NORTH TEXAS HOME BUILDERS ASSOCIATION
4410 Fairway Boulevard
Wichita Falls, TX 76308
P: 940.692.2211
F: 940.692.2214
www.nthba.com
February 2023
Just gonna break it down for y’all with some article recap from the month of January.
Best,
J. Tanner Wachsman RJ Wachsman Homes NTHBA President
• Builder sentiment in the single-family housing market posted an unexpected gain in January, rising for the first time in 12 straight months
• Sentiment rose 4 points to 35 on the National Association of Home Builders/Wells Fargo Housing Market Index, which is still considered negative sentiment
• The index's components posted gains in January: current sales conditions rose 4 points to 40, sales expectations in the next six months increased 2 points to 37, and buyer traffic rose 3 points to 23
• Both builders and consumers are likely responding to the recent drop in mortgage rates
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• NAHB is forecasting a decline for single-family starts this year compared to 2022, but a turning point for housing is expected to happen
• Single-family home building will rise off of cycle lows as mortgage rates are expected to trend lower and boost housing affordability
• The nation still has a structural housing deficit of 1.5 million units and improved affordability should increase demand
• A measure of mortgage applications to purchase a home did rise sharply last week, but the number of new listings on the market is down from a year ago.
• Participants are looking to the spring selling season for guidance on the housing market
• Sellers are holding onto properties due to high equity and lack of motivation to sell
• Modest observations, flexibility, and responsiveness are needed in the current market
• Builders are reporting slowing starts in alignment with demand
• Builders are pulling back on land purchases or in some cases, walking away from large deals
• Incentives and price concessions are being used to secure more home sales
• Many builders are experiencing cancellations, many of which are on homes that are near completion • Orders are down across the board in all markets, including the hottest areas of the country
• Builders are working with trade partners to adjust profit margins to ease conditions on tightening demand • Some analysts for large, publicly traded homebuilders have already priced in a recession in their predictions • According to Redfin, the monthly payment for a family buying the median-priced home has increased by 71% from October 2020 to October 2022, and for renting a median-priced apartment, the increase is 24% which is faster than income growth
• The surge in millennial housing growth may improve market conditions for sellers
• Per some research, no – there is no real chance of a gas stove ban. Just a big nothingburger.
• In May 2021, there were widespread shortages of building materials reported
Most shortages have since eased, with exceptions of HVAC equipment and certain categories of ceramic materi als
• NAHB has been tracking shortages of building materials and products since the 1990s
• In October 2022, over 80% of single-family builders reported either a serious or some shortage of appliances, transformers and windows & doors • Shortages of HVAC equipment were also widespread in October, reported by 76% of single-family builders • Half or more of all builders reported shortages of 17 of the 25 building products listed in the October 2022 survey
• These shortages are generally not as severe as they were in May 2021
• The incidence of the shortage fell for 18 of the 24 listed products and materials between May 2021 and October 2022
• The NAHB’s Housing Market Index (HMI) survey shows the availability of lumber products improving mark edly since May 2021
• Shortages of HVAC equipment, cement, and ready-mix concrete slightly worsened between May 2021 and October 2022
GM Meeting
February 14, 2023
RESNET Builder Lunch & Learn
March 16th, 2023
GM Meeting
March 21, 2023
Members Social: P-2
March 23, 2023
TAB Rally Day, Winter Committee & Board Meetings
March 29-31, 2023
GM Meeting
April 11, 2023
GM Meeting
May 9, 2023
Annual Sporting Clay Shoot
May 19, 2023
2023 Parade of Homes
June 9th, 10th, 11, 16th, 17th & 18th
Member Tour of Homes
June 14, 2023
2023 Parade of Homes Wrap Up Dinner
June 22, 2023
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Katelyn Miller
Solutions – Curtis Cannedy
Ferguson
Jeremy Green
Streich
The North Texas Home Builders association had guest speaker, Executive Director, Nancy Brown of Hands to Hands Community Fund, speak at the January 10th General Membership Meeting.
Absolute Insulation ------------------------------- Justin Jones
Atmos Energy ------------------------------- Pam Hughes-Pak
CR Spray Foam ---------------------------------- Casey Rogers
Deeb Custom Homes ------------------------------ Bruce Deeb
Flat Branch Home Loans --------------------- Caroline Groves
Jacksboro National Bank -------------------- Tatum McDaniel
Lowe’s ----------------------------------------- John Thompson
Proven Surveying ------------------------------- Brad Litteken
ServiceMaster of Wichita Falls ---------------- Michael Albert
Many people are aware that Hands to Hands helps several charities in Wichita Falls but many were educated further on how they operate.
Hands to Hands Community Fund was founded by concerned community leaders to help support programs and services of nonprofit agencies.
Hands to Hands Community Fund consist of volunteers, people who care about the needs of others, just like you. The intention is to help these non-profit agencies reach employees of local business and industry through their annual campaign since certain regulations have changed the opportunities these agencies once had to solicit businesses and employees, however the campaign does not replace an agency’s annual fundraising campaign or events.
