Nation's Building News Online: March 24, 2008Print All Articles Text Version |
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Move to Ease Mortgage Credit Crunch Not Bold EnoughWith the nation’s housing industry caught in the grips of a difficult mortgage credit crunch as the peak home building season fast approaches, regulators in Washington, D.C. last week took an encouraging step to put Fannie Mae and Freddie Mac to work to stabilize housing and the financial markets. But considering the severity of the problem and its dire implications for the U.S. economy, home builders said that it is not enough. The Office of Federal Housing Enterprise Oversight (OFHEO) announced on March 19 that it was reducing the capital surcharge levied on the two housing government sponsored enterprises (GSEs) to increase immediate liquidity to the mortgage-backed securities market by up to $200 billion. OFHEO estimated that Fannie Mae and Freddie Mac would now be allowed to purchase or guarantee about $2 trillion in mortgages this year. “This capacity will permit them to do more in the jumbo temporary conforming market, subprime refinancing and loan modifications areas,” OFHEO said. OFHEO said that it was reducing the 30% capital surplus required of the GSEs to 20% so that they could invest the difference in mortgages and mortgage-backed securities. Based on reports in the news media, NAHB and others had expected to see a greater cut in the capital requirement, although OFHEO did say in its announcement that it would consider further reductions in the future. “While we appreciate this action, it falls short of providing the liquidity required to stabilize today’s credit-squeezed mortgage market,” said Jerry Howard, NAHB’s executive vice president and CEO. “We were expecting a much bolder step by OFHEO, with a greater reduction in the capital surcharge in light of the severity of the mortgage credit crunch.” To get the most mileage out of these additional funds, he said, “Fannie Mae and Freddie Mac must target borrowers who have been shut out of the mortgage market by the financial sector meltdown. This action is a partial step to getting Fannie Mae and Freddie Mac back on the road to meeting their housing mission. Developing a proper balance between their housing mission and the interest of their stockholders is a key provision of the pending GSE regulatory reform legislation, which further underscores the urgent need for quick Senate action on the bill.” In addition, Howard said that the two GSEs “should use this opportunity to eliminate the market delivery fees that were recently added to loans to provide a reserve against future losses. These fees are a counterproductive tax on homeownership and will work against efforts to stabilize the nation’s housing market.” Following the OFHEO announcement, Daniel Mudd, president and chief executive officer of Fannie Mae, noted that the reduction in the capital surplus requirement would enable his company to “harness about $3 billion in additional capital to stand ready to purchase and guaranty mortgage assets.” “We plan to harness this additional capital by making purchases in segments of the mortgage market where liquidity is needed most,” Mudd said. “These segments include affordable loans; loans that refinance borrowers out of subprime ARMs and into safer prime, fixed-rate products; jumbo-conforming loans; and multifamily mortgages that finance affordable rental housing. More broadly, we will purchase and guaranty additional conventional, conforming mortgage-backed securities to help keep mortgage rates down and ensure stability in the center of the market.” Wider Action Needed in Washington In his March 19 “Eye on the Economy,” NAHB Chief Economist David Seiders noted that housing is continuing to go down hill and the core problem is falling house prices. “The problem is symptomatic of stubbornly weak home buyer demand and an extremely large supply of vacant homes on the for-sale market, and the upswing in mortgage foreclosures in piling more and more vacant homes onto the for-sale market,” he said. “This critical situation calls for government policies to stimulate home buyer demand and to stem the flow of foreclosed homes onto the market,” Seiders said. While the Federal Reserve has clearly been “on the job,” he noted, “major responsibilities also lie with other federal regulators, the government sponsored enterprises, the Congress and the Administration. When Congress returns from its Easter recess at the start of April, NAHB will be pushing aggressively for prompt action on a number of legislative fronts to correct current weakness in the housing market. That agenda includes comprehensive reform of the GSEs, modernizing the Federal Housing Administration, enacting a temporary tax credit for home buyers, expanding the mortgage revenue bond program and allowing businesses to carry back net operating losses for five years. BALA Room of the Year — A Boat Builder’s Refuge
Architect:
Builder:
The 2007 Best in American Living Awards (BALA) Room of the Year is literally a Boat Builder’s Refuge ― a sumptuous billiard room in the Potts residence in Daniel Island, S.C. Named the “Best Detail in a Semi-Custom or Custom Home,” the room was inspired by the home owner’s desire to maximize his views of a river and marsh from the second floor of his home. And because he is the founder of a successful boat manufacturing company, he wanted to incorporate marine motifs and materials into the crafting of the room.
