Nation's Building News Online: December 10, 2007Print All Articles Text Version |
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Bush Plan Aims at Helping to Stabilize Housing MarketA plan announced last week by President Bush to limit foreclosures by working with key mortgage lenders and investment firms to freeze interest rates for five years on certain subprime mortgages will help set the stage for the industry recovery that is expected to materialize next year. "The Administration's plan to help struggling borrowers stay in their homes is one of several steps that can help stabilize the housing market and reassure consumers and investors in the mortgage market," said NAHB President Brian Catalde, a home builder from El Segundo, Calif. "We applaud this action and urge Congress to follow up quickly on pending legislation that would provide additional help in easing the credit crunch and restoring confidence in the marketplace." Specifically, Catalde called on Congress to:
Home owners with steady incomes who have been making timely payments on their mortgages, but who cannot afford the higher adjusted rate, could qualify for a freeze of up to five years on their current interest rate if they meet certain conditions. They could also be placed on a fast-track approach that would enable them to refinance or modify their loans. To ensure that the break is not granted to real estate speculators or investors, the plan would only be available for owner-occupied homes. Treasury Secretary Henry Paulson said that the private-sector effort to develop a market-based approach to avoid foreclosures was needed because “the current system for working out those problem loans would not be sufficient to handle the anticipated 1.8 million owner-occupied subprime mortgage resets that will occur in 2008 and 2009.” “The investors who own these loans recognize that foreclosure is costly, and that a workout plan or mortgage modification often brings them greater value than foreclosure,” Paulson said. “But the standard loan-by-loan evaluation process that is current industry practice would not be able to handle the volume of work that will be required. Instead, the industry needed a streamlined approach to address this increased volume.” Paulson said that the initiative was not “a silver bullet” and indicated that the Administration would continue to pursue other opportunities to address the housing downturn. Separately, a UCLA Anderson Forecast study last week concluded that the U.S. and California economies will weather the housing downturn without a national recession and a report from Harvard said that even with today's excess supply of unsold homes on the market, the underlying demand for new housing will ultimately rebound to robust levels through 2014 (click here for a related story in this issue). "The basic market fundamentals for housing are still very strong," said Sandy Dunn, NAHB president-elect and a builder from Point Pleasant, W.Va. "Once we work down the inventory of unsold units and put the credit crunch behind us, demand among both first-time and trade-up buyers will return to more normal and sustainable levels." Strong Housing Demand Points to Better Times Ahead, Harvard SaysBeyond the current cyclical downturn in the nation’s home building industry, strong underlying demand for housing should produce a healthy resurgence in residential construction, according to a report published last month by the Harvard University Joint Center for Housing Studies. According to the projections of the analysts who worked on the study, sustainable demand for housing is conservatively measured at 19.5 million for 2005 through 2014 — or an annual average of 1.95 million. By 2007, yearly average projections for the period decline somewhat because of the oversupply that occurred in the market as a result of the housing boom. Analysts at Harvard calculate that the period they scrutinized may well have begun with an oversupply of 500,000 to 750,000 units, to which another 250,000 excess units were added in 2005 and 2006 as the boom began winding down. However, even assuming that the extent of the oversupply was as large as 1 million, the economists reported that their projections of sustainable housing demand for 2007 through 2014 would be reduced only to an annual average of 1.82 million housing completions, not counting manufactured homes. The average annual projection of 1.82 million is close to the 1.848 million homes that were actually started in 2003 at the start of the housing boom and significantly exceeds the number of homes that were built on average during the 10 years preceding 2003. “Housing has always been a cyclical business, and we know that it is only a matter of time until we have worked down our inventories of unsold homes and can begin setting our sights on meeting a rising demand for housing,” said NAHB President Brian Catalde. “The demographic outlook clearly points to the need for a vigorous resurgence in home building to meet the housing needs of this country.” The Harvard analysts note that the 19.5 million projected long-run demand is on the conservative end of the range of estimates that were considered in their study. Among the factors driving up the demand:
“But do not mistake short-term reactions to the housing slowdown as a harbinger of things to come for the long term,” they say. “On the strength of demographically-driven demand for housing, the market will bounce back from its currently suppressed levels,” the report says. “If past cycles are any guide, the market with turn around once most of the oversupply is worked off, remain below long-run sustainable demand for a time and then rise back up above it for a period of time.” The Harvard study — "Projecting the Underlying Demand for New Housing Units: Inferences from the Past, Assumptions About the Future" — was written by Eric Belsky, Rachel Bogardus Drew and Daniel McCue. IBS to Feature 25th Anniversary Showcase Home, Carville, MatalinThe New American Home will celebrate its 25th anniversary at the 2008 International Builders’ Show (IBS) in Orlando by showcasing a 6,724-square-foot, Plantation-style home. In addition, James Carville and Mary Matalin, the renowned husband and wife political analysts and consultants, will be the keynote speakers at the show’s grand opening ceremonies. Set for Feb. 13-16 at Orlando's Orange County Convention Center, IBS also will feature more than 1,800 exhibitors and 300 education seminars covering every facet of the home building industry, including special sessions on green building. The stately New American Home, distinguished by a columned portico along its symmetrical front elevation, is designed for a well-established professional with a mature family. The home offers a family suite on the main level to accommodate an elderly parent or long-term guest. It also includes a master retreat occupying one entire side of the home’s footprint. The New American Home, the official showcase home of the builders’ show, is constructed using a systems-engineering approach incorporating NAHB’s Green Building Guidelines and the U.S. Department of Energy’s Building America Program. The home is in the exclusive Water’s Edge section of Lake Nona, a gated 11-lot parcel reserved for custom-built waterfront homes. The home’s 2,950 square feet of covered outdoor spaces feature a kitchen, a solona or salon with a fireplace and arched openings to a view of the lake, and a landscaped pool and spa.
‘Love, War and Politics’ Matalin and Carville will discuss politics and parenting during their keynote address, “All’s Fair: Love, War and Politics,” at the grand opening ceremonies on Feb. 13. Matalin is a former assistant to President W. Bush and counselor to Vice President Dick Cheney. Carville helped propel Bill Clinton to the presidency in 1992 by managing his campaign and "War Room." Discounted Online Registration Available Now For more information and to register online, visit www.buildersshow.com. Visitors can also see in advance what the show exibitors have to offer by clicking here.
