bcaoc 09 2018 layout 1 newsletter 09_2018.pdfbuilders/wells fargo housing market index (hmi)....
TRANSCRIPT
We are always lookingfor volunteers and do-nations for all events,so let us know whatyou can do
I encourage all mem-bers to attendevents/meetings thattake place aroundOtero County. This includes social events, commission meetings, etc.We cannot build a better place, without the input and opinions fromour community, so please get involved!
The following dates/information below have changed; please cor-rect/mark your calendars:
LUNCHEON DATESAugust Luncheon – TBDDate, Time and Place will be sent via email, when speakers are sched-uled, so please look for those important emails from BCAOC.
MEMBER APPRECIATION DAYMesa Verde Ranch – September 15, 2018.
ANNUAL BCAOC CHRISTMAS PARTY Elks Lodge 1897 – December 7, 2018
If you would like to help with any of events/luncheons please con-tract Cheryl Matherly or myself. We appreciate any help or contri-butions that are made or given.
Sincerely,McChristie CurryPresident, BCAOC
Hello Members:
The annual golf tournament on August 3rd was a great success andfun time. I did not get to attend but have heard numerous awesomestories! Thank you to Rick, Jackie and everyone that made this eventpossible and amazing. I would also like to thank the many manymembers that attended, without your support this event would notbe possible.
Member Appreciation Day is right around the corner, September15th at Mesa Verde Ranch. This is the 2nd Member Appreciation Daythat the BCAOC has done! Please make sure you bring your familyand kids should bring their swimsuits/towels, we will have a giantblow up obstacle course and a huge water slide. There will also beplenty of food and non-alcoholic beverages, we invite you to BYOB,but please remember to also bring a DD for your safe ride home!Abe and Juliett did a great job last year and I am sure they will exceedour expectations this year, in making this a great time for all!
Builder Confidence Remains Firm in August 4
Member Appreciation Day 5
Golf Tournament Results 6-8
55+ Housing Market Shows Continued Strength in 2nd Qtr 9
Member Advantage 10
New Members & Membership Renewals / Cancellations 11
Coming Events 11
Multifamily Builder and Developer Confidence Edged Down 2nd Qtr 11
Housing Affordability Hits 10-Year Low in 2nd Qtr 12
Housing Starts Hold Their Ground in July 13
Real Estate Statistics 13
Housing Journal Requests Photos 14
New Home Sales Edge Down 1.7 Percent in July 15
Get Yourself Noticed! 15
NMHBA Rebates 16
Statement from NAHB Chairman Randy Noel on States ReceivingSection 404 Permitting Authority 17
Build Your Business 17
IBS & Kitchen & Bath Industry Extend Co-Location Agreement 18
Discount Pricing for BCAOC Members 19
A Message from thePresident
McChristie Curry
Cover to Cover
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Local Legislative Contact InformationCITY COMMISSIONERSDistrict 1 Mayor-Pro-Tem Jason Baldwin(575) 921-1093 • [email protected]
District 2 Nadia Sikes(575) 491-7910 • [email protected]
District 3 Susan L. Payne(575) 491-0211 • [email protected]
District 4 Josh Rardin(575) 434-0720 • [email protected]
District 5 Alfonso “Al” Hernandez(575) 921-3632 • [email protected]
District 6 Dusty Wright(505) 430-3395 • [email protected]
Mayor at Large Richard A. Boss, Mayor(575) 214-0024 • [email protected]
STATE OFFICIALSDistrict 32 Senator Cliff R. Pirtle(575) 626-7046 • [email protected]
District 33 Senator Bill Burt(575) 434-1414 • [email protected]
District 34 Senator Ron GriggsCell: (575) 439-1331 • [email protected]
District 51 Representative Yvette HerrellCell: (575) 430-2113 • [email protected]
District 56 Representative Zachary CookCell: (575) 937-7644 • [email protected]
District 53 Representative Rick LittleCell: (575) 824-4063 • [email protected]
District 54 Representative Jim TownsendCell: (575) 703-0153 • [email protected]
COUNTY COMMISSIONERSDistrict 1 Janet WhiteOffice: (575) 437-7427Cell: (575) [email protected]
District 2 Susan FloresOffice: (575) 437-7427Cell: (575) [email protected]
District 3 Lori BiesOffice: (575) 437-7427Cell: (575) [email protected]
BCAOC 2018 Board Members and OfficersExecutive Board of Directors:
President: McChristie Curry, White Sands Construction, Inc.
