July 2019 Reporter

NORTH TEXAS HOME BUILDERS A

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4410 Fairway Boulevard Wichita Falls, TX 76308 P: 940.692.2211 F: 940.692.2214 www.nthba.com

JULY 2019

From the President

What’s

Join us at the 2019 Sunbelt Builders Show

• Meet Your Members • 67th Annual Parade of Homes • Sunbelt Builders Show • Habitat Receives Proceeds

This year the Sunbelt Builders Show will be held at the luxurious Gaylord Texan Resort and Convention Center, in Grapevine, TX. The Show is designed to help builders, remodelers and associates grow their businesses.

The Show is the largest in Texas and draws residential construction industry professionals and associates from around the United States, Canada and Mexico.

INSIDE

Special Thanks to our 2019 NTHBA Partners: Gold Guarantee Title Union Square Credit Union Silver American National Bank & Trust Atmos Energy First National Bank On Site Solutions Texoma Community Credit Union

Sunbelt brings in 200 plus top manufacturers and suppliers to showcase the best new products and technologies to the nation’s elite builders, remodelers and developers. The Show includes high quality education and demo sessions for attendees and exhibitors.

The Texas Association of Builders (TAB) will also host its summer committee and board of director meetings August 6 - 9. This is a prime time for TAB's membership to get updated on industry changes. The Trade show will be open August 7th & 8th.

The Show has sold out of exhibitor booth space for the past five years. The 2019 Show is your opportunity to reach the nation's top residential homebuilders and decision makers in one location over a two-day span.

Conference & Education The Texas Association of Builders will hold its summer committee and board of director meetings during Sunbelt.

This is a prime time to get up-to-date on new legislative issues facing home builders in Texas. Sunbelt also provides Continues on pg 2

Renewals

Continued from pg 1

well-timed education and demo sessions on the trade show floor.

American National Bank........... Terrence Blackwell American National Bank..................Janna Johnson Higginbotham ........................................ Shane Smith John Stoiloff Agency.............................. John Stoiloff Legend Bank .......................................... Tim Lambert Welch, Sanders& Associates, LLP ............David Welch

Social Events Sunbelt is committed to providing connections between exhibitors and attendees. The Show offers three social events - FUNdango, Builders' Bash, Star Awards – these are opportunities for quality networking on and off the trade show floor.

2019 Dates to Remember

Accommodations Everything is bigger in Texas and that includes Gaylord Texan Resort & Convention Center which stands on the shores of Lake Grapevine with 4.5 acres of indoor gardens, 10 restaurants, seasonal water park and two pools.

July 24th, Budget & By-Laws Committee Meeting – ....................................................................... 10:30 AM July 24th, ............ Board of Directors Meeting 11 AM August 1st,................................................Family Night August 6- 8, ............................... Sunbelt Builder Show August 5-9, ........ TAB Committee & Board Meetings September 20, ........10th Annual 4-Person Scramble Golf Tournament September 25, .........2019/2020 TAB Contracts Class October 25,............. Young Professionals 4th Annual Sporting Clay Shoot

A limited number of hotel rooms are available for Sunbelt attendees, exhibitors and Texas Association of Builders members. The room reservation block is now available for you to make online reservations or call the Gaylord Texan Reservations Line (817) 778-1000 or toll-free (888) 537-9274 and mention the room block for the Texas Association of Builders and Sunbelt Builders Show. Sunbelt's room block rates are based on availability and may sell out prior to the cutoff date of Monday, July 15, 2019.

July Birthdays Victoria Longo Bob Hayes William Anthony Dave Merrell Brian Walser Carolyn Adam

15 16 20 24 29 30

I will be there, along with more than 2,000 others. Hope you can make it too.

Happy Birthday!

Helping Build Our Community Since 1907

Member FDIC

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On

Site

Solutions

Locally Owned Roll Off Waste Dumpsters Direct to You!

940-704-7580 Commercial/Residential Sales, Service, Installation

The Original Since 1921

Commercial Services

3301 Kell Blvd., Wichita Falls, TX 76308

OVERHEAD DOOR COMPANY OF WICHITA FALLS

John Thompson Mike Sharp Robert Masters 940-447-9050

It’s not a dream home without natural gas.

601 Central Freeway East Wichita Falls, Texas 76302

Phone (940) 767-7788 Fax (940) 687-3677

LANDMARK

CLIENT: Atmos Energy JOB#: ATMO-19-001 2019 Ad Resizes

TITLE COMPANY Your title needs handled promptly (XUHND &LUOFH ‡ :LFKLWD )DOOV 7;

TRIM: 3.5"w x 2"h LIVE: 3.5"w x 2"h BLEED: n/a COLOR: CMYK PUB: North Texas HBA newsletter CONTACT: Teri Gibson nthba.teri@gmail.com 940-692-2211

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2801 Kell East Wichita Falls, TX 76308 Phone (940) 692-5734 Fax (940) 692-0239 tco@wf.net

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MEET YOUR MEMBERS

R. J. Wachsman Homes – For R.J. Wachsman, the best part of his job is “working with people to build something beautiful from the ground up.”

