The Nail, September 2019

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Secure your place in the 2019 Parade Plan Book and reach your future customers for years to come!

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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

At the 2019 Parade, each attendee will be handed a magazine as they walk through the front gate the Parade Plan Book!

The Plan Book is a tremen­dous opportunity to put your message into the hands of pre-qualified customers who refer to the book for months, even years after the Parade is over!

Find more details and your registration form on page 19 of this issue of The Nail. www.theparadeofhomes.org 4 The NAIL

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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.

FEATURES 9 New fund provides for building improvements, upkeep

Thanks to the creation of a new fund and the efforts of our members, the HBAMT building received some TLC last month.

10 HBAMT’s 2019 Golf Event big fun for all

The HBAMT’s big summer event, sponsored by James Hardie Building Products, was held last month at the Legends Golf Club.

19 James Hardie Parade of Homes at The Grove

The popular annual event returns in October for a two-week, three weekend run at The Grove. Sign up now to participate as an advertiser or exhibitor during the Parade.

DEPARTMENTS

Advertise in

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6 News & Information 21 SPIKE Club Report 22 September Calendar 22 Chapters and Councils

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 HBAMT’s annual golf event was held last month at The Legend’s Golf Club.

See more on page ten.

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news&info

New home sales solid in July, as June numbers revised upward

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ales of newly built, single-family homes fell 12.8 percent to a seasonally adjusted annual rate of 635,000 units in July off a strongly revised upward reading in June, 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 4.1 percent higher than the same period in 2018.

“Builder confidence continues to trend upward as lower interest rates provide for more favorable buying conditions,” said Greg Ugalde, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Torrington, Conn.

“New home sales were sharply revised up-

While we continue to see volatility in the monthly numbers, sales continue to trend in a slightly positive direction.

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ward in June to a post-recession high annual rate of 728,000,” said NAHB Chief Economist Robert Dietz. “While we continue to see volatility in the monthly numbers, sales continue to trend in a slightly positive direction and are in line with our forecast.”

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 July reading of 635,000 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 337,000 in July, representing a 6.4 months’ supply. The median sales price was $312,800.

The median price of a new home sale a year earlier was $327,500.

Regionally, and on a year-to-date basis, new home sales are 7.2 percent higher in the South and 9.5 percent higher in the West. Sales are down 15.4 percent in the Northeast and 12.4 percent in the Midwest. n

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Single-family starts improve, builder confidence on the rise

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ue to a decline in multifamily production, total housing starts fell 4 percent in July to a seasonally adjusted annual rate of 1.19 million units from a downwardly revised reading in June, according to a report from the U.S. Housing and Urban Development and Commerce Department.

The July reading of 1.19 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 1.3 percent to 876,000 units.

The multifamily sector, which includes apartment buildings and condos, fell 16.2 percent to a 315,000 pace.

“Despite housing affordability headwinds, builders remain confident about the market and this is reflected in recent modest gains in single-family starts,” said Greg Ugalde, NAHB chairman.

“Permits bottomed out in April and single-family starts hit their low point in May, and now we are starting to see the gradual improvement in the market that we’ve been forecasting,” said NAHB Chief Economist Robert Dietz.

On a regional and year-to-date basis, combined single-family and multifamily starts in July rose 3.7 percent in the South. Starts declined 5.7 percent in Northeast, 7.9 percent in the Midwest and 12.3 percent in the West.

Overall permits, which are a harbinger of future housing production, increased 8.4 per-

cent to a 1.34 million unit annualized rate in July. Single-family permits edged 1.8 percent higher to a 838,000 rate while multifamily permits jumped 21.8 percent to a 498,000 pace.

Looking at regional permit data on a yearto-date basis, permits rose 2.4 percent in the Northeast. Permits fell 7.1 percent in the Midwest, 0.1 percent in the South and 6.8 percent in the West.

Builder confidence edges down in June Builder confidence in the market for newly-built single-family homes rose one point to 66 in August, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today.

Sentiment levels have held at a solid 64-to-66 level for the past four months.