President Elect: Ken McGinnis, Classic Builders, Inc.
Past President: Abe Moore, Darnold Plumbing
Associate Vice President: Rick McCracken, Morrison Supply Company
Secretary/Treasurer: Jackie Higgins, Morrison Supply Company
Builder’s Trust Representative: Mike Drunzer, Drunzer Construction, Inc.
Associate Directors:Jeri Melton, Roy’s Welding
Steve Muell, First National Bank
Jimmy Deer, Pioneer Abstract & Title Co. of Alamogordo, Inc.
Lee Ann Bain, Bank 34
Builder DirectorsHarris Blankenship, National Construction, Inc.
Gerald Matherly, Highlander Construction
Catlin Curry, White Sands Construction
Dusty Wright, General Hydronics
Advisory Committee:Randy Rabon, Mesa Verde Enterprises, Inc.
Allen Gorby, Jack Wayte Construction Company, Inc.
Doug Nelson, Tool Box, LLC
Sylvia Tillbrook, Otero County Administration
Jake Boles, USA Insurance
G.B. Oliver, Alamogordo Chamber of Commerce
Josh Rardin, Rardin’s Contruction
The Building Contractors Association of Otero County is a nonprofit
voluntary trade association affiliated with the New Mexico Home
Builders Association and the National Association of Home Builders.
The association seeks to represent and serve the diversified needs of its
members who consist of large, small volume and custom home builders,
developers, and remodelers, as well as industry-related suppliers, sub-
contractors, & professionals.
As the voice of the housing industry in Otero County, the association’s
primary mission is to represent those involved in and served by the
building industry in our region, and all those in pursuit of the Ameri-
can Dream.
This will be accomplished by spearheading a combined effort of all in-
dustry-related groups in addressing the quality of life in the community.
The Building Contractors Association of Otero County will work to
achieve the following goals:
• Educate our membership, our industry and the public
• Actively participate in legislative & regulatory affairs
• Provide the forums that encourage quality construction and
innovative products.
We responsibly serve our community by being the positive influence
on the building industry.
BCAOC Executive BoardRick McCracken, Associate Vice PresidentOffice (575) [email protected]
Jackie Higgins, Secretary/TreasurerOffice (575) [email protected]
Mike Drunzer, Builders Trust RepresentativeOffice (575) [email protected]
Abe Moore, Past President (2017)Office (575) [email protected]
McChristie Curry, PresidentOffice (575) [email protected]
Ken McGinnis, President-ElectOffice (575) [email protected]
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Builder Confidence Remains Firm in AugustWASHINGTON, Aug. 15 -- Builder confidence in the market fornewly-built single-family homes edged down one point to a solid67 reading in August on the National Association of HomeBuilders/Wells Fargo Housing Market Index (HMI).
"The good news is that builders continueto report strong demand for new hous-ing, fueled by steady job and incomegrowth along with rising household for-mations," said NAHB Chairman RandyNoel, a custom home builder fromLaPlace, La. "However, they are increas-ingly focused on growing affordabilityconcerns, stemming from rising con-struction costs, shortages of skilled laborand a dearth of buildable lots."
"The solid economic expansion and firmjob market should spur demand for newsingle-family homes in the months ahead," said NAHB Chief Econ-omist Robert Dietz. "Meanwhile, builders continue to monitorhow tariffs and the growing threat of a trade war are affecting keybuilding material prices, including lumber. These cost increases,coupled with rising interest rates, are putting upward pressure onhome prices and contributing to growing affordability challenges,as indicated by the latest quarterly reading of the NAHB/WellsFargo Housing Opportunity Index."
Derived from a monthly survey that NAHB has been conducting
for 30 years, the NAHB/Wells Fargo Housing Market Index gaugesbuilder perceptions of current single-family home sales and salesexpectations for the next six months as "good," "fair" or "poor."The survey also asks builders to rate traffic of prospective buyersas "high to very high," "average" or "low to very low." Scores for
each component are then used to cal-culate a seasonally adjusted index whereany number over 50 indicates that morebuilders view conditions as good thanpoor.
The HMI index measuring current salesconditions inched one point lower to 73while the component gauging expecta-tions in the next six months all fell a sin-gle point to 72. Meanwhile, the metriccharting buyer traffic dropped twopoints to 49.
