FOUNDATIONS MAY - JUNE

MAY - JUNE 2020

ROCHESTER AREA BUILDERS, INC.

Sponsored by

OPEN HOUSE WEEKEND: MAY 30-31 from 10:00am to 6:00pm

RAB CALENDAR Virtual Meetings

2

Spring Showcase Listing of all the homes in the Showcase

MEMBER BENEFIT BAM Rebate information

10

23

D C

DEVELOPMENT COUNCIL a division of the Rochester Area Builders, Inc.

C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

STAFF EXECUTIVE DIRECTOR John Eischen, John@RochesterAreaBuilders.com STAFF Shelly Bahlmann, Shelly@RochesterAreaBuilders.com

Golf Outing, Sporting Clays, Home Show, Directory, Newsletter, RAB Update Audra Bolduan, Audra@RochesterAreaBuilders.com

Builders Exchange Trustees and

Showcase Committee Rebekah Nielsen, Rebekah@RochesterAreaBuilders.com

Ambassadors, Awards, Community Relations,

Education, Membership, Fashion Show,

Program, Spike Club, Remodelers Council:

Executive & Remodelers Tour, 40 Below

GOVERNMENT & PUBLIC AFFAIRS CONSULTANT Rick Dold, Rick@GodwinDold.com

BOARD OF DIRECTORS PRESIDENT Alissa Moe, Bremer Bank VICE PRESIDENT Luke Stier, Stier Construction, Inc. SECRETARY Becky Holmen, Bright Ideas TREASURER Jesse Buhl, MedCity Consulting PAST PRESIDENT Jerry Jensen, Valor Mechanical, Inc. DIRECTORS Kenneth Bush, Rochester Asphalt & Concrete Adam Giannini, Meyer Borgman Johnson Spencer Holmen, TLS Companies Jennifer Lawver, ERH Developing, Inc. Tom Leimer, Knutson Construction Kevin Sternberg, Countryside Builders, LLC Kevin Reckinger, Bricewood, LLC Charlie Sweeney, Kraus-Anderson Construction Jennifer Mitchell, Edina Realty BUILDERS EXCHANGE COUNCIL REPRESENTATIVES John Honeck, Harris Company, (Chair) Kurt Hoeger, United Rentals, (Vice Chair) Jeremy Wohlfiel, Merit Contracting, Inc. (Past Chair) COMMERCIAL BUILDERS COUNCIL CHAIR Vanessa Hines, Eidseth Smith Nolting DEVELOPMENT COUNCIL CHAIR Hal Henderson, HGA Architects & Engineers REMODELERS COUNCIL CHAIR Jessica Markley, Elias Construction 40 BELOW CHAIR Katie Olson, Kimley-Horn & Associates, Inc. NATIONAL LIFE DIRECTORS Joe Weis, Weis Builders, Inc. Steve Buss, Cornerstone Builders & Real Estate, Inc. NATIONAL DIRECTORS Dana Hlebichuk, Widseth Smith Nolting Levi Kaiser, Alvin E. Benike, Inc., (Rep) Todd Severson, TLS Companies, LLC STATE DIRECTORS Mike Allen, Mike Allen Homes, LLC Jean DeWitz, DeWitz Home Builders, Inc. (Rep) Kathy Einck, Maplewood Homes.LLC John McGuine, JM Consulting David Pederson, Dunlap & Seeger Dan Severson, Dan Severson Builders, Inc.,

ROCHESTER AREA BUILDERS, INC.

2020 CALENDAR OF EVENTS JUNE 1 30

3 TBD 28

Office Closed - Independence Day NAHB Mid-Year Board Meeting – Minneapolis Member Appreciation Night @ Mayowood Stone Barn

Networking Night @ Tulip Tree & Valor Mechanical

RAB Golf Outing - POSTPONED Virtual Networking Night with 40 Below

JULY

AUGUST 25

SEPTEMBER

7

17

19-20

19-20,26-27 29

Office Closed – Labor Day Sporting Clay Shoot Remodelers Tour Fall Showcase of Homes General Membership Meeting @ DoubleTree by Hilton

OCTOBER

27

Networking Night @ Cambria

NOVEMBER

TBD 19 26-27

Past Presidents Dinner Celebration of Leaders Dinner Office Closed – Thanksgiving Holiday

DECEMBER 4 24-25

Holiday Party @ The Hilton Office Closed – Christmas Holiday

MISSION STATEMENT The Rochester Area Builders, Inc, chartered in 1953, is a professional organization of commercial & residential builders, remodelers, developers and associated businesses dedicated to advancing the building industry in Southeast Minnesota.

We are the trusted voice of the industry, providing leadership, education, networking, and information resources to our members, community and government officials.

