the nail, april, 2016

April, 2016 l The NAIL 1

2 The NAIL l April, 2016


The official magazine ofHome Builders Association

of Middle Tennessee

PresidentRandall Smith

Vice PresidentJohn Zelenak

Secretary/TreasurerKeith Porterfield

Executive Vice PresidentJohn Sheley

Editor and DesignerJim Argo

StaffConnie NicleyPat Newsome

THE NAIL is published monthly by theHome Builders Association of MiddleTennessee, a non-profit trade associationdedicated to promoting the Americandream of homeownership to all residents of Middle Tennessee.

SUBMISSIONS: THE NAIL welcomesmanuscripts and photos related to theMiddle Tennessee housing industry forpublication. Editor reserves the right toedit due to content and space limitations.

POSTMASTER: Please send addresschanges to: HBAMT, 9007 OverlookBoulevard, Brentwood, TN 37027.Phone: (615) 377-1055.

THE

NAIL


FEATURES

9Preparing to buy a new

home in 2016 It’s a great time to buy and these tips will help you ensure that you’re fullyprepared to find and buy next home.

10Home design trends to look

for in the upcoming year NAHB’s Best in American Living

Awards provide a great look at the trendsthat will be inspiring designs in the

coming months and years.

DEPARTMENTS

6News & Information

13SPIKE Club Report

14April Calendar

14Chapters and Councils

ON THE COVER:April is New Homes Month. Find tips on

buying a new home and current design trends on page nine and ten.


Sales of newly built, single-family homes rose 2 percent in February from an upwardly revised January read-

ing to a seasonally adjusted annual rate of 512,000 units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

“The February bounce back in sales is in line with our builders’ reports that the hous-ing market continues to recover at a slow but

steady pace,” said Ed Brady, chairman of the National Association of Home Builders (NAHB) and home builder and developer from Bloomington, Ill.

“While builders contend with industry headwinds such as labor shortages, rela-tively low mortgage interest rates and solid job growth should keep the housing market moving ahead as we enter the spring buying season,” said NAHB Chief Economist Rob-ert Dietz.

The inventory of new homes for sale was 240,000 in February, which is a 5.6-month supply at the current sales pace. The median sales price of new houses sold in February was $301,400.

Regionally, new home sales rose 38.5 percent in the West. Sales dropped 4.1 per-cent in the South, 17.9 percent in the Mid-west and 24.2 percent in the Northeast. n

New home sales rise 2 per-cent in February

NEws&INfo

Despite labor shortages, rel-atively low mortgage interest rates and solid job growth should keep the housing mar-ket moving ahead as we enter the spring buying season.


The Cost of Doing Business Study, 2016 Edition, a national study of single-fam-ily builders’ financial performance, was

recently released by BuilderBooks, the pub-lishing arm of the NAHB. The Cost of Doing Business Study gives builders the opportunity to see industry averages for profit margins, as-set levels and equity positions.

NAHB builder members from all regions of the country provided their past financial data using a survey instrument developed by NAHB’s Economics and Housing Policy Group. This new resource provides home builders a rare glimpse at other builders’ financial books, with access to data on prof-itability, cost of sales and expenses from home builders.

“The Cost of Doing Business Study con-tains a wealth of information about the resi-dential construction industry and is a critical resource for builders,” said NAHB Chair-man Ed Brady. “The updated study provides the benchmarks builders need to improve their businesses.”

Readers can see how they measure up against industry-wide averages in areas including:

- Gross margin & net profit- Cost of goods sold - Gross margin & net profit- Cost of goods sold

Several categories are analyzed in the sur-vey--volume, operation type and land vs. no land--making it easy for builders to compare

their performance against the data. More than 35 proven cost-cutting, profit-raising ideas that builders can apply to their businesses are provided.