Once Ranked Prime, Now They’re PinchedHome buyers and refinancers who cannot come up with sizable downpayments and whose FICO credit scores are below 680 are about to get squeezed in the mortgage market. Fannie Mae and Freddie Mac are imposing significant increases in fees for a range of borrowers with downpayments of less than 30% who formerly were treated as “prime” credit applicants. At the same time, the two largest private mortgage insurers — MGIC and PMI Group — are raising premiums on consumers who have low downpayments and scores in the mid- to upper 600s on the FICO scale. The added costs for some home buyers could total thousands of dollars, either at settlement or in the form of higher interest rates. “On a loan of $300,000 and with a credit score of 675 — which is not a bad score — and a 75% loan-to-value-ratio (25% downpayment), the cost is an additional $2,250 per loan,” Steven Moore, a mortgage broker with 1st Solution Mortgage in Falls Church, Va., said of the revised Fannie and Freddie fees taking effect on March 1. If the same borrower wants to do a cash-out refinancing to consolidate debt, the new Fannie-Freddie fee schedule will add another $1,500 to total costs on a $300,000 mortgage, Moore said. On a $400,000 loan, he estimates the extra fees would total $5,000. Jeff Lipes, president of Family Choice Mortgage in Wethersfiled, Conn., said the new emphasis on higher FICO scores and larger downpayments could greatly complicate rate quotes. “To get any sort of quote, you’re going to need to know your FICO score in advance, and before actually applying you may need to take some steps to raise your FICO score.” (www.washingtonpost.com)
Crime, Fear and Foreclosure Find Their Way Into Gated CommunitiesAccording to Setha Lowe, incoming president of the American Anthropological Association, gated communities are no less crime-prone than open ones, and Gopal Ahluwalia, vice president of research at NAHB, confirms this: “There are studies indicating that there are no differences in the crime in gated communities and non-gated communities.” The security guards often wave people on in, especially if they look like they’re on a legitimate mission. Or the crime comes from within, as in the Hilton Head Plantation community in South Carolina, where a rash of crime committed by resident teenagers has led to the imposition of a curfew. Newsweek recently reported on the gated community of Black Mountain Vista in Henderson, Nev., “where yellow patches blot the Spartan lawns and phone books lie on front porches, their covers bleached from weeks under the desert sun.” According to the Orlando Sentinel, “Countless home owners overwhelmed by their mortgages are taking off and leaving behind algae-filled swimming pools and knee-high weeds” in one local gated community. (www.baltimoresun.com)
How’s Our Housing? Huntsville Market Still Strong, Bucking National TrendHuntsville, Ala. custom home builder Jim Neighbors says that five years ago a local builder wouldn’t have dreamt of building a half-million dollar spec home, but today there are plenty of them around. While much of the country has been battered by falling home prices, rising foreclosures and suddenly lean times for home builders, Madison County had 2,588 single-family home starts in the first nine months of 2006 and 2,329 more through the first nine months of 2007, according to the Huntsville Madison County Builders Association. “It’s in all price ranges,” said Neighbors, president of the local builders association. “The difference we’re seeing today in Huntsville, is that the price ranges of new homes five years ago was probably $80,000 to $400,000. Now that range is from $125,000 to $2 million." The expected move of some 4,700 jobs directly related to the base realignment process over the next four years has helped spur the building boom, but the area’s very solid economy is the larger explanation, said Betty Hughes, president of the local Realtors® association. With the national news daily reporting plummeting home prices, Hughes said she is spending more and more time counseling people that Huntsville’s market is nothing like trouble spots in Florida and California and the upper Midwest. (www.al.com)
Tri-City Housing Market Bucks TrendLocal officials are concerned that bleak national reports are negatively tainting local perceptions of the housing market for the Tri-City area encompassing Kennewick, Pasco and Richland, Wash., where conditions looks relatively rosy. “Markets are local. Just because it’s a national trend doesn’t mean it’s going on in your neighborhood,” said Marchell Mascheck, a Realtor® for Windemere in Richland. “We haven’t followed the national trend for many years.” Through November, the area’s median home sale price increased by about 4%, from $161,800 to $168,300. Unlike other regions, Tri-Cities didn’t experience a housing bubble a few years ago. And it has never had a glut of homes on the market, builders say. “We’re not in an area where investors want to come in and flip properties,” said Jeff Losey, executive director of the Home Builders Association of Tri-Cities. In Boise, Idaho during the housing boom in 2005, for example, investors could buy a home and sell it for 10% to 20% more in six months, he said. But when the market slows, as it did earlier this year, those investors are left with houses that won’t even sell for the purchase price. (www.tri-cityherald.com)
Even Hot Housing Markets Can Go ColdIt seems that even some of the nation’s strongest markets, including Utah, the state with the highest third-quarter year-over-year housing price appreciation, are losing steam. For example, in Provo, where home prices leaped 14% in the quarter ending Sept. 30, compared with the same period in 2006, according to the Office of Federal Housing Enterprise Oversight, the Nortons have knocked $30,000 off their original asking price of $368,000, set five months ago, and are giving a 3% discount to any buyer who comes to the closing table without an agent. The nation’s hottest markets have already been weakened by tighter loan restrictions in the wake of the subprime mortgage mess that took hold in August. “It’s really hard for any state to escape a downturn of this magnitude,” says David Stiff, chief economist for Fiserv Lending Solutions in Brookfield, Wis. “There are places that won’t drop. But the strongest markets will roughly be growing at the rate of inflation, so in real terms, they’ll be treading water.” (www.businessweek.com)
Green Effort GrowsMichigan is one of the leaders in the national green building effort, trailing only Oregon and California. There are more than 200 Michigan development projects that are certified by or seeking certification by Washington, D.C.-based Leadership in Energy and Environmental Design. Additionally, there are about 150 individual houses certified by the Grand Rapids-based nonprofit Green Built Michigan, which is endorsed by the Michigan Association of Home Builders. For builders who don’t know how to construct green structures, Green Built Michigan has an educational program that has seen about 1,000 trainees. Last fall, the organization established a Detroit chapter. Christopher Pratt, who designed and constructed the Cedar Pine subdivision in Troy, has pledged to train 200 developers in the next year. “The objective of this group is to raise the educational level and skill level of green builders across the state,” said Green Built Michigan President Arn McIntyre, who sits on the Washington-based American National Standard Institute Consensus Committee to develop standards for national green building. (www.freep.com)