7

STUDS, STRUTS & ST ET TOS

15 16

23

9 RAB CALENDAR................................................... 4

June 2020

LETTER FROM RAB PRESIDENT............................ 5

Alissa Moe, Bremer Bank, 2020 RAB President

SEMR HISTORICAL OVERVIEW............................. 19 April 2020

NAHB EYE ON HOUSING...................................... 24

Small Gain for Custom Home Building During 1Q20

MEMBERSHIP REPORT......................................... 6

April 2020

NAHB EYE ON HOUSING....................................... 6

Builder Confidence Posts Solid Gain After Historic Drop

STUDS, STRUTS & STILETTOS.............................07

Postponed until 2021

WELCOME NEW RAB MEMBER...............................8

May New Member

ROCHESTER AREA BUILDERS

WEBINAR REPLAY

SPRING SHOWCASE OF HOMES 2020...............9-13

May 30-31

NAHB EYE ON HOUSING......................................16

Purchasing Activity Recovers from April Lows

ROCHESTER BUILDING PERMITS......................... 18

April 2020

You can watch the following recorded webinars on our YouTube Channel:

BYRON BUILDING PERMITS................................. 18

“COVID-19: A Checklist for Returning to Work”

April 2020

OLMSTED BUILDING PERMITS ............................ 19

April 2020

“Sanitary Sewer Rate Study Update”

4 | MAY-JUNE 2020

JUNE 2020 SUNDAY

MONDAY

TUESDAY

WEDNESDAY

1

2

10:00 AM 8:00 AM Government Affairs Remodelers Committee Meeting Council Executive Meeting 11:00 AM Executive Committee Meeting 7

8 3:30 PM Builders Exchange Board of Trustees Meeting

14

15

9 3:00 PM Board of Directors Meeting

16

3 7:30 AM Commercial Builders Council General Meeting

THURSDAY

FRIDAY 4

SATURDAY 5

6

11

12

13

18

19

20

26

27

10:00 AM Program Committee Meeting

10 4:30 PM 40 Below Executive Meeting

17

10:00 AM 7:30 AM 10:00 AM 7:30 AM Fashion Show Green Building Ambassadors Membership Committee Meeting Committee Meeting Committee Meeting Committee Meeting

21

22

23

10:00 AM Home Show Committee Meeting

28

29

24

25

3:00 PM Development Services Advisory Committee Meeting

10:00 AM Community Relations Committee Meeting

30 4:30 PM Virtual Networking Night - with 40 Below

We are using GoToMeeting to conduct our remote meetings until further notice. If you have a scheduled meeting you will receive an invitation from John. Please download and register ahead of time by going to https://www.gotomeeting.com/ ***Calendar may change at any given time. Check the for most current information.

5 | FOUNDATIONS NEWSLTR

FROM THE PRESIDENT Hello, hello, hello! Believe it or not, writing a letter for a monthly newsletter while all events have either been postponed or canceled is unbelievably challenging. Now that the sun has been peeking through and the warmer temperatures have been sticking around, I have been devoting free time to playing golf and peaceful walks around the lake by my home.

Another interesting analytic that we have been able to pull from the first week of the Virtual Showcase is the average number of unique visits per price range.

Virtual Showcase of Homes

It also delights me to tell you that according to the state update, open houses will be allowed, but our members must adopt a plan that incorporates site-specific best practices. The best practices are focused on health and wellness, social distancing, cleaning, sanitation and protection, and communications that keep the client and visitors in mind. This will not be business as usual, however, it does offer our builders a chance to share their work with potential clientele. I would encourage our members to collaborate with each other on ideas to maintain a space that promotes health and wellness! Feel free to share what you are planning to do with myself, the RAB Staff, and your fellow members.

We are two weeks into the Virtual Spring Showcase and I have some positive news and statistics to share with our membership! The first week of the virtual tour brought: • 3,294 unique visitors • 4,178 visits • 4,708 impressions If you’re not a marketing guru, “unique visitors” stands for the number of people who have visited our webpage at least once during the reporting period — this number does not increase if a previous visitor returns to a page multiple times.

So, if you visit RochesterAreaBuilders.com 10 times in a day, it is recorded as one unique visitor and 10 visits. If you even refresh a page 10 times, it is counted as 10 visits, one unique visitor. Impressions, on the other hand, are not necessarily action based, but rather are defined by the potential of a user seeing an advertisement about the Spring Showcase. I think I captured the general idea of these terms, but if any marketing gurus wish to correct me, I welcome the feedback.

$659k – $1.4m

129

$549k – $640k

155

$439k – $530k

53

$275k – $415k

52

Committee Meetings Thank you all for your patience as we have postponed committee meetings. We have been holding crucial meetings via GoToMeeting, a secure digital platform. We have decided to resume our committee meetings and will do so using this platform. You will be receiving an invitation to the meeting from John Eischen. Please be sure to register and mark your calendars.

Alissa Moe President Rochester Area Builders, Inc Studs, Struts and Stilettos After much reflection and discussion, our fashion show committee has come to the difficult decision to postpone the show until April 8th, 2021. The theme, Strut Through History, will remain the same. With the additional time, I would encourage you to think about contributing to the future event through sponsorship or through creating a design to showcase!