Looking at the three-month moving averages for regional HMIscores, the South and West each held steady at 70 and 75, respec-tively. The Northeast fell three points to 54 and the Midwest alsoposted a three-point decline to stand at 62.
Editor's Note: The NAHB/Wells Fargo Housing Market Index isstrictly the product of NAHB Economics, and is not seen or in-fluenced by any outside party prior to being released to the pub-lic. HMI tables can be found at nahb.org/hmi. More informationon housing statistics is also available at housingeconomics.com.
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Thanks to Our Sponsors Without WhomThe Building Contractors of Otero County
2018 Fun Scramble Golf TournamentWould Not Have Been Possible
Elite Sponsors
Major SponsorsSupport Sponsors
Hole Sponsors
Special Thanks tor Our Sponsors, Golf Committee, Volunteers, ThoseWho Made Goodie Bag Donations or Donated Door Prizes and
Everyone Else Who Made This Tournament Possible!
84 Lumber
Alamogordo Title Co,
Builders Trust of NM
Clow Valve
Coble Contractors, LLC
Highlander Construction, Inc.
Jack Wayte Construction Co., Inc
Morrison Supply Co.
National Construction
Pioneer Abstract & Title Co.
Southwest Air Systems
USA Insurance
General Hydronics Plumbing
Massey Johnson
White Sands Construction
Sandia Group
Bank 34
Classic Builders
Homeowners Financial Group
New Mexico Gas Company
Sagebrush
Acme Brick Featherlite
Weyerhaeuser
Tool Belt Homes
Foxworth Galbraith Lumber Co.
Senco
Oatey
Charlotte Pipe
A Y McDonald
Simpson Strong Tie
Guardian
Charles Garland & Harris Agency
Executive Accounting
Welcome Home Realty - Cindy Boylan
ERA Simmons Real Estate - Shawn Oswalt
Boise Cascade
Aquatic
Home Service Contractors
Lane Plumbing Company
1st Flight 1st Place – Toby Matherly, HermanSmith, Jeff O’Dell, Mark Gray
1st Flight 2nd Place – Doug Nelson, KenMcGinnis, John Wigfall, David Rowe
1st Flight Tie 3rd Place – Sylvia Tillbrook,Richard Burton, Marvin Swink, Dan Smelser
1st Flight Tie 3rd Place – Jake Boles, ReidGriggs, Mary Matherly, Misty Julian
2nd Flight 1st Place – Danny Fourr, ShawnDozier, Pete Torres, Tony Paca
2nd Flight 2nd Place – Marcos Doporto, AbeMoore, Patty Doporto, Mark Doporto
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2nd Flight 3rd Place – Dusty Wright, JimmyTurner, Troy Wright, Sterling Murphy
Beer Goggle Putt –Dusty Wright
Closest to the Pin #4 –Mark Law
Closest to the Pin #8 –D.J. Horn
Closet to the Pin#13 – Julio Mendoza
Closet to the Pin#16 – Marvin Swink
Longest Drive –Mike Bartkus
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55+ Housing Market Shows Continued Strength in
Second QuarterWASHINGTON, Aug. 2 - Builder confidence in the single-family55+ housing market continued to be in positive territory in thesecond quarter of 2018, according to the National Association ofHome Builders' (NAHB) 55+ Housing Market Index (HMI) whichwas released today. The index increased one point to 67.
The 55+ HMI is broken down to measure two segments of the 55+housing market: single-family homes and multifamily condomini-ums. Each segment of the 55+ HMI measures builder sentimentbased on a survey that asks if current sales, prospective buyertraffic and anticipated six-month sales for that market are good,fair or poor (high, average or low for traffic).
"Builders and developers continue to see demand from con-sumers for homes in the 55+ housing sector," said Chuck Ellison,chairman of NAHB's 55+ Housing Industry Council and Vice Pres-ident-Land of Miller & Smith in McLean, Va. "However, increasesin building material costs have made it challenging to meet thisdemand."
When compared to the previous quarter, among the three single-family components of the 55+ HMI, present sales increased threepoints to 73, sales expected in the next six months dropped three
points to 77 and traffic of prospective buyers fell four points to 47.