Senate Passes Tax Relief Without Offsetting RevenueBy an overwhelming 88-to-5 margin, the Senate on Dec. 6 voted to extend short-term relief from the Alternative Minimum Tax (AMT) for another year, which would prevent an additional 20 million Americans from being subject to the tax. However, the bill includes no offsetting spending cuts or tax increases, a significant difference from the House-passed AMT relief measure. Earlier this year, the House passed “pay-as-you-go” rules that require offsets for all tax cuts to make them revenue neutral. One of the primary revenue offsets for the one-year AMT patch approved by the House last month would be a change in the taxation of carried interest from the current 15% capital gains rate to ordinary income tax rates that can run as high as 35%. NAHB opposed the House AMT bill because the move to tax "carried interest" to pay for the measure would impose a multi-billion dollar tax increase on real estate at a time when the industry is in the midst of a cyclical downturn. Making the issue more complicated, there are two schools of thought in Congress. On the one hand, many lawmakers in the Senate strongly believe that a “clean” AMT bill should be approved without any revenue offsets because AMT revenue was never intended to be collected in the first place. They are at odds with House Democratic leaders, who insist that pay-as-you-go budget rules are essential to enforcing fiscal discipline and not adding further to the national debt. The Senate bill now goes to the House, and Ways and Means Committee Chairman Charlie Rangel (D-N.Y.), who insists that Congress must pass AMT relief without adding to the national debt, has indicated a willingness to compromise. “We will make adjustments to the bill to address some of the political opposition in the Senate as it relates to bringing equity into the tax code for managers of equity and hedge funds, but we will continue to pursue this issue,” said Rangel. “At this time, we are looking to close a loophole where billions of dollars in offshore funds have escaped taxation.” Meanwhile, the Bush Administration continues to warn that further debate on AMT relief risks delaying millions of tax refunds, because the IRS won’t have enough time to reprogram its computers to cope with late congressional action. NAHB continues to urge Congress to move quickly to pass a fix to the AMT and to drop a provision that raise taxes on the carried interest of private equity managers, venture capitalists and real estate investors. For more information, e-mail Greg Brown at NAHB, or call him at 800-368-5242 x8421. Fannie Mae Fee Plan Demonstrates Need for Prompt GSE ReformNAHB last week came out in opposition to a plan by Fannie Mae to impose an “Adverse Market Delivery Charge” for all mortgages purchased after March 1, 2008. “Fannie Mae’s new fee is a broad tax on homeownership that ultimately will be passed along to consumers. It’s certain to be more difficult for the housing market to regain its footing when steps are being taken to drive up mortgage costs. This is the exact opposite of what needs to be done and underscores the importance of Congress quickly enacting legislation that would strengthen regulatory oversight of government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac while also preserving their vital housing mission,” said Jerry Howard, NAHB’s executive vice president and CEO. Starting on March 1 Fannie Mae plans to charge lenders an additional 25 basis points across the board for loans purchased for portfolio as well as for loans delivered into its guaranteed mortgage-backed securities. Howard said that it appeared this action was being taken specifically to ensure that Fannie Mae meets a 30% minimum capital surcharge imposed by the Office of Federal Housing Enterprise Oversight (OFHEO) as a result of financial difficulties that Fannie Mae has been working through since 2004. “This is like a mini perfect storm created by Congress’s inability to pass meaningful GSE reform and OFHEO’s regulatory inflexibility in a time of crisis. So it should be of little surprise to anyone that, under these circumstances, a GSE would resort to a mortgage surcharge to meet capital requirements,” Howard said. “This is no time for Fannie Mae’s business interests to take precedence over its mission responsibility. NAHB has long opposed government efforts to impose user fees on the GSEs, and this, despite the fact that it is called a necessary result of a down market, is essentially a user fee that is being imposed by Fannie Mae. We oppose it and urge Fannie to reconsider,” he said. For more information, e-mail David Ledford at NAHB, or call him at 800-368-5242 x8265. Building Code Provisions Out of House-Passed Energy BillBy a margin of 235 to 181, the House on Dec. 6 approved an amended version of comprehensive energy legislation, H.R. 6, that removed onerous building code provisions. The reworked energy bill would increase vehicle fuel standards, mandate renewable energy use for electricity generation on a broad scale and establish lighting and appliance efficiency standards, as well as green requirements for federal buildings. Most importantly to NAHB, the detrimental building code provisions that would have called for states to increase code requirements by 30% and 50% in 2010 and 2020, respectively, were not included. More than 50 groups representing utilities, insulation manufacturers, environmental advocates and state energy offices lobbied to keep those measures in the bill. However, NAHB, along with local and state associations and several real estate industry groups, was able to get these provisions removed prior to House consideration. The legislation also includes a number of tax provisions for renewable energy that would be funded by repealing lucrative oil and gas industry subsidies. The tax provisions were immediately decried, mostly by Senate Republicans, who voted successfully to block a cloture motion last Friday and stop further progress of the bill. Meanwhile, the Administration has threatened to veto the measure. In a related development, the Senate Environment and Public Works Committee last week passed a major climate change bill — S. 2191 — that would establish the first carbon cap-and-trade system in the U.S. The bipartisan legislation, introduced in October by Sens. Joe Lieberman (D-Conn.) and John Warner (R-Va.), passed after more than nine hours of deliberation by the committee and consideration of more than 40 amendments, most by Republicans who tried to add provisions for nuclear energy and natural gas production. NAHB has lobbied against building code provisions in the bill and continues to highlight the fact that new homes are substantially more efficient and that additional regulation on new construction is misguided and will not produce significant energy savings. Many leaders in the real estate industry are working with NAHB in this effort. Floor time for the measure has not been scheduled, but the bill faces mounting opposition from many industry and trade groups. To read legislation, click here and enter the bill number in the box at the center of the page. For more information, e-mail Elizabeth Odina at NAHB, or call her at 800-368-5242 x8570. Report on State Options for Infrastructure Finance Updated
“Infrastructure Finance: Does your state encourage innovation?” ― part of a three-publication series on infrastructure finance solutions first published several years ago — looks at state enabling authority for 12 of the most commonly used infrastructure finance tools. The publication is based on research conducted for NAHB by the National Conference of State Legislatures (NCSL) and is available free. Originally released in 2005, the updated publication captures significant movement across the states since that time, highlighting which states have amended their enabling authority as well as added new authority to use alternative tools. The information can be used by local governments to determine the financing options enabled in their state to pay for roads, schools, parks, water and wastewater services and other public facilities. The information can also be used by states to identify infrastructure tools that warrant new authorizing legislation. The dozen most commonly used infrastructure financing options include:
The International Council of Shopping Centers (ICSC) helped fund this new research. Report Available Online “Infrastructure Finance: Does your state encourage innovation?” is available free from NAHB online. To download this publication, click here. Two companion reports are also available free online from NAHB. They include:
While some resources are for NAHB members only, many are available for wider distribution. For more information, e-mail Thais Austin at NAHB or call her at 800-368-5242 x8343, Blake Smith, x8583, or visit www.nahb.org/infrastructurefinance. Smart Growth Conference Planned in Washington, D.C.The Local Government Commission (LGC) will be holding its New Partners for Smart Growth Conference in Washington, D.C. on Feb. 7-9. The conference will feature the latest on cutting-edge smart growth issues, implementation tools and strategies, best practices, interactive learning experiences, new partners, new projects and new policies, as well as 15 tours of local model projects in neighborhoods in Washington, D.C. and suburban Virginia and Maryland. LCG is a nonprofit, nonpartisan, membership organization that provides technical assistance and networking to local elected officials and other dedicated community leaders who are working to create healthy, walkable and resource-efficient communities. The conference will feature more than 100 educational sessions — including plenary sessions, interactive breakouts, implementation workshops and specialized training — and more than 300 speakers. “The New Partners for Smart Growth conference has become more and more solution-oriented in it focus, and by attracting an increasingly diverse audience of participants from both the public and private sectors, it offers a rare forum for having frank and productive discussions about how to work better together,” said Debra Bassert of NAHB and a conference speaker. The