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Collectively, the member agencies have served the community for more than 500 years. Their programs are vital. Their passion and dedication to those they serve is unwavering. They need your help. Most importantly, the people they serve need your help more than ever before.
The eight nonprofit agencies serve children, adults and seniors whose needs are growing every day. The people served by these eight agencies now need your help more than ever before.
These agencies feed the elderly, watch over neglected and abused children, care for children and adults with developmental disabilities, provide shelter for children living in harm’s way, and grow and develop tomorrow’s community leaders.
The 8 charity organizations are: The ARC of Wichita County, Boys Scouts of America, Burkburnett Boys & Girls Club, Camp Fire, Child Advocates (CASA), Children’s Home and Teen Shelter, Friendly Door and Straight Street.
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Each of these organizations are non-profit and operate by raising money through fund raisers and donations. 100% of the funds raised through Hands to Hands is distributed to these charities.
Along with the fund raising campaign for these charity organizations Nancy coordinates with individuals and businesses who call Hands to Hands Community Fund with material donations. She will have them set up to come out to the location of the items and they choose and take the items that would work for their specific charity.
Nancy Brown has been the Executive Director for Hands to Hands Community Fund for 13 years. Being a Wichita Falls native, she is heavily invested in the community and has a passion for philanthropy. She has been involved in many service organizations over the years and served on many boards. Her career has traveled many paths beginning with banking - her first love, and ending with where her heart lies, helping others in the community. Representing 8 local nonprofits who serve children and seniors, there is always a mountain to climb. She is passionate about the mission of these agencies and the impact their programs and services make on our community. This has never been a job to her, it is a way to educated people about what is going on in their community and how they can better serve the needs of their friends and neighbors. Nancy has been married for 48 years to Mark and they have one son Benton and his wife Kristen. The joys of their life are their two grandsons, Parker and Hunter.
Hands to Hands Community Fund is lucky to have Nancy Brown working so passionately and diligently for the Community.
Along with having a speaker, T.C. Sanders of Union Square Credit Union, and past Chairman and current member of the NTHBA Meetings & Education Committee, started the general membership business luncheon recognizing the NTHBA annual partners. Again for 2023 we have the following partners: Gold – Atmos Energy, Brazos Window & Door LLC, ServiceMaster of Wichita Falls and Stewart Title Company. Silver: American National Bank, First National Bank, Flat Branch Home Loans, Guarantee Title Company, On Site Solutions, Texoma Community Credit Union and Union Square Credit Union. T.C. followed up with announcements and introducing our guest speaker. Thank you T.C. Sanders.
BY DAVID LOGAN on JANUARY 18, 2023
The producer price index (PPI) for inputs to residential construction less energy (i.e., building materials) rose 8.3% in 2022 (not seasonally adjusted) according to the latest PPI report — less than one-half the increase seen in 2021.
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On a monthly basis, building materials prices declined 0.3% in December — the fourth consecutive monthly decrease. After increasing an average of 1.8% per month the first five months of 2022, the index averaged a monthly 0.1% decline from June through December.
Price growth of goods inputs to residential construction, including energy, declined even more sharply over the year because of a historic increase in fuel prices in 2021. Prices increased 8.2% in 2022 after surging 20.8% the prior year.
Softwood Lumber: The PPI for softwood lumber (seasonally adjusted) fell 6.9% in December and 26.1% over the course of 2022. Since increasing the first three months of the year, the softwood lumber index has fallen 45.8%.
Steel Mill Products: Prices for steel mill products decreased 2.7% in December, the sixth consecutive decline. After soaring 128% in 2021, prices dropped 28.7% in 2022 — 25% since May.
Gypsum Building Materials: The PPI for gypsum building materials declined 0.2% in December but increased 17.6% over the course of 2022. Although the 2022 price increase was more than three times the 25-year average, it was substantially lower than the 23% increase seen in 2021.
Ready-Mix Concrete: The trend of ready-mix concrete (RMC) prices continued its historic pace as the index increased 1.6% in December. The PPI for RMC increased 13.6% in 2022, twice the 2021 increase and nearly seven times the historical average.
The monthly increase in the national data was broad-based geographically. Prices rose in all four regions—up 0.5% in the West, 1.1% in the Northeast, 1.6% in the South, and 2.1% in the Midwest. The price of RMC increased the most in the West region in 2022, up 18.8%, but each region experienced double-digit percentage increases over the year.
The price index of services inputs to residential construction was unchanged in December after decreases in October and November. Prices rose 5.6% in 2022 after climbing 10.8% in 2021. In contrast to building materials, the index for services inputs increased substantially in 2020 as well (+10.0%). The 2020 increase was almost entirely driven by a large increase in building materials retailers’ gross margins.
The price of truck and rail transportation of freight decreased 1.7% and 0.1%, respectively, in December. The index for deep sea (i.e., ocean) transportation of freight climbed 0.6%. Of the three modes of shipping, trucking prices showed the largest slowdown relative to 2021 as the growth rate fell from 17.9% to 8.2%.
