Nation's Building News Online: December 4, 2006Print All Articles Text Version |
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Builders May Have Seen the Worst of Current DownturnAlthough the current housing slowdown is expected to persist into the middle of next year, on a national basis builders may have seen the worst of the downturn, according to economists, a view substantiated last week by reports of new and existing home sales stabilizing in October. “Although residential construction continues to sag, some indications suggest that the rate of home purchase may be stabilizing, perhaps in response to modest declines in mortgage interest rates over the past few months and lower prices in some markets,” said Federal Reserve Chairman Ben Bernanke in a Nov. 28 speech before the National Italian American Foundation. Bernanke also cited the University of Michigan's recent survey of consumers that showed an increase in the share of respondents who believe that now is a good time to buy a home, from 56% in September to 67% in November, and noted that the index of mortgage applications for home purchases has been trending up since July. “Although these developments are encouraging, we should keep in mind that even if demand stabilizes in its current range, reducing the inventory of unsold homes to more normal levels will likely involve further adjustments in production,” he added. A Falling New-Home Inventory Figures released by the Commerce Department last Thursday showed the inventory of new single-family homes for sale falling for the third consecutive month in October. At today's sales pace, it would take seven months to clear out the backlog of unsold homes. Completed homes for sale were nearly 30% of the inventory, while units still under construction represented 54% of the inventory and units for-sale that were permitted but not yet started represented more than 16%. While completed units as a share of total homes for sale have been on the rise, the median length of time that a completed home was on the market in October was 3.8 months, down from four months a year earlier. Sales of new single-family homes edged down during the month by 3.2%, reaching a seasonally adjusted annual rate of 1.004 million units, which was about the average pace for this year’s third quarter. “The new-home sales report by the government is in line with what builders have been reporting from the field for several months, that the market correction in terms of sales is largely behind us and the market is stabilizing,” said NAHB President David Pressly. To work down the inventory, builders have been aggressively stepping up their marketing efforts to increase the awareness among prospective customers of the continuation of relatively low mortgage rates and overall market conditions that give an edge to buyers over sellers. Pressly said that NAHB surveys are showing that nearly half of the builders are now trimming prices and most are offering non-price sales incentives. “These efforts have helped,” he said. Market Fundamentals in Place for a Sales Lift “A variety of market measures indicate that home sales now are stabilizing following a substantial correction from the unsustainable highs reached last year,” said David Seiders, NAHB’s chief economist. “Aggressive sales efforts by builders, combined with historically low mortgage interest rates and solid growth in employment and household income, have buoyed housing affordability in recent months.” Existing home sales held steady in October, the National Association of Realtors® (NAR) said last week, with a 0.5% rise to a seasonally adjusted annual rate of 6.24 million units from an upwardly revised pace of 6.21 million in September. Sales were 11.5% below the 7.05-million pace of a year earlier. “The present level of home sales demonstrates some confidence in the market,” said David Lereah, NAR’s chief economist, “but sales are lower than sustainable due to psychological factors.” Lereah said that the market fundamentals — including household growth — are in place to support more robust sales activity, “but many buyers remain on the sidelines. After a period of price adjustment, we’ll see more confidence in the market and a lift to home sales should be apparent in the first quarter of 2007.” The inventory of resale homes was up 1.9% in October to 3.85 million, a 7.4-month supply at the current sales pace. Mortgage Rates Drift Lower Long-term mortgage rates edged down for the fifth consecutive week last week, according to Freddie Mac's Primary Mortgage Market Survey. The 30-year, fixed-rate mortgage averaged 6.14%, down from 6.26% for the same week in 2005. The rate was the lowest since the week ending Jan. 26, when it averaged 6.12%. Frank Nothaft, Freddie Mac’s chief economist, noted that mortgage applications for home purchases in November remained healthy, “due largely because of the drop in mortgage rates and a softening in home prices in some areas.” The week before last, two-thirds of the 49 economists responding to a Wall Street Journal forecasting survey predicted that the worst of the housing slump is over. Want to Know the Long-Term Forecast Through 2015? Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com. Products, Networking, Education Draw Industry Pros to IBSHome building professionals cite educational sessions, product exhibits and networking as key reasons for attending the International Builders’ Show (IBS), which will be held Feb. 7-10 in Orlando, Fla. with pre-show education beginning Feb. 3 According to previous attendees, the top five draws to the show include:
Discounted Online Registration Discounted online registration is available through Friday, Jan. 5. Onsite registration begins Sunday, Feb. 4. For more information, visit the Builders’ Show Web site at www.BuildersShow.com.
Flyer Lists 10 Great Reasons to Buy a HomeWith “It’s a Great Time to Buy" promotional materials in hand, NAHB members are continuing to emphasize the opportunities for buying a home in today’s buyer’s market — including a leveling off in prices, affordable mortgage interest rates and a buoyant national economy that is generating new jobs and income growth. A one-page flyer in the free, online package lists the top 10 reasons to buy a home:
To access all of the “buy now” materials, click here. As part of the effort, additional resources are available to consumers at www.nahb.org/timetobuy. For more information, e-mail Niki Clark at NAHB, or call her at 800-368-5242 x8061. Share Nation's Building News With Your Staff. It's Free.Make your business click. Subscribe your employees and trade partners to Nation's Building News — the free, online e-newspaper of NAHB. Each issue is filled with valuable news and information on every aspect of the home building industry — business and builders tips; the latest materials prices and mortgage interest rates; new technologies; cutting-edge design; state and federal regulations and how they affect the industy; and more. Information your entire company needs to stay ahead of your competitors. Forward this issue to your employees and trade partners and ask them to subscribe. Nation's Building News, it's free to them — invaluable to you. Don't delay, have your employees subscribe today. To subscribe, go to www.nahb.org/nbn. NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Home Builders Gearing Up for 2008Believing that the new-home market has turned the corner, builders in the South Bay, Calif. area are gearing up for 2008, when they predict the next housing cycle will take off. Sales in the area are up compared to a year ago, thanks largely to incentives offered to lure home buyers to new housing projects. “That’s gotten a lot of people to get off the fence,” said Paul Desmet, president of the Ryness Co., a data research company based in San Ramon. “The new home builders quite frankly are starting to run out of product.” According to data collected weekly by Ryness, more Bay Area buyers looked at fewer projects in the week ending Nov. 19 than the same period of last year, resulting in 32% more sales. Almost 7,000 buyers toured 200 projects, and more than 110 bought a house. “Most of us are positioning ourselves for 2008,” said Roger Menard, a housing industry veteran who now leads John Laing Homes’ Northern California division. “That’s the general wisdom among all of us as to when the market will rebound.” Desmet agreed: “The market will self correct in 2007 and that will be the foundation for the next cycle.” With 60,000 jobs projected for the area in the next year, “we’re very bullish on building housing next to employment centers,” said Menard, whose company plans to build about 1,000 units in the area. John Revells, of Palo Alto-based SummerHill Homes, said that he too has noticed that the cities closest to the job centers are doing better than outlying regions. (www.mercury news.com)
The Median Is the Message: Sales Volumes vs. Median PricesGiven the unprecedented run-ups in real estate prices during the boom years, the 1.2% decline in median home prices reported by the National Association of Realtors® (NAR) for this year’s third quarter — amounting to $2,700 — is really not shocking, but it is important because it is unusual and signals that something negative is underway in the marketplace. However, median prices actually increased in 102 of the 148 cities surveyed by NAR, 45 declined, and one — high-cost San Jose, Calif. — stayed flat. In other words, in 69% of the local markets where median prices changed year to year, the directional arrow was up, and in 30%, the arrow pointed down. Some of the median price jumps were surprisingly high: 14.6% in Seattle, 19.2% in Salt Lake City, 12.9% in Beaumont, Texas and 12.3% in Portland, Ore. Some of the most populous metro markets saw net gains: 3.6% in New York, 1.7% in Chicago, 5.2% in Los Angeles, 6.4% in San Antonio, 3.8% in San Francisco and 2.4% in Philadelphia. Median prices have held up even though sales volume in the frothiest markets has tanked, because absent severe reversals in national or local economies, housing prices and values move glacially in retreat. Most home sellers in stable local economies aren’t forced to sell if they don’t get the price they want; they can postpone the sale until market conditions improve. (www.washingtonpost.com)
