www.elpasobuilders.com
National, State & Local Building Industry News 2018: Issue 7
Weakening Housing Market
Lower inventory, interest rates and rising entry level prices creates lack of buyers Home prices are high, listings are lean and potential buyers are frustrated. There is plenty of demand, but it is not translating into home sales. Mortgage applications dropped 2.5 percent last week, seasonally adjusted, according to the Mortgage Bankers Association. The weakness was driven entirely by a lack of buyers. Total volume was 12 percent lower than the same week one year ago. Mortgage applications to purchase a home fell 5 percent for the week and were just 1 percent higher compared with a year ago. Home prices continue to rise at more than twice the rate of income growth, and bidding wars are the rule rather than the exception for entry-level homes. New buyers are clearly struggling, and that is apparent in the type of loans for which they are applying. “The mix of business changed, with FHA purchase volume increasing as conventional and VA volume decreased,” noted Mike Fratantoni, chief economist at the MBA. “This indicates that more firstTotal housing starts fell 12.3 percent in June to a seasonally adjusted annual rate of 1.17 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. The June reading of 1.17 million 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 fell 9.1 percent to 858,000 units. Meanwhile, the multifamily sector — which includes apartment buildings and condos — dropped 19.8 percent to 315,000. NAHB•ORG Overall, permits — which are a sign of likely future housing production — dropped 2.2 percent to 1.27 million units in June, the lowest level of the year. Although single-family permits edged up 0.8 percent to 850,000, they remain at their second lowest reading of 2018.
Housing Starts Fall 12.3 Percent As Tariffs Draw Increased Concern
time buyers are entering the market, even as the market as a whole continues to be restricted by tight inventories of homes available for sale.” FHA mortgages are government insured. They offer down payments as low as 3.5 percent but also require mortgage insurance, which adds to the monthly cost. FHA loans have long been the preference of first-time buyers, who may have lower credit scores. The type of loan a borrower choses can make a far bigger difference in the monthly payment than the weekly moves in interest rates, which were basically flat last week anyway. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to 4.77 percent from 4.76 percent, with points increasing to 0.46 from 0.43 (including the origination fee) for 80 percent loan-tovalue ratio (LTV) loans. Mortgage rates have not moved much at all in the past month, which may be Multifamily permits fell 7.6 percent to 423,000. “We have been warning the administration for months that the ongoing increases in lumber prices stemming from both the tariffs and profiteering this year are having a strong impact on builders’ ability to meet growing consumer demand,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “This is why we continue to urge senior officials to take leadership and resolve this issue.” While overall production is 7.8 percent higher than its level over the same period last year, the June report raises concerns about a softening in housing production over the near term. “The concern over material costs, especially lumber, is making it more difficult to build homes at competitive price points, particularly for newcomers
why refinance applicants are not doing much either. Applications did move 2 percent higher for the week but they were still 28 percent lower compared with the same week one year ago, when interest rates were lower. Refinance volume has been anemic for more than a year as so many homeowners refinanced several years ago when the average rate on the 30-year fixed was in the 3 percent range rather than the 4 percent range. The refinance share of mortgage activity increased to 36.5 percent of total applications from 34.8 percent the previous week. The critical shortage of homes for sale is not improving that much, although more homes are coming on the market now. Inventory is still significantly lower than a year ago, and what is available is usually expensive. -Diana Olick CNBC Real Estate Reporter entering the housing market. Moreover, the soft permit report does not suggest a significant increase in housing production in the near term,” said NAHB Senior Economist Michael Neal. “However, consumer demand for single-family housing continues to increase as the overall economy and labor market strengthen.” Combined single- and multifamily housing starts fell in all regions of the country. Starts fell 3 percent in the West, 9.1 percent in the South, 35.8 percent in the Midwest and 6.8 percent in the Northeast. Looking at regional permit data, permits rose 6.2 percent in the South. Permits fell 1.8 percent in the West, 16.4 percent in the Northeast and 18.7 percent in the Midwest.
