-hundred golfers teed off during the tournament which featured the now annual “helicopter golf ball drop” from Helistar Aviation. The copter made the drop between the morning and afternoon rounds at the Legend Pavilion resulting in the number nine golf ball rolling closest to the hole to make Ron Schroeder the big winner of the contest.
10 The NAIL
Ben Fehr from the Seagull Electric foursome made the biggest shot of day, a hole in one on hole number nine that earned him $20,000 towards a new Cadillac from Andrews Cadillac. Congratulations Ben! The top score of the day was posted by Brian Layton, Zach Todd, Marvin Manson and Kyle Mullicane whose 47 secured first place honors in the second round for Britt Development Group. Closest to the hole and longest drive competition winners for each round included in the first round: Eric Kramer, “Closest to the Hole”
on hole three; Ryan Workman, “Closest to the Hole” on hole eleven; Jesse Felkner, “Longest Drive” on hole six; and Marty Underwood, “Longest Drive” on hole eighteen. Second round winners included: Justin King, “Closest to the Hole” on hole three; Jeff Yocca, “Closest to the Hole” on hole eleven; and Matt Harris, who won “Longest Drive” on both the six and eighteen holes. A big thanks again to our title sponsor LP Building Products, and to all the tournament sponsors who are recognized on page fifteen. n
Randall Smith (far right) with Zach Todd and Brian Layton from Britt Development Group, the top scoring foursome of the day.
Smith with “Closest to the Hole” winner Eric Kramer from the Ferguson Enterprise foursome.
The afternoon foursomes begin their rounds.
Making the rounds during the afternoon tournament.
Golf ball drop!
Thanks to Helistar Aviation for their participation!
Ron Schroeder’s winning golf ball as verified by John Sheley. September, 2016
The NAIL 11
Summit Funding - Tonya Esquibel
Builders First Source - Troy Headden and Steve Sutherland
LP Building Products - Desirae Webb, Craig Kuhnle, Tara Brown and Chelsea Gettelfinger
FBC Mortgage - Joseph LaManna
Embrace Home Loans - Malia Harris
Atmos Energy - Ron Myatt
12 The NAIL
Kenny and Company - Caroline Martin and Jennifer Earnest
Mortgage Solutions Financial - Rick McCreadie
California Closets - Kurt Schusterman and Kylee Davis
Ferguson - the whole team!
Celebration Homes - Jeff Hopper
Hermitage Lighting Gallery - Whitney Whitaker, John Whitaker
The NAIL 13
City Tile - Susan Headden
Waynes - Adam Chesney
American Heating & Cooling - Lori Lukins with American Heating and Cooling foursome
Cornerstone Home Lending - Allen Veach, III and Allen Veach.
Synergy Real Estate Group - Breanna Garcia and Brian Krebs
Limestone Title & Escrow - Shannon Oâ€™Neill and Ty Clark
14 The NAIL
Miner - Vince Glorioso and Ken Brand
Arrow Exterminating - Patrick Schmittou
Delta Faucets - Wayne Garrett, Tim Blevins and Logan Blevins
LP Building Products GOLF TOURNAMENT A big thanks to all our sponsors! PLATINUM SPONSORS Builders FirstSource FBC Mortgage Ferguson Enterprises Mortgage Solutions Financial Nichiha TrusJoist GOLD SPONSORS American Heating & Cooling Andrews Cadillac Atmos Energy BDX FBC Mortgage Hermitage Lighting Gallery IMI Kenny & Company Metro Carpets The Metropolitan Bank
Minor Corporation PPG Porter Paints PDI Kitchen Bath & Lighting Pulley & Association Synergy Real Estate Group Inc. Property Management Top Build Home Services ProSource of Nashville Waynes Environmental Services Williamson County Ready Mix SILVER SPONSORS Arrow Exterminators Barlow Builders Bell Law Settlement Services Bloom Outdoot California Closet Centurion Products City Tile & Floor Covering Christina & Darin Cunningham; RE/MAX Elite Cornerstone Home Lending Dixie Door, Inc. DPIS Engineering Embrace Home Loans
Ferguson Gary Ashton; RE/MAX Goodall Homes Limestone Title Markraft Cabinets Mid TN Erosion Ole South Properties RE/MAX Fine Home Sales & Marketing Southern Stone Surfaces Straight Line Construction Tennessee Housing Development Agency BEVERAGE CART SPONSORS BanCorp South Carbine & Associates Churchill Mortgage DBS & Associates Engineering, Inc. First Citizens National Bank Highlands Presidential Mortgage Owens Corning Reliant Realty; Stacy DeSoto tnMedia Tri Star Title & Escrow, Inc.
The NAIL 15
16 The NAIL
SPIKE REPORT Life Spikes
Eighteen 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 July 31, 2016. Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 738 Terry Cobb 568 Jim Fischer 566 John Whitaker 490 James Carbine 365 Jennifer Earnest 350 Trey Lewis 307 Kevin Hale 293 David Crane 284 Tonya Jones 271 Reese Smith III 261 Steve Moody 219 Sonny Shackelford 219 Davis Lamb 197 James Franks 194 Jackson Downey 182 Tim Ferguson 177
Jim McLean 164 Louise Stark 163 Harry Johnson 146 Steve Cates 141 C.W. Bartlett 138 Sam Carbine 129 Tonya Alexander 128 Steve Hewlett 119 B.J. Hanson 114 Carmen Ryan 113 Jordan Clark 107 Dave McGowan 104 Johnny Watson 101 Julie DuPree 97 Duane Vanhook 92 Jeff Zeitlin 87 Wiggs Thompson 85 Helmut Mundt 77 John Zelenak 77 Erin Richardson 76 Michael Dillon 72 Jeff Slusher 70 John Baugh 68 Christina Cunningham 68 Don Bruce 62 Jim Ford, Jr. 62 Beth Sturm 60 Lori Fisk-Conners 57 Hill McAlister 57 Justin Hicks 56 Randall Smith 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 Kay Russell 44 Ron Schroeder 44 Marty Maitland 43 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 27 Ricky Scott 27 Spikes Don Mahone 24 Frank Tyree 19 Ashley Crews 18 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
The NAIL 17
SEPTEMBER Calendar Sunday
Sales & Marketing Council meeting
Dickson County Chapter meeting
Remodelers Council 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, September 19. 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, 11:00 a.m. at varying locations. Next meeting: Wednesday, September 21. Location and 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
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, September 26. 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.
18 The NAIL
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, September 1, 9:00 a.m. at the HBAMT. Topic: “Digital Marketing 101,” with BDX. Times are changing and builders need to arm their buyers with information in engaging forms. There are so many new selling tools available today, however most builders aren’t sure where to start. During this session we will discuss the hottest trends and how you can implement them into your sales strategy. SMC members free thanks to BDX; non-SMC members $25 w/RSVP, $35 w/o RSVP Council RSVP Line: 615/377-9651, ext. 302.
The NAIL 19
20 The NAIL
The September, 2016 issue of The Nail, the monthly magazine of the Home Builders Association of Middle Tennessee.