July, 2014 l The NAIL 1

2 The NAIL l July, 2014

Please return your completed registration form (provided below) to e HBAMT to enter.ALL COMPANIES AND SINGLE PLAYERS ENTERING MUST BE A MEMBER OF THE HBAMT.

CONTACT ________________________________ COMPANY _____________________________________

EMAIL ___________________________________ PHONE ________________________________________

Print names of players. Four (4) players per team ($195.00 per player). Players reserving for ONE only ($205.00) will be assigned a foursome.

1.) _________________________________________ 2.) _____________________________________________

3.) _________________________________________ 4.) _____________________________________________

Check your preference (to accommodate all golfers we are hosting two rounds): r Morning Round | r Afternoon Round

_____________ Number of players x $195.00 or One (1) player for $205.00 | Make checks payable to HBAMT; to pay by credit card call 377-1055.

Return entries to: HBAMT - 9007 Overlook Blvd, Brentwood, TN 37027 | Fax: (615) 377-1077 | Email: receptionist@hbamt.net

The 2014 HBAMTGolf TournamentSummer Blowout!

LEGENDS GOLF COURSE

Friday, August 151st Round: 8:00 AM | 2nd Round: 1:30 PM

The HBAMT;’s answer to the summertime blues is returning - don’t miss the 3rd Annual HBAMT Golf Tournament & Summer Blowout! Two spirited rounds of golf, valuable prizes, delicious food fresh from the grill and live entertainment sure to keep you dancing into the evening! Gather your customers and coworkers and join us at the Legends Golf Course Friday, August 15th.

BEST BALL, 4-MAN SCRAMBLE

$195.00 per player (team) | $205.00 per singleGolfers registration fees include:Green & Cart Fees, Beverages, Hole Prizes, Awards and two tickets to the Summer Blowout, where you’ll enjoy tasty grilled treats & live entertainment.

&

LIVE MUSIC!

July, 2014 l The NAIL 3

LIVE MUSIC!

4 The NAIL l July, 2014

The official magazine ofHome Builders Association

of Middle Tennessee

PresidentMichael Dillon

Vice PresidentTrey Lewis

Secretary/TreasurerRandall Smith

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

July, 2014 l The NAIL 5

FEATURES

9Green homes show growth

during market recoveryNew report, “Green Multifamily & Single Family Homes: Growth in a Recovering Market,” surveys builder and remodeler

members of the NAHB.

10Third Fishing Tournament

in the booksThe third 2014 Piedmont Natural Gas

Bass Trail Tournament was held last month at Bull Creek Marina in Gallatin, Tenn.

DEPARTMENTS

6News & Information

13SPIKE Club Report

14July Calendar

14Chapters and Councils

ON THE COVER:New home construction showed big growth in May according to the NAHB. Fore more see

the full story on page six.

6 The NAIL l July, 2014

NEws&INfo

New home sales up 18.6 percent in May

As job creation continues expect further release of pent-up demand and continued gradual growth in the housing recovery.

Robin Ziegler from Metro’s Historic Zoning Commission spoke at the June meeting of the Metro/Nashville Chapter. Ziegler talked about Metro’s historic guidelines for new construction. The chapter’s next meeting is schedulded for Monday, July 28th.

A panel of sales professionals including Ray Khayatt, Coldwell Banker Barnes, and Greg Crockett, Reliant Realty, led the Sales and Mar-keting Council’s June meeting, “Understanding Buyers from other Cultures.” A big thanks to US Bank for sponsoring the meeting. The next SMC meeting will not be held until Thursday, August 7 at the HBAMT.

Aerial Development’s Jeremy Leggo spoke to the large crowd that attended the Infill Builder’s Council meeting June 19 at the HBAMT. The association’s newest council will meet next in August.

Sales of newly built, single-family homes rose 18.6 percent to a seasonally adjusted annual rate of 504,000 units in May, ac-

cording to newly released data by the U.S. De-partment of Housing and Urban Development and the U.S. Census Bureau. This is the highest rate since May 2008.

“These numbers are in line with our recent builder surveys, which indicate that more con-sumers are getting off the fence and coming

back into the marketplace,” said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and de-veloper from Wilmington, Del.

“This increase is a welcome sign after a slow start to 2014,” said NAHB Chief Economist David Crowe. “As job creation continues, we can expect further release of pent-up demand and continued gradual growth in the housing recovery.”