PRSRT STD U.S. POSTAGE PAID EL PASO TX PERMIT NO. 429
AND THE WINNER IS... CELEBRATING THE BEST OF OUR INDUSTRY
Real TexaS builder AWARDS
©
EL PASO ASSOCIATION OF BUILDERS
ENTRIES NOW ACCEPTED Join us as we recognize the very best of the El Paso home building industry at a special installation and awards cermony 12.7.2018
BUILDER/DEvELopER q Best Kitchen Under $250K q Best Kitchen Over $250K q Best Bathroom Under $250K q Best Bathroom Over $250K q Best Specialty Room Home Under $250K q Best Specialty Room Home Over $250K q Best Home Under $250K q Best Home Over $250K q Best Residential Solar Integration q Best Integrated Living Space q Best Lighting Design q Best Innovative Use of Materials q Best Pool Design/Water Feature q Best Community up to 20 Acres q Best Volume Home Builder q Best Custom Home Builder MULTI-FAMILY q Best Architectural Design q Best Design of A Community Space q Best Urban Multi-family Design q Best Community Club House
pRoMoTIoN q Best Print Advertisement:Builder q Best Print Advertisement:Developer q Best Print Advertisement:Associate q Best Direct Mail Piece:Builder q Best Direct Mail Piece:Developer q Best Direct Mail Piece:Associate q Best Sales Brochure:Builder q Best Sales Brochure:Developer q Best Sales Brochure:Associate
q Best Social Media Campaign:Builder q Best Social Media Campaign:Developer q Best Social Media Campaign: Associate
q Best Website:Builder q Best Website:Developer q Best Website:Associate
q Best Promotional Video:Builder q Best Promotional Video:Developer q Best Promotional Video:Associate
q Best Electronic Media Ad:Builder q Best Electronic Media Ad:Developer q Best Electronic Media Ad:Associate q Best Outdoor Ad:Builder q Best Outdoor Ad:Developer q Best Outdoor Ad:Associate
THE EpAB EXECUTIvE CoMMITTEE WILL ALSo ANNoUNCE THEIR CHoICE FoR:
Builder Member of the Year Associate of the Year
HoW To ENTER EARLY BIRD ENTRIES: $100 BEFORE 9/15/2018 ENTRIES $150 SUBMIttED AFtER 9/15/2018 FINAL DEADLINE To ENTER is 10/1/2018
To Enter: 1. E-mail ray@elpasobuilders.com or call 915-778-5387 to request a category form. Check the categories you plan to enter and return it to the El Paso Associationof Builders. 2. A submission packet will be sent to you with specific instructions for each category. 3. Submit your entry and payment by 10/1/2018
For more information call: 915-778-5387
2018 Issue 7
Builders Outlook
President’s Message Edmundo Dena
President el Paso association of Builders
i want to thank all the members who have become involved in the association over the last few months. our future successes are being formulated by the excitement and commitment being made now by the new members. and as a bonus their excitement tends to excite some of us more seasoned members. it sometimes takes this to wake up the giant and i’m glad it is. How did this happen? commitment from our members to grow the association. Part of that growth was on hand at the new Member Mixer that Ray and Margaret put together for us. The idea was to have new members come and see the association building, meet each other, mingle with us seasoned members and get to know who we are. let me correct that, get to
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PRINT & INTERNET PUBLISHING
Future looks bright at Association
know who they are now. The crowd was fantastic and as the association filled up the noise level went up just like when we do a speed selling event. it was great. The new members were impressed with the place and the people, the executive team worked the room, and the food and drinks were flowing. i want to give Ray and Margaret some special thanks for making this happen. it was something special that a week later we’re still talking about. i was able to let the crowd know that they are involved with a very powerful group with the knowledge and respect that has been earned. i told them that our relationship with the city of el Paso is good and that we have a seat at the table with them. i think that having doug Schwartz and Ray adauto invited to
help select the next BPi director speaks well of how much respect the city Manager has for us. our relationship with Tommy gonzalez and cary Westin has helped us tremendously. We trust each other and have a good working relationship with them. it’s the same with the staff at BPi. We must trust that they do the right thing and we have to deliver that trust. The future of the ePaB look promising having met some of new members. i would encourage all of you members to come to our meetings and events. i also want to see you enter the Real Texas Builder awards to show off what you do and well you do it. all these things bring success to the association, and more importantly to you.
Social Media & WeBSiTe conTenT ManageMenT e-Mail neWSleTTeRS coMMUnicaTion STRaTegY ediToRial SeRViceS
Get Creative. Make it Snappy. 915•820•2800 www.snappypublishing.com
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Executive’s Message Ray Adauto, Executive Vice President EPAB
The news from around the country is starting to sound like what we were hearing in 2007. That is not good. As you can see from the reports coming out of California housing sales and starts are down and is suffering from several different factors. First let me put this into perspective: We aren’t California, but we are now the state with the largest growth in the country. So, from that area we are what California has been for most of the last fifty or more years and that could be a negative. Secondly our market has not been as much a housing roller coaster like other cities, so historically we tend not to follow those dire up and down trends. Third El Paso has buffered itself from problems of affordability in the past. Now let me strike each one of these past passes down for today.
Builders Outlook
2018 Issue 7
Past may provide glimpse into future of housing In 2007 we had significant indicators that the mortgage bubble was getting ready to burst due to bad lending practices. Lessons from that bust have apparently not been learned, according to many economist, and lending has gotten people in trouble once again. The difference, in my opinion, is that the lending is not housing but rather auto loans and credit cards. That multi-trillion-dollar debt directly affects what consumers qualify for in a mortgage. The auto loan industry has a huge sub-prime portfolio as reported by trade experts. Couple that with payments extended to seven years so that inventory moves and people can afford the payment, and you have the credit crisis brewing in another sector. This is the big bubble I predict could crash and disturb housing the most.
Third El Paso is no longer immune to high prices and affordability. El Paso is affected with all the stuff that affects all markets, including material costs, transportation, availability, labor, land, jobs, and government regulations. As costs go up the market is forced to pass those increases onto the consumer and this is where El Paso gets hit again. The local market does not produce the income needed for higher housing prices. As those costs go up the market gets tighter and tighter as finding a qualified buyer gets harder and harder. El Paso’s vulnerability to market conditions is further impacted by the debt-to-income ratio of the population. That impacts who qualifies and it appears that those other loans have a huge impact on the ability to buy a house.
While California is a barometer for the country I believe that El Paso is just as susceptible as any other city. The differential is the lower income and land sales. It costs so much more for developers to bring property on line today. The multiplier of five may have to rise to 5.5 times because material prices keep rising without warning. My sense of market is that it is changing and that we should heed the past to survive the future. The American dream of home ownership is getting harder and harder. My suggestion is to not fear it but prepare for the next downturn which may not be too far away.