That’s all for now! I look forward to joining our virtual committee meetings in the near future to stay connected with all of you. Please stay tuned for additional details surrounding the golf outing, as this is still being monitored for possible changes. Also stay tuned for a possible June Virtual Networking event! Communications will be sent out when more details are finalized.

Alissa Moe Bremer Bank 2020 RAB President

6 | MAY-JUNE 2020

ROCHESTER AREA BUILDERS, INC.

MEMBERSHIP REPORT APRIL 2020

BUILDER CONFIDENCE POSTS SOLID GAIN AFTER HISTORIC DROP

MEMBERSHIP TOTAL: 453 RETENTION RATE: 89.3 As of April 30, 2020 ONE TO FOUR YEARS Innovilla Custom Homes..........................................2019 J.Luxe Interiors, LLC.................................................2019 Jim Kostroski Construction, LLC.............................2019 Junge’s Flooring........................................................2019 Kendell Doors & Hardware, Inc...............................2018 Moneycap, LLC representing Globe Life - Family Heritage Products.....................................................2018 Ryan Companies US, Inc...........................................2018 Godwin Dold...............................................................2017 Molin Concrete Products Company........................2017 Norbord.......................................................................2017 MedCity Consulting...................................................2016 Zillgitt Civil Design....................................................2016

FIVE TO NINE YEARS Destination Building Center.....................................2015 Kimley-Horn & Associates, Inc................................2015 Range Custom Homes, LLC......................................2013 R. Fleming Construction, Inc....................................2012 Advanced Building Center, Inc.................................2011 Braun Intertec Corporation......................................2011 Lacina Siding & Windows, Inc..................................2011

TEN TO 19 YEARS Burdick Builders, Inc.................................................2010 Beckley’s Office Products.........................................2009 Data-Smart Computers, Inc.....................................2008 Kirkland Enterprises, LLC........................................2007 Dolan’s Landscape Center, Inc.................................2006 Majestic Homes, Inc..................................................2006 Med City Builders of Rochester, LLC.......................2006 Michael Jack, LLC......................................................2006 Anderson Construction.............................................2005 Scott Berberich Construction, LLC..........................2004 Expert Insulation, Inc................................................2001 Golden Tee Development..........................................2001

20 YEARS & MORE AKTTC / KXLT-TV......................................................2000 American Waterworks..............................................1999 Rochester Area Appraisals, LLC..............................1999 CHS, Inc.......................................................................1998 HGA Architects and Engineers................................1997 Sterling State Bank...................................................1993 Grinde & Dicke Law Firm P.A...................................1990 Countryside Builders, LLC........................................1989 People’s Energy Cooperative...................................1987 Thomas Tool & Supply..............................................1987 North Risk Partners..................................................1970

In a signal that the housing market is showing signs of stabilizing and gradually moving forward in the wake of the COVID-19 pandemic, builder confidence in the market for newly-built single-family homes increased seven points to 37 in May, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The rise in builder sentiment follows the largest single monthly decline in the history of the index in April.

The designation of home construction as an essential business during the crisis helped keep most residential construction workers on the job, which is reflected in the May HMI. At the same time, builders are showing flexibility in this new business environment by making sure buyers have the knowledge and access to the homes they are seeking through innovative measures such as social media, virtual tours and online closings. Jurisdictions are also adapting to the new environment with thirdparty and virtual inspection rules.

Low interest rates are helping to sustain demand. As many states and localities across the nation lift stay-at-home orders and more furloughed workers return to their jobs, we expect this demand will strengthen. Other indicators that suggest a housing rebound include mortgage application data that has posted four weeks of gains and signs that buyer traffic has improved in housing markets in recent weeks. However, high unemployment and supply-side challenges including builder loan access and building material availability are near-term limiting factors.

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.

All the HMI indices posted gains in May. The HMI index gauging current sales conditions increased six points to 42, the component measuring sales expectations in the next six months jumped 10 points to 46 and the measure charting traffic of prospective buyers rose eight points to 21.

Looking at the monthly average regional HMI scores, the Midwest increased seven point to 32, the South rose eight points to 42 and West posted a 12-point gain to 44. The Northeast fell two points to 17.

7 | FOUNDATIONS NEWSLTR

STUDS, STRUTS & STILETTOS UPDATE

S

PO

N O P T

E

1 2 0 D2

Every year for the last 7 years we’ve looked forward to bringing a unique and exciting event to the Rochester community with Studs, Struts & Stilettos.

Unfortunately, given the concerns around COVID-19, we’ve made the difficult decision to postpone the event until April 8th, 2021. We will be keeping the same theme, Strut through History, and look forward to using this time to make it an incredible show for you all.

We understand it may be challenging times for some financially, therefore, if you would like a refund for your design entry or sponsorship that can be arranged. However, if you would like to continue supporting the event we would be happy to put it toward the 2021 show. Please let us know what you would prefer.

In the meantime, thank you for your patience and understanding -- we look forward to Studs, Struts & Stilettos 2021!!