Regionally, new-home sales were up across the board. Sales rose 54.5 percent in the North-east, 34 percent in the West, 14.2 percent in the South and 1.4 percent in the Midwest.

The inventory of new homes for sale held steady at 189,000 units in May. This is a 4.5-month supply at the current sales pace. n

July, 2014 l The NAIL 7

Of the approximately 350 metro markets na-tionwide, 56 returned to or exceeded their last normal levels of economic and housing

activity, according to the National Association of Home Builders/First American Leading Markets In-dex (LMI), released recently. This represents a net gain of nine metros year over year.

The index’s nationwide score of .88 held steady from the previous month. This means that based on current permit, price and em-ployment data, the nationwide average is run-ning at 88 percent of normal economic and housing activity. Meanwhile, 30 percent of metro areas saw their score rise this month and 83 percent have shown an improvement over the past year.

“Markets are gradually returning to normal levels of housing and economic activity,” said NAHB Chairman Kevin Kelly. “When we see more sustainable levels of job growth, this will unleash pent-up demand and bring more buyers into the marketplace.”

Baton Rouge, La., continues to top the list of major metros on the LMI, with a score of 1.4 – or 40 percent better than its last normal market level. Other major metros at the top of the list include Honolulu; Oklahoma City; Austin, Tex-as and Houston. Rounding out the top 10 are Los Angeles; San Jose, Calif.; Harrisburg, Pa.; Pittsburgh and Salt Lake City – all of whose

LMI scores indicate that their market activity now equals or exceeds previous norms.

“Of the three components in the LMI, the one lagging is single-family housing permits, which is only 43 percent of the way back to normal while home prices are 26 percent above their last normal level and employment is at 95 percent of its previous norm,” said NAHB Chief Economist David Crowe. “In the 22 met-ros where permits are at or above normal, the

overall index indicates that these markets have fully recovered.”

“Well over one-third of all markets are operating at a level of at least 90 percent of previous norms, and this bodes well for a con-tinuing housing recovery in the year ahead,”

said Kurt Pfotenhauer, vice chairman of First American Title Insurance Co., which co-spon-sors the LMI report.

Looking at smaller metros, both Odessa and Midland, Texas, boast LMI scores of 2.0 or bet-ter, meaning their markets are now at double their strength prior to the recession. Also at the top of the list of smaller metros are Bismarck, N.D.; Casper, Wyo.; and Grand Forks, N.D., respectively.

The LMI shifts the focus from identifying markets that have recently begun to recover, which was the aim of a previous gauge known as the Improving Markets Index, to identify-ing those areas that are now approaching and exceeding their previous normal levels of eco-nomic and housing activity. More than 350 metro areas are scored by taking their average permit, price and employment levels for the past 12 months and dividing each by their annual av-erage over the last period of normal growth. For single-family permits and home prices, 2000-2003 is used as the last normal period, and for employment, 2007 is the base comparison. The three components are then averaged to provide an overall score for each market; a national score is calculated based on national measures of the three metrics. An index value above one indicates that a market has advanced beyond its previous normal level of economic activity.

In calculating the LMI, NAHB utilizes employ-ment data from the Bureau of Labor Statistics, house price appreciation data from Freddie Mac and single-family housing permits from the U.S. Census Bureau. For historical information and charts, please go to nahb.org/lmi. n

Index shows 56 metros at or above normal levels in June

Builder confidence in the market for newly built, single-family homes rose four points in to reach a level of 49 on

the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released recently. It remains one point shy of the threshold for what is considered good building conditions.

“After several months of little fluctuation, a four-point uptick in builder sentiment is a welcome sign and shows some renewed confidence in the industry,” said NAHB Chairman Kevin Kelly. “However, builders are facing strong headwinds, including the limited availability of labor.”

“Consumers are still hesitant, and are wait-ing for clear signals of full-fledged economic

recovery before making a home purchase,” said NAHB Chief Economist David Crowe. “Build-ers are reacting accordingly, and are moving cautiously in adding inventory.”

Derived from a monthly survey that NAHB has been conducting for 30 years, the NAHB/Wells Fargo Hous-ing Market Index gauges builder per-ceptions 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 ad-justed index where any number over 50

indicates that more builders view condi-tions as good than poor.

All three index components posted gains in June. Most notably, the component gauging current sales conditions increased six points to 54. The component gauging sales expectations in the next six months rose three points to 59 and the component measuring buyer traffic in-creased by three to 36.