The Cost of Doing Business Study is available for purchase ($149.95 retail/$79.95 NAHB member, ISBN 978-0-86718-746-5) at BuilderBooks.com or by calling 800-223-2665. The eBook is available at ebooks.builderbooks.com ($89.99 retail/$55.99 for NAHB members). n

Rare snapshot of builders’ profitability and expenditures

Nationwide housing starts rose 5.2 per-cent to a seasonally adjusted annual rate of 1.178 million units in February,

according to newly released data from the U.S. Department of Housing and Urban Development and the Commerce Department. Single-fami-ly production increased 7.2 percent to 822,000 units—its highest level since November 2007—while multifamily starts remained virtually un-changed, inching up 0.8 percent to 356,000 units.

“This month’s report is consistent with positive builder sentiment and economic indicators show-ing that the housing market continues to recover at a gradual pace,” said NAHB Chairman Ed Brady.

“February’s single-family gains indicate that this sector is strengthening in line with our forecast,” said NAHB Chief Economist Da-vid Crowe. “As the U.S. economy firms, job creation continues and mortgage interest rates remain low, we should see further growth in housing production moving forward.”

Combined single- and multifamily starts rose in three of the four regions in February, with the West, Midwest and South posting respective gains of 26.1 percent, 19.9 percent and 7.1 per-cent. The Northeast registered a 51.3 percent loss.

A decline in the volatile multifamily sector pushed overall permit issuance down 3.1 per-cent in February. Multifamily permits fell 8.4 percent to a rate of 436,000 while single-family

permits ticked up 0.4 percent to 731,000.Regionally, permits increased in the North-

east by 40.4 percent. The Midwest, West and South registered respective permit losses of 11.4 percent, 7.2 percent and 4.4 percent.

Additionally, certified renovators who were grandfathered in under a HUD or EPA lead-based paint training course before the RRP rule was adopted must attend a refresher course with a hands-on component. The rule also made sev-eral streamlining and clarifying changes to RRP

provisions that apply to training providers. The EPA’s changes only apply to those states where EPA administers the program; the 14 states that administer their own programs will have to take legislative or regulatory action to adopt the on-line refresher course option.

Builder confidence holds steadyBuilder confidence in the market for newly-built single-family homes was unchanged in March

at a level of 58 on the NAHB/Wells Fargo Housing Market Index (HMI).

“Confidence levels are hovering above the 50-point mid-range, indicating that the single-fam-ily market continues to make steady progress,” said Brady. “However, builders continue to report problems regarding a shortage of lots and labor.”

“While builder sentiment has been relatively flat the last few months, the March reading cor-relates with NAHB’s forecast of a steady firming of the single-family sector in 2016,” said Crowe. “Solid job growth, low mortgage rates and im-proving mortgage availability will help keep the housing market on an upward trajectory.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Far-go Housing Market Index gauges builder percep-tions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey asks builders to rate traffic of prospective buyers as “high to very high,” “average” or “low to very low.” Scores for each component are used to calculate a seasonally adjust-ed index where any number over 50 indicates that more builders view conditions as good than poor.

The HMI component gauging current sales conditions held steady at 65 in March while the index measuring sales expectations in the next six months fell three points to 61. The compo-nent charting buyer traffic rose four points to 43.

Looking at the three-month moving averages for regional HMI scores, the Midwest posted a one-point gain to 58 while the South was unchanged at 59. The West registered a three-point decline to 69 while the Northeast fell one point to 46. n

Housing starts reach 8 year high, builder confidence steady


NEws&INfo

Looking for a great addition to your warranty programs? Provide a copy of the newest version of the Residen-

tial Construction Performance Guidelines for Professional Builders & Remodelers (5th Edition) to home buyers as part of your warranty claims process.

NAHB BuilderBooks recently revised and updated the contractor and consumer versions of the guide, a well-regarded in-dustry resource for the past 20 years. This unique collection of 275+ guidelines in 12 major construction categories is designed to help builders and remodelers success-fully manage customer expectations, pro-tect their bottom line and deliver high-per-formance homes.

Specifically, the RPCG Consumer Ref-erence helps customers better understand the construction process; basics of a prop-erly constructed or remodeled home; and warranty and maintenance items. It serves as a quick reference on the minimum ac-

ceptable performance for the most com-mon maintenance and structural issues that come up in new home residential construc-tion and remodels.

Providing a copy to consumers at or pri-or to a contract signing may help resolve customer concerns before they escalate into complaints, disputes or worse.