National Builder News
2018 Issue 7
Builder Confidence remains strong
n Builder confidence in the market for newly-built singlefamily homes remained unchanged at a solid 68 reading in July on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). “Consumer demand for singlefamily homes is holding strong this summer, buoyed by steady job growth, income gains and low unemployment in many parts of the country,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “Builders are encouraged by growing housing demand, but they continue to be burdened by rising construction material costs,” said NAHB Chief Economist Robert Dietz. “Builders need to manage these cost increases as they strive to provide competitively priced homes, especially as more firsttime home buyers enter the housing market.” 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 measuring current sales conditions remained unchanged at 74. Meanwhile, the component gauging expectations in the next six months dropped two points to 73 and the metric charting buyer traffic rose two points to 52. Looking at the three-month moving averages for regional HMI scores, the Northeast rose one point to 57 while the Midwest remained unchanged at 65. The West and South each fell one point to 75 and 70, respectively.
Builders Outlook
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6 CNBC
Mortgage & Banking
• A significant drop in mortgage interest rates was not enough to entice homeowners to refinance their loans. • Total mortgage application volume decreased 0.5 percent on a seasonally adjusted basis compared with the previous week, and is 13.5 percent lower than the same week one year ago.
• Even those homeowners who want to tap some of the newfound equity in their home, given the sharp rise in home values, are more likely to take out a second loan rather than refinance to a higher interest rate.
Builders Outlook
2018 Issue 7
Mortgage applications fall, refinancing hits 20-year low A significant drop in mortgage interest rates was not enough to entice homeowners to refinance their loans last week. Total mortgage application volume decreased 0.5 percent on a seasonally adjusted basis compared with the previous week, according to the Mortgage Bankers Association. Volume was 13.5 percent lower than the same week one year ago. Applications to refinance a home mortgage fell 2 percent for the week and were 28 percent lower than the same week one year ago, when interest rates were lower. The refinance share of mortgage activity decreased to 37.2 percent of total applications from 37.6 percent the previous week. More than half of all homeowners with a mortgage today have rates below 4 percent, according to CoreLogic. Even those homeowners who want to tap some of the newfound equity in their home, given the sharp rise in home values, are more likely to take out a second loan rather than refinance to a higher interest rate. Home equity lines of credit are increasing as refinances decrease. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) decreased to 4.79 percent last week from 4.84 percent the previous
week, with points decreasing to 0.41 from 0.42 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. “Financial market volatility in response to continued worries about trade resulted in both lower mortgage rates and a drop in applications last week,” said Mike Fratantoni, chief economist at the MBA, adding that refinances saw one of the weakest readings in the last 20 years. Lower interest rates are not doing much for homebuyers either. Mortgage applications to purchase a home rose 1 percent for the week but were 1.4 percent lower than the same week one year ago. The only gains were in FHA purchase applications. FHA loans are
government-insured and offer lower down payment options to buyers with weaker credit scores. “A shortage of inventory remains a significant constraint, but it is interesting to note that applications for government purchase loans fared better on the week, indicating that first-time buyers remain in the market,” said Fratantoni. The critical shortage of homes for sale continues to be the most formidable roadblock to a full housing recovery. Supplies are not getting much better, and home price gains are accelerating as buyers compete for the very few good listings on the market.
2018 Issue 6
Economic Forescast
Elliot Eisenberg Economic & Policy Blog
An inverted yield curve, a situation where short-term rates are higher than long-term rates, has preceded each of the past seven recessions by 8 to 23 months. At present, the yield curve is very close to inverting. But, rarely have we had massive fiscal stimulus this late in a cycle, or a central bank with vast holdings of long-term bonds. So, while I'm concerned, I'm not yet on recession watch. While wages are increasing very slowly in response to the remarkably low unemployment rate, regrettably inflation is also rising and is at a sixyear high. Real wage growth, which has been slowing since late 2016, was flat Y-o-Y in May and declined by 0.2% in June. This is surprising as we're late in the cycle and 18Q2 GDP was probably the best since 14Q3. This will inevitably hurt consumer spending. China's economic growth slowed to 6.7% in 18Q2, from 6.8% the previous three quarters. Given government efforts to slow debt growth by reigning in risky lending, along with decelerations in investment growth, industrial output, and retail sales, 6.7%, if true, is good. However, add rising trade concerns and further slowing is likely, unless the
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Builders Outlook
Tell tale signs? government reverses course by boosting infrastructure spending, loosening debt controls, and demanding more commercial bank lending. When tariffs are imposed on imported goods, a big loser is. . . exporters! As we reduce imports from, say, Canada, Canada's economy and currency weaken, and its' imports from us decline. And, if, as desired, the tariff boosts domestic demand for a protected product (think cars), that boosts domestic prices and wages, pushing up inflation leading to higher interest rates and a stronger currency, hurting, you guessed it, exports! Counterintuitive, but true! May pending sales of existing houses declined 0.5%, are at a 4month low, and have declined Y-o-Y for 5 straight months. Similarly, existing home sales in May declined slightly and through 5/18 are down 1.4% compared to January-May 2017. They are down Y-o-Y for three straight months. Lastly, first time mortgage applications for the week ending 6/29 are down 1% Y-o-Y. Is it rising rates, higher prices, or tax changes?
nahb.org/MA
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Companies with less than ten participating employees can benefit from: • Substantial Cost Savings • Employer and Employee Benefits • Retirement Planning Services • $500 Tax Credits for First Three Years Companies with larger numbers of participating employees can realize even more savings and additional program benefits.