PRESENTED BY:

A BENEFIT FOR:

POSTPONED TO APRIL 8, 2021

Find us on Facebook! Click here to view pictures from past events and stay up to date with the latest news on Studs, Struts & Stilettos!

Follow us on STUDS, STRUTS & ST ET TOS

8 | MAY-JUNE 2020

WELCOME NEW RAB MEMBERS MAY 2020

HARMONY INSURANCE GROUP

As a member of RAB, you have an opportunity to join one of our popular Councils. We also have many Committees to get involved with. Below is a list of ones that have openings. We would love to have you! Email us!

COMMITTEES

JIM LUTES

Insurance Agency (507) 280-8300 harmonyinsurancegroup.com

• Ambassadors Club

• Home Show

• Sporting Clay Shoot

• Community Relations

• Membership & Retention

• Education

• Program

• Golf Outing

• Remodelers Tour

• Green Building

• Showcase

COUNCILS C OMMERCIAL C B UILDERS

OUNCIL

a division of Rochester Area Builders, Inc.

D C

DEVELOPMENT COUNCIL a division of the Rochester Area Builders, Inc.

9 | FOUNDATIONS NEWSLTR

2020

Spring Showcase of

10 | MAY-JUNE 2020

Otis Custom Homes, LLC

Med City Builders of Rochester, LLC

Rymark Construction, LLC

2346 Brandwood Rd SW

4998 Cash Ln SW

Riley Ln SW- (DEVELOPMENT)

5

5

Finished Sqft: 4782

1

5

3.5

Finished Sqft: 3579

2

3

Distinguished Homes by Mitch Hagen, LLC

Keller Homes

Zen Custom Homes

5241 Millie Rd SW

1903 - 31st St SW

2949 Alderock Ln SW

6

4.5

Finished Sqft: 4396

4

5

3

Finished Sqft: 3714

5

6

5

Finished Sqft: 6276

Custom Homes by Bradley

R&M Development Company

DeWitz Home Builders, Inc.

2710 Galena Pl SW

5008 - 8th St SW- (DEVELOPMENT)

6052 Sandstone St NW

6

4

Finished Sqft: 4200

NOTES FOR OPEN HOUSE WEEKEND: MAY 30-31 from 10:00am to 6:00pm

7

8 • The hours of 10:00 AM to Noon are reserved for those medically-atrisk individuals • Everyone must wear a face mask, including builders and builder’s representatives.

• All social distancing guidelines will be followed.

4

3

Finished Sqft: 2166

6

9

• Only 10 people allowed in the house at one time.

• Visitors may need to wait to enter.

11 | FOUNDATIONS NEWSLTR

Bigelow Homes

Bigelow Homes

Maplewood Custom Homes

5502 Harvest Lake Dr NW

5195 - 56th St NW

Summit Pine Ln NW

2

2

Finished Sqft: 1544

10

2

2

Finished Sqft: 1277

11

(#12 is not open for the show.)

H&H Company of Rochester, LLC

Exclusive Home Builders & Remodelers

Penz Custom Homes, Inc.

6376 Summit Pine Rd NW

6353 Summit Pine Rd NW

4244 Genevieve Pl NW

4

3

Finished Sqft: 3332

13

5

3

Finished Sqft: 3462

14

4

3

Finished Sqft: 2908

12

15

Derby Builders

Majestic Homes, Inc.

Derby Builders

89 Majestic Rd NW

296 Majestic Rd NW

6300 West River Rd NW - (DEVELOPMENT)

5

4

Finished Sqft: 3103

16

4

3

Finished Sqft: 2206

18

17

Dan Severson Builders, Inc.

Bigelow Homes

Meier Companies, Inc.

888 Picadilly Ln NW

1909 Hadley Creek Dr NE

2489 Hadley Hills Dr NE

2

2

Finished Sqft: 1503

19

4

3

Finished Sqft: 2725

20

3

2

Finished Sqft: 1862

21

12 | MAY-JUNE 2020

M.P. Kaye Builders, Inc.

M.P. Kaye Builders, Inc.

Countryside Builders, LLC

Stone Point Dr NE

4227 Stone Point Dr NE

2305 Nickel Rd NE- (DEVELOPMENT)

(#22 is not open for the show.)

22

3

2

Finished Sqft: 1936

23

24

Countryside Builders, LLC

Centurion Ridge, LLC

Maplewood Custom Homes

2243 Glady Ln NE

2227 Centurion Ct NE

2022 Shannon Oaks Blvd NE

5

3

Finished Sqft: 3051

25

4

3

Finished Sqft: 3734

26

5

3

Finished Sqft: 4284

Meier Companies, Inc.

Meier Companies, Inc.