conference will attract local elected officials, city and county staff, landscape architects, developers and builders, planners, transportation professionals and traffic engineers, public health professionals, architects, bankers, crime prevention professionals, real estate professionals, urban designers, parks and recreation professionals, environmentalists, advocates for older adults and youth, bicycle and pedestrian advocates, advocates for affordable housing and others. More than 1,500 participants are expected to attend. For more information, and to register, visit www.newpartners.org. Eye on the Economy: Housing Recovery Will Begin in 2008Growth of U.S. economic output (real GDP) was remarkably strong in the second and third quarters of this year, averaging 4.4% for that period. This strong performance was registered in the face of a heavy drag from the downswing in housing production as well as substantial turbulence in credit markets associated with deepening problems in the subprime mortgage market. But the economy has hit a “rough patch” in the final quarter of 2007, and the probability of near-term economic recession has moved up in the process. Economic Recession Most Likely Will Be Averted The late-2007 downshift in economic growth reflects, to some degree, inevitable weakening of some GDP components, exports and business inventory investment that displayed temporary growth spurts in the third quarter. Furthermore, the housing downswing has continued to deepen and the fourth-quarter hit to GDP growth is likely to be even heavier than in the third quarter. Finally, we’re now looking at a substantial unanticipated slowdown in growth of consumer spending, a sector that accounts for about 70% of total GDP. Everything considered, we’re now estimating GDP growth of only 0.5% in the fourth quarter, not far from the recessionary red zone, and we’re also projecting decidedly subpar growth early next year. Indeed, we’re now pegging the probability of economic recession within the next 12 months at 40%, up from 30% a month ago, and we believe that monetary stimulus by the Federal Reserve will be needed to keep the economy in the black during the coming year. Mortgage Problems Weigh Heavily on the Housing Market Interest rates on prime conventional conforming mortgages — those salable to Fannie Mae and Freddie Mac — recently have fallen to historically low levels, and the FHA mortgage insurance program has been growing at the same time. But the nonprime components of the mortgage market, subprime and Alt-A, still are nonfunctional and yield requirements in the prime jumbo market (above the $417,000 conforming loan limit) are prohibitive for many prospective buyers in California and other high-priced housing markets. Lending standards have been tightening throughout the mortgage market, making it tougher for prospective home buyers even in the prime components of the market where interest rates are favorable. This tightening process has effectively eliminated earlier “affordability” products, including interest-only and payment-option adjustable-rate loans. The process also has pulled back low/no documentation loans as well as piggy-back seconds that had proliferated during the boom. NAHB’s surveys of builders continue to document serious adverse impacts of tightening mortgage lending conditions on home sales and sales cancellations. These impacts definitely are showing up in the standard measures of new and existing homes sales. The downtrend in sales continued through October and we expect further slippage in both gross and net sales into the early part of next year prior to an extended recovery process. Excess Supply Still Hangs Over Housing Market Single-family housing starts are down by about 50% from the record high at the beginning of last year, and starts for-sale (excluding units built on owners’ lots) are down by even more. Unfortunately, home sales also have fallen dramatically and sales cancellations have been boosted by the tightening of mortgage market conditions. Furthermore, investors/speculators have been unloading many units bought during the boom, but never occupied, onto the market for existing homes. In the existing-home market, a near-record 3.8 million homes were for sale at the end of October, amounting to a record 10.5 months supply at the October sales pace. In the new-home market, 516,000 units were for sale at the end of October, down to some degree from the record highs of last year but still a historically high 8.5 months supply. The estimate of new-home inventory excludes homes handed back to builders when sales contracts are cancelled — a major market development in both 2006 and 2007. The heavy supply overhang points toward further reductions in the pace of new housing starts in the near term, and the ensuing upturn in starts will lag the upturn in sales by several quarters. Furthermore, the supply-demand imbalance will continue to put downward pressure on house prices in some areas, particularly those that got seriously overheated during the boom stage of the housing cycle and areas where local economies have been losing both employment and population for some time. The Fed Is Prepared to Ease Monetary Policy The Fed enacted quarter-point cuts in both the federal funds rate target and the discount rate at the conclusion of the Oct. 31 Federal Open Market Committee (FOMC) meeting. At that time, the FOMC expressed the judgment that “after this action, the upside risks to inflation roughly balance the downside risks to growth.” But the obvious slowdown in economic growth since then, coupled with renewed turbulence in credit markets, has forced a major change in the Fed’s view of near-term risks to the U.S. economy. In late November, both Fed Chairman Ben Bernanke and Vice Chairman Donald Kohn delivered addresses that revealed increasing concern about downward pressures on economic growth, coming largely from the housing sector, as well as renewed turbulence in financial markets, coming largely from the subprime mortgage market. Both Bernanke and Kohn referred to spillover effects from housing and mortgage markets to the broader economy and to other components of the credit markets — including the commercial paper and corporate bond markets. And neither fretted about upside risks to core inflation in the foreseeable future. It’s now highly likely that the Fed will enact additional cuts in the federal funds and discount rates at the next FOMC meeting on Dec. 11, and further monetary ease is likely early next year as well. NAHB’s current forecast assumes quarter-point rate cuts at both the Dec. 11 and Jan. 31 FOMC meetings, and a half-point cut this week is not out of the question. Deeper rate cuts early next year also are possible if evidence shows the economy slipping toward recession. The Housing Recovery Will Begin in 2008 The dramatic housing downswing that began in the latter part of 2005 has already dropped national home sales and housing production well below pre-boom levels, and the bulk of the downswing presumably is now behind us. Sales and production for 2008 as a whole most likely will turn out to be below the 2007 totals, but crucial turning points are likely to be registered during the year — assuming the Fed keeps us out of recession and mortgage markets function more normally. NAHB’s current forecast shows troughs for sales of both new and existing homes in the first quarter of 2008. In view of the inventory overhang, we don’t expect housing starts to start upward until the third quarter of the year. Given normal lags, the housing production component of GDP (residential fixed investment) should be only a minor drag on economic growth by late next year and should begin to register positive growth by the first quarter of 2009. 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. 7 edition. To subscribe to “Eye on the Economy,” click here. Webcast of NAHB Fall Construction Forecast Available Till Feb. 5 The webcast of the NAHB Fall Construction Forecast Conference held in Washington, D.C. on Oct. 24. is available for purchase through Feb. 5. The conference webcast includes panels of nationally recognized experts discussing economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. Purchasers will receive unlimited access to the webcast archive though Feb. 5, as well as electronic copies of the conference handouts and presentation material. Purchasers can watch at their own pace, rewind, fast forward and review important sections. To Purchase the Webcast To purchase the webcast, visit www.nahb.org/cfcwebcast. For more information, contact Kate Carrigan at NAHB, or call her at 800-369-5242 x8244.
Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview). Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables. To learn more, visit www.HousingEconomics.com.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. 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.