Ruth Rivera
CFPA, C(k)P® Certified 401(k) Professional
512-796-1205
Email: rrivera@bukaty.com
www.bukatyfs.com
Member Mixer
BUILDERS OUTLOOK • EPAB ON THE SCENE
2018 Issue 7
Association pulls out welcome wagon
The first New Member Mixer was by all means a big success. The EPAB opened the conference room to a party that we had for the new members to meet the leadership and other members. The invite asked the new members, who were recruited during our membership drive, to come and enjoy some networking while having some food and drinks. “I can tell you that from the comments this party was really appreciated and needed,� said President Edmundo Dena. “We had a good time welcoming them,� he said. With over 60 members mingling at any given time the association was noisy and happy. “I have to tell you that I am so happy to be back,� said Berna Olague with LOI Engineers. His enthusiasm was confirmed by many as the party goers enjoyed some delicious tacos. “I want to thank Edgar Garcia for suggesting the cook,� said Ray Adauto. The leadership took a few moments to thank and welcome everyone. “This is a great start to the future of the association,� said Sam Shallenberger. He reminded the new associates of the many ways they can become involved. “If you like golf or like to get into politics we can provide you with a place to practice,� Sam said tongue in cheek. Members were presented with their new Member sticker for them to place on their office door or on their vehicles.
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Another Mesa Publishing Publication, serving El Paso Home Buyers for 25 years. www.MesaPublishing.com
www.ElPasoNewHomeBuilders.com
First Home Saturday at Bassett Place
Home buying event brings crowds that try wining $100,000.00
The second annual First Home Saturday event presented by Sierra Title and GECU Mortgage went off to large crowds on Saturday July 7. Over a dozen members set up information booths at Bassett Place Mall for the chance to meet and give the consumers information on their product or service. “We had a great turnout and got an opportunity to not only meet potential clients, but we also got to know our fellow members,” said Angelique Roman, Commercial Escrow Officer. “We like to give back and again this year we gave our fellow members an opportunity for a gift card during the show,” she continued. In addition, Sierra Title was the presenting partner for the $100,000.00 give away that drew the crowds in. “Our give a way last year was $25,000.00 but we felt we had to make a statement this year and up the chance,” said Ted Escobedo with Snappy Publishing, the originator of First Home Saturday. “Nothing lights up the people like a once in a lifetime free chance for big money,” he continued. First Home Saturday is designed to give consumers information they can use to buy or remodel a home. The new rules and requirements for buying a home were explained by experts like those from our Presenting Partner GECU Mortgage. “We have the ability to answer financial questions about how to finance a loan for a home or remodel, giving the consumer a chance to get the right information from the right people,” said Danny Galindo with GECU Mortgage. “We partner with the association in a unique public mall bringing the information out to them,” he said. Displaying at the First Home Saturday was Rocky Mountain Mortgage; Minerva Al-Tabbaa Realtor, Jack White Specialties; Pacifica Homes; Winton Homes; First Light FCU; TFCU; Massey Johnson; Pointe Homes; Hakes Brothers; Classic American Homes; Carefree Homes; Citizens Loan Center, Sierra Title and GECU Mortgage. “We look forward to doing First Home Saturday again in 2019 and look for more members to join in the fun,” Escobedo said.
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Real Texas #
Builders Outlook
2018 Issue 7
builders Š
www.elpasobuilders.com
The El Paso Association of Builders proudly welcomes our newest members
150 Sunset Danny Heredia 4 Tech A/C Service Enrique Hernandez A + Remodeling & Repairs Martin Arroyos A C Refrigeration LLC Angel Cabrera Agustin Favela Concrete Agustin Favela Alden Roofing and Remodeling Alejandro Dena Allbrite Electrical Carlos Nunez Althon Investments, LLC Jose Luis Martin Alvarado Plastering & Stucco LLC Jorge Enrique Alvarado Amelia's Janitorial Service Amelia Gomez Barraza Drywall Corp. Ignacio Barraza Bassett Woodworks Danny Murillo Bella Vista Realty Grisel Ortega Belmont's Air Conditioning, Inc. Rafael Belmonte Big A Construction (concrete) Thelma Vasquez Border Construction Specialties Ricardo Yvellez Bordertown Carpets Brian M. Abraham Bukaty Financial Companies Group Ruth Rivera Cabinet Masters Mike Robles Carpet Warehouse Erez Belkin Castillo Electric Jose Del Val Century 21 The Edge Scott Kesner Citizens Loan Center Jim Easley CMF Tile Installation Carlos Munoz D B Innovations LLC Dan Berry David Hernandez Cabinets David Hernandez David J. Ellis fee attorney for Sierra Title David Ellis DeLa Torre Iron Works Alfredo dela Torre Designers Mart Valerie Edmiston