“Even as builders report a firm demand for single-family homes, they continue to struggle with rising construction costs stemming from excessive regulations, a chronic short-

Millennials show growing preference for new homes

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mong general housing preferences, there is a noticeable upward trend in the percentage of millennials who desire a new home built for sale offered by a builder, according to a recent study by the NAHB Economics team.

Between 2007 and 2018, the percentage of millennial home buyers who prefer a new home increased from 28% to 41%. This increase seems to be at the cost of the desire for a home custom-built on the eventual home owners’ lot, which fell from 37% to 18% over the same period.

Preference for an already existing home hovered around 40% during this 11-year time span.

How do millennial preferences compare to older generations over time? In general, these demographic groups show a similar decline in custom preference while the desire for existing homes shows no underlying trend.

However, when it comes to a new home built for sale and offered by a builder, Gen X, baby boomers and seniors are all grouped near a 30% preference level while millennials have a clear upward trend in this category

age of workers and a lack of buildable lots,” said Ugalde.

“While 30-year mortgage rates have dropped from 4.1 percent down to 3.6 percent during the past four months, we have not seen an equivalent higher pace of building activity because the rate declines occurred due to economic uncertainty stemming largely from growing trade concerns,” said Dietz. “Although affordability headwinds remain a challenge, demand is good and growing at lower price points and for smaller homes.”

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.

The HMI index gauging current sales conditions increased two points to 73 and the component measuring traffic of prospective buyers rose two points to 50. The measure charting sales expectations in the next six months fell one point to 70.

Looking at the three-month moving averages for regional HMI scores, the South moved one point higher to 69, the West was also up one point to 73 and the Midwest inched up a single point to 57. The Northeast fell three points to 57. n

over time, and finish significantly higher than the other generations in 2018.

While this indicates shifting preferences for millennials, it is still important to note that the market for housing is heavily tilted toward existing homes, which is almost five times bigger than the market for new homes, according to data from the U.S. Census Bureau and the National Association of Realtors. n

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HBAMT facelift!

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fforts to update the HBAMT building and property got off to a great start last month following the creation of the CapX Fund. The fund, generated by a portion of membership dues, will provide for the continual upkeep and maintenance of the association’s headquarters while ensuring the latest amenities are available for its members.

Initial projects were aimed at improving the front of the building and included landscaping, power washing, fence repairs, door upgrades and the painting of the front entrance. Nick Wisniewski and Landmark Homes did a great job power washing the fence, curb, side walk and front entrance. Nick and his crew also removed the two front trees as well as all of the overgrown bushes in the front before replacing them with fresh landscaping. The old fence boards that line the property were replaced by Andy Neuman and Handyman Connection before being painted by Brandon Rickman and Paran Homes. And Sam McAtee with Allegion replaced the front and back door handles and locks with much needed upgrades.

The improvements immediately enhanced both the appearance and functionality of the building and set the stage for future projects.

A big thanks to everyone who volunteered and helped with get the project off to a great start! n

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Golf Tournament 2019!

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he James Hardie Building Products Golf Tournament was held Thursday, August 15 at the Legends Golf Club in Franklin.

Over 250 golfers competed in the event and enjoyed food, beverages and support at every hole from a large group of terrific sponsors.

Helistar Aviation returned for the popular golf ball drop following the afternoon round.

Trey Lewis took home the cash prize after his ticket’s number matched the number of the golf ball that landed closest to the pin.

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The Legacy Cabinet Company team of Jason Smith, Steven French, Andrew Hancock and Danny Clausen earned first place honors in the first flight. The foursome posted a 47, the best score of the day.

The American Heating and Cooling team of Roger Dunn, Michael Smith, Will Powell and Joe Traughber took home first place honors in the second flight with a score of fifty-seven.

First round hole competition winners included: Jason Smith, “Closest to the Hole” on hole three; Michael Lavvorn, “Closest to the

Hole” on hole eleven; and Tyler Farrar who won “Longest Drive” on the eighteenth hole.