The RPCG Consumer Reference includes performance guidelines for:

- Site work and foundation- Floors, walls and roofs- Plumbing and electrical, including

interior climate control- Interior and floor finishes- Fireplaces and woodstoves- Concrete stoops and steps- Garage, driveways and sidewalks- Wood decks- Landscaping

The revised version of the RCPG Contractor Reference features:

- New guidelines that address efflorescence, deflection, water penetration and other issues

- Sample contract language- Remodeling-specific guidelines- Tips for taking critical measurements

Both versions are available for purchase at BuilderBooks.com or by calling 800-223-2665. The Contractor Reference is $44.95 retail or $39.95 for NAHB members, and the Consumer Reference is $69.95 retail or $59.95 for NAHB mem-bers (in a pack of 10). The eB-ook (contractor version only) is available at ebooks.builder-books.com for $31.99 retail or $26.99 for NAHB mem-bers. n

Help your customers with the newest version of the RCPG


Preparing to buy a new home in 2016

When winter gives way to spring, the temperatures won’t be the only things on the rise. The home-buying market tends to heat up as well during the spring, and 2016 will be no exception. Many savvy buyers will be looking to lock in at-

tractive interest rates while they still remain low. If this group includes you, the time to start preparing is now. These tips will help put you in a better position to find a home perfect for you just in time for New Homes Month.

Make your ChecklistFirst-time home buyers should take the time to determine what their needs are, especially regarding size, location and amenities. But even seasoned home owners will find that having a must-have list can save significant time by helping them avoid listings that may look great in the photos, but in reality, won’t meet their needs. Home buyers should always prioritize the items on their checklists, as most will need to compromise on some items to fit within a realistic budget.

Check Your Credit ScoreEven if you’ve purchased a home in the past, stricter credit requirements are making it more challenging for some buyers to find home loans. Lenders are more cautious than ever, so having a favorable credit score can make a difference in your ability to be approved for a loan. Even if you think nothing has changed recently on your credit report, it’s good to check periodically to ensure you aren’t being unfairly penalized for old debts, which can sometimes linger on credit reports. Borrowers with

scores in the low 600s and even high 500s can still find lenders who will qualify them, but borrowers should strive for scores in the mid- to upper-700s to land the best rate.

Determine What You Can AffordDon’t let your maximum loan approval amount dictate what your home-buying budget should be. Though the approval process is more extensive now than it was even just a few years ago, lenders still want to make as much profit as possible. You, however, are the best person to judge what you can realistically afford. Experts say that your total month-ly home expenses should not exceed more than one-third of your gross monthly income. You’ll also need to determine how much you’ll need in order to cover any loan fees and closing costs.

Sell Your Current HomeIf buying a new home is contingent on the sale of your current home, it’s a good idea to start the process by reaching out and consulting with your realtor. Ask him or her about your best strategy to sell your home quickly, but at the right time and for the best price possible. You’ll want to iden-tify any maintenance issues your home has, and determine if, how and when each one will need to be addressed. You can also ask your realtor if making any upgrades to your current home would be worthwhile and result in a favorable return when it comes time to sell.

For more information about the home buying process, contact the HBAMT at 615-377-1055 or visit www.hbamt.org. n


Get inspired with these new home trendsThe NAHB recently announced the winners of the Best in Amer-

ican Living Awards (BALA) – a prestigious awards program recognizing excellence in designs that will influence the entire residential building industry. Award recipients are lauded as

the nation’s most creative and inventive builders, remodelers, architects, developers, land planners and interior designers.

Below are some of the newest trends in home design that buyers throughout Middle Tennessee will see in the coming months and years, based on submissions from this year’s BALA winners. Some of these elements are sure to inspire your next design project.