Diaz Services Inc. HVAC Emmanuel Diaz Dominguez Insurance Agency Victoria Dominguez Eagle Custom Cabinets Juan Benabidez Eclat Homes & Designs Veronica Guerra Edgars Flooring Edgar Enriquez EDLR Plastering Eduardo DeLa Rosa Edmund Esper Investor Edmund Esper El Paso Audio Video by Design Joe Gutierrez Electrolux Adger Colley Elizardo Garica Electric Mario Elizardo Garcia ERA Sellers & Buyers Real Estate Karla Rayos ESS Envronmental Jose L. Garcia Ramirez Eze-R-Designs Leticia Mata Farmers Insurance Mercedes Ruiz Agency Mercedes Ruiz Felipe Rocha Construction Felipe Rocha Forge Factory Strength & Conditioning Edmundo Portillo G & G Enterprises GC Foundation Repair Juan F. Garcia Garage Doors and More Miguel Moran Go Pro Refrigeration Humberto Diaz Goodman Manufacturing Jorge Guajardo Great American Insurance Group Julie Tomlison H P Roofing & Construction Heriberto Prieto Hector de la Canal Summus Realty Hector De. La Canal Hector Phillips, fee atty for Sierra Title Hector Phillips Hernandez Roofing Concepcion Hernandez Home Pros Real Estate Group Penny Moore Imperial (Roofing) Construction Alejandro Garcia Iron Snail Inc. David Zuniga
J. C. Balcorta Painting Cruz Balcorta J. F. Plastering Juan Flores J.B. Laminates Gina Rodriguez Jack White Building Specialties Claudia Lardizabal JFM Stucco (Enterprises) Jaime Flores (Jose) Jose Moreno Drywall Jose Moreno Juan Carlos Perez, grading Juan Carlos Perez Keller Williams, Mo Goodariz Agency Mo Goodariz L O I Engineers Bernardino Olague Leon Real Estate Jorge Leon Lowes Home Improvement Johnny Rodriguez Loyas Shutters Alfredo Loya Magicstone Marco Gomez Maravilla Homes Victor Robles Marlo Building Services Roberto Martinez Massey Johnson Josie Ledesma Medlock Commercial Contractors LLC Steve Medlock Miguel Sanchez Cano Tile Miguel Sanchez Cano Minerva Al-Tabbaa Realtor Minerva Al-Tabbaa MOEN Frank Graf Monster Link Marketing Raul Mendoza Moreno Cardenas, Inc. Roberto Moreno New American Funding Tania Guzman New Start Insulation Jose Carreon Oropeza Concrete Angel Oropeza Padilla Homes Misael Navarrete Parra's AC & Heating Services Aureliano Parra Pate & Appleby LLP Richard De Santos Polar Mechanical LLC Francisco Amezquita Q Martins Plumbing Jose Martinez
Quality Granite Hector Porras Ramon Romero Painting Ramon Romero Rey Construction Manuel Reyes RGR Roofing LLC Mario Rodriguez Rito Magallanes Rito Magallanes Rosewood Design and Build Brianna Barnes S & J Dry Wall, LLC Sergio Jalil SBNG, P. C. Tyler Smith Segura Framing Erika Segura Senpai Training and Development Leonardo Corral Sergio Herrera Framing Sergio Herrera Serrano's Construction Juan Serrano Service Master Commercial Heidi Avedician Soil Mechanics Lorenza Escareno Southwestern Prewire Joe Trejo St. Mary's Custom Shutters Dolores Lopez StarTech Heating and Air Conditioning Luis Proctor Stone City Rocks Chris Baca Sun City International Doors Jorge Carmona Sun West Windows and Glass Ernie Hernandez Susan Flores Keller Willams Realty Susan Flores Vallance Construction LLC Oswaldo Prieto Value Stone Isabel Chacon Vista del Sol Architectural Design Luis J. Lopez VMP Painting Victor Prieto W.W. Sales Eric Hoppes Whirlpool Gwen Walker Wolf Air HVAC Arturo Alcantar X Construction Emmanuel Chavaria
2018 Issue7
Builders Outlook
Special Offers for New EPAB Members
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During the El Paso association of Builders Membership Drive on May 23 and 24, new Members who joined during those two days were offered a spcial incentive package. listed below are the incredible deals that were offered by our members. thank you to all of our associates who donated their time and resources. nEW MEMEBrS: Please use these valuable coupons for the goods and services listed below. Offer applies to nEW MEMEBErS Only. all offers expire 12/31/2018
New Member Offer: ENgINEERINg CONSULTATION or FREE RETAININg WALL DESIgN Value $220.00
1 FREE HOUR one (1) hour consulting session for Engineering & Development for Residential and/or Commercial projects OR one Retaining Wall design up to eight feet (8') in height, valued at $220.00. Provided by: DEl riO EnGinEErinG
PhOnE: 915-833-2400
New Member Offer: FREE PROFESSIONAL LEgAL SERVICES Value $400.00 a simple WILL PACkAgE for husband and wife which includes a Will, a DuraBlE POWEr OF attOrnEy and a DirECtivE tO PhySiCianS. Provided by: DaviD ElliS, attOrnEy
PhOnE: 915-566-2666
New Member Offer: FREE EIgHTH PAgE ADVERTISEMENT Value $150.00
1 FREE EIgHTH PAgE AD in the Builders Outlook newspaper published by the El Paso association of Builders and mailed directly to all members in print and electronically. Provided by: El PaSO aSSOCiatiOn OF BuilDErS
PhOnE: 915-778-5387
New Member Offer: $100 REbATE ON TAb bUILDERS CONTRACTS Value $100.00 $100 off texas association of Builders Residential Construction Contracts
PhOnE: 915-778-5387
New Member Offer: STAFF TRAININg WORkSHOP or 2 HOURS PROFESSIONAL COACHINg Value $380.00
FREE TRAININg WORkSHOP IN CUSTOMER CARE SERVICE (2 hours of the workshop in Spanish), or 2 hours of one on one PROFESSIONAL COACHINg SESSION. Provided by: SEnPai traininG & DEvElOPMEnt
PhOnE: 915-303-0743
New Member Offer: FREE WEbSITE or SOCIAL MEDIA PRESENCE Value $500.00
Choose from: FREE ONE PAgE WEbSITE. (Customer pays hosting), FREE ONLINE VISIbILITy ANALySIS & REPORT with One Flier Design (1 hour sit down to go over report 1 hour of design), or SOCIAL MEDIA ACCOUNT SET UP (includes Facebook and instagram) we will design banners and also design one flier to post. Provided by: MOnStEr link MarkEtinG
PhOnE: 915-861-4788
New Member Offer: FREE LOgO DESIgN Value $500.00 1 FREE LOgO professionally designed and unique to your business. Provided by: SnaPPy PuBliShinG
PhOnE: 915-820-2800
New Member Offer: FREE CONSULTATION: RETIREMENT AND MEDICAL INSURANCE PLANS Major medical insurance plans through Humana: Get a no obligation review to see if you can save up to 30% on your existing plan. Get a no obligation review of your current 401k plan or establish one through our member only program from Bukaty financial services.