Randy, one of G.J. and Tilly Wachsman’s ten children, grew up in Wichita Falls surrounded by family. Now as a husband, father and businessman – family is at the center of everything he does.

He an Leesa, his beatiful wife of twenty-seven years, are the proud parents to three sons, Damian, Tanner & Cole. At its heart, R.J. Wachsman Homes is a family business with several of R.J’s siblings working to oversee the progress of each home.

R.J. Wachsman Homes has earned a reputation as one of the leading builders of new and custom homes in Wichita Falls over the past 40 years, and has been named Texoma’s Best Home Builder numerous times, most recently in 2018.

“We are proud to be an award-winning, quality home builder offering an extensive protfolio of artfully designed floor plans. Our roots here are deep; our local pride runs equally strong and true.

Since 1978, our goal has remained unchanged: to ensure that your home will be built to the highest standards for your present enjoyment, where your home is backed by a comprehensive warranty for peace of mine in the future.

Everything R.J. Wachsman Homes builds is designed and constructed to live up to our exacting standards. After all, when it comes to your dreams, there’s no such thing as a minor detail. We have beautiful home floor plans that will dazzle you with options, making your home uniquely yours at a price that will leave you smiling for years to come. Many features other builders consider “options”are things that come standard in each of our homes. This means that an R.J. Wachsman home has better value than our competition, making it a wise investment! Our ability to tailor your home to your needs will make this the last home you will ever buy. Of course, we have folks who’ve used us to build upon their dreams time and time again, too!

Visit our website www.rjwachsmanhomes.com, for more information on our Open House schedule, Continues on pg 6 available homes and more!

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Continued from pg 5

MEET YOUR MEMBERS CONT.

On Site Solutions was established in April 2015 when 4 Wichita Falls natives partnered up and purchased a small local company. Later the same year in October they purchased a second company. They currently represent multiple companies who are loyal to trading with local businesses.

On Site Solutions is a locally owned and operated business that strives to give the best service possible to all customers. We offer professional waste removal services to residential, commercial and industrial customers throughout Wichita Falls, Texas and surrounding areas. We currently offer roll off dumpsters in various sizes to meet your needs.

Other services offered by On Site Solutions include: Garbage Collection, Waste Containers, Hauling Services, Garbage, Debris & Demolition Removal Services and Waste Hauling.

Owned and operated by Lane Landes since 1996, Lane has been involved in the retail flooring business his entire life. Following a family tradition started by his grandfather, Loys Landes, in 1962, and continuing through his father, Larry Landes.

Lane Landes operates his business where the customer comes first. We listen! Nobody knows what you want better than you, so we listen hard to assist you in discovering the perfect flooring solution! Our staff exists to provide the best care and assistance to our customers. Our installers are certified to install many different types of flooring to ensure peak performance in your home or business.

Texas Flooring Gallery operates on the principles of honesty, integrity, hard work and quality service to the customer that doesn't stop after the sale. Respect and professionalism are not extras at TFG - they are the foundation of our service.

Lane is a member of the Small Business Leaders of Wichita Falls, North Texas Home Builders Association, North Texas Rental Property Association and the Better Business Bureau of North Texas. He is also a Deacon at Edgemere Church of Christ and an active member in the community through TFG's support of local youth activities and organizations including the Wichita Falls Boys and Girls Club. He also enjoys coaching little league sports in the community.

Call Texas Carpet Flooring to get started on your next project!

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Thanks for Renewing!

Wood Burning & Gas Fireplaces, Outdoor Kitchens and Supplies

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Serving Texas & Oklahoma since 1971

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Stewart Title.

Trusted by builders.

We work with you like a partner – who knows builders and provides solutions designed for your specific needs.

Stewart Title Company (940) 691-5600 stewart.com/wichita-falls

© 2015 Stewart. All rights reserved.

WINDOWS, DOORS AND MORE!

522 Beverly Drive Wichita Falls, Texas 76309

723-1436

Always Remember to do Business with Association Members!

NTHBA Member since 1972

BRYAN WAGGONER 3907 Kell BoulevarE t WJDIJUB 'BMMT t Texas 76308

Commercial/Residential Plumbing, Builder Sales, Appliances, Lighting

1300 Hatton Road Wichita Falls, TX 76301 Phone: (940) 767-2506

Fax: (940) 761-5563 (888) 266-1387 www.ferguson.com

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Axioms: An Outlook & Forecast for the Economy, Real Estate and Life was the topic of the presentation from Ted Jones, Chief Economist for Stewart Guaranty Company on July 11th

The NTHBA had a joint general membership meeting with the Wichita Falls Association of Realtors to learn what’s happening with the economy and what economist are forecasting.