The 55+ multifamily condo HMI dropped seven points to 57, how-ever, it is still the second highest reading since the inception ofthe index in 2008. All three 55+ condo HMI components de-creased in the second quarter: present sales fell six points to 61,sales expected in the next six months dropped seven points to63 and traffic of perspective buyers declined 11 points to 44.
Conversely, all four components of the 55+ multifamily rentalmarket went up in the second quarter: present production rosesix points to 65, production expected in the next six monthsjumped 11 points to 68, present demand for existing units in-creased four points to 72 and demand expected in the next six
"Strong economic growth and rising home owner wealth are al-lowing consumers to sell their current homes and buy or renthomes in 55+ communities," said NAHB Chief Economist RobertDietz. "However, builders need to manage rising building materialcosts, especially for lumber, in order to continue providing hous-ing at competitive prices."
For the full 55+ HMI tables, please visit nahb.org/55hmi.
Member Advantage at a Glance www.nahb.org/ma
Version 1.17.2018
Amazon Business - Create an Amazon Business account and gain access to the NAHB Amazon store which offers recommended products
tailored to your industry’s needs while unlocking additional business savings. Sign up here, www.amazon.com/NAHB
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no annual fee to use your card. Click here to learn more: https://captl1.co/NAHB
Houzz –Free access to the concierge service, instant approval into the Houzz Trade Program giving trade-only discounts up to 50% off, plus
special discounts on local advertising. Visit www.houzz.com/NAHBmembers
FCA US LLC - A $500 cash allowance for members, employees and household family members. This offer is good toward many new
models in the Chrysler, Dodge, Jeep®, Ram or FIAT® vehicle lineup and is stackable with most current local or national incentives. Visit www.nahb.org/fca to learn more. Lowe’s - Visit www.LowesForPros.com/NAHB or call 877-435-2440 and register to save 2% on your Lowe’s Accounts Receivable (LAR)
or Lowe’s Business Accounts (LBA) purchases and free delivery on purchases over $500. Save an additional 5% every day at the store when you mention the 5% at time of purchase and when using your LAR or LBA. General Motors – General Motors is proud to offer NAHB Members a Private Offer of up to $1,000 on your next Chevrolet, Buick and GMC
vehicle. Visit www.nahb.org/gm to learn more.
UPS Savings Program & YRC Freight - UPS discounts of up to 36% on a broad portfolio of shipping services. Savings of at least 70%
on less-than-truckload shipments 150 lbs. or more with UPS Freight and YRC Freight. Visit www.1800members.com/NAHB or call 1-800-MEMBERS (800-636-2377) for more information. GEICO - Exclusive NAHB discounts for members on auto insurance. Visit www.geico.com/disc/nahb or call 800-368-2734. Mention
NAHB for auto, homeowners, and commercial auto quotes. 2-10 Home Buyers Warranty - Visit www.2-10.com/NAHB or call 855-280-1328 to receive exclusive access to discounts on select
products, including the Builder Backed Service Program and the systems and appliances warranty. TSYS (formerly TransFirst) - Payment solutions with average savings of 16% per year. Web/mobile tools, credit card and eCheck
processing and more. Free "Savings Analysis" call 800-613-0148 or visit www.tsysassociation.com/NAHB. Dell - Up to 30% off on all Dell computers. Call 800-757-8442 and Mention NAHB or visit www.dell.com/nahb.
ConstructionJobs.com - NAHB offers a recruitment tool to all NAHB members in their search for new employees. NAHB members enjoy a
20% discount off standard rates. Visit: https://www.nahb.org/en/members/member-discounts/archived-webpages/nahb-career-center.aspx to
connect with top talent and top employers in the construction industry today.
Hertz - Up to 20% off on rental cars and FREE Gold Plus Rewards membership. Visit www.hertz.com/nahb, or call 800-654-2200 and
use CDP# 51046. Avis - Up to 25% off car rental base rates and FREE Avis Preferred Service membership at www.avis.com/nahb, or call 800-331-1212
and use AWD code G572900. Budget - Up to 25% off car rental base rates and FREE Budget Fastbreak at www.budget.com/nahb, or call 800-283-4387 and use
BCD code Z536900. Office Depot - Office Depot – Save up to 80% in-store or online. Free shipping on orders of $50 or more. Visit
www.officediscounts.org/NAHB or call Jeremy Kirkland for assistance with your business account; 855-337-6811 Ext. 2897
Omaha Steaks - Save 10%, in addition to any online specials. www.OSincentives.com/promo/nahb
TripBeat- 25% discount on over 200,000 vacation rentals worldwide. Call 844-367-6433 and mention NAHB at time of reservation or go to
www.tripbeat.com/nahb. Wyndham Hotel Group - 15% off at over 7,400 hotels. Call 877-670-7088 and mention ID 8000002688. Go to www.nahb.org/ma and
click on the Wyndham logo to find out more. FTD - 20% off floral arrangements and gifts at www.ftd.com/nahb or call 800-SEND-FTD use code 17421.