Second round hole competition winners included: Brandon Rice, “Closest to the Hole” on hole three; Jason Smith, “Closest to the Hole” on hole eleven; and Zach Custer, “Longest Drive” winner on the eighteenth hole.

A big thanks again to our title sponsor James Hardie Building Products, and to all the tournament sponsors who are recognized on page sixteen. n

Golf photos courtesy of Michelle Fox, Paran Homes

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American Heating & Cooling

Atmos Energy

Bank OZK

Citizens One

City Tile & Floor Covering

Contract Lumber

Cosentino

DPIS Builder Services

DR Horton

Durastrand

Elite South

Emser Tile

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Epcon Franchising

fbc mortgage

Ferguson

Floor Decor

GAF

Hale Insurance

Hermitage Lighting Gallery

HomeLift

Intex

Kenny & Company

Markraft

Movement Mortgage

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Ole South Properties

Owens Corning

PDI Kitchen Bath & Lighting

PPG

ProSource

Pulley & Associates

Real Wood Floors

RSG - Beacon Roofing Supply Co.

Southern Insurance Partners

The Tile Shop

Trane

TrusJoist

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Tyvek

USA Today Network

Thank you tournament sponsors!

James Hardie Building Products title sponsors DR Horton - Lunch Platinum sponsors Boise Cascade Epcon Communities Franchising Ferguson GAF PPG Real Wood Floors Gold sponsors American Heating & Cooling Atmos Energy Citizens One Cosentino North American DPIS Builder Services Hermitage Lighting Gallery Kenny & Company Revive-Energy (Not working)

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TrusJoist HomeLift Silver sponsors Bank OZK Beacon Roofing Supply City Tile Compass RE Contract Lumber Emser Tile Floor and DĂŠcor FBC Mortgage Hale Insurance Builders Mutual Intex Contracting LP Markraft Cabinets Metro Carpets (Not working) Mid-TN Erosion Mortgage Mike Lending Team Norbord Inc. PDI

Parksite Piedmont Natural Gas ProSource Delta Faucet (Pulley) Ole South Properties Owens Corning Richland Building Partners Rogers Group Secured Investment Lending Sims-Lohman Not Working Southern Insurance Partners Tennessee Valley Homes THDA The Tile Shop Trane USA Today Network Hospitality sponsors Lennar Metrostudy Associa

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James Hardie Parade of Homes The 2019 Parade of Homes at The Grove

ADVERTISE & EXHIBIT

If your company depends on new homes or related products, furnishings or services, here’s one opportunity you can’t pass up -- the 2019 James Hardie Parade of Homes at The Grove!

Secure your space in the Plan Book or reserve an Exhibit Booth today.

THE PARADE PLAN BOOK

THE PARADE EXHIBIT BOOTH

At every Parade event each attendee is handed a magazine as they walk through the front gate - the Parade Plan Book.

Here’s your chance to demonstrate your product or service to the thousands of qualified prospects who pass through the Parade of Homes exhibit center when they enter and leave the show. As with Plan Book advertising, the exhib­it center produces virtually all pre-qualified customers!

The Plan Book is a tremen­dous opportunity to put your message into the hands of pre-qualified customers who refer to the book several months after the Parade of Homes is over!

Plan Book Advertising Rates Half Page 7.5” x4.75” (Horizontal) Full Page 7.5”x10” 8.75”x 11.25” (B1eed) *Page One 7.5”x10” 8.75”x11.25” (Bleed) *Inside Front Cover Inside Back Cover Double Truck *Back Cover

$800 $1,200 $1,600 $2,100 $2,300 $2,840 $3,250

*specialty locations sold.

Email jargo@hbamt.net for ad specs and availability.

It’s like opening up shop and having thousands of prospects visit your show­room the first two weeks you’re in business. What other medium could come close to producing those kinds of results? The Parade ranks first of all home shows in the nation and you can take advantage of the prestige this show enjoys.

Exhibit Booth Price? $750 Each booth in the Parade of Homes exhibit center measures 10’ x 6’ at the front entrance where patrons must enter and exit -- perfect for eye-pop­ping kiosks and marketing publications!