Looking at the three-month moving aver-ages for regional HMI scores, the South and Northeast each edged up one point to 49 and 34, respectively, while the West held steady at 47. The Midwest fell a single point to 46..

Editor’s Note: The NAHB/Wells Fargo Housing Market Index is strictly the prod-uct of NAHB Economics, and is not seen or influenced by any outside party prior to be-ing released to the public. HMI tables can be found at nahb.org/hmi. More informa-tion on housing statistics is also available at housingeconomics.com. n

Builder confidence rises four points in June

8 The NAIL l July, 2014

July, 2014 l The NAIL 9

Residential construction is a key engine behind economic growth in the United States. According to McGraw Hill Construction’s

Dodge Construction Market Forecast, single and multifamily housing projects account for about 45% of the value of all construc-tion projects started in theUnited States in 2014. With that market forecasted to grow rapidly in coming years, the green activity and drivers in the market are critical. The new SmartMarket Report of the single and multifamily builder and remodeler com-munity released recently by McGraw Hill Construction (http://www.construction.com/) contains this critical intelligence.

The report, “Green Multifamily & Single Family Homes: Growth in a Recovering Mar-ket,” surveys builder and remodeler members of the National Association of Home Builders and reveals the evolution of green building for single family homes from boom to bust to recovery through comparisons with previous studies from 2006 to 2011, and includes new data on multifamily housing to provide a com-prehensive review of the sector.

According to the latest study:

• 62% of firms building new single family homes report that they are doing more than 15% of their projects green. By 2018, 84% of them expect this level of green activity.

• 54% of firms building new multifamily projects report that they are doing more than 15% of their projects green. There is also growth expected—with 79% reporting the same level of activity anticipated by 2018.

• In the single family market, the most striking shift is in those firms dedicated to green building (doing more than 90% of their projects green). That percentage is already at 19%, and by 2018, it is expected to double (to 38%).

The study finds that builders and remodelers in both the single family and multifamily sectors report that the market is recognizing the value of green: 73% of single family (continued on page 13)

Green homes show growth in recovering market

10 The NAIL l July, 2014

Robert E. Lee and Rocky Lee took home first place honors following the third Piedmont Natural Gas Fishing Tournament of 2014.

The third Piedmont Natural Gas Fishing Tournament of the year took place June 17 on Old Hickory Lake at Bull Creek

Marina in Gallatin, Tenn.Robert E. Lee and Rocky Lee from Pied-

mont Natural Gas took home first place hon-ors for reeling in 14.90 lbs worth of catches.

Joe Haas and Rusty Rust weighed in with 12.11 lbs to earn second place honors for the Joe Haas Waterproofing boat.

And the Piedmont Natural Gas team of Donnie Whitaker and Luke Whitaker reeled in 11.75 lbs worth of catches to secure third place honors.

Robert E. Lee and Rocky Lee also won the “Big Fish” award for a catch weighing 5.44 lbs.

Special thanks to title sponsor Piedmont Natural Gas; platinum sponsors ABC Supply Company and Petersen & Sons; and silver spon-sors American Heating and Cooling, Reliance Heat & Air and Stonegate Mortgage.

Next stop: Monday, September 15 at Goose Pond Marina. n

Fishing tournament sails towards end

Company Boat Fisherman Wt.

Piedmont Natural Gas Robert E. Lee & Rocky Lee 14.90

Joe Haas Waterproofing Joe Haas & Rusty Rust 12.11

Piedmont Natural Gas Donnie Whitaker & Luke Whitaker 11.75

Piedmont Natural Gas Lamar Morgan & Joe Reese 11.34

Piedmont Natural Gas Jerry Bell & Rob Hall 10.89

Mid Tenn Flooring Hassan Moghdom & Donnie Rubel 10.79

Piedmont Natural Gas Tommy Lynch & Scott Mrzena 10.53

Jeffco Flooring Oliver Bradley & Jeff Johnson 10.38

Inter-Vac Systems Jody Smith & Randy Summers 8.68

Piedmont Natural Gas Kevin Dennis & Dennis Jenkins 7.24

July, 2014 l The NAIL 11

At left: Rusty Rust and Joe Haas, second place winners from the Joe Haas Waterproofing boat.

Above: Donnie Whitaker and Luke Whitaker, thrid place winners from one of the Piedmont Natural Gas boats.

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July, 2014 l The NAIL 13

Thirteen 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 May 31, 2014.

