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National, State & Local Building Industry News 2019: Issue 1
Real Texas Builder Awards night 'smashing' Panel of expert judges select best of El Paso building industry By Ray Adauto After months of waiting the Real Texas Builder Awards were revealed at the El Paso Museum of Art on January 17. The event culminated months of anticipation as to which members would leave with the coveted awards. With twenty-nine officially entered categories on the line the results were surprising and revealed how competitive the businesses are. The list of winners is published in this months Builders Outlook. There were about 150 guests who enjoyed the museum setting and the pace of the awards. “It was important that a new award event have a new look and this year that meant taking it downtown to a venue we’ve never used,” said Ted Escobedo, designer and decorator for the inaugural event. “We looked at several venues but consistently the EPMA gave us some opportunities to do something unique and rewarding in its own light,” he continued. The crowd arrived early on that Thursday night, enjoying beverages and some finger foods prior to the presentation. The presenting partner was StrucSure Home Warranty who had offered support from the very start. “StrucSure Home Warranty was on board from the inception and I am very pleased with a first-year turnout and location,” said Scott Whisenant from StrucSure Home Warranty. “The planning shows that the El Paso Association of Builders does things right, great location and look,” he continued. Entries for the awards began in August and judging was held in December. “Nothing would have gotten done without the work of volunteer judges who are experts in their field,” said Ray Adauto. “We were
fortunate to have active builders judge the building entries, while top professionals in marketing and advertising design took on entries for print, video, social media and other categories.” Those judges all agreed that the work being done in El Paso is amazing. When asked why the judges said that several were surprised at the quality and look for the price. “Please tell the builders to keep up the excellent work,” one judge said. When the winners were announced the crowd cheered and wowed at the selections. In some cases, the award winners were the most surprised. “I don’t know what to say that could convey my surprise and honor given us tonight,” said Demetrio Jimenez, president of Tropicana Properties after winning several categories in the Multifamily awards. “I’m truly blessed to have a great staff who makes the win sweet for all of us,” he continued. Just as stunned were the Diamond Home LLC group. “Nothing, absolutely nothing like this has happened to us and we’re so honored and humbled to get recognized,” Valerie Bacquera told the crowd. The award for “Best Promotional VideoAssociate” was won by Sarabias and principal Monica Brown shook as the award was handed to her. “It is an honor to be selected for all of our employee owned company, one that I will proudly display,” she said. Tropicana Homes took numerous awards home. “I think that we’ll need to find a special wall to hang these up,” Randy Bowling said. “What a night,” he concluded. It was Randy who had suggested several years ago that the EPAB do an award, patterned after the Texas Association of Builders STAR awards. He was acknowledged at the event and had the opportunity to
address the crowd. “We can make this grow and make it an event and an award our members will grow to appreciate,” he said. Plans for the 2019 version of the Real Texas Builder Awards are being done as this goes to press. Scott Whisenant told the audience that StrucSure Home Warranty will participate as long as the EPAB does them. “Tonight, being the first ever award night impressed the heck out of me, and this is the kind of thing that will grow and grow,” he said. “StrucSure is committed to be associated with this event!” (Continued page 8)
See Complete list of winners and photos page 8
PRSRT STD U.S. POSTAGE PAID EL PASO TX PERMIT NO. 429
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Builders Outlook
2019 Issue 1
The El Paso Association of Builders is proud to bring to our members a valuable program that provides health care solutions at affrodable rates.
