The Nail, February, 2016

February, 2016 l The NAIL 1

2 The NAIL l February, 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

102016 Home Show enjoys

busy weekend The annual HBAMT Home Show

had a successful three-day run at the Fairgrounds Nashville last month.

12Home Show Beer Garden makes impressive debut

The first ever “Builders and Brewers” Beer Garden made a splash during the busy Saturday afternoon hours at the

Home Show.

DEPARTMENTS

6News & Information

13SPIKE Club Report

14February Calendar

14Chapters and Councils

ON THE COVER:Consistent crowds packed the aisles of the

Fairgrounds Nashville during the 2016 Home Show last month. More details on page ten.


Sales of newly built, single-family homes rose 14.5 percent to 501,000 units in 2015, the highest level since

2007, according to newly released data from HUD and the U.S. Census Bureau. Mean-while, sales in December increased 10.8 percent to a seasonally adjusted annual rate of 544,000 from an upwardly revised No-vember reading.

“The December sales report is a great end to a very strong year,” said Ed Brady, chair-

man of the National Association of Home Builders (NAHB) and home builder and de-veloper from Bloomington, Ill. “As we move forward in 2016, we should see the housing market continue to make lasting gains.”

“Relatively low interest rates and an im-proving economy are motivating buyers to make a new-home purchase,” said NAHB Chief Economist David Crowe. “Build-ers are upping their inventory in response to heightened consumer interest. Housing inventory is now at its highest level since October 2009.”

Sales increased in all four regions in De-cember. The Midwest, West, Northeast and South all posted respective gains of 31.6 per-cent, 21 percent, 20.8 percent and 0.4 percent.

The inventory of new homes for sale was 237,000 units in December. This is a 5.2-month supply at the current sales pace. n

2015 new home sales reach eight year high

NEws&INfo

Relatively low interest rates and an improving economy are motivating buyers to make a new home purchase - housing is now at its highest level since October, 2009.


More than 110,000 housing industry professionals packed the aisles at Design & Construction Week,[tm]

held Jan. 19-22 in Las Vegas. This marked the third year of the co-located mega-event, which included the National Association of Home Builders (NAHB) International Builders’ Show (IBS), the Kitchen and Bath Industry Show, the International Window Coverings Expo and The International Surface Event.

Official attendance for IBS was 59,687, which was 8 percent higher than last year’s show. Nearly 1,400 IBS exhibitors filled more than 500,000 square feet of space, including a record-breaking 30,000-square- foot outdoor exhibit space. New products focused on home technology and increased energy efficiency:

two factors boosting the return of buyers to the new home market.

“The packed crowds and positive energy throughout this year’s Design & Construction Week are another indication of the residential construction industry’s ongoing recovery,” said NAHB Chairman Ed Brady.

IBS organizers also noted an increase in in-ternational exhibitors, with 460 exhibitors rep-resenting 25 countries and filling 72,000 square feet--or 14 percent of total IBS exhibit space.

Overall, Design & Construction Week boast-ed more than 3,750 exhibitors and 1.2 million net square feet of exhibit space.

“We reached our goal of creating the ‘must attend, must exhibit’ week for anyone and every-one in the residential construction industry,” said

Tom Swartz, chair of the NAHB Convention and Meetings Committee, during his report to the NAHB Board of Directors on the last day of IBS.

Crowded education sessions held during the show demonstrated that builders and re-modelers are taking a bigger interest in auto-mating their purchasing, accounting and sales systems. There were more than 120 education sessions during the event.

Swartz noted the expanded educational offering on the show floor, with more than 30 companies offering almost 90 “Exhibitor Forums,” and the addition of a new Exhibi-tor Forum Presentation Stage in Central Hall, where 16 exhibitors demonstrated their most innovative products.

Visit BuildersShow.com to see photos and videos of the show, as well as more informa-tion about the exhibitors, events, educational sessions and award winners.

The 2017 IBS, Jan. 10-12, moves to the Or-ange County Convention Center in Orlando. n

More than 110,000 attend 2016 International Builders Show

The millennial generation is poised to make a significant impact on home de-sign with their strong preferences for

energy efficiency and smart home technology; comfortable, workable kitchens and more ca-sual spaces, said speakers today from the Na-tional Association of Home Builders (NAHB) and Better Homes and Gardens. Both spoke at a press conference on housing preferences for millennials, Gen X, boomers and seniors held today during the NAHB International Build-ers’ Show in Las Vegas.

But first, they have to move out of their parents’ homes and into a place of their own, said NAHB Assistant Vice President for Sur-vey Research Rose Quint. In 2015, about 15 percent of adults ages 25-34 lived with a

parent, about 3 percent more than the highest share between 1983 and 2007 – 12 percent. That translates into 1.3 million people who normally “would be out there, forming their own households, demanding their own units,” either as buyers or renters, she said.