Condo Developers Sweeten the BaitWith tens of thousands of new condominiums entering the Washington, D.C. market, some developers are moving beyond luxury cars, plasma televisions and other inducements to lure buyers. Instead, they are starting to negotiate the base price of homes, and those who are reducing prices say they are doing it to buck up the confidence of a large pool of jittery would-be buyers at a time when the economy is sound, jobs are plentiful and interest rates are low. “There’s now an offer/counteroffer mentality, a back and forth,” said David Mayhood, president of Mayhood, a McLean, Va. firm that has marketed condos since 1983. “That would have been unheard of as recently as six months ago.” The price of new condos fell 4.6% in the District and 2.6% in Northern Virginia in the third quarter of the year compared with the same period a year ago, according to real estate information firm Delta Associates. In Maryland, where the supply is relatively low, prices climbed 5.3%. Many condos remain to be sold. At this point, if no other condos were added to the market, it would take another three years to sell them. At the Park at Courthouse, a 98-unit project being built in Arlington, Va., the developer has slashed prices twice since it began marketing the condos in June 2005. It has sold 23 units. Condos originally marketed for $380,000 to $660,000 now sell for $317,000 to $565,000. Bargains and freebies won’t last forever, said Pat Peavley, a regional vice president at the Fairfax, Va. office of First Horizon Home Loans. “The incentives are just about maxed out because there’s only so much developers can legally give in order to entice consumers to buy,” he said. As for price cuts, “many of the developers are down to the bare-bones amount they can sell for and still stay in business.” (www.washingtonpost.com)
Housing Starts: Best and Worst YearsAs bad as it sounds, the 14.6% decline in housing starts in October was nowhere near the levels of the worst months for housing starts in the past 47 years. The historical monthly median — based on data dating back to 1959 — is 1.529 million, just 2.8% higher than the annual rate of 1.486 million reported for October. Moreover, the past indicates that this downturn in home construction is, for lack of a better word, constructive. “It’s inevitable and good,” says David Seiders, chief economist of NAHB. “It would have been better not to have the binge, but we did, and now home builders are doing exactly what they should be doing.” Seiders added that housing is still recognized as the most interest-sensitive part of the U.S. economy. There have been seven housing cycles prior to the current cycle, in the time period between 1959 and the present, and the average peak-to-trough decline of these seven cycles is 47.3%, according to Paul Kasriel, director of economic research at the Northern Trust Chicago. In the current cycle, housing starts have declined 34% from their peak in February 2005 to October 2006 levels. To match the historic average, starts would need to bottom out at an annual rate of 1.166 million units, he said. (www.businessweek.com)
A ‘Foam’ Sweet Home Is Going UpHabitat for Humanity of New York City is putting up a nine-family condo in Bedford-Stuyvesant using blocks made of environmentally and energy friendly Styrofoam. This is a first for Habitat, which has built or rehabilitated 165 units of affordable housing in the five boroughs, executive director Roland Lewis said. The polystyrene foam is effective at keeping out noise, mold and dust, while keeping in warm or cool air, according to Chris Pearson of PolySteel, the local supplier of the material. It’s also used for egg cartons and ice chests, and can be recycled. The total cost of the construction project, including energy-efficient appliances and sustainable wood flooring, is estimated at $2 million, Lewis said. That’s slightly more than convention construction costs, but the energy savings is conservatively estimated at 35%-40%. (www.nydailynews.com)
Modular Homes Gain Favor With BuildersModular homes, also known as “systems-built” housing, have been gaining ground nationwide in recent years. While they still account for only a fraction of total residential construction, the numbers have been increasing. NAHB estimates that about 44,000 modular homes were constructed in 2005, about 26% more than a decade earlier. Most modular homes are going up in Northern states such as New York, Pennsylvania and Michigan, where labor costs are high and winter weather makes conventional construction more challenging. But builders say the modular technique is likely to grow more popular in Florida and other states as well, as labor becomes scarcer and the industry continues to improve the product and its marketing. Bob Stroh, director of the University of Florida’s Shimberg Center for Affordable Housing, said that, while modular homes are crafted inside factories just as manufactured homes, or mobile homes, they have heavier components and compete with site-built construction. “They’re well-built and, once hooked together and connected to the foundation, they are just as strong as other houses,” Stroh said. “It says a lot that they are built under controlled conditions, not outside in the weather. They’re sealed up before they leave the factory floor.” Stroh said modular has other competitive advantages. “You can work two or three shifts a day” in a factory, he said, and the shorter on-site construction period reduces the potential for pilferage of materials. Transportation and other costs, though, can boost prices back into the range of site-built homes. (www.orlandosentinel.com)
Conforming Loan Limits to Remain Unchanged in 2007The maximum 2007 conforming loan limit for single-family mortgages purchased by Fannie Mae and Freddie Mac will remain at the 2006 level of $417,000 for one-unit properties for most of the U.S., the Office of Federal Housing Enterprise Oversight (OFHEO) announced last week. OFHEO uses the October-to-October percentage increase in the Federal Housing Finance Board's average house price to adjust the maximum conforming loan limits for the subsequent year. That average price declined 0.16% from October 2005 to October 2006. OFHEO said on Nov. 15 that if there was a decrease in home prices, 2007 loan levels would remain unchanged and the amount would be subtracted from any increase in the 2008 limit. Loam limits for larger properties will also remain at their current levels:
Based on the 2007 Freddie Mac limit, analysts at NAHB expect the FHA ceiling and floor in 2007 to remain at $326,790 and $200,160, respectively. HUD will officially announce the new FHA levels by the end of this year. The conforming loan limit can be increased by up to 50% for Alaska, Guam, Hawaii and the Virgin Islands, leaving the Fannie/Freddie limit for these areas at $625,500 for a one-unit property and the FHA ceiling at $544,185. In addition, the VA’s guarantee is 25% of the conforming loan limit, leaving the maximum, no-downpayment VA-guaranteed loan at $417,000 in 2007. To search on HUD’s Web site for FHA loan limits by area, click here. For more information, e-mail Chellie Hamecs at NAHB, or call her at 800-368-5242 x8425; or contact Bill Renner, x8597. Want to Know the Long-Term Forecast Through 2015? Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com. NAHB Kit Gives Builders Back-to-Basics Tips in Changing Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Home Price Appreciation Continues Orderly SlowdownThe nation is in the midst of an orderly slowdown in home price appreciation, according to the Office of Housing Enterprise Oversight (OFHEO)’s House Price Index for this year’s third quarter, which was released on Nov. 30. Nationally, home prices were 7.73% higher in the third quarter of 2006 than they were one year earlier, according to the report. Appreciation for the most recent quarter was 0.86%, or an annual rate of 3.45%. “With U.S. house prices growing less than 1% during the third quarter, it provides more evidence that the long-forecasted national deceleration in house prices is occurring,” said James B. Lockhart, director of OFHEO. “Given the five-year appreciation prior to this quarter of 56.8%, the slowdown is not unexpected.” Lockhart added that “there are still some areas where appreciation rates remain very high, but now they are the exception rather than the norm.” Year-over-year house price appreciation reached a peak of 13.9% in last year’s second quarter. Even with the deceleration, house prices grew faster over the past year than prices of non-housing goods and services, which increased 3.1% in the Consumer Price Index. The third-quarter findings found variations in different parts of the country:
Want to Know the Housing Starts Through 2015? Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com. NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Indianapolis Remains Most Affordable Housing MarketAt the top of the housing affordability chart for the fifth consecutive time, Indianapolis, Ind. kept a strong grip on the title of most affordable major U.S. housing market in the third quarter of 2006, according to the NAHB/Wells Fargo Housing Opportunity Index (HOI). Meanwhile, on a national basis, housing affordability remained virtually unchanged from the second quarter despite an increase in the average mortgage interest rate for the July-September period. The index indicated that 40.4% of all new and existing homes sold during the third quarter were affordable to families earning the median U.S. income of $59,600. “Housing affordability barely budged between the second and third quarter,” said NAHB President David Pressly, “in part because higher mortgage rates in the period were offset by somewhat lower home prices in many markets.” The national weighted interest rate on fixed- and adjustable-rate mortgages — a key component in calculating the index — was 6.77% in the third quarter, a full 12 basis points above its level for the previous three months. In the nation’s most affordable major housing market of Indianapolis, about 86% of homes sold in the third quarter were affordable to families earning the area’s median household income of $65,100. The median sales price of all homes sold in the metro area during that time was $122,000 — up slightly from $120,000 in the previous quarter. Following on the list of most-affordable major markets were: Youngstown-Warren-Boardman, Ohio-Pa.; Detroit-Livonia-Dearborn, Mich.; Buffalo-Niagara Falls, N.Y.; and Grand Rapids-Wyoming, Mich. Seven smaller metro markets with populations of less than 500,000 outranked all others in terms of housing affordability during the third quarter: Bay City, Mich.; Springfield, Ohio; Mansfield, Ohio; Lansing-East Lansing, Mich.; Lima, Ohio; Battle Creek, Mich.; and Canton-Massillon, Ohio. Go West — to California — for the Least Affordable Markets Also maintaining its previous standing on the index was Los Angeles-Long Beach-Glendale, Calif., as the nation’s least affordable major housing market for an eighth consecutive quarter. There, only 1.8% of new and existing homes sold during the third quarter were affordable to those earning the area’s median family income of $56,200. The median sales price of all homes sold in the area during the period was $523,000. Other major metros at the bottom of the housing affordability chart were all in California: Santa Ana-Anaheim-Irvine, Modesto, Stockton and San Diego-Carlsbad-San Marcos. The very least affordable smaller metro areas were also all located in California: Salinas, Merced, Madera, Napa and Santa Barbara-Santa Maria. Eye on the Economy: Home Sales Are StabilizingGrowth of real gross domestic product (GDP) for the third quarter of this year has been revised upward by the Commerce Department — to a 2.2% pace from 1.6% in the “advance” estimate. The revised growth rate still qualifies as a sub-par performance, and a similar reading is in the cards for the final quarter of 2006 ― we’re estimating 2.4%. The housing production component (Residential Fixed Investment) was the weakest part of the revised third-quarter GDP report, contracting at an 18% annual rate and lopping off 1.16 percentage points from the overall GDP growth rate. Another sizeable contraction in RFI is in the cards for the fourth quarter of this year, but the drag on economic growth should ease off during the early part of next year and housing should provide positive contributions to growth beyond mid-year. Financial Markets Provide a Favorable Environment for Housing Going Forward The convincing slowdown in economic growth has encouraged the Federal Reserve to hold short-term interest rates steady since mid-year, despite elevated readings on core consumer price inflation. Recent statements from Fed representatives, including Fed Chairman Ben Bernanke, strongly suggest that monetary policy will be held steady at the next meeting of the Federal Open Market Committee (Dec. 12). NAHB’s forecast assumes that the Fed will maintain the current federal funds rate target (5.25%) through the first half of next year before implementing a bit of monetary ease. Long-term interest rates have receded as the economy has slowed and probabilities of near-term Fed tightening have been marked down. Indeed, the long-term home mortgage rate recently slipped below 6.2%, the same as at the beginning of this year and not far above the cyclical low at mid-2005. NAHB’s forecast shows only slight upward pressure on long-term rates during the coming year. Home Sales Are Stabilizing Following a Substantial Correction Sales of new and existing homes (including condo units) soared to unsustainable heights during 2005, and substantial downward corrections have been recorded since then. However, recent data strongly suggest that the downswing in sales hit bottom recently, at least for single-family homes, and we are now expecting sales to show some improvement by the first quarter of 2007. Sales of new single-family homes slipped a bit in October (preliminary estimate) although the pace was equivalent to the average for the third quarter — suggesting that the abrupt downshift from the mid-2005 record is now behind us. Sales of existing single-family homes actually edged up in October and stood a bit above the third-quarter average, while sales of existing condo units continued downward in October. Timely survey data reinforce the sales stabilization pattern and point toward some improvements before long. NAHB’s single-family Housing Market Index bottomed out in September and recorded slight increases in both October and November — primarily reflecting a pickup in builders’ sales expectations. Furthermore, applications for mortgages to buy homes (Mortgage Bankers Association series) have been essentially stable since July following a major downshift during the previous year. But Inventory Overhangs Remain Quite Heavy Although home sales are stabilizing, inventory overhangs still are quite heavy in the markets for both new and existing housing. Inventories of new single-family homes for sale still are close to record levels, the inventory of completed new homes is at a new record and the overall inventory-to-sales ratio was at a historically high seven months at the end of October — equivalent to the third-quarter average. In the market for existing single-family homes, the unsold inventory is hanging around the record level reached in July and the months’ supply is stubbornly high. Inventories of existing condo units still are climbing to higher and higher records, and the months supply was up to 9.1 in October. And Home Prices Remain Under Downward Pressure The inventory overhangs show that “buyer's market” conditions still prevail in new and existing housing markets, and sellers have been under heavy pressure to lower prices in order to sell homes. The median sales price for existing single-family homes was down by 3.4% in October (year-over-year basis) following smaller declines in August and September. The median sales price for existing condo units also has been falling for several months and was down by 5.3% in October (year-over-year). The median sales price for new single-family homes posted a 1.9% advance in October (year-over-year), but that series is plagued by thin sampling, compositional shifts and distortions caused by non-price sales incentives provided by builders. NAHB’s surveys show that nearly half of single-family builders were cutting prices in November, by an average of 8%, and a large majority of builders were providing non-price incentives that support both sales and prices (i.e., sales prices would be lower in the absence of the incentives). Inventory and Price Trends Prompt Builders to Cut Back New Production The pronounced falloff in buyer demand, the large buildup of unsold inventory and the weakness of home prices have prompted builders to not only intensity sales efforts, but also to cut back on starts of new units and acquisition of new building permits. Total housing starts fell by nearly 15% in October, reflecting large cutbacks in both single-family and multifamily markets, and permit issuance was off substantially as well. Indeed, single-family starts and permits were both down by 32% from a year earlier. We expect housing starts to continue downward into the early part of 2007, despite an earlier stabilization of sales, as builders continue to work down unsold inventory. We are now expecting starts to begin inching upward in the second quarter of next year, and that turnaround should relieve the drag on GDP from Residential Fixed Investment by the second half of 2007 — pretty much in line with the Fed’s expectations. NAHB Chief Economist David Seiders analyzes the economy from the point of view of the housing market every other week in the free e-newsletter, “Eye on the Economy.” The preceding is a reissue of his Nov. 29 edition. To subscribe to “Eye on the Economy,” click here.
Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com.
With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Useful Links to Monitor Economic and Housing TrendsThe following are links to useful information from government agencies and NAHB that will enable you to monitor the housing market. To access the latest information available, simply click the links.
Want to Know the Housing Starts Through 2015? Find out in HousingEconomics.com’s Long-Term Forecast. HousingEconomics.com includes downloadable Excel tables featuring the housing starts forecast, GDP, demographics and more. To learn more, visit www.housingeconomics.com. NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. . Builder's Tip: A Tool to Make Seamless Stucco Patches
It’s important to tie the new stucco wire to the wire that reinforces the old work, and it’s always a challenge to expose the old stucco wire without ruining the felt-paper membrane or damaging the sheathing beneath the stucco. As shown in the accompanying drawing, I came up with a simple tool to help me deal with the situation. Here's what I did:
— Keith Wilson, Mountain View, Calif. Tips & Techniques provided by Fine Homebuilding.