2019 Issue 1
President’s Message
Sergio Cuartas
President El Paso Association of Builders
Welcome to 2019! I am really excited to serve you as President this year. For those that I haven’t met yet, I am CEO of BIC Homes, a home building company I founded in 2002 and now own with my good friend Antonio Cervantes. I am extremely grateful to live in El Paso, TX. I truly love the weather, the food, the mountains, the low cost of living, the bi-cultural atmosphere, and more. As President, I lead a remarkable group of members in the Executive Committee. We have worked together for a while and share extraordinary enthusiasm and skill to do our best for all our members. Together with our
Builders Outlook
2019 looks promising for association incredible Board of Directors, we have a vision of strengthening our association. Our goals are meant to make your experience as a member better, to make the association robust, our local EPAB voice louder and to continue the great work others have done before us. To that end, I would like to share some of our strategic goals for 2019: Service our members and increase our membership. It is our goal to not only retain you as a member by providing more value, but to ask you to invite others to join. We need everyone’s help with this and it’s not difficult to do if we all contribute. One member can and will make a difference. Whether you are a Builder or an Associate, I’m asking you to do two things: 1) serve a member and 2), ask those you know who are not yet members to join. If we all help a member feel at home in EPAB, do business with a member and bring in a new member, we will quickly and effectively strengthen our association. Engage elected officials in and around the city. Ray and our new EPAB Secretary, Sal Masoud will lead the way with getting to know elected officials in the County, including the communities of Socorro, Horizon City,
Anthony and Canutillo. We also want to build new bridges with the elected officials in the City of El Paso. We will need an active government affairs team. Please let Sal or Ray know if you are interested in participating in Government Affairs or any other committee. Regulation. We want to work on reducing impact fees, permit fees, water and sewer hookup fees, and other regulatory issues in order to increase affordability for homebuyers and reduce construction time. Education & networking. We want to offer you more education and networking opportunities. Please let us know if you have suggestions for speakers, would like to speak yourself or have a training in mind. Make sure to participate in our functions and events. We just launched our new EPAB Business Confidence Survey (idea of our Active Past President Edgar Montiel). Each month every member should receive a short survey from survey monkey. We will share the raw results very soon with our members ONLY. The results from this survey could be effective leading indicators to help us all predict future turmoil and adjust accordingly. Private payrolls
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have increased locally as of early last quarter (lagging indicator). Median home prices have increased while inventories have remained under control and closings speed has increased (coincident indicators). Gas prices declined while interest rates have not dramatically increased. The stock market volatility increased uncertainty (leading indicator). There is data, but now we will have our own and it will be local, industry specific, raw and leading. While our list of goals is longer than this, I think it is best to work on these priorities as we start the year off. But I can’t do it myself. I need our members to do one or more of the following: attend the meetings, participate in the events, help a member, join a committee, advertise in our publications, sponsor events, and get to know other members. You get out of your membership what you put into your membership. This is a Texas Legislative year and we have our hands full, especially now that we are losing Joe Pickett and his support. So I’m asking for your help, and your suggestions. Make it a point to help us THRIVE. Together as an association team, we can do just that.
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Executive’s Message
Builders Outlook
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Product Portfolio Highlights
First events always surprise While the talk for the first RTB awards is gratifying many don’t know or appreciate the amount of work something like this takes. It’s one of the reasons not all associations do it, it’s simply hard. I had tremendous assistance from Ted Escobedo, Margaret, Alexis Ferguson, Melissa Lerma at WFS frames, and the judges from Amarillo and Austin. I also had help from Mike Armstead (DJ), Ruben Escandon (catering) and of course Mayela from 915Bartending. The art museum locale was very cool, a first time using it. Thanks go to Janette Nevarez for navigating us through the maze of renting a city owned facility. Thanks to all who went. Very cool, very very cool. The work on regular stuff like Impact fees must go on in spite of other things like the awards or anything else. I’d like to thank Randy Bowling and Sal Masoud for taking on the
2019 Issue 1
issue with the PSB and City of El Paso. In the battle it pits the developing and builder community against an aggressive well-funded consulting firm and no money is the object coffers. As of this writing we don’t have a clear answer to the issue of increasing or holding impact fees. I did suggest for the city to drop them completely, but something tells me they don’t hear that too well. Make plans for two big things: International Builders Show in February and Rally Day in March. I’ll report back on IBS in the February issue, but I want to stress the importance of attending Rally Day on March 20 in Austin. To prime the pump our guest speaker for our Valentine day general meeting is Joe Pickett, recently retired legislator champion for El Paso and supporter of our industry.
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National Builder News
2019 Issue 1
Lower Interest Rates Stabilize Builder Confidence
n Buoyed by falling mortgage rates, builder confidence in the market for newly-built single-family homes rose two points to 58 in January on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). “The gradual decline in mortgage rates in recent weeks helped to sustain builder sentiment,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “Low unemployment, solid job growth and favorable demographics should support housing demand in the coming months.” “Builders need to continue to manage rising construction costs to keep home prices affordable, particularly for young buyers at the entry-level of the market,” said NAHB Chief Economist Robert Dietz. “Lower interest rates that peaked around 5 percent in mid-November and have since fallen to just below 4.5 percent will help the housing market continue to grow at a modest clip as we enter the new year.” Due to the partial government shutdown, there will be no new Census figures released tomorrow on housing starts and permits. NAHB estimates that the December Census data would show that single-family starts ended the year totaling 876,000 units, which would mark a 3 percent gain over the 2017 total of 848,900. However, the slowdown in sales during the fourth quarter of 2018 has left new home inventories elevated in some markets. 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 January. The index measuring current sales conditions rose two points to 63, the component gauging expectations in the next six months increased three points to 64 and the metric charting buyer traffic edged up one point to 44. Looking at the three-month moving averages for regional HMI scores, the Northeast dropped five points to 45; the Midwest and South both fell three points to 52 and 62, respectively; and the West registered a one-point drop to 67.