Quint had anticipated that new mortgage pro-grams and looser mortgage insurance require-ments unveiled a year ago would have led to an increase in consumers buying homes for the first time. But a look at the size of the typical new single-family home in 2015 found the opposite: home sizes grew to an average of 2,721 square feet, the highest yet, and an indication that the new-home market continues to be dominated by move-up buyers, rather than first-time buyers.

“Before we see that expected pullback in

square footage and price, we’re going to have to see a significant return of the first-time buyer,” who is more likely to buy a smaller home at a lower price point, Quint said.

This year, home buyers of all ages say they are looking for homes with separate laundry rooms, energy-star appliances and windows, exterior lighting and a patio.

What they don’t want are rooms with cork flooring, elevators, pet washing stations, ex-pensive outdoor kitchens and fireplaces, and two-story entryways and family rooms. And their countertops should be granite, but nev-er laminate, according to a Fall 2015 survey of potential buyers.

In terms of house type, buyers want a de-tached, single-family home: 65 percent of all buyers and 68 percent of millennials expressed that preference. That number rises to 72 percent with Gen X (born between 1965 and 1979) but falls somewhat to 55 percent with those born before 1945, Quint said.

Millenials to shape housing preferences


NEws&INfo

Builder confidence in the single-fami-ly 55+ housing market remains strong in the fourth quarter of 2015 with a

reading of 61, up one point from the previous quarter, according to the NAHB’s 55+ Housing Market Index (HMI). This is the seventh con-secutive quarter with a reading above 50.

“Builders and developers for the 55+ hous-ing sector continue to report increased opti-mism in the market,” said Jim Chapman, chair-man of NAHB’s 55+ Housing Industry Council and president of Jim Chapman Homes LLC in Atlanta. “We are seeing steady consumer demand for homes and communities that are designed to address the specific needs of the mature homebuyer.”

There are separate 55+ HMIs for two seg-ments of the 55+ housing market: single-family homes and multifamily condominiums. Each 55+ HMI measures builder sentiment based on a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for

that market are good, fair or poor (high, aver-age or low for traffic). An index number above 50 indicates that more builders view conditions as good than poor.

One of the three index components of the 55+ single-family HMI posted an increase from the previous quarter: traffic of prospective buy-ers increased six points to 52. Present sales held steady at 65 while expected sales for the next six months decreased four points to 63.

The 55+ multifamily condo HMI dropped eight points to 42, falling back to a range typical of the past year and a half. All three components decreased as well: present sales fell 10 points to 44, expected sales for the next six months fell 10 points to 46 and traf-fic of prospective buyers edged down three points to 37.

Three of the four indices tracking produc-tion and demand of 55+ multifamily rentals posted gains in the fourth quarter. Present production and expected future production both rose one point to 56 and 61, respective-ly, and future demand increased three points to 71, while current demand for existing units fell four points to 66.

“This quarter’s 55+ HMI is in line with our forecast for the overall housing market, which shows a gradual, steady recovery,” said NAHB Chief Economist David Crowe. “In addition, the 55+ housing market is benefitting from growing home equity on the balance sheets of 55+ households, an improving economic outlook, historically low mortgage rates and a growing population as baby boomers age.”

For the full 55+ HMI tables, please visit www.nahb.org/55hmi. n

Builder confidence in 55+ market ends year on a positive note


2016 Home Show draws big crowds

Annual HBAMT event packed them in at the Fairgrounds Nashville.

The 2016 Home Show opened January 29 at the Fairgrounds Nashville and drew big crowds throughout a busy three-day weekend. Taking advantage of the unseasonably pleasant weather, attendees flocked to the event where they found a

wealth of home improvement products and services, helpful vendors, and educational seminars.

A big hit a this year’s Home Show was the first ever “Builders and Brewers” Beer Garden, held the second day of the event. See page 12 of this issue for more details and a list of participants

The 2017 Home Show is already signing up vendors for next year’s event scheduled for another three-day run January 13-15.

Call the HBAMT at (615) 377-1055 to request your 2017 Home Show registration form. Or visit the event’s page at www.hbamt.org for a downloadable one-page registration form. n

Marty makes the rounds! Home Show Chairman Marty Maitland took to the airwaves to promote the 2016 show. Clockwise from above: with Meryll Rose on Talk of the Town; mixing it up with 92.9’s Anna Marie; on set with Kacy Hagerty for a More at Midday segment.


“Builders & Brewers” Beer Garden a hit!

BREWERS! BUILDERS!

Who likes beer?The 2016 “Builders and Brewers” Beer Garden proved very popular among attendees and vendors alike. Conceived and organized by Home Show Chairman Marty Maitland, the success of the four hour event held the second day of the show might have kicked off an annual tradition. BuildeRs: Aspen Con-struction; Barlow Builders; Building Masters; Celebra-tion Homes; Goodall Homes; HND Realty; Ole South Properties; Regent Homes; Tennessee Valley Homes; and The Jones Company. BReWeRs: Black Abbey; Cool Springs Brewery; Czann’s Brewing Company; Fat Bottom Brewing; Granite City Food and Brewery; Mantra Artisan Ales; Mill Creek Brewing; Tailgate Beer; Tennessee Brew Works; and Yazoo Brewing Company.


sPIKE REPoRT

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 December 31, 2015.