12 EPAB Membership Builder members as of June 1, 2018
Bain Construction Scott Bain Bella Vista Custom Homes, Inc. Edgar Garcia BIC Homes Antonio Cervantes Blue Star Construction Carlos Villasana Bowling Construction Randy Bowling Carefree Homes Richard Aguilar Casas De Leon, LLC Nick Bombach Cisco Homes LLC Francisco Arroyos III Classic American Homes Priscilla Hernandez Crown Heritage Homes Lydia Mlouhi Cullers & Caldwell Builders John Cullers Cullers Homes Jason R. Cullers Dawco Home Builders Walter O. Lujan Deal 2 Deal Custom Homes Delton Deal Del Rio Engineering, Inc. Sal Masoud Diamond Homes, LLC Valerie Baquera Donald Ward Builder, Inc. Donald Ward E. Valencia Land Development LLC Eddie Valencia Edward's Homes, Inc. Eduardo Fernandez EPT Bella Custom Dream Homes Leti & Javier Navarette EPT Land Communities David Bogas Everest Homes Edmundo Dena, Jr. Fortune Custom Homes Javier Andrade Gaddy Construction Charles Gaddy GMF Custom Homes, LP Frank Torres Guel Construction Rudy Guel Hakes Brothers LLC Chris Hakes Hanson Asset Management, LP Russell Hanson Homes by Design Leslie Driggers Hoard Hunt Communities, LLC Kathy Parry ICON Custom Builder, LLC. Carlos Garcia Industrial Realty Group Incorporated Brent D. Harris JER Custom Homes, LLC Jorge E. Rodriguez Kayton Lee Residential, Inc. Brianna Barnes Lloyd Hamilton Contruction Lloyd Hamilton, III LMJ Construction Co., LLC Mike Lopez Loyalty Homes Gustavo Loy M A Builders & Design, LLC Mustafa Ali Metro Homes, Inc. Judith Arrunada, Fernando Torres Millennium Homes Dan Ruth Pacifica Homes, Inc. Juan Jose Vasquez Palo Verde Homes Edgar Montiel Pointe Homes Carlos Villalobos Porter Homes Albert Porter R.C. Baeza & Associates Robert C. Baeza R.E. Welch Contractor Gordon Welch Rassette Homes, Inc. Donald Rassette Santana Custom Homes Fernando Santana Southwest Land Development Serv. Doug Schwartz
Builders Outlook
2018 Issue 7
Updated every month, here is a list of the 2018 EPAB Membership. Remember to please do buinsess with fellow members.
The Heritage Group David Bingham Trejo Construction Co. Juan Trejo Tropicana Building Corp. Bobby Bowling IV Tropicana Development Greg Bowling Tropicana Homes Randy Bowling Tropicana Properties Demetrio Jimenez Villagi Homes, LLC Kristi Eddings Will Harvey Development Will S. Harvey Winton/Flair/Accent Homes Herschel Stringfield
Associate Members as of May 1, 2018
2-10 Home Buyers Warranty James Hebert 84 Lumber Ernie Chavez 915 Siteworks, LLC Hugo Jasso ABC Supply Co., Inc. Larry Eck Acme Brick Company Steve Bush Adams Moulding & Lumber Tom Swahlen Area Iron & Steel Works, Inc. Fred L. Edmonston Jr. Atrium Homes Ricardo Bocardo Jr. Bank of Texas Ray Owen Baron Supply David Trammell Barragan & Associates Benito Barragan Barrett Airworks Alexandro Castro Beasley, Mitchell & Co., LLP Brad Beasley BMC Select Mike Catalino Boise Cascade Mike Flores Border Construction Specialties Ricardo Yvellez Border Solar Javier Ruiz Bukaty Financial Companies Ruth Rivera Builders Source Appliance Gallery Sandra Lucero C. D. Lee/Britton Insurance & Bonding Anthony Landavazo/Lisa Daniels Casa Ford & Casa Nissan Luke Lowenfield CEA Engineering Group Jorge L. Azcarate Central Texas Metal Roofing Supply Co.,Inc. Ben Garza, III Centricity Brent R. Morgan City Bank Texas Bob Kotarski City Lights Thomas Brown Cognent, Inc. Martin Paredes Commercial Insurance Brokers, Inc. Ken Foster Conde, Inc. Conrad Conde Copenhagen Imports Flemming Carlsen CQC Testing and Engineering,LLC Jaime Rojas Delek US dba 7 Eleven Sonja Scanlan Demcon Disposal Management, LLC Maria Elena (Nena) Gomez Desert Quest Plumbing Hector Gonzalez Dorney Security John Dorney Dunn-Edwards Paints Nathan Gordon DWS Building Supply Sabrina Voorhies