Builders Outlook
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Mortgage & Banking
www.homebuyinginstitute.com
A new round of mortgage industry forecasts and projections suggest that higher interest rates could lead to a purchase-dominated mortgage market in 2019. Meanwhile, mortgage qualification standards have eased, and this could bring more borrowers into the market next year. Three Mortgage Trends We Could See in 2019 As we move into the holiday season, many home buyers are looking ahead to 2019. And many of them share the same questions: What will mortgage rates do in 2019? Will it be a good time to buy or refinance a home? Here are some recent trends that could carry over into next year. Prediction #1: Thirty-year mortgage rates could hover around 5% in 2019. At the start of 2018, the average rate for a 30-year fixed mortgage was 3.95%. That’s based on the long-running survey conducted by Freddie Mac. As of November 8, that average had risen to 4.94%. So today’s mortgage rates are about one full percent higher than they were at the beginning of this year. As for forecasts and projections, some
Builders Outlook
2019 Issue1
Three Mortgage-Industry Trends to Look for in 2019 analysts expect 30-year loan rates to hover around 5% for much of 2019. The Mortgage Bankers Association (MBA) recently predicted that the average rate for a 30-year fixed home loan would start 2019 at 5.0%, and then hover around 5.1% for the rest of next year. The economic research team at Freddie Mac offered a similar prediction for mortgage rates in 2019. In an October 2018 report, the group stated: “We anticipate that the 30-year fixed-rate mortgage will average 4.5 percent in 2018, rising to 5.1 percent in 2019 and 5.6 percent in 2020.” So their long-range outlook mirrors the forecast issued by the MBA. Analysts from both organizations expect long-term home loan rates to hover in the low 5% range for much of next year. Did you know? While there are different types of home loans, the 30-year fixed-rate mortgage is by far the most popular financing among borrowers today. That’s why you see it mentioned so frequently within news reports, forecasts, etc. The key takeaway here is that there appears to be some consensus among experts that mortgage rates will remain fairly stable throughout 2019. Prediction #2: Purchase loans will dominate the market, as refinancing activity declines. When mortgage rates trend upward, refinancing activity tends to decline. And we’ve already talked about the steady rise in rates that has occurred during 2018. As a result of that trend, the mortgage
market in 2019 will likely be dominated by purchase loans (i.e., those used by home buyers). Mortgage refinancing activity, on the other hand, will likely decline through the end of 2018 and into 2019. According to a November 2018 press release from the analytics firm Black Knight, almost 1.9 million homeowners across the country still “have an interest rate incentive to refinance” their homes. But the window has closed for many more. The company’s data revealed that roughly 6.5 million homeowners “have now missed their opportunity to refinance their mortgages due to rising rates.” Bottom line: Some homeowners in the U.S. could still benefit from refinancing. But if rates continue to rise, that number will shrink. In 2019, the mortgage market will probably consist primarily of purchase loans, with a smaller percentage of refinance loans. Prediction #3: Mortgage lending standards will be more relaxed, compared to previous years. Mortgage lending criteria have eased over the past year, and this could have an impact on the 2019 mortgage market as well. The short version is that it’s generally easier to qualify for a home loan today, compared to previous years. There are several reasons for this. For one thing, Freddie Mac and Fannie Mae have eased the criteria they use when purchasing mortgage loans from lenders. They’re allowing higher debt-to-income ratios, and higher loan-to-value ratios. This means borrowers today can qualify for a
mortgage loan with a higher level of household debt, and with less money down. Generally speaking. An October 2018 report by the property analytics company CoreLogic stated: “Mortgage credit underwriting eased for both conventional and Federal Housing Administration (FHA) home-purchase loans during the Q2 2018 compared with a year earlier … In the last few years, GSEs have expanded their credit box to creditworthy borrowers by increasing the maximum debtto-income (DTI) and loan-to-value (LTV) ratios.” Note: The GSEs in the above quote are the two government-sponsored enterprises, Freddie Mac and Fannie Mae. Their purchasing criteria tend to “trickle down” to the primary mortgage market, where they affect borrowers. We recently reported that mortgage loan denial rates have declined steadily over the last seven years or so. This is partly due to an ongoing “easing” trend within the industry. To be honest, it’s fairly easy to “forecast” this particular trend because it’s already happening. And it’s something that will probably carry over into 2019. That’s good news for borrowers. Disclaimer: This article includes predictions and forecasts provided by third parties outside of our company. We have presented them here as an educational service to our readers. The Home Buying Institute (HBI) makes no claims or assertions about future economic conditions.