BuilderBooks.com Offers More Than 250 Books That Help You Build Your Business BuilderBooks.com is your source for training and education products for the building industry. The official bookstore for NAHB, BuilderBooks.com offers award-winning publications, software, brochures and more available in both English and Spanish. To view these publications online, click here, or call 800-223-2665. Free NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242. Use NAHB’s Biztools to Help Manage Taxes, ContractorsNAHB has recently added key resources to Biztools, the association’s Business Management Resource Web pages, that will make it easier for members to manage their taxes and contractors. These resources are available to members only. Tax Help Information about new tax deductions available to the construction industry and tax credits for energy-efficient cars and homes can be found on the new Biztools tax resource, “Tax Help,” at www.nahb.org/taxes. In addition to information about these new additions to the tax code, “Tax Help” also includes tax-related information about records retention, estate planning, capital gains and more,as well as other tax resources and links. "Tax Help" also includes an article about how the Internal Revenue Service (IRS) is planning to scrutinize small businesses more closely and what resources are available to ensure compliance with IRS regulations. (Members can click here to read the story.) Working Effectively With Trade Contractors The new Biztools section about how to work effectively with trade contractors can be found at www.nahb.org/trades. The section includes information to help you:
Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to nearly 300 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources. Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed. NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Reduce Cycle Time, Increase Profits With Simple Tech SolutionsSimple technology solutions that streamline the building process, such as e-mailing information to subcontractors and suppliers, are cost-effective, easy-to-manage and can improve efficiency and increase profits ― if everyone is on board. Companies do not have to deploy massive new programs to improve the quality of their bids, simplify their billing process, reduce cycle time and otherwise improve business processes, say experts in home building, management and information technology (IT). Rather, they can start simple when automating and streamlining their communications with vendors, and build from there. Simple Ways to Automate “The key to where to start is to really look inward,” says Bill Allen, president of William A. Allen Consulting. “Look at things that waste people’s time and cause duplication. Look at the areas that you want to make faster and better.” E-mailing or faxing information to subs frees vendors up to spend more time bidding projects or working on the job site, rather than wasting time in the office, Allen points out. “Several of my builder clients have actually purchased fax machines for their vendors,” Allen says. A Web-based purchase order pickup and delivery system may be de rigueur for those who insist upon keeping up with state-of-the-art technology, but Rick Corry, CEO of BuildLinks, Inc., says simply having purchase orders automatically faxed to assigned subcontractors upon job release is an efficient and, perhaps, more manageable solution for small-volume builders. Brad Ervans, the chief operating officer at Cypress Homes in Southwest Florida, set up e-mail accounts for his company’s trade contractors. It was a manageable investment for his company, which closed on 42 homes in 2005, that helped increase gross profits and decrease stress — many times over, he says. Cyprus Homes eventually invested $320,000 in new technology — including hardware, software, consulting fees, installation and implementation — over a two-year period to automate processes and improve operations, Ervans says. “A $320,000 IT investment scares people when they hear it,” but the more important point is that “you need to decide on where you want your company to be in five years and then build an IT foundation that can support those efforts,” Ervans says. “You can’t automate all at once,” he adds. “You have to do it one step at a time.” Prep Vendors Before Taking the Plunge Don’t be surprised that some subcontractors may balk at automation, says Ervans. “You will get resistance, not only from your subs, but from your superintendents and field managers. They will view it as more work.” However, once they see how much faster they get paid, subs will respond positively to the “new” technology, he adds. Cypress is able to pays its vendors within four to five days after job completion. To prepare subs and vendors for the new processes, Corry and Allen advise builders to follow these four steps:
“Time of construction is what we’re trying to reduce. You need to know what your time of construction is and set a goal for where you want it to be,” Ervans says. “Some builders have sold themselves out of business because they couldn’t keep up.” Cypress Homes, he says, offers customers a guarantee that they will close on their home six months after a contract is signed. Attend Interactive Technology Forums at the Builders’ Show To learn more about how information technology solutions can improve business processes, sign up for the following interactive builder technology forums at the 2007 International Builders’ Show in Orlando, Fla. in February.
NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. NAHB Has Nearly 300 Resources to Help You Run Your Business More Profitably Go to NAHB's Business Management Tools Web pages (available to members only) for instant access to nearly 300 timesaving, moneymaking and cost-cutting business resources to help you run your business more profitably. Get guidance on accounting and financial management, business strategy, computers and information technology, customer service, human resources and more. Resources are added weekly, so bookmark www.nahb.org/biztools to go directly to these vital business management resources. Local and state home builders associations can link directly to www.nahb.org/biztools from their Web site and give their members instant access to these resources. It will make your HBA's Web site the place to go for the information and guidance that members need to succeed. Subscribe to NAHB’s Business of Building e/Source NAHB’s Business of Building e/Source is your monthly electronic guide to the hot issues and emerging trends in home building business management. You’ll find practical advice, tricks of the trade and sound business guidance — all delivered monthly, straight to your desktop, in a quick and easy-to-read format. Business of Building e/Source is available free to NAHB members and their employees. To subscribe, click here on the Members Only side of the NAHB Web site. ‘Scheduling for Home Builders with Microsoft® Project’ Available at BuilderBooks.com “Scheduling for Home Builders with Microsoft® Project,” available through BuilderBooks.com, helps builders navigate the scheduling process. Written as an easy step-by-step guide, this book demonstrates the methods for keeping projects on schedule and budget while coordinating resources, staff and materials. To view or purchase this publication online, click here, or call 800-223-2665. Confidence in Rental Apartment Market on the RiseWith demand on the rise and supply still tight, builder confidence in current conditions in the rental apartment market jumped in this year’s third quarter, and expectations for the next six months were even higher, according to the latest NAHB/Fannie Mae Multifamily Rental Market Index (MRMI), which was released on Nov. 28. "Good economic conditions — particularly growth in the job market — are driving demand in the rental apartment market," said NAHB Chief Economist David Seiders. "But the rental market is also benefiting from a tight supply. For-sale condo units have accounted for a large share of multifamily housing starts over the last few years at the same time as a sizable number of apartment units were being converted to condos." The component of the index tracking current demand rose in the third quarter for all classes of apartments, with moderately priced (Class B) apartments climbing the most — to 66.0, up from 58.5 for the same period a year earlier. Luxury (Class A) apartments were up 7.3 points from a year earlier, standing at 67.3. Class C apartments registered the smallest jump, gaining three points to 61.5. A level of 50 on the 100-point index generally indicates that the number of positive responses is about the same as the number of negative responses. Developers also see supply starting to inch up in the rental apartment market. The index tracking supply conditions for the third quarter rose from 53.7 and 54.7, up from 48.0 and 47.8, a year ago, for moderately priced and market-rate rentals, respectively. When asked about their expectations for the rental market over the next six months, multifamily builders expressed continued optimism, with the index reaching 70.0, 75.0 and 69.2 for Class A, Class B and Class C apartments, respectively. Those expectations were based on a strong volume of calls from prospective renters; this component of the index rose to 61.5 in the third quarter, up from 57.1 for the same quarter of 2005. In addition, the component gauging effective rents climbed 10 points from a year earlier, to 70.4, although it was down from a record 85.0 for the second quarter. For more information, e-mail Ann Marie Moriarty at NAHB, or call her at 800-368-5242 x8350. Save the Date for the Multifamily Pillars of the Industry Conference
Attend the Multifamily Pillars of the Industry Conference, the premier industry event for the multifamily industry, on April 11-13 at the Westin Diplomat Resort and Spa in Hollywood, Fla.