WASHINGTON, Aug. 23 - Confidence in the multifamily housingmarket edged down in the second quarter of 2018, according tothe Multifamily Production Index (MPI) released today by the Na-tional Association of Home Builders (NAHB). The MPI dipped twopoints to 51 compared to the previous quarter.
The MPI measures builder and developer sentiment about currentconditions in the apartment and condo market on a scale of 0 to100. The index and all of its components are scaled so that a num-ber above 50 indicates that more respondents report conditionsare improving than report conditions are getting worse.
The MPI is a weighted average of three key elements of the mul-tifamily housing market: construction of low-rent units--apart-ments that are supported by low-income tax credits or othergovernment subsidy programs; market-rate rental units--apart-ments that are built to be rented at the price the market will hold;and for-sale units--condominiums. The component measuringlow-rent units rose three points to 57, while the componentmeasuring market rate rental units fell six points to 50 and thecomponent measuring for-sale units dropped three points to 46.
The Multifamily Vacancy Index (MVI), which measures the multi-family housing industry's perception of vacancies, rose three
points to 45. The MVI is a weighted average of current occupancyindexes for class A, B, and C multifamily units, and can vary from0 to 100, where any number over 50 indicates more property man-agers report more vacant apartments. Although the MPI increasedin the second quarter, a reading of 45 is still seen as a healthynumber for the multifamily market.
"Multifamily builders and developers are seeing strong demand,but there are headwinds that have impacted further develop-ment," said Steve Lawson, president of The Lawson Companies inVirginia Beach, Va., and chairman of NAHB's Multifamily Council."Some developers have had difficulty getting projects off theground due to regulatory burdens and neighborhood oppositionin certain parts of the country."
"Although the MPI is down two points in the second quarter, it isstill above 50, reflecting a solid number of multifamily starts sofar this year," said NAHB Chief Economist Robert Dietz. "In addi-tion to regulatory costs, developers still need to monitor the im-pact of tariffs and the threat of further trade restrictions onbuilding materials prices, especially lumber."
Historically, the MPI and MVI have performed well as leading in-dicators of U.S. Census figures for multifamily starts and vacancyrates, providing information on likely movement in the Censusfigures one to three quarters in advance.
For data tables on the MPI and MVI, visit www.nahb.org/mms. Formore information on the NAHB Multifamily program, please visitNAHB Multifamily:https://www.nahb.org/en/members/committees-and-councils/councils/multifamily-council/nahb-multifamily.aspx.
Multifamily Builder and Developer Confidence
Edged Down Slightly in Second Quarter
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u Lowes
u General Hydronicsu Alamo Paint & Glassu Housler Construction
Membership Renewals
New Membership
LUNCHEON DATESFuture Dates, Times and Places will be sent via email,when speakers are scheduled, so please look for thoseimportant emails from BCAOC.
BCAOC BOARD OF DIRECTORS MEETINGSMorrison Supply – 10:30 a.m. 10/11/18 Rick McCracken
MEMBER APPRECIATION DAYMesa Verde Ranch – Saturday, September 15, 2018Abe Moore
ANNUAL MEETING / CHRISTMAS PARTYElks Lodge – December 7, 2018Mandy Curry & Cheryl Matherly
Your participation in any or all of the abovewould be greatly appreciated!
Save the Date
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Housing Affordability Hits 10-Year Low in Second QuarterWASHINGTON, Aug. 9 - Rising homeprices and interest rates pushed housingaffordability to a 10-year low in the secondquarter of 2018, according to the NationalAssociation of Home Builders(NAHB)/Wells Fargo Housing OpportunityIndex (HOI) released today.