Top 20 Big Spikes

Jim Ford 912Virgil Ray 821Bill King 776Mitzi Spann 707Terry Cobb 567Jim Fischer 566John Whitaker 456James Carbine 344Jennifer Earnest 344Kevin Hale 287David Crane 274Tonya Jones 271Trey Lewis 261Reese Smith III 261Steve Moody 219Sonny Shackelford 219Davis Lamb 194Jackson Downey 174Tim Ferguson 174Jim McLean 164

Life Spikes

James Franks 163Louise Stark 163Harry Johnson 146Steve Cates 140C.W. Bartlett 138Tonya Alexander 128Sam Carbine 127Steve Hewlett 119Carmen Butner 108B.J. Hanson 105Dave McGowan 104Johnny Watson 101Julie DuPree 97Jordan Clark 90Duane Vanhook 90Jeff Zeitlin 87Erin Richardson 76Wiggs Thompson 74Jeff Slusher 70John Baugh 68Michael Dillon 66Don Bruce 62Jim Ford, Jr. 62Beth Sturm 59Hill McAlister 57Lori Fisk-Conners 55Joe Morgan 54John Broderick 53Gerald Bucy 53David Hughes 51Al Davis 47Andrew Neuman 46Benny Sullivan 46John Ganschow 45Christina Cunningham 44Bryan Edwards 44Kay Russell 44

Peggy Krebs 40David Lippe 38Andy Wyatt 37Chuck Clarkson 36Frank Miller 36Brad Butler 35Al Hacker 34Ray Edwards 32Derenda Sircy 32Randall Smith 32Dan Strebel 32Steve Wheeley 30Alvin Basel 29Justin Hicks 29John Zelenak 26Marty Maitland 25

Spikes

Don Mahone 21Frank Tyree 16Ashley Crews 12Ricky Scott 10Gina Hewlett 10Don Alexander 9Ron Schroeder 9Keith Porterfield 7McClain Franks 6

Better Homes and Gardens Brand Executive Editor Jill Waage echoed Quint’s findings on preferences for well-equipped kitchens and ca-sual, comfortable living spaces.

What’s important about this generation is their comfort with technology. Millennials “are leading the way on this,” Waage said. “They are the first generation to walk into homeownership with a smartphone in their hands.”

These millennials want to use technology to make entertainment choices easier, monitor the comings and goings of packages, repairmen and their children, and improve their health and well-being. When it comes to product choic-es, “they’ve read the ratings, comments and reviews, and they know what’s worth it,” and have probably created a Google alert so they know when it’s on sale, she said.

Their home improvement preferences center on home organization and workspaces, as the separation between working in an office and telecommuting continues to blur.

“This generation is searching out ideas, fol-lowing bloggers,” and creating Pinterest boards with their preferences, Waage said. “They’ve already curated their dream home online, sav-ing it on their boards so they can [be ready] when the day finally comes.”

The survey results are also important to home builders in the 55+ market, said David

Peskin, president of Reverse Mortgage Fund-ing LLC (RMF), which sponsored the NAHB study. “The boomer generation is currently experiencing a transition to their next phase of life, so the home building and finance indus-tries should commit to better understand the needs of this generation to offer the best solu-tions for them,” Peskin said.

“The results of this important survey shed

light on the buying preferences of older Amer-icans, and confirm an uneasiness over finances is one of the primary reasons they are hesitant about relocating to a new residence. We are committed to helping home owners age 62 and older meet their financial needs, so this data will be informative to the way we educate consum-ers about our Home Equity Conversion Mort-gage for Purchase (H4P) product.” n


1 2 3 4 5 6

7 8 9 10 11 12 13

14 15Dickson County Chapter

meeting

16Metro/Nashville Chapter

meeting

17 18 19 20

21 22 23 24 25 26 27

28 29 1 2 3Sales & Marketing Council meeting

4 5

6 7 8 9 10 11 12

fEBRUARY 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, February 15.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: Tuesday, February 16.Topic: “Fiber Optics in 2016,” with Cosmos Fiber. 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: to be announced..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 - Derenda Sircy.The SMC meets on the first Thursday of the month, 9:00 a.m. at the HBAMT offices.Next meeting: Thursday, March 3.Topic: “Appraisals and the Appraisal Process.”SMC members FREE with RSVP pending sponsorship; non-SMC members $25 w/RSVP, $35 w/o RSVPCouncil RSVP Line: 615/377-9651, ext. 302.

CHAPTERs & CoUNCILs

The Nail, February, 2016

Documents

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