2019 Issue 1\
Economic Forescast
Elliot Eisenberg Economic & Policy Blog
Despite increasing political uncertainty, a split Congress, trade concerns, financial-market volatility, and slowing global growth, from an economic perspective, the next 12 months should be decent. The odds of a recession have roughly doubled but remain relatively low – about 25% -- despite being just a few months away from the longest economic recovery in US history. While growth is slowing in all major economies, inflationary pressures are surprisingly tepid. As a result, the Fed will have the luxury of raising rates at a very leisurely pace, and thus hopefully avoid prematurely
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Builders Outlook
Economic Forecast 2019: Good, But Not as Good as 2018 ending the continuing, albeit slowing, expansion that we will experience in 2019. A major reason for the slowdown is the fading of fiscal stimulus from tax cuts passed in December 2017 and debt-financed spending increases totaling $400 billion passed in February 2018. Collectively, this should clip GDP by close to half a point. Add to that global slowing, trade concerns, a strengthening dollar, Brexit fears, and other threats -- and GDP growth during the next 12 months should average 2.3%, down from 3.0% in 2018. Despite slowing growth, unemployment will continue declining from the current rate of 3.7% to 3.5% and maybe as low as 3.4%, rates not seen in more than 50 years! As the labor market tightens, wage growth should increase in 2019, from 3%/year last year to 3.3%/year and maybe 3.5%/year by year end 2019, a healthy rise. Inflation, as measured by the PCE, the Fed’s favorite measure, looks to flatline at 2% in 2019, while core inflation (which
excludes food and energy) will edge up slightly from 1.9% to 2.1% due to rising wages. Because of the very slow rise in core inflation, the Federal Reserve will raise the federal funds rate from 2.375%, where it is now, to at most 2.875% by year’s end, with a quarter-point rate increase in June and possibly another one in December. 10-year Treasuries will end 2018 at 3.35%, up from the current 2.8%, and the rate on 30year mortgages will end 2019 no higher than 5.1%. As for housing starts, the combination of high land costs, rising worker wages and input costs, and the reduced benefits of homeownership resulting from last year’s tax reform should see them increase by no more than 2% to 1.28 million. Single-family starts will likely total 900,000, up from 883,000, while multifamily starts should flatline at about 380,000. New and existing home sales should both remain largely unchanged in 2019 and end the year
at 620,000 and 5.3 million respectively, with mortgage purchase volume rising by $50 billion due to higher prices. Refinance activity should fall by about $60 billion because of the rise in mortgage rates. Housing inventories will rise slightly, but due to the combination of continued strong household formation and insufficient new home building, home prices will still rise by 4%, less than last year. In summary, growth in 2019 looks to be slower than what we became accustomed to in 2018. This is attributed to slowing global growth, increasing trade concerns, a growing worker shortage, higher interest rates, and substantially less fiscal stimulus coming from Washington. Although the Fed may raise rates as much as two times next year, strong consumer spending combined with continued employment growth and rising wage growth should keep the economy on track. The chances of a recession, while meaningfully higher than in 2018, remain relatively low.
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BUILDERS OUTLOOK • EPAB ON THE SCENE Real Texas Builder Awards (Continued from front page)
Our thanks go to our hardworking judges from Amarillo and Austin. In each builder category the judges were very impressed with the offerings and the price of the homes. “El Paso is well represented by the builders who entered, and truth be told it was hard to judge,” said Boyd Johnston. “I think you guys are doing something right!” Johnston concluded. A special thanks to Alexis Ferguson of Austin who gave time and energy in the marketing/video judging and helping the association categorize the entries. “These awards will grow with time and
frankly the quality of materials submitted were outstanding,” Ferguson told the Outlook. Special thanks to Ted Escobedo who worked on the whole project from inception to award night. He designed the logo, the entry forms, the concepts for the physical awards. His work was translated by The Wholesale Frame Shop into beautiful one of a kind awards. Winners will be able to use the logo, the award, and slogan “A winner of the Real Texas Builder Award 2018.”