Visit www.nahb.org/pillars for more information. Investor Confidence in Multifamily Market SoarsBuoyed by a positive outlook for the rental apartment market, investors’ confidence soared last month in publicly held firms whose primary business involves apartments and condos, according to the latest Multifamily Stock Index (MFSI), which was released last month by NAHB. “A good economy that is creating jobs is good for the rental apartment market,” said David Seiders, NAHB’s chief economist, who added that the multifamily rental market is also benefiting from a tight supply. “In the past two years, so many apartments were converted to condominiums that the number of units in the rental pool significantly decreased in places like Florida and California,” he said. “So while there is softness in the condo market right now, multifamily housing in general is still an attractive asset class compared to other types of investments.” In October, the MFSI gained 277 points — an 8% increase — to reach an index value of 3,648, up from 3,371 for the prior month and more than 44% higher than a year earlier. This was a record high for the index, which tracks the stocks of 24 publicly traded firms, including 20 Real Estate Investment Trusts (REITs) principally involved in owning, developing and managing multifamily housing. NAHB benchmarks its multifamily stock index against the S&P 500 with dividends reinvested. During October, the value of the S&P 500 with dividends reinvested also increased, gaining 3.25% to reach an index value 17% higher than a year earlier. For more information, e-mail Ann Marie Moriarty at NAHB, or call her at 800-368-5242 x8350. Save the Date for the Multifamily Pillars of the Industry Conference
Attend the Multifamily Pillars of the Industry Conference, the premier industry event for the multifamily industry, on April 11-13 at the Westin Diplomat Resort and Spa in Hollywood, Fla.
Visit www.nahb.org/pillars for more information. Enter Pillars, the Best in Multifamily, by Dec. 18
The application deadline for NAHB Multifamily’s 2007 Pillars of the Industry Awards program — which honors excellence in multifamily design, development, marketing and management — is Monday, Dec. 18. A showcase of innovation and future trends, Pillars is considered to be the most prestigious national awards competition in the multifamily housing industry. “The Pillars awards represent a perfect opportunity to promote the benefits of apartmetn and condo living, and for multifamily professionals to be recognized for their commitment to proving superior housing choices, both rental and for sale, for today's consumer," said Leonard Wood, director of Wood Partners, LLC and chairman of NAHB's Multifamily Leadership Board. The winners will be honored at a gala ceremony held in conjunction with NAHB Multifamily’s Pillars of the Industry Conference on April 11-13 at the Westin Diplomat Resort and Spa in Hollywood, Fla. For more information on how your project can get nationwide attention as a Pillars finalist — or even a winner — click here. To apply, visit www.nahb.org/pillarsawards, or e-mail Laura Zaner at NAHB, or call her at 800-368-5242 x8563.
Attend the Multifamily Pillars of the Industry Conference, the premier industry event for the multifamily industry, on April 11-13 at the Westin Diplomat Resort and Spa in Hollywood, Fla.
Visit www.nahb.org/pillars for more information. Remodeling Market Strengthens in Third QuarterRemodeling activity picked up in this year’s third quarter, according to the NAHB Remodeling Market Index (RMI). Seasonally adjusted, remodelers’ assessments of current market conditions increased from 45.6 to 47.8 on the index and their future expectations rose by nearly two points to 45.4. “Though market strength varies across the country, we are pleased to see a rebound in remodeling activity,” said Remodelors™ Council Chairman Vince Butler, CGR, CAPS, GMB, a remodeler from Clifton, Va. “The trillions of dollars in home owner equity, combined with the growing age of the housing stock, means that the remodeling market will remain relatively strong in the face of a slower housing market.” Regionally, current market conditions moved back into positive territory on the index in the South and West, which registered 51.1 and 51.4, respectively. Future market conditions rose by more than six points to 50.4 in the South and 56.8 in the West. Current market conditions remained unchanged n the Northeast, at 46.6, while future conditions increased to 47.7. Current conditions in the Midwest rose from 41.3 to 45.4, but future conditions declined from 40.6 to 38.3. A reading of higher than 50 on the index indicates that more remodelers are positive than negative in their view of the market. The RMI component for owner-occupied units increased from 49.0 to 51.4 in the third quarter, while the component for renter-occupied units decreased slightly from 39.0 to 38.8. On the future expectations index, owner-occupied units declined from 47.2 to 45.0, but rental units jumped dramatically from 28.8 to 37.1. Rental-property remodeling accounts for a third of all remodeling expenditures. “While growth of remodeling activity has slowed as new home construction has declined, we still anticipate a strong year in the remodeling market,” said NAHB Chief Economist Dave Seiders. “We currently forecast $233 billion in home remodeling spending for 2006, up from $215 in 2005.” Those participating in the survey were asked special questions about energy efficiency and “green” remodeling trends. Twenty-five percent reported that they had seen an increase in demand for energy features within the last three months; 69% saw no change. Of common energy-saving materials installed within the last three months, the most popular were low-energy windows (86%), insulated exterior doors (69%), upgraded insulation (65%) and ceiling fans (59%). Overall, 62% said that they were using recycled or recyclable products. For more information, e-mail Jim Lapides at NAHB, or call him at 800-368-5242 x8451. Log Homes Council Sells Cookbooks for Cancer Cure
More than 60 council members and most of their product suppliers have provided tasty recipes, ranging from Texas Caviar to Cherry Pretzel Torte, and donated funds to produce the 200-page cookbook. All proceeds for the cookbook will go to the National Cancer Awareness Foundation, a nonprofit, totally volunteer organization that gives 100% of all the money it raises to families in need. 'Cookin' for a Cure' sells for $14.50, plus $4.05 shipping. “It is with great pleasure and excitement that we were able to put this cookbook together and make a difference in the lives of many across the country,” said Dana Delano, of Ward Cedar Log Homes, of Houlton, Maine. Crystal Horne, of Honest Abe Log Homes, based in Moss, Tenn., produced the cookbook. “We are fortunate that all the individuals involved in the foundation are volunteers,” said Jeremy Bertrand, executive director of NAHB’s Building Systems Councils. “Items such as postage, phone, supplies, printing, etc. are all supported by private funds and corporate supporters. When individuals and companies make a donation, they can be assured that 100% of the money will be used for the cause.” To Order ‘Cookin’ for a Cure’ To order “Cookin' for a Cure,” click here for the order form and fax or mail your order to:
Or, call the Log Homes Council at 800-368-5242 x8576. Drywall, Plywood, Shingles Needed in New OrleansUnited Way for the Greater New Orleans Area has requested drywall, plywood and shingles for the rebuilding effort in the aftermath of Katrina. The agency, which served 85 agencies in the New Orleans area, is specifically seeking these by the end of this year. Donations will be processed through Gifts In Kind International with the "ship to" directly to New Orleans. Gifts In Kind serves as a donation conduit between for-profit companies and nonprofit organizations in order to benefit communities in need worldwide. To donate, complete the Product Donation Agreement and fax it to the attention of Doyle Delph, of Gifts In Kind, at 877-798-3192. For questions or more information, contact Delph at 703-836-2121 x532, or visit the Gifts In Kind International Web site at www.giftsinkind.org. Give to the Home Building Industry Disaster Relief Fund The Home Building Industry Disaster Relief Fund (HBIDRF) is accepting end-of-the-year monetary donations. NAHB created the fund to help rebuild communities that were affected by natural disasters. For more information about the programs funded through the HBIDRF, or to make a donation, visit www.NAHB.org/disasterrelief. Volunteers Needed to Rebuild Historic Home’s PorchThe Heritatge Conservation Network (HCN) is looking for volunteers to come to Bay St. Louis, Miss. to help in the final stage of restoration of a historic home that was severely damaged by Hurricane Katrina. The goal of a two-week workshop commencing on Jan. 1 is to repair the home’s original porch, which was ripped from the house during the storm surge. Volunteers can sign up for one or two weeks, and will be housed in Gulfport. Participants on the crew will be working at 115 Washington Street, which is in