R. Fleming Construction, Inc.

3170 Scanlan Ln NE

Alison Ct NE - (DEVELOPMENT)

3133 Bella Terra Ln NE

5

3

Finished Sqft: 3085

28

29

4

3

Finished Sqft: 2595

R. Fleming Construction, Inc.

Exclusive Home Builders & Remodelers

Elias Construction, LLC

2637 Tee Time Rd SE

853 Haar Ln NE * Byron

813 Grand Ridge Dr NE * Byron

4

3

Finished Sqft: 2530

NOTES FOR OPEN HOUSE WEEKEND: MAY 30-31 from 10:00am to 6:00pm

31

5

3

Finished Sqft: 3404

32

• The hours of 10:00 AM to Noon are reserved for those medically-atrisk individuals • Everyone must wear a face mask, including builders and builder’s representatives.

• All social distancing guidelines will be followed.

3

3

Finished Sqft: 2100

27

30

33

• Only 10 people allowed in the house at one time.

• Visitors may need to wait to enter.

13 | FOUNDATIONS NEWSLTR

Cordes Construction, LLC

Golden Tee Development

Chris Fritsch Custom Homes, LLC

858 Grand Ridge Dr NE * Byron

975 Somerby Pkwy NE * Byron- (DEVELOPMENT)

913 Somerby Pkwy NE * Byron

3

2.5

Finished Sqft: 2627

34

35

4

3

Finished Sqft: 3115

36

Distinguished Homes by Mitch Hagen, LLC

Bigelow Homes

Exclusive Home Builders & Remodelers

921 Bridgeford Pl NE * Byron

289 Lehman Dr NE * Byron

Riverwood Ct SW * Oronoco

4

3

Finished Sqft: 3786

37

4

3

Finished Sqft: 2851

38

(#39 is not open for the show.)

Barton Brothers Construction, LLC

Seth Friese Construction

Derby Builders

Zumbro Oaks Ln NW * Oronoco

410 Keystone Dr NE * Pine Island

731 - 9th St SW * Pine Island

(#40 is not open for the show.)

40

2

2

Finished Sqft: 1210

41

3

3

Finished Sqft: 1500

39

42

Derby Builders

Madery Construction, LLC

Cornerstone Builders & Real Estate, Inc

SW Campbell Ct * Pine Island - (DEVELOPMENT)

County Hwy 24 * West Concord

501 Cedar Dr * Lake City

43

(#44 is not open for the show.)

44

2

2

Finished Sqft: 1878

45

14 | MAY-JUNE 2020

15 | FOUNDATIONS NEWSLTR

Jenna Bowman | Communications & Engagement Manager Cell: 507-250-3045 | E-mail: jbowman@rochestermn.gov FOR IMMEDIATE RELEASE

City of Rochester Announces Suspension of Large Public Events through August 16, 2020 Due to Ongoing Safety Effort May 22, 2020 – ROCHESTER, MINN. – With health and safety as a top

priority and as part of ongoing efforts to reduce the spread of the coronavirus (COVID-19), the City of Rochester announced today its decision to suspend all large public events in City facilities and on City grounds through August 16, 2020. This impacts three specific summer events.

Suspended events include:  Rochester Police Department’s “Safe City Nights” program  Rochester Civic Music’s “Down by the Riverside” and “forWARD” free concert series  Rochester Downtown Alliance’s “Thursdays Downtown” street market and music festival “This decision was not made without great thought and consideration. We continue to maintain a focus on the health and safety of our community. Teammates will work with local organizations to identifying creative opportunities to create and celebrate our community while we navigate the ongoing impacts of this unprecedented pandemic,” shares City Administrator Steve Rymer.

While remaining in compliance with Governor Tim Walz’s phased “Stay Safe MN” program, event organizers are working together to explore ways to bring engaging and creative opportunities to community members in the coming months.

Mayor Kim Norton said, "While it is unfortunate that we will not be able to go forward with these events in their typical format, it is the best decision we can make to keep everyone safe. We know community events add such vibrancy to our community and we are working hard on alternative opportunities."

The City continues to monitor public health conditions, with their partners at Olmsted County Public Health, and will share further updates for events and activities scheduled after August 16, 2020 as more information becomes available. # # #

16 | MAY-JUNE 2020

Purchasing Activity Recovers from April Lows

BY LITIC MURALI on MAY 20, 2020

Current mortgage activity, as indicated by the Mortgage Bankers Association’s latest Weekly Application Survey, indicates a slight rise in purchasing activity and slight decline in refinancings of existing home loans, each by about 6% on a seasonally adjusted basis.

continue to recover from April’s sizeable drop and have now increased for five consecutive weeks. In a similar vein, on the supply side, the HMI, indicating builders’ confidence, posted a solid gain in May after the historic drop owing the outbreak of COVID-19.

Overall, the Market Composite Index decreased by about 2.6%.

The contract rate as determined by the Primary Mortgage Market Survey slid by 2 basis points to 3.41% from the previous week, still hovering near the record low for the series that was reached at the beginning of this month.

On a year-over-year basis, as the above figure shows, purchasing of homes rebounded from the low reached in April, though in the latest week it was still 1.5% lower than it was the same week one year ago. Refinancing, compared to a year ago, is higher and continues to maintain its upward trajectory looking at the series of its year-over-year gains.