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#Real Texas builders
Builders Outlook
2019 Issue 1
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www.elpasobuilders.com
The El Paso Association of Builders encourages you to work with our members. Builder members as of January 30, 2019
Althon Investments, LLC Jose Luis Martin Bain Construction Scott Bain Bella Vista Custom Homes, Inc. Edgar Garcia BIC Homes, LLC Sergio Cuartas Blue Sage Homes, LLC Jamie E. Gonzalez 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 D B Innovations, LLC Dan Berry Dawco Home Builders Walter O. Lujan Deal-2-Deal Homes Delton Deal Del Rio Engineering, Inc. Sal Masoud Diamond Homes, LLC Valerie Bacquera E. Valencia Land Development LLC Eddie Valencia Eclat Homes & Design Veronica Guerra Edward's Homes, Inc. Eduardo Fernandez EPT Bella Custom Dream Homes, LLC Leti & Javier Navarrete 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 Home 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 Construction Lloyd Hamilton, III LMJ Construction Co., LLC Mike Lopez Loyalty Homes Gustavo Loy M A Builders & Design, LLC Mustafa Ali Maravilla Homes Victor Robles Medlock Commercial Contractors, LLC Steve Medlock Metro Homes Judith Arrunada Millennium Homes Dan Ruth
Pacifica Homes, Inc. Juan Jose Vasquez Padilla Homes Misael Navarrete Palo Verde Homes Edgar Montiel Pointe Homes Carlos Villalobos R.C. Baeza & Associates Robert C. Baeza R.E. Welch Contractor Gordon Welch Rassette Homes, Inc. Donald Rassette Rosewood Design & Build Brianna Barnes Santana Custom Homes Fernando Santana Southwest Land Development Serv. Doug Schwartz Spanish Oaks Custom Homes Juan R. Saenz 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 Rio USA Freddy Klayel Valance Construction, LLC Oswaldo Prieto Villagi Homes, LLC Kristi Eddings Vista Del Sol Architectural Design Luis J. Lopez Will Harvey Development Will S. Harvey Winton/Flair / Accent Homes Herschel Stringfield ZIA Homes of El Paso LLC Preston Brown Associate members as of January 30,2019
150 Sunset Danny Heredia 2-10 Home Buyers Warranty James Hebert 4 Tech A/C Service Enrique Hernandez 84 Lumber Ernie Chavez 915 Siteworks, LLC Hugo Jasso A Plus Remodeling & Repairs Martin Arroyos ABC Supply Co., Inc. Larry Eck A C Refrigeration, LLC Angel Cabrera Acme Brick Company Brent Smith Adams Moulding & Lumber Tom Swahlen Agustin Favela Concrete Agustin Favela Alden R & R Services, LLC Alejandro Dena Allbrite Electrical Carlos Nunez Alpha Asphalt Gabriel Chavez Alvarado Plastering & Stucco, LLC Jorge Enrique Alvarado Amelia's Janitorial Services Amelia Gomez 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 Barraza Drywall Corp. Ignacio Barraza Barrett Airworks Alexandro Castro Bassett Woodworks Danny Murillo Beasley, Mitchell & Co., LLP Brad Beasley Bella Vista Realty Grisel Ortega Belmont's Air Conditioning, Inc. Rafael Belmonte Big A Construction Thelma Vasquez BMC Select David Quintana Boise Cascade Mike Flores Border Construction Specialties Ricardo Yvellez Border Solar Javier Ruiz Bordertown Carpets Brian M. Abraham Builders Source Appliance Gallery Sandra Lucero Bukaty Financial Companies Group Ruth Rivera C. D. Lee/Britton Insurance & Bonding Anthony Landavazo CMF Carlos Munoz Cabinet Masters Mike Robles Cadence Lending Group Carolyn De Leon Carpet Warehouse Erez Belkin Castillo Electric Jose Del Val CEA Engineering Group Jorge L. Azcarate Central Texas Metal Roofing Supply Co.,Inc. Ben Garza, III Centricity Brent R. Morgan Century 21 The Edge Scott Kesner City Bank Texas Bob Kotarski City Lights Thomas Brown Citizens Loan Center Jim Easley 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 David Hernandez Cabinets David Hernandez David J. Ellis Fee Office for Sierra Title David J. Ellis De La Torre Iron Works Alfredo de la Torre Delek US dba 7 Eleven Sonja Scanlan Demcon Disposal Management, LLC Maria Elena (Nena) Gomez Desert Quest Plumbing Hector Gonzalez Designer's Mart Valerie Edmiston Diaz Services, Inc. Emmanuel Diaz Dominguez Insurance Agency Victoria Dominguez Garage Doors and More Miguel Moran Dorney Security John Dorney Dunn-Edwards Paints Nathan Gordon DWS Building Supply Sabrina Voorhies \