Intimate Outdoor Spaces. Many single-family custom and production homes include intimate outdoor gathering spaces, complete with outdoor fire-places or fire pits and cozy seating. These spaces are geared toward smaller gatherings, instead of the extended family-size backyards of the past.Mid-Century Modern Detailing. Mid-century modern is now 21st cen-tury chic in furniture, elevation design and detailing. Particularly in the western United States, this style has become increasingly popular.Indoor-Outdoor Convergence. What was once a distinct line between two areas – indoor & outdoor – has been replaced by floor-to-ceiling retractable glass walls & screens. Families can visually & physically move between the areas.Troughs and Spouts. Outdoor tables with open, trough-like water chan-nels add interest, often culminating in a delicate waterfall off the edge of the table into a pool or water feature below.

Interior Board and Batten. More often used as exterior cladding, board and batten is now being featured inside a large number of homes as well. This technique adds a three-dimensional layer to interior finishes and provides an interesting alternative to paint and wallpaper.White with Exotic or Repurposed Wood Accents. Many winning inte-riors feature stark, modern white paired with rich wood accents, a striking combination in flooring, ceilings and cabinets.Modern Industrial Accents. Making its strongest appearance in multi-family projects, this trend combines sleek lighting and furniture with the brick, glass and steel elements of a building’s shell and skeleton. Vibrant pops of color offset the cooler color palette of metals and whites.Barn Doors. Barn doors are appearing everywhere, from kitchens to mudrooms to closets. These offer an alternative to traditional left- or right-hung doors & become a design feature of the home, unlike pocket doors that tuck away.Intricate Stairways. Stairways have become more prominent and sophis-ticated. Designers increasingly feature curving glass railings, detailed iron newel posts, unique stair accent walls, glass treads and intricate tile work..Waterfall Islands. Still trending are waterfall-edged islands, in which the kitchen bar is inset into the cabinetry rather than extended beyond it. These islands – whether wood, granite or marble – emphasize clean, modern lines.

To find an industry professional who is ready to bring these exciting new trends to your new home or remodeling project, contact the HBAMT at 615-377-1055, or go to www.hbamt.org. n


sPIKE REPoRT

Twenty-two SPIKES (in bold) increased their recruitmentnumbers last month. What is a SPIKE? SPIKES recruit new members and help the association retain members. Here is the latest SPIKE report as of February 29, 2016.

Top 20 Big Spikes

Jim Ford 912Virgil Ray 821Bill King 776Mitzi Spann 711Terry Cobb 567Jim Fischer 566John Whitaker 462Jennifer Earnest 347James Carbine 345Kevin Hale 287David Crane 278Tonya Jones 271Trey Lewis 270Reese Smith III 261Steve Moody 219Sonny Shackelford 219Davis Lamb 196Tim Ferguson 176Jackson Downey 174James Franks 172

Life Spikes

Jim McLean 164Louise Stark 163Harry Johnson 146Steve Cates 141C.W. Bartlett 138Tonya Alexander 128Sam Carbine 128Steve Hewlett 119Carmen Butner 108B.J. Hanson 105Dave McGowan 104Johnny Watson 101Julie DuPree 97Jordan Clark 94Duane Vanhook 91Jeff Zeitlin 87Erin Richardson 76Wiggs Thompson 75Jeff Slusher 70John Baugh 68Michael Dillon 68Don Bruce 62Jim Ford, Jr. 62Beth Sturm 59Hill McAlister 57Lori Fisk-Conners 55Joe Morgan 54John Broderick 53Gerald Bucy 53David Hughes 51Al Davis 47Christina Cunningham 46Andrew Neuman 46Benny Sullivan 46John Ganschow 45Bryan Edwards 44Kay Russell 44

Peggy Krebs 40David Lippe 38Andy Wyatt 37Chuck Clarkson 36Frank Miller 36Randall Smith 36Brad Butler 35Al Hacker 34Derenda Sircy 33Ray Edwards 32Dan Strebel 32Justin Hicks 31Steve Wheeley 30John Zelenak 29Alvin Basel 29Marty Maitland 27

Spikes

Don Mahone 22Frank Tyree 17Ashley Crews 13Ricky Scott 13Gina Hewlett 10Keith Porterfield 10Ron Schroeder 10Don Alexander 9McClain Franks 6