2019 PARADE OF HOMES - PROMOTIONAL OPPORTUNITIES COMMITMENT FORM

Return completed form to: HBAMT, 9007 Overlook Blvd., Brentwood, TN 37027 | Fax: 615/377-1077 | Email: jargo@hbamt.org

PLAN BOOK AD - please check the size of ad you would like to secure in the 2019 Plan Book:

r Half Page

r Full Page

r Page One

r Inside Front

r Inside Back

r Back Cover

r 2-Page Spread

EXHIBIT BOOTH SPACE - please check here to secure your 2019 Exhibit Booth Space: r Your name: ____________________________________ Company: _____________________________________ Cell: _________________________________________ Email: _________________________________________ Total amount being paid: $___________ Credit Card _______________________ Credit Card # _______________________________ Exp. ____________ Credit Card V-Code _______________

The “v-code” is found on the back of the card, usually printed or embossed atop or near the signature strip.

It is comprised of three digits found to the right of a longer number.

Signature ____________________________________________________________________________________ 20 The NAIL

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

Twenty-three 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, 2019.

Top 20 Big Spikes Jim Ford 912 Virgil Ray 821 Bill King 776 Mitzi Spann 771 Terry Cobb 570 Jim Fischer 566 John Whitaker 563 Trey Lewis 458 James Carbine 396 Jennifer Earnest 369 David Crane 325 Kevin Hale 300 Jimmy Franks 293 Reese Smith III 261 Steve Moody 219 Sonny Shackelford 219

Life Spikes Harry Johnson 146 Steve Cates 142 Tonya Esquibel 142 C.W. Bartlett 138 Sam Carbine 136 Randall Smith 135 Kevin Woodward 130 Jordan Clark 121 B.J. Hanson 120 Steve Hewlett 119 Carmen Ryan 118 Helmet Mundt 117 David Hughes 116 John Zelenak 114 Dave McGowan 108 Edsel Charles 107 Justin Hicks 104 Wiggs Thompson 104 Michael Dillon 103 Duane Vanhook 100 Joe Morgan 89 Jeff Zeitlin 87 Christina Cunningham 84 Nick Wisniewski 83 Erin Richardson 77 Beth Sturm 73 Keith Porterfield 72

Jeff Slusher 70 Lori Fisk-Conners 69 Sam Henley 67 Jody Derrick 64 Don Bruce 62 Eugene James 61 Ron Schroeder 61 Marty Maitland 60 Steve Shalibo 59 John Broderick 55 Brandon Rickman 54 Derenda Sircy 52 Andrew Neuman 50 John Ganschow 49 Ashley Crews 45 Phillip Smith 46 Ricky Scott 45 Rick Olszewski 45 Bryan Edwards 44 Christina James 33 Frank Jones 32 Frank Tyree 31 Don Mahone 30 Spikes Joe Dalton 20 Perry Pratt 17 Jeffrey Caruth 16 Nicole Bird 15 Eric DeBerry 12 Ryan Meade 12 Tammy Chambers 11 Rob Pease 11

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SEPTEMBER Calendar Sunday

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Dickson County Chapter meeting

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General Membership 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 Tuesday of the month, 12:00 p.m. at Colton’s Steakhouse in Dickson.

Next meeting: Tuesday, September 17.

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.

Chapter RSVP line: 615-377-9651, ext. 312; for callers outside the 615 area code, 1-800-571-9995, ext. 312 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: Thursday, September 26.

Topic: to be announced.

Builders Free pending sponsorship.

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

Chapter RSVP Line: 615/377-9651, ext. 261 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 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

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.

Topic: to be announced.

Price: free with RSVP. Council RSVP Line: 615/377-9651, ext. 263

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.

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. 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, September 5, 9:00 a.m. at the HBAMT. Topic: “Instagram Secrets to Increase Your Visibility,” with Margaret Tolbert, Tolbert Marketing and Events.

SMC members free pending sponsorship; non-SMC members $25 w/RSVP, $35 w/o RSVP Council RSVP Line: 615/377-9651, ext. 260.

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