EDLR Plastering Eduardo De La Rosa E.F. Building Materials, Inc Efren Fraire ERA Sellers & Buyers Karla Rayos ESS Environmental and Safety Solutions Jose L. Garcia Ramirez Eagle Custom Cabinets Juan Benabidez Eagle Roofing Products Scott Aguilar Edgar's Flooring Edgar Enriquez Edmund Esper Edmund Esper El Paso Audio Video by Design Joe Gutierrez 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 Rene Goldfien Electrolux NA Adger Colley Elizardo Garcia Electric Elizardo Garcia EZE-R-DESIGNS Leticia Mata Farmers Ins. Mercedes Ruiz Agency Mercedes Ruiz Felipe Rocha Construction Felipe Rocha Ferguson Enterprises Inc. Albert Holguin First American Bank Louis Sauceda First Light Federal Credit Union Lorenzo Revelez First National 1870 exp. 7 Ernesto Avila Firth, Johnston, Bunn & Kerr Jay Kerr Forge Factory Strength & Conditioning Edmundo Portillo Foxworth Galbraith Lumber Dan Villarreal Franklin Building Materials Ricardo Aguilar /Cristina Sheldon Franklin Door and Trim Jesse C. Brown G2 Ram Electric Luis Cano GCC Sun City Materials, LLC Antonio "Tony" Chavez GE Appliances Christine R. Villanueva G & G Enterprises Gen. Contractor Juan F. Garcia GECU- Greater El Paso Credit Union Danny Galindo GEPAR-Greater El Paso Assoc. of Realtors Jason Sanchez Goodman Mfg. Jorge Guajardo Go Pro Refrigeration Humberto Diaz Great American Insurance Group Julie Tomlinson Greater El Paso Chamber of Commerce David Michael Jerome H P Roofing & Construction Heriberto Prieto Harris Real Estate Group Lane Harris Haskins Electric Charles B. Haskins, Jr. Hector De La Canal Real Estate Group Hector De. La Canal Hector Phillips fee Office for Sierra Title Hector Phillips Hercules Industries John Chaney Hernandez Roofing Concepcion Hernandez
2019 Issue 1
Homes of El Paso Riley Stephens Home Pros Real Estate Group Penny Moore Home Sphere, LLC Chris Hoag HUB International Luis Rosas Imperial Construction Alexandro Garcia IES Residential Joshua Garnica Interceramic Tile & Stone Gallery David Holguin The Iron Snail Inc. David Zuniga J. B. Laminates Gina Rodriguez J. C. Balcorta Painting Cruz Balcorta J. F. Plastering Juan Florez JFM Enterprises, Inc. Jaime Flores 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 Jimmy Garza Jobe Materials, LP Charlie Tellez Joe Bernal Ins. & Financial Services, Inc. Joe M. Bernal Jose Moreno Dry Wall Jose Moreno Juan Carlos Perez Grading Juan Carlos Perez Keenan Supply Nancy Rivas Keller Williams Susan Flores Keller Williams Mo Goodarzi LOI Engineers Bernardino Olague L & P Building Supply Denise McConnell Legacy Real Estate Serv./TTI Prop. Man. Patrick Tuttle Leon Real Estate Jorge Leon Lone Star Title Co. of El Paso Sam Trimble Love Engineering, Inc. Montez Love Lowes Home Improvement Johnny Rodriguez Loyas Shutters Alfredo Loya Magicstone Marco Gomez
Builders Outlook
Majestic Realtors Patti Musshorn MAK Roofing & Construction Felix Vizarreta Marlo Building Services Roberto Martinez Masco Contract Serv dba Gale Insulation William Homan Massey Johnson Josie Ledesma McCoy's Building Supplies Doug Danner Merrill Lynch Thomas Gabriel Miguel Sanchez Cano Miguel Sanchez Cano Minerva Al-Tabbaa Realtor Minerva Al-Tabbaa Mini Concrete Materials Joe Soto Moen Frank Graf Monster Link Marketing Raul Mendoza Moreno Cardenas, Inc. Roberto Moreno Morrison Supply Sam Shallenberger MTI Ready Mix, Inc. Tony Mullen New American Funding Tania Guzman New Era Foam George Tollen New Start Insulation Jose Carreon Oropeza Concrete Angel Oropeza Parra's A/C and Heating Service Aureliano Parra Pate & Appleby, LLP Richard De Santos Patriot Mortgage Randy Bowling Pella Windows Jason Bates Performance Glass & Aluminum Hector Hernandez Commerce Mortgage Stephen Sepulveda, Gilbert Pedregon Polar Mechanical LLC Francisco Amezquita Post Tension Steel Dennis Moore Powerfoam Insulation Arnie Pedersen Prewire of El Paso, Inc. Steven Drury Prosperus Title & Escrow Alexandra Jade Hedrick Q Martins Plumbing Jose Martinez Quality Granite Hector Porras
RGR Roofing, LLC Mario Rodriguez Ramon Romero Painting Ramon Romero Randall Smith, CPA Randall Smith Rebath of El Paso/Las Cruces Lisa Walling Remcon Self Storage Will Harvey Rey Construction Manuel Reyes Richman Group Affordable Housing Corp. Kevin Hoffman Rito Magallanes Rito Magallanes Rocky Mountain Mortgage Company Dean Inniss Roe, Brad Bradley Roe Rudolph Chevrolet Mike Ruffin SBNG, P.C. Tyler Smith S & J Drywall, LLC Yair Jalil & Sergio Jalil Saldivar Electric, Inc. Martin A. Saldivar Sarabias Blue Sanitation Monica Brown Segura Framing Erika Segura Senercon Border Solar Javier Ruiz Senpai Training and Development Leonardo Corral Sergio Herrera Framing Sergio Herrera Serrano's Construction Juan Serrano Service Master Commercial Heidi Avedician Sherwin Williams Paint Cruz Lopez Sierra Title Company Angelique Roman, Marielsa Pulido Simpson Strong-Tie Company, Inc. Ken Donham Snappy Publishing Ted Escobedo Soil Mechanics Lorenza Escareno Solar Smart Living Larry Perea Southwest Décor El Paso Corporation Chris Matthews Southwestern Prewire Joe Trejo Spectrum Technologies Miled Daou St. Mary's Custom Shutters Dolores Lopez Startech Heating and Air Conditioning Luis Procter