one of the communities on the National Trust for Historic Preservation's 2006 list of America’s 11 Most Endangered Historic Places. The home owner and neighbors have worked for the past year to rebuild the house, and the porch is the final piece of the effort. “Earlier this year, we had volunteer work crews completely restore a masonry bridge in two weeks, so we have no reason to believe that, with a good response, this porch can’t be completed in that same amount of time,” said Judith Broeker, HCN’s program director. Volunteers will work under the guidance of a restoration expert and are not required to have experience in working with historic buildings. The workshop is part of “Rebuilding After Katrina Using Local Resources,” which is exploring various avenues of rebuilding, including deconstruction, salvage and reuse. In the workshop, salvaged historic materials will be used to the greatest extent possible. Funding for the project is from the Hamer Center at Pennsylvania State University. Volunteers will be asked to cover their own expenses and should plan to arrive on Dec. 31. For more details and to register, click here. Anyone wishing to contribute to HCN’s efforts should contact Judith Broeker at 303-444-0128. Advice From Industry Experts: Ramp Up Sales and MarketingTom Stephani, S. Robert August and Bill Becker ― industry veterans who have been through market shifts more than once ― will discuss what changes you should make to your sales and marketing in order to thrive in today’s market during an upcoming audio conference. The hour-long teleconference, “Ramp Up Your Sales & Marketing in a Changing Market,” will begin at 2:00 p.m. EST, Jan. 9 and is available free to NAHB members. {{MORE}} Stephani, August and Becker will counsel participants to be proactive and adjust their sales and marketing processes. This includes assessing and changing their sales team and how they work with prospects, reducing their inventory, shopping the competition more effectively and more. The conference will include a 40-minute presentation, followed by 20 minutes of questions and answers from participants. Think Like a Retailer Builders who haven’t made any changes to their sales and marketing approach in response to the changing market need to do so — yesterday, says Becker, MIRM, CMP, managing director and president of the William E. Becker Organization in Teaneck, N.J. He will share insights on how to develop a marketing plan that focuses on moving forward, and discuss how to re-evaluate that plan and adjust it if necessary. “We’re in the retail business. The three things that keep people coming back are: ‘new,’ ‘grand opening’ and ‘free,’” Becker says. “Retail makes money by having something new every day.” Keeping models fresh and offering new events on a consistent basis are crucial, he says. Begin Building a Strong Customer Base Now “Now is the best time to execute new sales and marketing campaigns,” says August, MIRM, CMP, Master CMP, of the S. Robert August Company, Inc., in Greenwood Village, Colo. During the conference, he will discuss how to overcome objections, build a stronger customer base and initiate unique and distinct sales and marketing programs for the business-to-consumer and business-to-business markets. “You’ll be able to adapt these concepts to a profit-building marketing campaign for your business, regardless of your size,” says August, who has weathered six adjustments since he’s been in the industry. Slight Adjustments Can Improve Your Conversion rate Moderator and veteran builder Stephani, CGB, CAPS, MIRM, CMP, of William Thomas Homes, Inc./CCC, Inc., in Crystal Lake, Ill., who also has been through numerous market shifts, says that small changes can make a big difference. “Just some slight adjustments can improve your conversion rates and help you adjust to a changing market,” he says. He also encourages builders to look for solutions that go further than incentive packages. “Incentives are just one part. Let’s be better salespeople,” he says. “Let’s make sure the soft contracts turn into hard contracts.” Finally, Stephani cautions, the worst thing builders can do is lose hope. “We have to make sure that people understand the sky is not falling; it’s just a little cloudy.” Conference Topics The 40-minute presentation will cover:
To Register For more information, or to register for the free “Changing Market” audio conference, click here, e-mail Wil Heslop at NAHB, or call him at 800-368-5242 x8472. Teleconference materials will be e-mailed to registered participants in advance. The conference is co-hosted by NAHB’s National Sales and Marketing Council and Biztools, NAHB’s business management comprehensive resource on the NAHB Web site. When Money Is Tight, Consumers Shop for ExpertiseAs markets and money tighten, customers tend to spend more time debating purchases. They also become more discriminating when choosing a service provider or vendor. For builders and remodelers, qualities that tip the scales in their favor during times like these include experience, technical expertise, professionalism and good business management — key characteristics that are exemplified by an NAHB professional designation. “Designations are extremely important because it gives you the opportunity to show your customers that you’ve done something that most other builders in the marketplace have not ― continuing your education and learning how to be a better builder,” says Tom Stephani, CGB, CAPS, MIRM, CMP, of William Thomas Homes in Crystal Lake, Ill. More than technical expertise, many designees find that their designations also communicate another strength customers appreciate — self-improvement. “A designation is an emblem that you have completed an element of study and that makes you a cut above — not just from what you’ve learned but that you’ve taken the initiative to want to improve yourself,” says Mike Weiss, CGR, CGB, GMB, CAPS, of Weiss RCMI, Carmel, Ind. Jim Carr, GMB and a professor at the University of Arkansas, agrees. “Obtaining a designation adds credibility. It provides a third-party endorsement that says I’m not doing this just as a job, I’m doing it as a profession.” To learn more about professional designations and course offerings in your area, visit www.nahb.org/education. Want to Know Even More About Designations? Ask an Expert “Ask an Expert,” the NAHB University of Housing service on the NAHB Web site for members seeking or earning designations, allows members to e-mail designation program graduates with questions that will help then earn their CSP, Master CSP, CMP or MIRM designations. The graduates field questions and concerns ranging from course content to the designation process to how the designation has benefited them. If you are thinking about enrolling in the CSP, Master CSP, CMP or MIRM designation programs or have already started the necessary course work and have questions or concerns, visit “Ask an Expert” on the NAHB Web site. A variety of designation holders will provide you with guidance and help you navigate the ins and outs of the program. Register for a Course at the 2007 International Builders’ Show Pre-show courses at the 2007 International Builders’ Show in Orlando, Fla. are an easy and convenient way to start or complete earning your own professional designation. IBS pre-show courses sell out quickly, so register early. For course descriptions and registration information*, visit www.nahb.org/preIBS, or contact the Office of the Registrar at 800-368-5242 x8EDU (8338). *Note: Registration for these courses does not include registration for the International Builders’ Show®. Separate registration fees apply. NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242. Education Calendar
Learn More About The NAHB University of Housing Whether you’re new to the industry, hope to make your next career move or want to improve your company’s bottom line, The NAHB University of Housing can assist you in your educational pursuits. Visit www.nahb.org/education for a comprehensive listing of courses throughout the country. Be sure to visit often in order to view the most up-to-date information in your area. NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar on the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242. Apply for Green Building AwardsEntries are now being sought for NAHB’s National Green Building Awards, which recognize individuals, companies and organizations for helping to move green into the mainstream of the housing industry through their designs and construction practices. New this year is a green land development award, which honors resource-efficient site design and development practices, including onsite recycling, preservation of trees and innovative storm water retentiion features. The annual awards will be presented during ceremonies at the association’s National Green Building Conference, which will be held in St. Louis on March 25 to 27. The awards honor achievements in seven categories:
For project awards, construction must have been started by June 2005 and substantially completed by December 2006. To Enter To enter by mail, send a hard copy and a disk of the completed application. For an application form and instructions on how to send logos, project photos and other artwork, click here. Winners will be notified by Feb. 15, 2007. For additional information, e-mail Emily English at NAHB, or call her at 800-368-5242 x8366. Get Green Building Intelligence Today at BuilderBooks.com “Residential Green Building SmartMarket Report,” available through BuilderBooks.com, addresses the growing trends and opportunities in green home building. The report provides the results of market research conducted by McGraw-Hill Construction and NAHB about green building in home construction. To view or purchase this publication online, click here, or call 800-223-2665. Save the Date for 2007 National Green Building Conference Mark your calendar for March 25-27 for the National Green Building Conference. Click here for conference information, or visit www.nahb.org/greenbuilding on the NAHB Web site to learn more about green building. Energy Award Finalists Head for Builders’ ShowTen finalists have been selected for the 2007 EnergyValue Housing Awards (EVHA), which honor home builders who voluntarily incorporate energy efficiency into the design, construction and marketing of new homes, the NAHB Research Center announced on Nov. 22. The winners will be named on Feb. 7 during the International Builders’ Show (IBS) in Orlando, Fla., with gold, silver and honorable mention awards in the affordable, custom, factory-built, production and multifamily categories. One entrant will receive the “Builder of the Year” award. Judging was completed in late October by a six-member panel representing expertise in the fields of engineering, residential energy, construction design and marketing. The finalists were selected based on their homes’ energy value, design, construction methods and processes; marketing and customer relations efforts; and their ability to demonstrate an understanding of a whole-house, systems-design approach. A “People’s Choice” award will also be presented during at the IBS, and members of the public can vote for their favorite home design from among the finalists by clicking here. Ballots are available until Feb. 6. The awards finalists are:
To purchase tickets for the awards gala online, click here. The EVHA is coordinated by the NAHB Research Center in partnership with the U.S. Department of Energy through the National Renewable Energy Laboratory, and NAHB. For more information, click here; or e-mail Dr. Kevin Mo, program manager for the awards, or call him at 301-430-6210. Nationwide Permit Overhaul Needs More WorkWhile it’s a step in the right direction, a U.S. Army Corps of Engineers proposal to revise the Nationwide Permits (NWP) program still needs work, according to official comments on the plan from NAHB. The NWP program is of critical importance to NAHB members: for example, 88% of all Clean Water Act (CWA) development-related permit decisions in 2003 were made through a general, not individual permit, and NWPs accounted for half of those. “Because NWPs provide administrative relief to permittees while protecting the environment, they are vital to the home building industry,” NAHB said in its comments. “We laud the Corps’ efforts in today’s proposal to simplify and provide additional flexibility and certainty to the NWP program and prevent further backsliding on this important streamlined permitting process.” In its letter, however, NAHB delineated 47 pages worth of concerns and needed program changes. Among them:
The incentive provided by a streamlined process is enough to encourage developers to work harder to minimize their environmental impact and qualify for an NWP, the letter added. Making the NWP process less attractive takes that incentive away. “The broad definition of ‘waters of the United States’ often makes it impossible for builders to avoid all areas regulated under the Clean Water Act. As a result, our members often are required to obtain CWA Section 404 permits. The vast majority of home building activities that require Section 404 permits result in only minimal impacts, thus, often are authorized by Nationwide Permits,” NAHB said. “NAHB firmly supports the Corps’ NWP program, has long been an advocate of the NWP program and has supported the Corps’ earlier attempts to expand and improve the program,” the letter said. “We remain concerned, however, about a permit process that, unlike the program envisioned by Congress, continues to place significant restrictions and burdens upon permittees and regulates areas that are beyond the Corps’ CWA jurisdiction. As our detailed comments indicate, modifications must be made to the proposal to ensure the availability of streamlined permits for all activities resulting in minimal impacts and to ensure an efficient and effective program for protecting the nation's resources.” For more information, e-mail Calli Schmidt, or call her at 800-368-5242 x8132. Alliance Focuses on Streamlining Overlapping RegulationsA new package of materials from the Alliance for Building Regulatory Reform in the Digital Age is designed to update communities on how to eliminate overlapping and duplicative regulations that increase the costs and slow the construction of residential and commercial buildings. The CD-ROM report from the alliance, the fourth in a series, also includes information on how state and local governments can improve their effectiveness in dealing with natural and man-made disasters. “In the aftermath of Hurricane Katrina, 38 of the members of the alliance — including the National Governors Association, National Association of Counties and the U.S. Conference of Mayors — restructured our initiative and expanded the scope of work of the alliance’s streamlining efforts to focus on actions that can be taken to enhance disaster preparedness, response and recovery within communities,” said Robert Wible, director of the alliance. NAHB is a founding member of the alliance, which was formed in July 2001 as a private-public partnership comprised of national associations and organizations representing state and local governments, the construction industry and universities concerned with effective and efficient government enforcement of building codes and standards. The alliance has held a series of meetings this year focusing on streamlining zoning and land use regulations. The new report from the alliance includes case studies and actions by governments that have:
The alliance is planning a national conference in Washington, D.C. on Jan. 11-12 at NAHB’s National Housing Center. For more information, e-mail Ken Ford at NAHB, or call him at 800-368-5242 x8228. Experts Hash Out Top Court’s Wetlands OpinionsIn the wake of the Supreme Court’s June decision in the Rapanos and Carabell cases, 12 environmental experts from around the country gathered at the NAHB offices in Washington Nov. 27-28 for a look at the ramifications for the nation’s housing industry. Builders, developers and even regulators are looking for answers to what the justices meant when they said that there must be a “significant nexus” to a navigable body of water for a piece of property to be subject to regulation under the federal Clean Water Act. The confusion has turned development plans on their heads in many parts of the country — some for the better, as regulators relax their permitting requirements while they await official guidance – but most for the worse — like for some Ohio builders, who have seen the permitting process stalled completely while their local U.S. Army Corps of Engineers office awaits a ruling from Washington. “Consistency is a pervasive issue throughout the country,” said Environmental Issues Committee Vice Chairman David Smith, who facilitated the discussion of wetlands experts, engineers and biologists. “For that reason, it’s the No. 1 objective for this endeavor. The Corps and the Environmental Protection Agency don’t really know what to do right now.” Legal minds have weighed in on many of the jurisdictional arguments, but what the government needs is a way of assessing what kinds of streams, wetlands, ditches and puddles do and don’t belong in which category — and a rational reason for “why.” That’s a discussion that best belongs to the scientific community, Smith pointed out. NAHB staff is preparing notes on the conclusions that were reached during the discussions, which will be followed by a round of discussions by telephone. When a consensus has been reached, NAHB leaders will share the document with the membership — and with regulators looking for well-reasoned arguments, Smith said. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Settlement Proposed for Steel Tubing LawsuitBuilders may receive questions from home owners about a proposed settlement of a class action lawsuit involving corrugated stainless steel tubing (CSST) that has been used in residential, commercial and industrial buildings after Sept. 5, 2006. The tubing is used to transmit gas. According to the plaintiffs in the case, tubing manufactured by Titeflex, Ward, OmegaFlex or Parker Hannifin poses an unreasonable risk of fire from lightning strikes. The tubing in question is stamped with one of the manufacturers’ marks.