1 2

3 4 5 6 7 Sales & Marketing Council meeting

8 9

10 11 12 13 14 15 16

17 18 Dickson County Chapter

meeting

19 20Sales & Marketing Council meeting

21 22 23

24 25Metro/Nashville Chapter

meeting

26 27 28 29 30

1 2 3 4 5Sales & Marketing Council meeting

6 7

APRIL CALENdAR

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

CHAPTERS

CHEATHAM COUNTY CHAPTERChapter President - Roy Miles: 615/646-3303Cheatham County Chapter details are being planned.Next meeting: to be announced.Chapter RSVP Line: 615/377-9651, ext. 310

DICKSON COUNTY CHAPTERChapter President - Mark Denney: 615/446-2873.The Dickson County Chapter meets on the third Monday of the month, 12:00 p.m. at the Ponderosa Restaurant in Dickson.Next meeting: Monday, April 18.Price: FREE, lunch dutch treat.Chapter RSVP Line: 615/377-9651, ext. 307

MAURY COUNTY CHAPTERMaury County Chapter details are currently being planned.Next meeting: to be announced.Chapter RSVP line: 615-377-9651, ext. 312; for callers outside the 615 area code, 1-800-571-9995, ext. 312

METRO/NASHVILLE CHAPTERChapter President - John Whitaker: 615/843-3300.The Metro/Nashville Chapter meets on the fourth Monday of the month, 11:30 a.m. at the HBAMT offices.Next meeting: Monday, April 25.Topic: to be announced. Builders Free pending sponsorshipPrice: $10 per person with RSVP ($20 w/o RSVP).Chapter RSVP Line: 615/377-9651, ext. 304

ROBERTSON COUNTY CHAPTERNext meeting: to be announced.

Robertson County RSVP line: 615-377-9651, ext. 313.

SUMNER COUNTY CHAPTERThe Sumner County Chapter meets on the fourth Tuesday of the month, 11:30 a.m. at the new Hendersonville Library.Next meeting: to be announced.Chapter RSVP Line: 615/377-9651, ext. 306

WILLIAMSON COUNTY CHAPTERChapter President - BJ Hanson: 615/884-4935.The Williamson County Chapter meets on the third Tuesday of the month, 11:30 a.m. at the HBAMT offices.Next meeting: to be announced.Builders Free pending sponsorship.Price: $10 per person with RSVP ($20 w/o RSVP). Chapter RSVP Line: 615/377-9651, ext. 305

WILSON COUNTY CHAPTERThe Wilson County Chapter meets on the second Thursday of the month, 11:30 a.m. at the Five Oaks Golf & Country Club in Lebanon.Next meeting: to be announced.Chapter RSVP Line: 615/377-9651, ext. 309

COUNCILS

GREEN BUILDING COUNCILCouncil President - Erin Richardson: 615/883-8526.The Green Building Council meets on the fourth Wednesday of the month, 11:00 a.m.Next meeting: to be announced.Topic: to be announced.Price: free for Green Building Council members pending sponsorship; $20 for non-members with RSVP ($25 w/o).

Council RSVP Line: 615/377-9651, ext. 308

HBAMT REMODELERS COUNCILCouncil President - Ricky Scott.The HBAMT Remodelers Council meets on the third Wednesday of the month, 11:00 a.m. at varying locations.Next meeting: Wednesday, April 20.Location: to be announced. Topic: to be announced.Price: free for RMC members with RSVP; $15 for non-members with RSVP ($20 w/o).Council RSVP Line: 615/377-9651, ext. 301

INFILL BUILDERS COUNCILThe Infill Builders meets on the third Thursday of the month, 11:30 a.m. at the HBAMT offices until further notice.Next meeting: to be announced.Council RSVP Line: 615/377-9651, ext. 311

MIDDLE TENN SALES & MARKETING COUNCILCouncil President - Jody Derrick.The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices.Next meeting: Thursday, April 7.Topic: “Avoiding Data Risks and Disasters,” with tech expert Bill Dotson, Rocker Risk, LLC.SMC members free with RSVP thanks to DeBerry Insurance; non-SMC members $25 w/RSVP, $35 w/o RSVPCouncil RSVP Line: 615/377-9651, ext. 302.

CHAPTERs & CouNCILs

the nail, april, 2016

Documents