Webcast of NAHB Fall Construction Forecast Available Till Feb. 5 The webcast of the NAHB Fall Construction Forecast Conference held in Washington, D.C. on Oct. 24. is available for purchase through Feb. 5. The conference webcast includes panels of nationally recognized experts discussing economic trends, government policies, developments in the housing industry and the results from NAHB's recent surveys. Purchasers will receive unlimited access to the webcast archive though Feb. 5, as well as electronic copies of the conference handouts and presentation material. Purchasers can watch at their own pace, rewind, fast forward and review important sections. To Purchase the Webcast To purchase the webcast, visit www.nahb.org/cfcwebcast. For more information, contact Kate Carrigan at NAHB, or call her at 800-369-5242 x8244.
Want to Know the Housing Forecast for the Top 100 Metros? Find out in HousingEconomic.com’s 2008 to 2009 Metro Forecast (free preview). Get the metro forecast with in-depth analysis, overviews and downloadable Excel tables. To learn more, visit www.HousingEconomics.com.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. 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. Builders' Tip: Steel Corners Make Clean Corners
I’ve been installing a lot of non-wood siding, such as cement-based and hardboard lap siding, during the past few years. To complement the clean look of these sidings, I’ve taken to installing custom-made steel corners. As shown in the accompanying drawing, the corners have flanges that are nailed to the wall and act as integral flashings in case any moisture gets behind the siding. The siding abuts the projecting corner of the metal trim details. I have a local metal shop make the corners from steel gutter stock. This material is inexpensive and comes in brown, white or primer. The steel corners also hold paint beautifully. Before I started using these corners, I used cedar corner boards. But they would eventually shrink, leaving a cracked caulk joint. With the steel corners I now use, that problem is a thing of the past. — Richard Darby, Merlin, Ore. Tips & Techniques provided by Fine Homebuilding.
To request a reprint of this feature, e-mail Christina Glennon at Fine Homebuilding.
Set Yourself Apart With CGB Designation Join the ranks of the nation’s top building industry professionals with the Certified Graduate Builder (CGB) designation. The “Builder Assessment Review” (BAR) is your first step towards obtaining the CGB. This comprehensive assessment measures your expertise in the four key areas of the building industry: building technology, business and finance, project management and sales and marketing. Your results will show the areas where your knowledge is strongest and weakest and will help determine the courses required for you to obtain your CGB. To learn where the next BAR will be held, visit NAHB’s education listings, or call the Professional Designation Help Line at 800-368-5242 x8154.
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 to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. 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. Stacking Gypsum Vertically a Sure Way to Damage HomesThe NAHB Research Center recommends hot spot training for all trades to eliminate the problem of stacking gypsum boards against walls or on the side, a common practice that can damage the home and present a safety hazard to work crews. “On a typical job site, the supplier of the gypsum stocks the product in locations preferred by the installer,” according to an article in the current issue of Quality Matters, the official e-newsletter of the Research Center’s National Housing Quality (NHQ) Program. “This often includes loading stacks of gypsum on its side or leaning it against framing members,” the article says. “When the framer arrives, he cringes at the sight of this practice, but typically cannot do anything about it alone because the delivery company does not take orders from the framing contractor. As a result of improper storage, it is the framer who will be asked to explain or repair the sagging floor or adjust the doors that do not close properly." Literature from the Gypsum Association states unequivocally that board should be stacked flat because stacking it vertically against a wall poses a safety hazard and a stack of only 25 boards weighs more than a ton. Click here to see how stacking gypsum vertically overloads the wood-framed floors and walls and leads to structural damage. For example, the doorway of an upstairs bedroom is a convenient central location for installers, but it is not designed for a single concentrated load of more than 2,000 pounds. Damage occurs whenever the floor is so overloaded at a single concentrated point that the wood frame is permanently overstressed and damaged. “Even the builder is often out of the loop of instructing the gypsum delivery company about how and where to stock the materials in the home,” according to Quality Matters. Stocking the home the correct way requires the gypsum panels, each weighing more than 80 pounds, to be stacked in the center of the room at the center of the span of the floor joists. Since gypsum is typically delivered by a boom truck when the builder’s field manager is not physically present in the home, the incorrect delivery and stocking is difficult to correct. Even when corrected, it is often after much damage has been done to the wood frame. “Reinforcing hot spot do’s and don’ts helps to curb job site mistakes and is one step toward avoiding problems later on,” Quality Matters says. “Hot spot training uses a simple graphic to depict the right and the wrong way of performing field construction tasks. Typically presented in both English and Spanish, the visual cues of hot spot training are helpful to overcome language barriers on the job site.” Click here to see a hot spot training sheet provided by an NHQ Certified framing contractor to the builder. The framer has suggested that the builder, the gypsum installer, the delivery company and the framer all meet at the job and address the problem. A team approach is needed to solve the problem. “This is a good example of the partnership that develops on a job site where many trades share the common goal of continuous improvement,” says Quality Matters. “NHQ Certified trade contractors and builders all have a regular documented continuous improvement process.” Quality Management Key to Prospering in a Slow MarketBuilders struggling to find areas in which they can change their business operations in order to thrive in today’s housing slowdown should learn at least five effective lessons, all of which can be demonstrated by adopting a quality management system, according to Quality Matters, the official newsletter of the NAHB Research Center's National Housing Quality (NHQ) Program:
Take the Time Now to Increase Efficiency and Reduce CostsThe current housing slowdown may be a perfect time to begin implementing changes in your business practices, software and technology that can increase efficiency and reduce costs. The changes that you implement now will set you on a path of greater efficiency and cost savings that much sooner and will benefit you over the long haul. Quite frankly, another reason to implement these efficiency changes now is because you probably have the time to see the changes through to completion. Changes can be made in the software and systems that you use. Changes can also be made with the people you work with, how efficiently they work and with what you actually build. On the systems and software side of business, there are five basic changes that can be made to increase efficiency and reduce the need for costly employees:
Andy Elsbury is the founder of Indianapolis-based SelectionWare, which provides consulting services and solutions for home builders to improve the building process. For more information, e-mail Elsbury, call him at 866-585-9222 or visit the SelectionWare Web site at www.SelectionWare.com.
NAHB Has More Than 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 more than 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. Missing a deadline can seriously damage your bottom line. The "Scheduling" course from The NAHB University of Housing shows building professionals how to set workable schedules and use various time-management tools. The course teaches the benefits of scheduling and integrating scheduling with other management activities and will help builders, remodelers and site managers deal with those days when nothing goes according to plan. Find upcoming Scheduling courses here, or call 800-368-5242 x8154 for more information.