In all, 57.1 percent of new and existinghomes sold between the beginning ofApril and end of June were affordable tofamilies earning the U.S. median income of$71,900. This is down from the 61.6 percentof homes sold in the first quarter thatwere affordable to median-income earnersand the lowest reading since mid-2008.
The national median home price jumpedfrom $252,000 in the first quarter of 2018to $265,000 in the second quarter--thehighest quarterly median price in the his-tory of the HOI series. At the same time,average mortgage rates jumped by morethan 30 basis points in the second quarterto 4.67 percent from 4.34 percent in thefirst quarter.
"Tight inventory conditions and rising con-struction costs are factors that are holdingback housing and putting upward pressureon home prices," said NAHB ChairmanRandy Noel, a custom home builder fromLaPlace, La. "Meanwhile, tariffs on Cana-dian lumber imports into the U.S. are fur-ther eroding housing affordability. Buildersare struggling to manage these costs to en-sure pricing does not outpace expectedgains in wage growth."
"Rising household formations, along with a
strong economic expansion in the secondquarter that has fueled job growth, willsupport housing demand in the secondhalf of 2018," said NAHB Chief EconomistRobert Dietz. "However, growing trade warconcerns and the expectation of highermortgage rates are additional headwindsnegatively affecting housing affordability."
Syracuse, N.Y., was the nation's most af-fordable major housing market. There, 89.1percent of all new and existing homes soldin the second quarter were affordable tofamilies earning the area's median incomeof $74,100. Meanwhile, the nation's mostaffordable smaller market was also locatedin the Empire State. In Elmira, N.Y., 97 per-cent of homes sold in the second quarterwere affordable to families earning themedian income of $71,000.
Rounding out the top five affordablemajor housing markets in respective orderwere Scranton-Wilkes Barre-Hazleton, Pa.;Harrisburg-Carlisle, Pa; Indianapolis-Carmel-Anderson, Ind.; and Youngstown-Warren-Boardman, Ohio-Pa.
Smaller markets joining Elmira at the topof the list included Kokomo, Ind.; Daven-port-Moline-Rock Island, Iowa-Ill.; Cum-berland, Md.-W.Va.; and Wheeling,W.Va.-Ohio.
San Francisco, for the third straight quarter,was the nation's least affordable majormarket. There, just 5.5 percent of thehomes sold in the second quarter of 2018were affordable to families earning the
area's median income of $119,600.
Other major metros at the bottom of theaffordability chart were located in Califor-nia. In descending order, they included LosAngeles,-Long Beach-Glendale; Anaheim-Santa Ana-Irvine; San Jose-Sunnyvale-Santa Clara; and San Diego-Carlsbad.
All five least affordable small housing mar-kets were also in the Golden State. At thevery bottom of the affordability chart wasSalinas, where 9.8 percent of all new andexisting homes sold were affordable tofamilies earning the area's median incomeof $69,100.
In descending order, other small marketsat the lowest end of the affordability scaleincluded Santa Cruz-Watsonville; Napa;San Luis Obispo-Paso Robles-ArroyoGrande; and San Rafael.
Please visit www.nahb.org/hoi for tables,historic data and details.
Editor's Note: The NAHB/Wells FargoHousing Opportunity Index (HOI) is ameasure of the percentage of homes soldin a given area that are affordable to fami-lies earning the area's median income dur-ing a specific quarter. Prices of new andexisting homes sold are collected from ac-tual court records by Core Logic, a dataand analytics company. Mortgage financ-ing conditions incorporate interest rateson fixed- and adjustable-rate loans re-ported by the Federal Housing FinanceAgency.
Housing Starts Hold Their Ground in July WASHINGTON, Aug. 16--Total housing starts inched up 0.9 percentin July to a seasonally adjusted annual rate of 1.17 million units, ac-cording to newly released data from the U.S. Department of Housingand Urban Development and the Commerce Department.
The July reading of 1.17 million is the number of housing units builderswould begin if they kept this pace for the next 12 months. Withinthis overall number, single-family starts held firm, up 0.9 percent to862,000 units. Meanwhile, the multifamily sector--which includesapartment buildings and condos--rose 3 percent to 306,000.
"Builder confidence remains solid, although it has fallen back some-what in recent months due to rising construction costs in 2018, in-cluding lumber," said NAHB Chairman Randy Noel, a custom homebuilder from LaPlace, La. "As builders grapple with higher costs, one
positive development is that lumber prices have shown signs of eas-ing the past two months off their record high levels posted in June."