E.F. Building Materials, Inc Efren Fraire Eagle Roofing Products Scott Aguilar El Paso Building Materials Ken Wade El Paso Disposal Irma Parsons El Paso Mortgage Bankers Association Gilbert Pedregon El Paso Times Sal Hernandez, Justin Riley El Paso Truss Luis Mendiola El Paso Winnelson Jesus Sanchez Ferguson Enterprises Inc. Albert Holguin Fire Smoke n Grill Bill Owen First American Bank Louis Sauceda First Light Federal Credit Union Lorenzo Revelez First National 1870 Haley Merritt Firth, Johnston, Bunn & Kerr Jay Kerr Foxworth Galbraith Lumber Dan Villarreal Franklin Building Materials Cristina Sheldon G2 Ram Electric Luis Cano GCC Sun City Materials,LLC Antonio "Tony" Chavez GECU- Greater El Paso Credit Union Danny Galindo GEPAR-Greater El Paso Assoc. of Realtors Jason Sanchez Greater El Paso Chamber of Commerce David Michael Jerome Harris Real Estate Group Lane Harris Haskins Electric Charles B. Haskins, Jr. Home of Texas Mark Smiley Homes of El Paso Riley Stephens HUB International Luis Rosas Inter National Bank Natalie Ojeda Interceramic Tile & Stone Gallery David Holguin J & H Concrete & Post Tension Jorge Herrera Jack White Building Specialties Claudia Lardizabal James L. Ellis, CPA, PC Jim Ellis Jimmy Garza Emergency Water Removal Veronica Buchanan Jobe Materials, LP Charlie Tellez Joe Bernal Insurance & Financial Services, Inc. Joe M. Bernal Keenan Supply Nancy Rivas LCR Resources, Inc. Ralph Sanchez L & P Building Supply Denise McConnell Legacy Real Estate Services/TTi Prop. Man. Patrick Tuttle Lone Star Title Co. of El Paso Sam Trimble Love Engineering, Inc. Montez Love Majestic Realtors Patti Mushorn MAK Roofing & Construction Felix Vizarreta Masco Contract Serv dba Gale Insul Tom Harmon McCoy's Building Supplies Doug Danner Merrill Lynch Thomas Gabriel Mini Concrete Materials Joe Soto Monster Link Marketing Raul Mendoza Morrison Supply Sam Shallenberger
MTI Ready Mix, Inc. Tony Mullen New American Funding Brenda Trillo New Era Foam George Tollen Passage Supply John Chaney Patriot Mortgage Randy Bowling Pella Windows Jason Bates Performance Glass & Aluminum Hector Hernandez Perl Mortgage Steven Sepulveda Pioneer Bank Kathy Carrillo Post Tension Steel Dennis Moore Powerfoam Insulation Arnie Pedersen Prewire of El Paso, Inc. Steven Drury Pride industries dba Pride Ascend Dr. Lonny Wright Randall Smith, CPA Randall Smith Rebath of El Paso/Las Cruces Lisa Walling Remcon Self Storage Will Harvey Richman Group Affordable Housing Corp. Kevin Hoffman Rocky Mountain Mortgage Company Dean Inniss Roe, Brad Bradley Roe Rudolph Chevrolet Mike Ruffin Saldivar Electric, Inc. Martin A. Saldivar Sarabias Blue Sanitation Monica Brown Senercon Javier Ruiz Sherwin Williams Paint Cruz Lopez Sierra Title Company Angelique Roman Simpson Strong-Tie Company, Inc. Ken Donham Snappy Publishing Ted Escobedo Solar Smart Living Larry Perea Southwest DĂŠcor El Paso Corporation Chris Matthews Spectrum Technologies Miled Daou Stewart Title of El Paso Cindy Bilbe StrucSure Home Warranty Scott Whisenant Su Casa Magazine Bob Skolnick Sun City Winnelson Dean Moore Texas Gas Services Mica Short Texas Title Company Steve Raney TFCU Yolie Melendez-Estrada The Dorian Group/Ocean Gallery USA Miguel Angel Mercado The Home Systems Heating & Cooling, Inc. Jesus Chain Trane Residential Solutions Robert Meske/ Kathleen Chacon TRE & Associates Linda Troncoso Trim Team Juan & Kris Hernandez USA General Contractors Javier Olmos Vision Consultants, Inc. Kelly Sorenson WestStar Home Loans Cinco Houghton WestStar Bank David Osborn WestStar Title Rachel Valles
2018 Issue 7
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Builders Outlook
The material that builders have used for thousands of years is brick. Time tested, time honored. Your homes should be made with ACME Brick.
Upcoming Events
August 8-10 Sunbelt Builders Show Hilton Anatole- Dallas, TX
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August 16 Board meeting 11:00 General meeting 12:00 El Paso Club
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$299.99 plus tax $699.99 non-members plus tax
Introducing the NEW Texas Association of Builders Model Construction Safety Program & Jobsite Safety Standards PackageŠ (Model Safety Plan) Version 4.0.
Texas Association of Builders
Model Construction Safety Plan The NEW plan includes the addition of recent OSHA requirements such as: Permit Required Confined Spaces Crystalline Silica Standards Access to the previous version of the Model Safety Plan is no longer available. To purchase the new online Model Safety Plan Version 4.0, visit TexasBuilders.org.