CSST is a continuous, flexible, stainless steel pipe that typically is covered with a yellow plastic coating. It is usually installed along floor joists, above basements, in attic spaces or connected to exposed appliances such as water heaters. The suit alleges that the tubing is not thick enough to prevent damage in the event of a lightning strike and that the manufacturers have failed to warn consumers about this alleged danger. Under the proposed settlement, those who qualify ― which includes home owners ― will receive payment vouchers of between $200 and $2,000 to defray the cost of buying and installing a lightning protection system, or between $75 and $160 to install a bonding and grounding system. Participants who plan to make a claim must submit a claim form to the CSST Settlement Administrator by Sept. 5, 2007. A hearing to determine whether the proposed settlement is fair, reasonable and adequate will be held in the Circuit Court of Clark County, Ark. on Feb. 1. For more information, visit www.csstsettlement.com, call the CSST Settlement Administrator at 800-420-2916, or write the administrator at P.O. Box 4349; Portland, Ore. 97208-4349. HBI Addressing Language Barrier for Hispanic WorkersSed de Saber™ — Construction Edition, an English as a Second Language (ESL) learning tool for the residential construction industry, is in the final stages of development and will be released at February’s International Builders’ Show in Orlando Fla., the Home Builders Institute (HBI) announced last week. “As we all know, the first step in developing an effective quality assurance safety program is a good line of communication,” said Michael Sivage, an Albuquerque builder/developer and chairman of HBI. “For the first time, we will now have a tool that will give us the opportunity to open those lines of communication with our growing Hispanic workforce. This will improve our worker recruitment efforts, profitability, customer satisfaction and safety on the job site, as well as elevate the quality of life for this important segment of our population.” Using world-renowned LeapFrog Enterprises technology, the seven interactive books comprising the Sed de Saber™ — Construction Edition teach Hispanic construction workers more than 500 vocabulary words and 340 phrases specific to home building — at their own pace and on their own time. The materials are being developed in partnership with Retention Education, LLC. The program takes about 16 weeks to complete and includes an assessment tool to gauge progress at set stages. Each Sed de Saber™ kit is reusable and can be shared among workers, family and friends. “This is a breakthrough ESL tool that offers our industry a tailor-made solution to language barriers typically found on residential construction job sites nationwide,” added Sivage. A team of educational experts has been overseeing the project to ensure that the material is accurate and relevant to the daily activities and interactions that occur on the job site. “Retention Education partnered with HBI to produce the most pertinent, effective and specific language learning program available to the home building community,” says Bill Groux, Retention Education’s founder and chief executive officer. “Sed de Saber™ — Construction Edition is created by home builders, for home builders to foster better communication on the job site, and empower users to advance their skills — and their lives.” The Sed de Saber™ — Construction Edition kit includes a Quantum Pad™, microphone learning system, seven books with data cartridges, headset, power adapter and carrying case. For more information, e-mail Ashley Mills at HBI, or call her at 800-368-5242 x8926. Manual Provides Expertise on Residential Asphalt RoofsThe Asphalt Roofing Manufacturers Association (ARMA) announced recently that it has added a completely revised and updated “ARMA Residential Asphalt Roofing Manual” to its series of technical and product literature on low-slope and steep-slope roofs. Headquartered in Washington, D.C. and recognized as among the most reliable sources of information on residential and commercial asphalt roofing, ARMA is a member of the National Council of the Housing Industry — The Supplier 100 of NAHB. ARMA has 57 publications in its inventory, including sales and educational brochures, application and design manuals, maintenance manuals, technical bulletins and other information. According to the organization, asphalt roofing presents many benefits for home builders and their customers:
This feature is solely for educational and informational purposes. Nothing on this page should be construed as policy, an endorsement, warranty or guaranty by the National Association of Home Builders of the featured product or the product manufacturer. The National Association of Home Builders expressly disclaims any responsibility for any damages arising from the use, application or reliance on any information contained on this page. NAHB-Produced Programs on HGTV & DIY This WeekThe NAHB Production Group produces three weekly television shows on HGTV and DIY for consumers. The following is the latest lineup: "I Want That" on HGTV
"Rock Solid" on DIY
"Assembly Required" on DIY
Episode: "Deltec Round Kit Home (Part 1)"
HGTV Seeking ‘Dream Home’ Builder/Architect Teams HGTV is seeking developers, builders and architects to create the 2008 and 2009 dream homes for the network’s Dream Home Sweepstakes. To learn more, click here. About the NAHB Production Group The NAHB Production Group is a full-service, self-contained, media production unit creating programming for cable television, broadcast television, non-profit, museum and corporate clients. Productions range from magazine format shows for general audiences to museum-installation videos for specialized use. The production group includes award winning journalists, writers and photographers with experience in broadcast, documentary and corporate television. NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar of the NAHB Web site. For assistance, call the NAHB Member Service Center at 800-368-5242. Klaiber Named Most Recent Glunt Scholar
The scholarship, named for the 1993 NAHB president and former endowment chairman, provides financial assistance to undergraduate students enrolled in the College of Engineering at Penn State who have a special interest in housing. Klaiber is the vice president of the Penn State University NAHB Student Chapter and a member of the chapter’s competition team, which placed 10th at the International Builders' Show, the highest placement for any first-year team. In addition, he manages the chapter’s career fair, which includes representatives from several national home building companies. Klaiber also maintains a 3.6 grade point average and has consistently been named to the Dean’s List.
Last summer, Klaiber interned with Centex Homes as a land development project manager in Charlotte, N.C. He plans to continue his career in land development. “My hope is to gain experience with a large company before starting my own business. I would like to have a positive impact on the housing industry,” Klaiber said. “I am very happy to bestow this scholarship on Heath, who stands out among his peers as an example of what our industry needs,” said Glunt. “I am most proud to be able to foster a growing relationship between Penn State University, the National Housing Endowment and NAHB. As a member of the board of trustees I have come to understand the importance of mentoring the next generation of housing leaders.” The National Housing Endowment, the philanthropic arm of NAHB, administers 12 scholarship programs and awards more than $300,000 each year to students pursuing careers in residential construction and related fields. For more information and to download scholarship applications, visit the endowment Web site at www.nationalhousingendowment.org. Dell for the Holidays: Double Discounts Through Dec. 31This holiday season, Dell is offering double discounts to NAHB members on an array of products designed to meet the technology needs of your company. That means Dell’s normal discounts of 3%-5% to NAHB members will double to 6%-10% on essential small business technology, including business-class desktops and cutting-edge notebooks. Dell not only has the technology to make your home building business run more efficiently — it also offers NAHB members a more efficient way of doing business. To Get Your Discount Visit the Member Advantage main page on the NAHB Web site and click through Dell for complete details. To maximize your Dell Member Advantage Discount: After you have made your selections and are ready to purchase, call your dedicated Dell sales representative at 888-577-3355, Monday-Friday, 7:00 a.m.-8:00 p.m. (CST) and Saturday, 8:00 a.m.-5:00 p.m. (CST). Your sales representative will apply your NAHB member discount to your order. NAHB members who have previously ordered from Dell also receive a monthly catalog, which includes this double discount offer. The Dell Double Member Discount* offer is valid through 12/31/06. * Double discounts do not apply to the preconfigured systems that are already priced at up to 20% off. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to the Member Advantage main page on the NAHB Web site. Free NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242 GM $500 Off Exclusive Offer for NAHB Members
For complete details, visit www.gmfleet.com/nahb. The program runs through Jan. 3. 2007. GM NAHB Affinity Cards and details on this offer were mailed directly to NAHB members from GM, and members should use the affinity card when purchasing a qualifying vehicle. Members who have misplaced or otherwise do not have a GM NAHB Affinity Card may print out their own replacement cards in order to show member verification to a GM dealer. Note: Members must be logged in to www.nahb.org in order to print their replacement card. Members with a www.nahb.org login should go to www.nahb.org/MA and click on the “GM Exclusive Offer.” This will take members to a Web page with program details and instructions for printing a replacement card. There are also instructions for members who do not have a login (they will be sent to www.nahb.com/loginGM and returned to the page to get a replacement card). For more information, e-mail Tiffany Smith at NAHB, or call her at 800-368-5242 x8273. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA. Free NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. UPS Offers Up to 30% Discount to NAHB Members on ShippingNAHB and UPS, the world’s largest package delivery company, have joined forces to offer NAHB members discounts of up to 30% on shipping. The NAHB shipping discounts include domestic air and ground, international export and international import. Association members can also take advantage of hassle-free on-line shipping, 24/7 access and advanced package tracking at your fingertips. NAHB members are eligible for discounts up to 30% to help manage costs with no catch — and no minimums. The shipping discounts — which increase the more packages or letters the user sends — will be applied once enrollment is complete. The enrollment process is fast and easy and is available to NAHB members through the Web site: www.savewithups.com/nahb. For more information on UPS savings and the complete Member Advantage program, visit www.nahb.org/MA. Free NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. Play Builders' Free Online Pro Football. Don't Drop the Ball.Don't miss another weekend of NFL games — and your chance to win prizes from HGTVPro. Sign up and play in the Builders Football League (BFL) on HTGVpro.com — the free, online pro football "pick 'em" contest with a special league for NAHB members. Playing is free, fun and easy ― and participants have a chance to win weekly prizes or the grand prize — a Panasonic 61-inch high definition TV — at the end of the season. How to Join and Play
For more information, go to www.nahb.org/bfl. Calendar of Events
To view more meetings and events information on the NAHB Web site, click here. Free NAHB Kit Gives Builders Back-to-Basics Tips in Cooling Market With the current cooling of the nation’s housing market expected to persist into the middle of next year, NAHB has developed a comprehensive online toolkit geared to providing association members with information that will help them prosper in today’s changing business environment. To access the “Back to Basics” toolkit, you must be an NAHB member and have a login to www.nahb.org. To create a login, go to www.nahb.org/login or click on the log-in button on the main menu bar. For assistance, call the NAHB Member Service Center at 800-368-5242. |
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