Multifamily Members Invited to Reception at Builders’ ShowWith the guest list filling up fast, members of NAHB Multifamily should register now for the Multifamily Developers’ Reception at the International Builders’ Show (IBS) in Orlando. There’s still time to become a member for the opportunity to meet multifamily builders, developers, vendors and leaders at this event. Membership in NAHB Multifamily includes access to exclusive industry information and opens the door to other events at the IBS. New Multifamily members who have joined within the 12 months prior to the show will be able to attend a special luncheon at the IBS. There will also be a member breakfast in the Multifamily headquarters lounge; details will be announced soon. Finally, members who are in Orlando for pre-show committee meetings are invited to attend a reception sponsored by Whirlpool, a long-time industry friend and partner. To register for the Developers’ Reception, click here and fill in the form. For more information about Multifamily events, or about joining NAHB Multifamily, e-mail Lawrence McFadden at NAHB, or call him at 800-368-5242 x8550. Qualify for the RAM Designation at IBS Property management professionals ready to qualify for the Registered in Apartment Management (RAM) designation can take the RAM exam during the International Builders’ Show in Orlando on Saturday, Feb. 9 from 1:00-4:00 p.m. Upon successful completion of the examination, participants can complete an experience profile and application for the RAM designation. For more information, contact the RAM Program Coordinator at 800-368-5242 x8154, or e-mail RAMinfo@nahb.com. Home Theaters Can Help Builders Maximize Profits
Home theaters, media centers and other higher-end home technologies can help builders maximize their profits, even during the current housing downturn, according to studies by consumer electronics organizations. Overall, consumer electronics are projected to generate $155 billion in factory sales to dealers in 2007, a recent survey by Consumer Electronics Association (CEA), according to a nationwide organization of consumer technology companies. Within the home building industry, home technology installations were expected to increase 7% this year to $9.6 billion. While more than 46% of the builders surveyed by CEA recently said home theater offerings boosted their profit potential last year, other industry surveys have found that many new-home builders may not be fully tapping into the profit potential of offering home theater to their customers. Regarding demand for home theaters and sophisticated home electronics, a CEA survey last year found that 23% of home buyers who did not purchase a home theater system at the time of home purchase and construction regretted that decision. The survey also found that only 60% of home automation systems and 43% of home theater systems were installed during new home construction. A similar study by Parks Associates, a Dallas-based market research firm that focuses on home and digital technologies, found that more than half the builders surveyed in 2006 offered electronics for home theaters and that 45% of the builders installed home theaters in the homes they sold. A home theater is among the top “must-have” technologies that builders should include in their home packages, said Utz Baldwin, president of the Custom Electronic Design Installation Association (CEDIA), an international trade association of companies that specialize in designing and installing electronic systems for the home. Baldwin will participate in a panel discussing home technology trends at the 2008 International Builders’ Show in Orlando in February. Alliance: A Source for Technology Information So that builders could take advantage of the growing demand for technology, NAHB partnered with CEDIA to create the Home Technology Alliance (HTA) to raise industry knowledge about technology trends and opportunities and to provide builders with the information they need to take a lead role in marketing home technology to their consumers. What Builder Can Do to Maximize Profits CEDIA suggests several steps that builders can take to ramp up their technology offerings and maximize profits. They include:
CEDIA: A Source for Experienced ESCs The Home Technology Alliance (HTA), a partnership between NAHB and the Custom Electronic Design Installation Association (CEDIA), was created to meet the growing consumer demand for home technology. CEDIA, a founding sponsor, is an international trade association of companies that specialize in designing and installing electronic systems for the home. CEDIA members are established and insured businesses with bona fide qualifications and experience in this field. For more information on CEDIA, visit the association’s Web site at www.cedia.org. To find an ESC, click here.
Third-Quarter Market Activity Looks All Right to RemodelersRemodeling activity held up well during the third quarter of 2007, according to NAHB’s Remodeling Market Index (RMI). Remodelers’ assessment of current market conditions for July through September climbed to 46.2, up from 44.8 in the second quarter, while lagging slightly behind the 47.8 recorded one year earlier. The expectations of remodelers declined from 44.6 to 43.3 between the second and third quarters and ran a hair behind the 45.4 registered during the third quarter of 2006. “Buoyed by continuing strong demand for minor additions and alterations, the remodeling market is expected to end the year in pretty good shape,” said NAHB Remodelers Chairman Mike Nagel, CGR, CAPS, a remodeler from Chicago. “Though down a bit from the previous quarter, the remodeling market is not experiencing the dip in production and sales being seen by the new home building sector of the industry.” The RMI measures remodeler perceptions of market demand for current and future residential remodeling projects. Any number over 50 indicates that the majority of remodelers view market conditions as improving. The RMI has been running slightly below 50 since the final quarter of 2005. Nationally, the index showed the market for minor additions and alterations improving significantly during the third quarter, from 43.27 to 47.07, while major additions and alterations remained stable at 46.89, up just a tad from 46.36 in the second quarter. Regionally, minor additions and alterations showed big gains in the Midwest, where they jumped from 45.06 to 57.44 on the RMI, and in the Northeast, where they rose from 50.43 to 56.68. The amount of work committed for the next three months rose slightly on the index to 36.12, from 35.91, and the backlog of remodeling jobs decreased from 47.33 to 44.93. Additionally, the market for owner-occupied remodeling increased from 47.1 to 49.1 on the RMI, while renter-occupied remodeling declined from 40.2 to 38.7. “The RMI is consistent with our forecasts for the remodeling market,” said NAHB Chief Economist David Seiders. “We expect activity to contract in 2008, but to resume positive growth in 2009 and beyond.” In a special question on outdoor remodeling jobs, 52% of those responding on the RMI survey reported that their addition jobs included decks, followed by porches, 35%; patios, 25%; front porches, 25%; decking/patio covers/enclosures, 22%; outdoor lighting, 13%; and outdoor kitchens, 13%. Thirty-one percent of respondents reported an increase in outdoor remodeling work compared to the previous year. And 44% responded that outdoor remodeling work had increased during the last five years. RMI survey respondents said that 62% of customers financed outdoor remodeling projects with cash, with 36% using an equity line of credit. The U.S. Census Bureau reported that $2.5 billion was spent last year on decks. It appears that customers tend to hire remodelers to add decks onto homes after living in the house for a period of time. For more information about NAHB remodeling resources, e-mail Kelly Mack, or call her at 800-368-5242 x8451.