Axiom – a statement of proposition that is regarded as being established, accepted, or self-evidently true. “The axiom that supply equals demand”. After showing the meaning of axioms, Mr. Jones started with the statement, things change. He said with all the baby boomers, the jobs are everything period does not hold true, blue, gray or no hair, retires do not have to have a job to buy a house. They are downgrading, moving closer to children and/or grand-children or finding their forever place to enjoy their retirement.

Job growth rate in the U.S. is up 1.54% for the prior 12 months. The 40 year compound growth rate is 1.43%.

There have been 2.30 Million net new jobs but it has peeked in the last cycle of job growth.

The job rate is not going down because the jobs are not available, it is going down because there is no skilled work force left to fill jobs. The reason for the increase in jobs is two things, deregulation and cutting taxes. There has been a lot of skepticism in the fake news about whether very many citizens benefited from the tax cuts. Ted said a blood pressure test he uses is the Leisure & Hospitality Jobs scale. Those jobs were up 2.26% in the past 12 months. This means people are out spending money, taking vacations etc. This is largely a direct result of tax cuts and increased jobs.

There are many good things about the economy Continues on pg 8

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Continued from pg 7

today. Unemployment rate is the lowest it’s been in 50 years at 3.7%. Incomes have increased 3.1%, the best 12 month income increase in 10+ years and inflation is 1.6%. These all have happened in 2019. Ted quoted Dr. Ivan Schmedemann, Professor Emeritus, “When you get a raise, you are simply broke at a higher level”.

How true it is. Some other positive accounts about the economy were: 61.5 % of workers are confident in finding a new job if they lost their current one (Federal Reserve Bank of New York), the S&P 500 Index is up 42.7% since the election in 2016, 90% of the population pay less taxes (USA Today) and $80 Billion of extra money is spent on real estate annually due to the tax cuts (Zillow).

Wichita Falls has the greatest percentage of jobs in government which indicates Wichita Falls is very dependent on the defense portion of the government. Wichita Falls is adding jobs where needed and has had a large growth in finance but saw its greatest improvement of job growth in the Leisure and Hospitality sector.

Other things Ted mentioned the good, the bad and the ugly were: 30 year conventional rates are at 3.75% week ending July 3, 2019 which is the lowest since November 2016. Homes sales were down.

To get a little closer to home, Texas has the 7th highest job growth rate in the prior 12 months ending in May 2019 with 2.30%. Taxes, or lack of, influences where people live and businesses relocate. Texas ranks #15 of having the lowest tax rate. The population in Texas is expected to double by the year 2050 according to figures released by the state demographer in 2015 (Texas Tribune). Ted said, while Texas is doing great, Wichita Falls economy on the other hand is quite different. Wichita Falls is seeing some job growth, 0.34% in the prior 12 months and 200 new jobs in the past 12 months. Many have not replaced jobs that were lost in the past. Ted showed a comparison of the Wichita Falls Supersector Job Growth Analysis – May 2019

Then the U.S. vs Wichita Falls Supersector Employment Analysis

The Median price new homes vs existing home premium has declined since 2013 and builders are now focusing on entry-level new home construction.

There were 1.5 Million new households in 2018 that built less than 1.2 million new dwelling units.

Wichita Falls had 0.6% decrease in home sales the prior 12 months ending May 2019 but the prices had an increase of 6.4%. Building permits for residential and multifamily dwellings were the highest in 2018 at a little over 300 since pre-recession in 2007 at close to 800. Mr. Jones mentioned the average rents in Wichita Falls based on the interest rate to buy should give anyone renting the incentive to purchase a home. This is a good time for builders and realtors to use these figures to their advantage.

Continues on pg 9

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Continued from pg 8

The median age in the U.S. is 38 and 34.7 in Texas. Ages 25-34 make up 13.6% of the U.S. population that purchased 37% of homes in the past 12 months. Millennials have been the #1 homebuyers for 6 years in a row. They are the future and the present.

10,000. Baby Boomers retire each day. Over 1.35% of the population turns 55 each year which calculates to 4,413,266 while ages 55-75 make up over 22% of the population, 73,718,340. While those turning 55 will increase the next 4 years, the baby boomer population will be declining by 1.6% by the year 2023 according to the U.S. Census Bureau.

1920 Elmwood Ave. North Wichita Falls, TX 76308-3724

Office: 940-720-5211 Fax: 940-691-3199

According to Ted, there is no such thing as a national real estate market (or economy). They are all individuals but trading globally does effect each individual economy.

The U.S. deficit is 24 trillion. We will continue to have debt which is up 16.3% in the last 36 months. Out of 87% of Americans with health insurance 1in 4 avoided having a medical procedure due to the cost last year according to the Financial Industry Regulatory Authority.