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Stewart Title of El Paso Cindy Bilbe Stone City Rocks Chris Baca StrucSure Home Warranty Scott Whisenant Supreme Lending Lisa Wren Su Casa Magazine Bob Skolnick Sun City International Doors Jorge Carmona Sun City Winnelson Dean Moore Sun West Windows and Glass Ernie Hernandez Team Juan Uribe, LLC Juan Uribe Texas Gas Services Maria Ortiz 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 TRE & Associates Linda Troncoso Trim Team Juan & Kris Hernandez United Site Services Ramon Armendariz USA General Contractors Javier Olmos VMP Painting Victor Prieto Value Stone Isabel Chacon Vantage Bank Josie Cantu Vision Consultants, Inc. Kelly Sorenson W.W. Sales Eric Hoppes Western Heritage Bank Kathy Carrillo WestStar Bank David Osborn WestStar Title Rachel Valles Whirlpool Gwen Walker Wolf Air Arturo Alcantar X Construction Emmanuel Chavarria
$299.99 plus tax $699.99 non-members plus tax
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Builders Outlook
The El Paso Association of Builders Congratulates the 2018
Real TexaS builder AWARD WINNERS Celebrating the very best of the home building industry in El Paso
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2019 Issue 1
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Builders Outlook
Upcoming Events
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6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038
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14
Builders Outlook
City Desk The economy in El Paso, Texas was the subject of a survey sent out to over 300 members of the El Paso Association of Builders. In the survey the members were asked to respond to business indicators on hiring, capital expenditures, sales projections, revenue projections and the projections for the El Paso economy. In the survey, sent out to 313 recipients the results told an overall optimistic story with some cautions. The survey was conducted over a week-long period. The respondent base showed that over 73 % of them believe sales of products or services will increase during the next six months. Almost 25% of those surveyed said that they did not see any changes or remain neutral during that same time. A small percentage (3.3%) predicted a decrease in revenue or sales. In particular the home building community has been very busy as the U. S. and local job market has blossomed. Low unemployment rates, low mortgage interest has helped sales. It was a similar result in the question
El Paso Association of Builders releases local economic outlook survey results of whether business conditions would be positive, neutral or negative during the next six months. The survey showed that 72% of the respondents were positive, 23% neutral and slightly less than 5% are concerned that the business conditions could worsen. Members were asked if they would be considering hiring full time employees in the next six months. The majority, over 64% said that they were neutral or had no changes in plans to hire full time employees. Only a small (1.54%) said that they would likely decrease staff. The construction industry has had a difficult time finding skilled labor. The situation has roots in many areas, with experts saying that not having “shop” class, or training in the high schools, has caused a void in skilled labor. “We have talked about the shortage for years, warning politicians, school districts, students and parents that this shortage could happen. We are there now,” said Randy Bowling, First vice President of the Texas Association of Builders. “We feel that the consumer will ultimately feel the shortage in many ways, including new construction as well as remodeling. Our trades, like plumbers, electricians, and HVAC technicians cannot keep up with demand,” said Sergio Cuartas, 2019 President of the El Paso Association of Builders.