Get Your Professional Designation at IBS Earning the CAPS, CGR, CGB or GMB designation demonstrates a commitment to excellence and keeps builders and remodelers on top of industry innovation. A number of International Builders’ Show pre-show courses qualify for these builder and remodeler professional designations, or for continuing education needed for other NAHB designations. For more information, visit www.buildersshow.com/PreShowEducation. Deadline for Awards for Young System Builders Dec. 15The Dec. 15 nominations deadline for the first annual Systems Built “30 Under Forty” Awards is fast approaching. The awards program is designed to highlight the entrepreneurial spirit and energy of the younger building systems community, recognizing 30 exceptional building systems members under the age of 40 whose emerging talent will influence the housing of the future. Candidates will be judged by members of The Building Systems Councils and winners will be recognized at the Building Systems Dinner on Feb. 12 during the International Builders’ Show. For submission and format guidelines for the awards, click here. Sponsors of the awards include: American Home Bank, N.A.; Home Buyer Publications; The Building Systems Councils; J. Rouleau & Associates, LLC; and Forest Homes. Opportunities for sponsorships are available. For more information, e-mail Scott Rouleau, or call him at 860-677-0560. Free Builders’ Show Lunch Focuses on ConcreteThe Concrete Home Building Council is inviting builders, manufacturers and industry partners attending the International Builders’ Show in Orlando to a free “Connect With Concrete” luncheon. The luncheon will feature information on the variety of ways in which using concrete can make homes stand out from the crowd and help businesses grow. Advances in concrete have made concrete one of the fastest growing sectors of the housing industry. Concrete is cost-effective and green, efficient, versatile and environmentally-friendly. It’s also something that home buyers want. The luncheon is scheduled for Friday Feb. 15, noon-2 p.m. in W108A on Level 1 of the Orange County Convention Center. For reservations, which are on a first-come, first-serve basis, e-mail Kate Driscoll at NAHB, or call her at 800-368-5242 x8362. Concrete Can Do That — Take the Tour and See How NAHB’s 2008 Concrete Technologies Tour gives attendees an inside look at the residential concrete industry and a chance to see the latest production techniques and building trends up close. Concrete is cost-effective and green and is becoming one of the fastest growing sectors of the residential building industry. The upcoming tour will be on June 1-3 in Charlotte, N.C. For more information, visit www.nahb.org/ConcreteTour. Free NAHB 'Ramp Up Sales' Audio Conference on Dec. 12Industry veterans who have been through market shifts in their careers will discuss what sales and marketing changes should be made in order to thrive in today’s market during an upcoming audio conference that is free to NAHB members. The hour-long teleconference, “Ramp Up Your Sales & Marketing in a Changing Market,” will begin at 2 p.m. Wednesday, Dec. 12. A panel of sales and marketing experts will discuss successful techniques that are working for them. The teleconference will include a 40-minute presentation by the panel, followed by a 20-minute question-and-answer session. Members are encouraged to e-mail questions to the panel in advance to Michael Copp at NAHB. Teleconference topics include the following:
To Register Free online registration is available by clicking here. For more information, read the teleconference flyer by clicking here. HBAs and local sales and marketing councils are encouraged to host the audio conference call at their HBA. For more information, e-mail Michael Copp at NAHB, or call him at 800-368-5242 x8340. The conference is co-hosted by the National Sales and Marketing Council and Biztools™, NAHB's business management comprehensive resource on the NAHB Web site.
Get Your Professional Designation at IBS Earn credits towards the MIRM, CMP, CSP or MCSP designations at pre-show courses during the International Builders’ Show. A number of IBS pre-show courses qualify for these sales and marketing professional designations, or for continuing education needed for other NAHB designations. For more information, visit www.buildersshow.com/PreShowEducation.
Bill Webb, MIRM, shows you how in “Sweet Success in New Home Sales,” available through BuilderBooks.com. This book provides powerful techniques for selling more homes and making more money in leaner times. "Sweet Success in New Home Sales" lays out the proven approaches for crafting and delivering sales excellence. To view or purchase this publication online, click here, or call 800-223-2665.
Get the Marketing Edge With IRM Meet the current market’s sales and marketing challenges with Institute of Residential Marketing (IRM) classes. Courses include “The Challenge of New Home Sales Management,” “Understanding Housing Markets and Consumers,” “Marketing Strategies, Plans and Budgets” and more. The courses are part of the credits needed to earn the MIRM designation, the top-level achievement for professionals in new home marketing. Find upcoming IRM classes by clicking here. Tickets Available for The Nationals 2008 Gala at IBSTickets are available for The Nationals 2008 gala, the housing industry’s largest and most prestigious competition honoring new-home sales and marketing professionals and communities. Hosted by the National Sales and Marketing Council (NSMC), the gala will be held at the Rosen Shingle Creek Resort in Orlando on Feb. 13 during the 2008 International Builders’ Show. "The Nationals celebrates innovation, creativity and drive," said Ross Robbins, MIRM, CMP, a Colorado-based consultant and chairman of The Nationals 2008. "NAHB's dedication to honoring the achievements of new home sales and marketing professionals has created a legacy of excellence that we can be proud of.” Begun in 1982 as the Institute of Residential Marketing (MIRM) Awards, this year The Nationals will honor excellence in 57 categories of residential design, marketing, interior merchandising, advertising, Web site design and individual and team sales achievement. In addition, The Nationals honor the top local sales and marketing councils across the country. More than 1,300 entries are being considered for this year’s competition. Gold Award winners in each category will be announced at the gala, which is expected to have more than 1,000 attendees. To Purchase Tickets Individual tickets are $175 each for NSMC members and $195 for non-members. Tables of 10 also are available for $1,750 and $1,950, respectively. Individual and group tickets may be purchased online by clicking here; e-mailing Lisa Parrish or calling her at 800-658-2751; or by visiting The Nationals Web site at www.thenationals.com.
Earn credits towards the MIRM, CMP, CSP or MCSP designations at pre-show courses during the International Builders’ Show. A number of IBS pre-show courses qualify for these sales and marketing professional designations, or for continuing education needed for other NAHB designations. For more information, visit www.buildersshow.com/PreShowEducation.