703 E. Scott Wichita Falls, TX 76308

Ted mentioned the trade wars with China. He said if the U.S. quit buying from China, their deficit would be $418.7 billion. Based on the graph below: 2525 Kell Blvd., Suite 100 Wichita Falls, TX 76308 940.763.2100 (main line) 940.763.2101 (fax) sveigl@fidelitybankwf.com

Continues on pg 10

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Susan Veigl

Continued from pg 9

The U.S. pays a 25% Tariff on U.S. Cars in China while China pays a 2.5% Tariff on Chinese Cars in the U.S. (Truth Squad). What’s wrong with this picture?

This is the first time in 75 years the U.S. is a net oil exporter.

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Fossil fuel continues to the largest source of fuel at 63.5% with nuclear 2nd with 19.2%. Wind and solar combined only account for 8.2% which doesn’t make since for the U.S. to spend so much money to subsidize these alternative fuel sources.

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In conclusion, the outlook for 2019 is a strong economy, growing jobs and wages, declining interest rates, rising home prices, cheap but profitable energy and manufacturing comeback continues.

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The North Texas Home Builders Association was able to contribute a check for over $5300.00 to Habitat for Humanity from proceeds from the 67th Annual Parade of Homes ticket sales.

300 hours of sweat equity into the home so this is not a hand out or just a donation. The proceeds from the Parade of Homes is very much appreciated.

This is Will’s first time to experience the partnership with the NTHBA. Will took over the Director of Marketing & Development position in April of this year after the previous Director Carla Dowlen resigned from her position and served her last day March 29th.

“It’s been a great partnership and perfect fit with Habitat for Humanity, President Doug McCulloch expressed. “We build homes, they build homes”. This year marks the 19th year of the partnership and is one of their biggest fund raisers.

Parade of Homes Chairman Barney Brock said, “They are a really good charity to work with, they are always very gracious.” We look forward to working with Habitat for Humanity during the 68th Annual Parade of Homes in 2020

During the Parade of Homes, Habitat for Humanity provides volunteers to sale tickets at each of the parade home entries. NTHBA member Julia Griffin who has been volunteering for Habitat for Humanity for six years says Habitat is able to move forward with some of its projects and continue out their vision, a world in which everyone has a decent place to live, thanks to proceeds from the NTHBA Parade of Homes.

Will Goodner, Director of Marketing & Development for Habitat for Humanity explained; the money received will help Habitat home owners build their own homes alongside the volunteers. Homeowners have to put 11

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North Texas Home Builders 67th Annual Parade of Homes The NTHBA’s 67th Annual Parade of Homes hosted around 1100 people this year. There were 9 homes featured on tour from 8 different builders and the Career Education Center students. The NTHBA begun supporting the CEC Construction department in 2018.

With the growing need of workers for the construction industry, to see a home built entirely by students, is an awesome feat.

This project will spark the interest of other students and introduce careers to parents whose child may not feel they are college material.

The NTHBA is proud to be able to feature the student’s home in this year’s parade and continue its support for Habitat for Humanity

Homes were scattered throughout Wichita Falls and Lakeside City.

Featured homes include:

As always, we cannot have a successful parade without our Parade Home Builders: R. J. Wachsman Homes, Lance Friday Homes, Justin Keeter Custom Homes, Harmon & Holcomb Homes, Douglas Custom Homes, Don Hardy Homes, Cornerstone Custom Homes & Classic Builders.

Our Parade Sponsors, Corporate Sponsor Builders Lumber Company & Co-Sponsor Patterson Family of Dealerships.

Our Advertisers, ABC Supply, American National Bank, Breegle’s, Brian’s Plumbing, Builders Wholesale, Butler Electrical-Alarm, Brazos Window & Door, Corlett Probst & Boyd, David Bedingfield Homes, Dennis Company, Decorator Outlet, Dutch Watson Cabinets, Ferguson Veresh, Fidelity Bank, Garnel Construction, LLC, Guarantee Title Company, J AND C Electric, Kelly Moore Paints, Lantern House, Landmark Title Company, Legend Bank, Lonestar Wastewater, Lowe’s, Morrison Supply, OK Concrete, S&H Granite, Servpro of Wichita Falls, Skyline Developers, Stewart Title Company, Texas Flooring Gallery, Texoma Community Credit Union, The Ember Shop, Union Square Credit Union, Waggoner Carpet One and Woodco Supply.

All the Volunteers who sat at the homes and sold tickets and All Who Toured the homes!!!

THANK YOU, THANK YOU, THANK YOU Congratulations goes out to the North Texas Home Builders Association Parade of Homes Facebook Check-in Contest winner, Garrik Wood.

We are already looking forward to the 68th Annual Parade of Homes in 2020!