Some projects are experiencing construction start delays due to costconcerns, with the number of single-family units authorized but notstarted up 25 percent since July 2017.
"Supply-side challenges including increases in material prices andchronic labor shortages are affecting affordability in many markets,"said NAHB Chief Economist Robert Dietz. "However, consumer de-mand remains strong due to a growing economy and job market andfavorable demographics. Moreover, on a year-to-date basis, single-family construction has shown steady progress, up 7.2 percent, while5+ multifamily production is up 3.4 percent as well."
Regionally, combined single- and multifamily housing starts in Julyrose 11.6 percent in the Midwest and 10.4 percent in the South. Startsfell 4 percent in the Northeast and posted a 19.6 percent decline inthe West due to affordability constraints in the coastal markets.
Overall permits, which are often a harbinger of future housing pro-duction, rose 1.5 percent to 1.31 million units in July. Single-family per-mits posted a modest gain of 1.9 percent to 869,000. Multifamilypermits were relatively unchanged, up 1.7 percent to 410,000.
Looking at regional permit data, permits rose 5.9 percent in theNortheast, 5.8 percent in the Midwest and 1.2 percent in the West.Permits edged 0.3 percent lower in the South.
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(Based on information from the Otero County Association of REALTORS®, Inc. Multiple Listing Service)
RESIDENTIAL PROPERTIES
Active......................................619
Under Contract ...................129
Sold ...........................................73
LAND
Active.....................................444
Under Contract......................13
Sold .............................................4
COMMERCIAL
Active.........................................51
Under Contract .......................6
Sold .............................................0
RESIDENTIAL PROPERTIES – SITE BUILT & NEW CONSTRUCTION ONLY
Number Sold.................................................63
(2) New Construction (61) Site Built
Avg. Sold Price...................................$168,421
Med. Sold Price ................................$175,000
Avg. Days on Market.................................106
Sold in Alamogordo ............44
Sold in Cloudcroft ................10
Sold in High Rolls-Mtn Pk .....1
Sold in La Luz ...........................3
Sold in Mayhill..........................2
Sold in Timberon ....................2
Sold in Tularosa ........................1
Real Estate Report – July 2018
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New Home Sales Edge Down 1.7 Percent in JulyWASHINGTON, Aug. 23 -- Sales of newly built, single-familyhomes inched down 1.7 percent in July to a seasonally adjustedannual rate of 627,000 units after an upwardly revised June report,according to newly released data by the U.S. Department ofHousing and Urban Development and the U.S. Census Bureau. Ona year-to-date basis, sales are up 7.2 percent from this time lastyear.
"A lack of overall housing inventory is pushing up home prices,which is hurting affordability and causing prospective buyers todelay making a home purchase," said Randy Noel, chairman of the
National Association of Home Builders (NAHB) and a customhome builder from LaPlace, La.
"Although this month marks the lowest sales pace since last Oc-tober, we continue to see solid housing demand due to economicstrengthening and positive demographic tailwinds," said NAHBSenior Economist Danushka Nanayakkara-Skillington. "Buildersneed to manage rising construction costs to keep their homescompetitively priced for the newcomers to the housing market."
A new home sale occurs when a sales contract is signed or a de-posit is accepted. The home can be in any stage of construction:not yet started, under construction or completed. In addition toadjusting for seasonal effects, the July reading of 627,000 units isthe number of homes that would sell if this pace continued forthe next 12 months.
The inventory of new homes for sale was 309,000 in July, which isa 5.9-month supply at the current sales pace. The median salesprice rose to $328,700.
Regionally, new home sales rose 10.9 percent in the West and 9.9percent in the Midwest. Sales fell 3.3 percent in the South and52.3 percent in the Northeast. Year-to-date, sales in the Northeastare down 14.5 percent as that region deals with impacts from taxreform and persistent affordability issues.