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2019 Issue 1
PRINT & INTERNET PUBLISHING
“What we find in the first of a series of planned member surveys is that business is good right now, and the memberships plans for growth are impacted by many outside sources,” Ray Adauto, Executive Vice President of the El Paso Association of Builders. “The survey still shows a conservative outlook because this industry is cyclical. We will continue to survey our members on economic and other business drivers to keep up with the pulse of home building and its impact on the local economy,” Adauto continued. The El Paso Association of Builders conducted the Survey Monkey online poll from January 9, 2019 to January 21, 2019. There were 313 individuals addressed. The association had a 21% response to the survey. Results are based on responses received from a closed group comprising of names of contacts for the member companies. The El Paso Association of Builders is the premiant local trade association for new home builders, developers and suppliers with affiliation with the Texas Association of Builders and the National Association of Home Builders. The survey was taken in mid-January 2019.
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Builders Outlook
2019 Issue 1
6046 Surety Dr. El Paso, TX 79905 915-778-5387 • Fax: 915-772-3038
Johnny Rodriguez, Lowe's Randall Smith, Randall Smith, Cpa Justin Hahn, Rocky Mountain Mortgage Angelique Roman, Sierra Title Ted Escobedo, Snappy Publishing Patricia Martinez, Stewart Title
â– ExEcutivE OFFicERS PRESiDENt Sergio Cuartas vicE PRESiDENt Edgar Garcia SEcREtARY Sal Masoud ExEcutivE vicE PRESiDENt Ray Adauto PASt PRESiDENt Edmundo Dena
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■tAB StAtE DiREctORS Randy Bowling, Life Director Sam Shallenberger Edmundo Dena Gus Loy Don Rassette Luis Rosas
■cOMMittEE cHAiRS: ASSOciAtES cHAiR Luis Rosas GOvERNMENt AFFAiRS Sal Masoud GOLF tOuRNAMENtS Sam Shallenberger FiNANcE cOMMittEE Kathy Carrillo/Treasurer cOMMuNitY OutREAcH Angelique Roman LAND uSE Sal Masoud EDucAtiON Patrick Tuttle iNDuStRY PROMOtiONS Ted Escobedo
â– NAtiONAL DiREctORS Bobby Bowling, IV Demetrio Jimenez
Honorary Life Members Rudy Guel Brad Roe Wayne Grinnell Don Henderson Anna Gill Mark Dyer Sam Shallenberger
■ADviSORY tO tHE BOARD Jay Kerr, Firth, Johnston, Bunn & Kerr
■BOARD OF DiREctORS Builders: Jaime Gonzalez, Blue Sage Homes Lee Gillett, Classic American Homes Lydia Mlouhi, Crown Heritage Homes Dan Berry, D B Innovations,LLC Delton Deal, Deal-2-Deal Eder Gallardo, Edwards Homes Leti Navarrete, EPT Bella Custom Dream Homes Kathy Parry, Hunt Companies Samira Gonzalez, Icon Custom Home Builders Laura Loy, Loyalty Homes JJ Vasquez Pacifica Homes Trevor Turner, Rassette Homes Fernie Santana, Santana Homes Jacob Barde, Tropicana Homes Associates: Sandra Lucero, Builders Source John Chaney, Hercules Industries Luis Rosas, HUB International Jorge Herrera, J & H Post Concrete & Tension Joe Bernal, Joe Bernal Insurance Patrick Tuttle, Legacy Real Estate Service Aaron Rich, Lone Star Title
El Paso Disposal
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 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. © 2019 Builder’s Outlook is published and distributed for the El Paso Association of Builders
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