Applications for home purchases

According to Fannie Mae, the refinance volume of applications is poised to reach a 17-year high as it forecasts mortgage rates to tumble further. The refinance share of mortgage activity decreased to 64.3 percent of total applications from 67.0 percent the previous week.

17 | FOUNDATIONS NEWSLTR

GREAT TIME TO LOCK IN YOUR RATE

R E F I NAN C E YO U R H O M E GREG JOHNSON

JEANNE STRUCKMANN

LOAN ORIGINATOR

LOAN ORIGINATOR

Direct Line 507-258-2192 Email gjohnson@altra.org NMLS# 516974

Direct Line 507-421-7655 Email jstruckmann@altra.org NMLS# 411311

3833 Cascade Creek Rd. NW

(Corner of 19th St. & West Circle Drive)

123 16th Ave. SW, Suite 500 Rochester, MN

507-258-4500 • 800-755-0055 www.altra.org Contact Altra for more information. Equal Housing Lender. Federally insured by NCUA.

18 | MAY-JUNE 2020

ROCHESTER BUILDING PERMITS 2020

VALUATION 2019

APRIL 2020

2011 2012 2013 2014 2015 2016 2017 2018

VALUATION

2019 2020

NEW RESIDENTIAL Single Family Dwelling Townhome Dwelling

January

17

5,155,849

23

6,265,557

0

0

0

0

February

3

6

19

11

20

25

15

19

6

17

8

20

15

14

19

15

20

24

32

29

28

30

31

44

16

5

13

25

27

32

Two-Family Houses

2

490,000

0

0

March

Manufactured Home

0

0

0

0

April

19

29

39

25

22

33

45

40

23

19

Multi-Family Bldgs (Units)

0

0

0

0

TOTAL

35

58

63

53

69

71

79

60

61

81

May

14

22

27

35

19

56

43

28

27

June

26

32

33

47

51

41

52

38

31

July

8

39

39

38

29

44

45

36

26

August

18

38

21

60

33

47

30

31

24

September

19

22

22

23

27

52

35

39

12

October

16

23

34

35

49

25

36

29

27

November

20

22

26

26

23

12

41

21

47

December

16

14

22

27

42

37

33

25

34

*total may differ been voided.

TOTAL 191as permits 299 may 326 have369 369 418

429

347

289

EXISTING RESIDENTIAL Deck Addition

11

76,000

26

140,552

Room Addition

2

140,000

2

135,000

Porch Additions

0

0

3

44,000

Other Additions

1

32,376

1

13,000

Basement Finish

8

202,000

28

446,938

24

335,139

45

542,256

Multi-Family Addition

0

0

0

0

Multi-Family Alterations

9

1,747,533

8

314,536

Assembly (Church)

0

0

0

0

Assembly (General)

0

0

1

375,000 0

Alterations

81

*total may differ as permits may have been voided.

NEW COMMERCIAL

Assembly (Restaurant/Bar)

0

0

0

Business

0

0

0

0

Education

0

0

0

0

Factory/Industrial

0

0

0

0

BUILDING PERMITS ISSUED TO DATE

0

0

0 0

Institution

0

Mercantile

0

0

0

Miscellaneous

0

0

0

0

Residential (Apartment)

0

0

0

0 0

Residential (Care/Assisted Living)

0

0

0

Residential (Care/Hotel/Motel)

0

0

0

0

Storage (General)

0

0

0

0

Storage (Parking Garage)

0

0

0

0

Storage (Warehouse)

0

0

0

0

Utility (General)

0

0

1

197,000

Utility (Private Garage)

0

0

0

0

2

5,134,059

2

680,859

15

4,507,471

35

27,601,116

Structural Shell

0

0

0

0

“White Box”

0

0

0

0 0 0

Alterations

Interior Demolition Only

2

502,500

0

Other Phased Permits

0

0

0

OTHER CONSTRUCTION Business Signs

3

23,668

7

60,385

Advertising Signs

0

0

0

0

Footings & Foundations

1

75,000

0

0

Demolition

3

0

1

0

Information and downloads available at Rochester Building Safety Department’s website: https://www.rochestermn.gov/departments/building-safety/reports-building-permits/ building-permits-2019

2020 VALUATION

NO.

2019 VALUATION

488

130,791,680

580

122,443,673

Single Family Dwelling

71

21,413,370

57

16,067,481

Multi-Family Buildings Total Units: 76

1

10,640,000

3

4,025,262

TRADE PERMITS ISSUED TO DATE

2878

42,546,540

2824

38,501,277

Electrical

1078

19,213,587

1099

18,499,706

Electrical (Temp. Service)

86

38,950

71

57,976

Mechanical (HVAC)

672

11,851,370

710

9,787,068

Mechanical (Gas Piping)

191

352,610

160

254,271

Mechanical (Fireplace)

104

445,750

85

412,350

Mechanical (Hydronic)

67

1,999,612

56

3,931,099

680

8,644,661

643

5,558,837

3366

173,338,200

3404

160,944,950

Plumbing

EXISTING COMMERCIAL Addition

YEAR TO DATE STATISTICS

NO.