Statement from NAHB Chairman Randy Noel on
States Receiving Section 404 Permitting AuthorityWASHINGTON, Aug. 7 - Randy Noel, chairman of the NationalAssociation of Home Builders (NAHB) and a custom home builderfrom LaPlace, La., today issued the following statement in supportof the Trump administration's announcement that clarifies overwhich waters states can assume Clean Water Act Section 404 per-mitting authority rather than the federal government:
"NAHB commends this latest action by the Trump administrationto enact common-sense solutions to reduce regulatory burdensfor small businesses. The Army Corps of Engineers' recent mem-orandum will help to promote the federal/state partnership en-visioned by the Clean Water Act, reduce duplicativeadministrative burdens and create a more streamlined authoriza-tion process for builders and developers whose projects occurnear wetlands. In turn, this will boost housing affordability while
also protecting our nation's wetlands and waterways.
"We are hopeful that by providing this clarity, more states willtake steps to assume Section 404 permitting authority."
ABOUT NAHB: The National Association of Home Builders is aWashington-based trade association representing more than140,000 members involved in home building, remodeling, multi-family construction, property management, subcontracting, de-sign, housing finance, building product manufacturing and otheraspects of residential and light commercial construction. NAHBis affiliated with 700 state and local home builders associationsaround the country. NAHB's builder members will constructabout 80 percent of the new housing units projected for this year.
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International Builders' Show and Kitchen & Bath
Industry Show Extend Co-Location AgreementWASHINGTON, Aug. 22--The National Association of Home Builders(NAHB) and the National Kitchen & Bath Association (NKBA) todayannounced an agreement to extend the co-location of the NAHB In-ternational Builders' ShowR (IBS) and the Kitchen & Bath IndustryShow (KBIS), known as Design & Construction WeekR (DCW). Thenew six-year agreement will begin in 2020 and will run through the2026 shows.
Created by the two associations in 2014, DCW has become the ban-ner industry event focused on new ideas, products and technologiesto design, build and remodel homes. While IBS and KBIS remain twoseparate and distinct shows, the combined shows host more than2,000 exhibiting brands spanning over a million net square feet ofexhibit space, making DCW the largest annual gathering of the resi-dential design and construction industry. One pass provides attendeeaccess to both shows.
"We have seen extraordinary growth and success of Design & Con-struction Week over the past few years," said NAHB CEO JerryHoward. "There is a natural synergy between our two organizations,and it just made sense to bring our two shows together to create amega-event, giving show attendees the added benefit of having ac-cess to anything and everything housing related in one place. We arethrilled to continue this relationship and build upon this success intothe next decade."
"NKBA is proud to continue our partnership with NAHB, creating thistremendous opportunity that benefits members of both associations
as well as the industry in general," said Bill Darcy, NKBA CEO. "Thekitchen and bath industry, as well as overall residential design, buildingand remodeling, are vibrant, as is evidenced by the robust growth ofboth shows since our co-location. This represents a vital componentof the American economy, and together, we play a critical role inkeeping businesses in this segment strong and on solid footing."
IBS is the largest annual light construction show in the world. Buildingindustry professionals from across the world attend to see the latestproducts and services from more than 1,500 exhibitors representingtop housing-related companies, attend cutting-edge education ses-sions, visit show homes featuring the latest trends and innovations,and network with peers. Now in its 75th year, IBS is produced andmanaged exclusively by NAHB.
The Kitchen & Bath Industry Show (KBIS) is the premier industryevent dedicated to all aspects of kitchen and bath design. With anexpansive show floor filled with the freshest designs from over 600leading brands, North America's largest kitchen and bath trade showdelivers attendees and exhibitors the ultimate destination to net-work, exchange ideas and build their businesses. KBIS is operated byEmerald Expositions, the largest operator of business-to-businesstrade shows in the United States.
The extended DCW agreement includes the 2021-2022 shows in Or-lando, Fla., at the Orange County Convention Center, the 2023-2025shows in Las Vegas at the Las Vegas Convention Center, and then re-turning in 2026 to Orlando.
ABOUT NKBA: The National Kitchen & Bath Association (NKBA) isthe not-for-profit trade association that owns the Kitchen & Bath In-dustry ShowR (KBIS), as part of Design and Construction Week R(DCW). With nearly 14,000 member companies representing tens ofthousands of members in all segments of the kitchen and bath in-dustry, the NKBA has educated and led the industry since the asso-ciation's founding in 1963. The NKBA envisions a world whereeveryone enjoys safe, beautiful and functional kitchen and bathspaces. The mission of the NKBA is to inspire, lead and empower thekitchen and bath industry through the creations of certifications,marketplaces and networks. For more information, visit NKBA.org orcall 1-800-THE-NKBA (843-6522).