This plan is available to TAB members for only $299.99 (plus sales tax). You will receive: • TAB’s Model Construction Safety Program & Jobsite Safety Standards PackageŠ that includes a User Guide and the Model Safety Plan. • Access to a new webinar that will train you and your employees on the use of the Model Safety Plan. • Upon completion of the webinar, a Certificate of Completion stating that you have completed the webinar that provided you with detailed information on developing your company’s safety plan using TAB’s OSHA-reviewed Model Safety Plan. Please watch to the end of the webinar for instructions on obtaining your certificate.
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Tropicana Homes ranked third fastest growing builder in national survey Builders Outlook
Member News Tropicana Homes, a leading homebuilder in El Paso since 1950, announces it ranked third on Builder Magazine’s 2018 Next 100 List of 10 Fastest-Growing Up-And-Coming Builders. This is the company’s first year ranking in the top five on this prestigious list ranking builders’ nationwide. The Next 100 List, published annually by Builder Magazine, ranks the top builders in the country by number of closings and percentage growth experienced over a two-year period. When compared to 2015, Tropicana Homes ranked third in the nationwide list with a percent growth at 92.78% just behind two Florida and Utah based builders. “Our team is thrilled to be recognized as one of the fastest growing builders in the nation”, said Randy Bowling, President of Tropicana Homes. “We’re proud to live and work in the El Paso community – the growth we’ve seen is a great indicator of our dedication and pride we take in our homes and the service we provide to our loyal customers.” “We’ve experienced exceptional growth in the past few years, largely in part to company reorganization in 2015, as well as the dedication and superior work of our current Tropicana team” said Bobby Bowling IV, President of Tropicana Building. “This is an exciting time of growth not only at Tropicana Homes, but our entire Tropicana Building portfolio, including Tropicana Properties, Tropicana Realty and Patriot Mortgage”. Tropicana Homes has been building homes in the El Paso area for 68 years and has been recognized locally, regionally and statewide for quality and service. They have also been awarded “Builder of the Year” four times by the El Paso Association of Builders; in 2009 were named “Texas Developer of the Year” and “Builder of the Year” in 2003, 2013 and 2015 by the Texas Association of Builders. In their Best of 2012 list, The City Magazine had Tropicana earning the honor of Best Homebuilder. Builder Magazine is one of the leading sources of information for the home building industry. With a comprehensive circulation of 110,000 new-home builders and their subcontractors, Builder provides balanced, analytical coverage of the economy, housing policy, design, construction, new products, sales and marketing, technology, and business management.
2018 Issue 6
Builders Outlook
2018 Issue 7
6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038
â– ExEcuTivE OFFicERS PRESiDENT Edmundo Dena vicE PRESiDENT Sergio Cuartas SEcRETARY Edgar Garcia ASSOCIATES VICE PRESIDENT Sam Shallenberger ExEcuTivE vicE PRESiDENT Ray Adauto PAST PRESiDENT Don Rassette â– cOMMiTTEE cHAiRS Membership Ted Escobedo Patrick Tuttle
El Paso Disposal
772-7495
Luis Rosas, HUB International Brenda Aguirre, Rocky Mountain Mortgage Sandra Lucero, Builders Source Ted Escobedo, Snappy Publishing Jorge Herrera, J&H Post Concrete & Post Tension Angelique Roman, Sierra Title Patrick Tuttle, Legacy Real Estate Sam Trimble, Lone Star Title Patricia Martinez, Stewart Title Randall Smith, Randall Smith, CPA ■TAB STATE DiREcTORS Randy Bowling - Life Director Sam Shallenberger Edmundo Dena
â– NATiONAL DiREcTORS Bobby Bowling, IV Demetrio Jimenez Leslie Driggers Hoard -Alternate Antonio Cervantes - Alternate
Finance committee Kathy Carrillo/Treasurer Henry Tinajero
Honorary Life Members Mark Dyer Wayne Grinnell Don Henderson Anna Gill Brad Roe Rudy Guel
Community Outreach Angelique Roman Brenda Aguirre Patricia Martinez
Land Use Council Sal Masoud
Education Kelly Sorenson Delton Deal
■ADviSORY TO THE BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr
■BOARD OF DiREcTORS Builders: Delton Deal, Deal 2 Deal J.J. Vasquez, Pacifica Homes Leti Navarrete, Bella Custom Dream Homes Bud Foster, Southwest Land Development Kathy Parry, HUNT Communities Lee Gillett, Classic American Laura Loy, Loyalty Homes Walter Lujan, Dawco Homes Fernando Torres, Metro Homes Leslie Driggers Hoard, Homes by Design Carlos Garcia, ICON Custom Sal Masoud, Del Rio Development Fernando Santana, Santana Custom Homes Chris Hakes, Hakes Brothers Associates: Joe Bernal, Joe Bernal Insurance Henry Tinajero, WestStar Bank Kathy Carillo, Pioneer Bank John Chaney, Passage Supply
2017 Member Of The Year Don Rassette Rassette Homes
Past Presidents committed to Serve Edmundo Dena Edgar Montiel Frank Torres Frank Arroyos Greg Bowling Randy Bowling Bobby Bowling Iv Doug Schwartz John Cullers Robert Baeza Mark Dyer Kelly Sorenson Rudy Guel Brad Roe Herschel Stringfield Bob Bowling Iii Pat Woods Carlos Villalobos
EPAB Mission Statement: The El Paso Association of Builders is a federated professional organization representing the home building industry, committed to enhancing the quality of life in our community by providing affordable homes of excellence and value. The El Paso Association of Builders is a 501C(6) trade organization. Š 2018 Builder’s Outlook is published and distributed for the El Paso Association of Builders by Ted Escobedo, Snappy Publishing, LLC
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