TOTAL PERMITS YTD

APRIL 2020

BYRON

BUILDING PERMITS

NUMBER

VALUATION

Single Family Attached

NEW RESIDENTIAL

0

0

Single Family Detached

4

1,495,000

Basement Finish

0

0

Deck Addition

3

51,490

Existing Residential

19 | FOUNDATIONS NEWSLTR

OLMSTED COUNTY PERMITS YTD

2020

VALUATION

2019

VALUATION

9

Single Family-Detached

5

Addition

1,497,446

0

0

0

0

Garage

5

2251,320

1

30,982

4

20,580

6

12,863

2

24,960

1

35,000

32

685,751

18

289,418

9,612

2

40,673

RESIDENTIAL

2019

VALUATION

1

422,867

0

0 22,420

Alterations

1

2,850

3

Re-roofing

2

8,250

0

0

2

88,383

4

121,000

26

0

15

0

Mechanical

67

952,194

43

374,472

Plumbing

42

774,221

19

142,777

196

12,162,948

118

2,872,957

OTHER STRUCTURES

Deck Addition Alterations Garage Addition

1

Pool, Retaining Wall, etc.

Manufactured Homes

MISCELLANEOUS PERMITS

NEW COMMERCIAL/INDUSTRIAL Recreational

0

0

0

0

Church/Religious

0

0

0

0

Industrial/Warehouse

0

0

1

305,907

Store/Restaurant

0

0

0

0

Nonresidential Building

1

355,968

0

0

Service/Repair Station

0

0

0

0

VALUATION $0 PERMITS 0

VALUATION

COMMERCIAL/INDUSTRIAL

2,250,364

Single Family-Attached

2019

2020

NEW RESIDENTIAL

APRIL 2020

TOTAL PERMITS

OLMSTED COUNTY PERMITS APRIL

2020

VALUATION $432,595 PERMITS 5

EYOTA

VALUATION $177,259 PERMITS 11

VALUATION $143,153 PERMITS 11

VALUATION $6,063 PERMITS 17

MARION

VALUATION $740,915 PERMITS 39

VALUATION $0 PERMITS 0

ORONOCO TWP

VALUATION $416,084 PERMITS 11

VALUATION $0 PERMITS 0

QUINCY

VALUATION $7,840,812 PERMITS 26

STEWARTVILLE

Activity Overview Key metrics by report month and for year-to-date (YTD) starting from the first of the year.

Key Metrics

Historical Sparkbars

New Listings 4-2017

4-2018

4-2019

4-2020

4-2017

4-2018

4-2019

4-2020

4-2017

4-2018

4-2019

4-2020

4-2017

4-2018

4-2019

4-2020

4-2017

4-2018

4-2019

4-2020

4-2017

4-2018

4-2019

4-2020

4-2017

4-2018

4-2019

4-2020

4-2017

4-2018

4-2019

4-2020

4-2017

4-2018

4-2019

4-2020

4-2017

4-2018

4-2019

4-2020

Pending Sales

Closed Sales

Days on Market

Median Sales Price

Avg. Sales Price

Pct. of Orig. Price Received

Affordability Index

Homes for Sale

Months Supply

4-2019

4-2020

Percent Change

YTD 2019 YTD 2020

829

579

- 30.2%

2,236

2,104

- 5.9%

624

520

- 16.7%

1,799

1,889

+ 5.0%

419

435

+ 3.8%

1,365

1,526

+ 11.8%

66

64

- 3.0%

68

70

+ 2.9%

$197,250

$217,750

+ 10.4%

$192,400

$210,000

+ 9.1%

$217,450

$236,149

+ 8.6%

$211,161

$235,809

+ 11.7%

96.6%

97.8%

+ 1.2%

96.0%

96.4%

+ 0.4%

195

193

- 1.0%

200

201

+ 0.5%

1,379

1,123

- 18.6%

--

--

--

2.8

2.1

- 25.0%

--

--

--

Percent Change

Current as of May 4, 2020. All data from Southeast Minnesota REALTORS® and NorthstarMLS®. Provided by the Minnesota Association of REALTORS®. Report © 2020 ShowingTime. | 2

20 | MAY-JUNE 2020

We’re in the offering NAHB members up to $1,000 business.

2018 Chevrolet Low Cab Forward 3500HD

2018 Chevrolet Express 2500 Cargo Van

2018 Chevrolet Silverado 2500HD

2018 GMC Sierra 1500

USING THE PRIVATE OFFER FOR NAHB MEMBERS IS EASY: 1. Get your NAHB Proof of Membership by logging into NAHB.org and obtaining your verification form.

2. Visit your local Chevrolet dealer and mention this Private Offer.

3. Select an eligible vehicle(s) to purchase or lease and present your NAHB proof of membership.

For even more value, combine this offer with the National Fleet Purchase Program and Business Choice Offers. For full details on the Private Offer, NAHB members should visit nahb.org/gm.