Earning the Certified New Home Sales Professional (CSP) designation can give you the edge you need in today’s market. Ask current CSPs how the designation has benefited their careers on the "Ask a CSP" page. These graduates have volunteered to answer questions, provide guidance and help navigate the CSP program. For more information about NAHB designations, visit www.nahb.org/designations. Register Online for 2008 International Builders' ShowRegistration is open NAHB’s 2008 International Builders’ Show (IBS), the housing industry’s largest annual trade show and exhibition. The show is expected to draw more than 100,000 housing professionals — including home and apartment builders, architects, products manufacturers and those involved in every aspect of residential and light commercial construction — to the Orange County Convention Center in Orlando, Feb. 13-16. The convention will feature more than 1,900 exhibitors spread across more than 1.5 million net square feet of space. They will showcase cutting-edge designs, technologies, products and services in more than 300 categories in home building and light commercial construction. NAHB will offer nearly 300 education sessions at IBS on multiple topics including green building, tips for succeeding in a slower market, the 50+ housing market, construction codes and the top consumer home trends for 2008. New to the 2008 show is “Executive Edge,” a day-long program for executives that will feature advice from speakers on leadership in challenging times. “Now more than ever, housing professionals need to arm themselves with the latest information and resources that will help them weather this slower housing market,” said NAHB President Brian Catalde. “With its unmatched product showcase, impressive speakers and education sessions and unbeatable networking opportunities, this is a show that everyone in the housing industry will want to attend.” To Register Discounted online registration for IBS is available until Jan. 4. Attendees will be able to register onsite at the show beginning Feb. 10. To see a virtual showcase of exhibitors and their products, visit www.BuildersShow.com/VTS. Education Calendar
Learn More About Upcoming Conferences and Designations Interested in attending a University of Housing conference or learning more about NAHB designation programs? Visit www.nahb.org/notifyme, and sign up to receive more information.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. 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. Pulte Takes the Lead in Hispanic Internship ProgramCompleting their internships at Pulte Homes, this year’s Team Builders students have gained an inside understanding of how a major home building company conducts its day-to-day operations. A joint effort of the Home Builders Institute (HBI) and the Hispanic Heritage Foundation’s (HHF) Latinos on Fast Track (LOFT) program, Team Builders was created to increase Latino representation in the home building industry’s managerial ranks. Students participating in the program are introduced to the home building industry and Pulte Homes and then placed at job sites and offices across the country, according to their area of study. Juan Flores, an applied economics senior at the University of the Pacific, completed his internship in the customer relations department at Pulte’s Central Valley, Calif. office. He was able to gain a variety of experience, including managing service requests and volunteering his weekend time for marketing events and team building activities. “It’s painful to lose him,” said Flores’ supervisor Ralph Baja. “He was that good. We’re very thankful that he was referred to our division and Juan is exactly the caliber of leader we’re looking to hire.” Pulte is an awesome company to work for,” said Flores. “I would definitely rate this internship experience a 10 out of 10.” Maria Rodriguez, a junior international business management and accounting major at the University of South Florida, worked for the sales department in Pulte’s Orlando office. Her experiences included rotation duties, property presentations to clients, English-to-Spanish translations, sales meetings and computer systems training. She attended Realtor® networking events and was even the featured guest and speaker for a Pulte Homes diversity and inclusion council. “Maria is great,” said her supervisor, Beatriz Rivera. “She was the perfect match for this office and the entire team is proud to have participated in her career development.” Rodriguez said that she entered the internship program without much knowledge of Pulte or home building. However, in just 10 weeks her interests in housing grew enormously and she is now considering pursuing career opportunities within the industry. Pulte brought 11 students into the company for the Team Builders program. “These interns came into our organization at a very tumultuous time, but we gave them a world-class experience,” said Kari Lawry, director of recruiting and diversity at Pulte Homes. “They excited us with their energy, capacity to learn quickly and ability to provide concrete value in such a short period of time. Best of all, they each said that despite the current downturn in the industry, they loved Pulte Homes and would happily accept full-time positions as they become available.” Beazer Homes served as Team Builders’ first sponsor in 2006. Following its 2007 sponsorship, Pulte Homes plans to continue the program through the summer of 2008. The company is also sending eight of this year’s interns to NAHB Student Chapter events at the International Builders’ Show in Orlando as Pulte Homes Ambassadors. For more information on Team Builders, e-mail Page Browning at HBI, or call her at 800-795-7955 x8918. InSinkErator Water Dispensers Offer New Design StylesInSinkErator recently launched a new series of instant hot water dispensers that offer new design styles to complement traditional décor. Coinciding with recent kitchen design trends, the new Series 2200 product line is comprised of two traditional high-end faucet designs in a “Country” and “Victorian” style. Featuring a C spout with a decorative high arc and an overall country-inspired look, the Country model goes well with farmhouse-style kitchens. Appropriate for any vintage-inspired kitchen setting or eclectic and modern design mix, the Victorian model features a unique L spout. Both designs are available in hot/cool and hot-only water models. The two faucet styles, which can be combined with the new InSinkErator steel tank, are available in 12 designer finishes, including satin nickel and oil-rubbed bronze. InSinkErator’s instant hot water dispensers deliver near boiling, 200 F water and cool drinking water immediately, helping to expedite a variety of tasks — from preparing tea, hot cocoa and other beverages to cooking pasta al dente in record time. The Series 2200 is part of a comprehensive system, working to produce the highest quality filtered water while simplifying food preparation and clean-up. A division of St. Louis-based Emerson Electric Co., InSinkErator is a member of the National Council of the Housing Industry — The Leading Suppliers of NAHB. 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 DIY, Fine Living and HGTVThe NAHB Production Group produces weekly television shows on DIY, Fine Living and HGTV for consumers. The following is the latest lineup: "Rock Solid" on DIY
"Assembly Required" on DIY
"I Want That" on Fine Living
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.
Free NAHB Kit Gives Builders Back-to-Basics Tips to Navigate the Slowdown What was once expected to be a relatively mild housing slump following three years of record new home construction and sales has given way to a significant downturn. To help members navigate the uncharted waters of this slowdown, NAHB has compiled a comprehensive “Back to Basics” online toolkit — the best of the basics, the tried and true and the truly new. To access the toolkit, click here. 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. View Free Construction Management Seminar WebcastA webcast of the construction management seminar held last month featuring NAHB Executive Vice President and CEO Jerry Howard and NAHB Chief Economist David Seiders is available for viewing free from East Carolina University (ECU). The seminar is for students, faculty and building industry representatives from across the country. The webcast, “The Upside of Downtime: Why Residential Construction Is Still a Path to Success,” is the second in the “Building Communities Webcast Series on Residential Construction Management.” The series is sponsored by the National Housing Endowment, the philanthropic arm of NAHB, in partnership with ECU. To view the seminar, visit www.rcmseries.ecu.edu. Make Sound Bites Bark With NAHB’s ‘Interviewing Skills'Learning how to effectively explain complex issues in 30 second sound bites will be taught during NAHB’s “Interviewing Skills,” part of the popular “Spokesperson Training” program that will be held at the International Builders’ Show in Orlando in February. NAHB members attending the seminar will learn how to give clear, concise answers in a high-pressure, spur-of-the moment interview. Through role playing, participants will learn how to quickly get key points across to the media, how the news is edited and how to avoid having their answers “taken out of context.” “This information is crucial to anyone representing an organization,” said seminar participant Joe Cristo of Cristo Homes in Middletown, Ohio. Sessions Available at the IBS “Interviewing Skills” sessions will be held at builders’ show on Feb. 11 and 12. The Feb. 12 session is sold out. In addition, NAHB will be offering “Presentation Skills” seminars at IBS on Feb. 13 and 14. “Presentation Skills” attendees will learn how to organize and deliver a speech and presentation with accompanying question and answer sessions. Each 7.5-hour seminar is limited to 12 participants. The seminars include instruction, skill-building exercises and on-camera practice interviews and presentations. More than 15,000 NAHB leaders have participated in the “Spokesperson Training” program. The seminars are led by professional communication consultants, each with more than 30 years of experience training NAHB members on the issues that home builders, home builders association staff members and affiliate members face every day. To Register The registration fee is $495 for each one-day seminar. Registrations are being accepted on a first-come, first-served basis. For more information, click here. To register, e-mail Gwyn Donohue at NAHB, or call her at 800-368-5242 x8447. Drive Away With a New $500 GM Offer This Holiday Season |