Top 20 Big Spikes

Jim Ford 912Virgil Ray 821Bill King 776Mitzi Spann 676Jim Fischer 566Terry Cobb 565John Whitaker 389James Carbine 331Jennifer Earnest 325Dan Stern 306Kevin Hale 286Tonya Jones 271Reese Smith III 260David Crane 246Steve Moody 219Sonny Shackelford 216Davis Lamb 183Cyril Evers 181Jackson Downey 174Tim Ferguson 167

Life Spikes

Jim McLean 164Louise Stark 163Trey Lewis 152Harry Johnson 146Steve Cates 140C.W. Bartlett 138Tonya Alexander 127Steve Hewlett 119Sam Carbine 117James Franks 117Carmen Butner 105Johnny Watson 101Dave McGowan 99B.J. Hanson 97Jeff Zeitlin 87Duane Vanhook 83Jordan Clark 81Julie DuPree 77Erin Richardson 76Jeff Slusher 70John Baugh 68Wiggs Thompson 63Don Bruce 62Jim Ford, Jr. 62Hill McAlister 57Joe Morgan 54Gerald Bucy 53Beth Sturm 53John Broderick 52David Hughes 49Al Davis 47Sheila Rawlings 47Bernie Laine 46Greg Langley 46Benny Sullivan 46Lori Fisk-Conners 45Andrew Neuman 45

Bryan Edwards 44Kay Russell 44Peggy Krebs 39John Ganschow 38David Lippe 38Michael Dillon 37Andy Wyatt 37Chuck Clarkson 36Frank Miller 36Brad Butler 35Al Hacker 34Ray Edwards 32Dan Strebel 32Steve Wheeley 30Alvin Basel 29Christina Cunningham 25

Spikes

Don Mahone 17Marty Maitland 17Jess Dillon 16Tracy Lomax 14Frank Tyree 12Justin Hicks 11Derenda Sircy 11Pam Smith 10Don Alexander 9

sPIKE REPoRT

(cont’d from page 9) builders (up from 61% since the last report) and 68% of multifamily builders say consumers will pay more for green homes.

“Greater consumer interest in green homes has contributed to the ongoing growth, leading us to anticipate that by 2016, the green single family housing market alone will represent approximately 26% to 33% of the market, trans-lating to an $80 billion to $101 billion oppor-tunity based on current forecasts. The findings also suggest that lenders and appraisers may be starting to recognize the value of green homes, making it a factor that could help encourage the market to grow if there is more widespread awareness across the U.S.,” said Harvey Bernstein, vice president, Industry Insights and Alliances for McGraw Hill Construction.

The study also examines the triggers for green building activity. “This new study demonstrates phenomenal growth in green building, with more builders engaging in sustainable building practices than ever before,” said NAHB Chairman Kevin Kelly, a home builder and developer from Wilm-ington, Del. “While growth in green in the single family market is driven more by high quality and customer demand, the multifamily market is more driven by cost factors such as the availability of government or utility incentives, as well as enhancing their competitive position and corporate

image. All are compelling reasons for the industry to engage with this continuously growing market.”

The SmartMarket Report also reveals a vigorous and growing renewables market in the residential sector. 65% of the respondents – both single family and multifamily – currently use renewables on at least some of their proj-ects, and the percentage that incorporate them in all of their projects is expected to grow from 8% in 2013 to 20% by 2016.

“Green Multifamily &Single Family Homes: Growth in a Recovering Market” was produced by McGraw Hill Construction in partnership with the NationalAssociation of Home Builders, with the support of Waste Management and Menck Windows. View the full report here: http://analyt-icsstore.construction.com/2014GreenHomesSM-R?sourcekey=PRESREL. n

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1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28Metro/Nashville Chapter meeting

29 30 31 1 2

3 4 5 6 7Sales & Marketing Council meeting

8 9

JULY 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, August 18.Topic: to be announced. 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, July 28. Topic: to be announced.Price: Builders Free pending sponsorship; $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.Price: Builders Free pending sponsorship; $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 - Jason Broderick.The HBAMT Remodelers Council meets on the third Wednesday of the month, 11:00 a.m. at varying locations.Next meeting: Wednesday, August 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 - Trey Lewis.The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices.Next meeting: Thursday, August 7. Topic: to be announced.Price: SMC members free pending sponsorship! ($10 w/o RSVP); $20 for non-members with RSVP ($25 w/o).Council RSVP Line: 615/377-9651, ext. 302.

CHAPTERs & CoUNCILs

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16 The NAIL l July, 2014