Example offer for NAHB members who are business owners purchasing a 2018 Chevrolet Express 2500 Cargo Van. Up to

$1,000 Private Offer1

+

$3,750

National Fleet Purchase Program (FVX)2

Up to

+

$1,200

Eligible Accessory Cash Allowance3

Up to

=

$5,950 In Potential Value

¹Private offer amount varies by model. City Express and Low Cab Forward receive a $250 Offer for both Fleet and Retail deliveries. Fleet deliveries on the Buick Enclave, Chevrolet Traverse, Silverado, Express, Suburban, Tahoe, GMC Acadia, Sierra, Savana, Yukon, XL receive a $1,000 Offer. All other Fleet or Retail deliveries receive a $500 Offer. Valid toward the purchase or lease of eligible new 2017 and 2018 model year vehicles. Offer excludes Chevrolet Bolt, Camaro, SS, Corvette, Sonic, Spark, Trax, Volt, Buick Cascada, LaCrosse, Regal, Verano, and all Cadillac vehicles. Additional GM models may be excluded from time to time at GM’s sole discretion. Customer must take delivery by 1/2/2019. Not compatible with some other offers. Not valid on prior purchases. See dealer for details. 2Offer available to qualified fleet customers through 1/2/2019. Not compatible with some other offers. Take delivery by 1/2/2019. See dealer for details. 3To qualify, vehicle must be used in the day-to-day operations of your business and not solely for personal/non-business-related transportation purposes. For complete program requirements, including information regarding offers, vehicles, equipment, options, warranties, and ordering, consult your dealer or visit www.gmbusinesschoice.com. Requires $500 minimum purchase. Cash Allowance will be equal to the amount spent up to $1,200. Not eligible on Associated Accessories from third-party independent suppliers. Not available with some other offers. Take delivery by 1/2/2019. See dealer for details. ©2018 General Motors, LLC. All rights reserved. The marks appearing in this ad are the trademarks or service marks of GM, its subsidiaries, affiliates, or licensors.

21 | FOUNDATIONS NEWSLTR

22 | MAY-JUNE 2020

UTILITY WORKER S

FIT O -PR RS N NO RKE WO

ALL ESSENTIAL WORKERS

ICAL D E M RS RKE O W

Y AR L T I MIL ONNE RS PE

FA C WO TOR Y RK ER S

FIRST RESPON DERS

!

U O Y K N A H T

S

R ME

R

FA

Y ER C O GR KERS R WO

PH A WO RMA RK CY ER S

BANK WORKERS

MAIL CARRIERS

EVERYONE WORKING TO KEEP THINGS GOING IN THESE UNCERTAIN TIMES EDUCATION STAFF

CK TRU S ER DRIV

N UCTIO R T S CON KERS R O W

JOU

RN

DE L DR IVER Y IVE RS AL

IST

S

DRIVE-UP SERVICES ARE OPEN. WE ARE HERE FOR YOU!

bankononb.com

ROCHESTER MAIN 507-280-0621

STEWARTVILLE 507-504-1060

ELTON HILLS 507-280-0028

locally owned locally managed local decisions

SANITAT ION WORKER S

23 | FOUNDATIONS NEWSLTR

24 | MAY-JUNE 2020

Small Gain for Custom Home Building During 1Q20

BY ROBERT DIETZ on MAY 19, 2020 NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates custom home building posted a small increase during the first three months of the year, supported by low interest rates and unseasonably mild weather in January and February.

While housing construction starts declined in March, and considerably more in April, on net the first quarter was a positive one for custom home builders.

There were 32,000 total custom building starts during the first quarter of 2020. This marks a 10% gain over the first quarter 2019 total of 29,000. Over the last four quarters, custom housing starts totaled 180,000, which was a 3% increase over the prior four quarter total of 170,000 starts.

As measured on a one-year moving average, the market share of custom home building in terms of total single-family starts is now 20%, down from a cycle high of 31.5% set during the second quarter of 2009.

Note that this definition of custom home building does not include homes intended for sale, so the analysis uses a narrow definition of the sector.

The onset of the housing crisis and the Great Recession interrupted a 15-year long trend away from homes built on the eventual owner’s land. As housing production slowed in 2006 and 2007, the market share of this notfor-sale new housing increased as the number of single-family starts declined. The share increased because the credit crunch made it more difficult for builders to obtain AD&C credit, thus producing relatively greater production declines of for-sale single-family housing.

As the economy experiences a recession in 2020 due to

government-imposed lockdowns for virus mitigation, singlefamily spec construction will slow more than custom building.

Thus, we can expect an increase in the share of custom building for single-family starts in the quarters ahead.

25 | FOUNDATIONS NEWSLTR

Members Save Millions Put Your NAHB Membership to Work Now. Money-saving discounts that benefit you, your business and your family

nahb.org/Savings