The room’s defining feature is its ceiling, which is shaped like a boat hull that rises from 9 feet to 12 feet at its highest point and is detailed with ash, teak and mahogany. Dropped, articulated center panels of ash and mahogany run the length of the arc and hide indirect lighting and HVAC systems, keeping the ceiling unobstructed. The wood-burning fireplace, mantel and built-in cabinetry at one end of the room have mahogany details. All interior trim was carefully integrated to create an elegant, yet casual, atmosphere. The warm teak and holly floor is also reminiscent of a finely detailed watercraft.
The woodwork on the floor and ceiling was complicated to execute, says architect Stephen Herlong, of Stephen Herlong & Associates. “We consulted the interior designer about wood-grain patterns and other issues, and the builder, Philip Smith of Philip Smith General Contractors, found local craftsmen to do the installation. It took a lot of extra time,” Herlong said. The room is 44 feet by 25 feet and was a challenge to design for other purposes besides billiards, the architect said.
For more information on the 2007 BALA winning entries, visit the Professional Builder Web site at www.probuilder.com/BALA.
Photos by Warren Lieb Photography
Salt Lake Builders Make ‘Buy-Now’ Headlines in Local Newspaper
Faced with newspaper headlines reading “New-home sales reach 12-year low” and “U.S. home foreclosures skyrocket,” local home builder associations often witness first-hand the damage that negative reporting can inflict upon the local housing market and the businesses of their members. Sensational news media coverage has been especially troubling to HBAs in markets that have averted the harsh downturn being experienced in some of the hardest-hit housing markets in the country. Hammered with negative national coverage that didn’t apply to their market, the Salt Lake Home Builders Association (SLHBA) decided to take action and set the record straight to show local consumers why now is a great time to buy. Curtis Dowdle, the association’s executive officer, used NAHB’s Myth Buster Resources to write an article that was published in the Jan. 19 edition of the Salt Lake Tribune. “Buy a new home? Sorting through the myths vs. reality” addressed information provided in local news stories that didn’t accurately reflect local conditions. One “myth” was that Salt Lake home values were dropping on a daily basis. Dowdle’s article corrected that inaccuracy, letting readers know that “despite the fact that the number of transactions are down in the Salt Lake market, the prices continue to escalate.” To reinforce the fact that all housing markets are local, Dowdle showed the disparity between the local and national numbers. He incorporated sales numbers and home values from the Salt Lake Board of Realtors® and statistics on job, population and household income growth from the University of Utah’s Eccles School of Business to portray a robust economy with healthy underlying fundamentals for housing. Dowdle believes that his efforts to dispel the myths in his area have been effective in narrowing the perspective of local news coverage on housing to local industry conditions. Since his article appeared, Salt Lake Tribune headlines have announced: “Utah not sinking as fast as rest of nation,” “Utah still leads the nation for rising home prices,” “Believe it or not, Utah house market is best in the nation” and “Utah marks fifth quarter in row as nation's home-price increase leader.” NAHB is encouraging local associations to leverage the Myth Buster Resources to provide the media and the public with verifiable and relevant housing market statistics and information to counter the distortion of broad national news reports. The continuously updated materials in the Myth Buster section include housing forecasts for the nation’s top 100 markets; background information on statistical reports frequently cited by the media; questions and answers on housing myths and consumer concerns; and consumer-targeted television spots, print ads and handouts that can be customized for a local audience. To read how the Kansas City Home Builders Association used the NAHB Myth Buster Resources for a media outreach campaign, click here. For more information, e-mail Gwyn Donohue at NAHB, or call her at 800-368-5242 x8447.
Housing Slump Means Tough Times for TimberWith much of timber consumption based on new housing and new housing starts down by an estimated 50%, it’s a tough time for the timber industry. “We are in the midst of the steepest two-year downturn in lumber consumption in the history of the industry,” said Butch Bernhardt, director of information services for Western Wood Products Association. Composite lumber prices at Random Lengths show some of the lowest lumber prices in nearly two decades. Bernhardt said that total U.S. lumber consumption was at an all-time record of 64.3 billion board feet in 2005. By 2007, that dropped to 52 billion board feet, he said, with the 12 billion board food decline equal to the total annual lumber production of Oregon, Washington and Idaho combined. Bernhardt added that the current situation doesn’t match that of the early 1980s, when 60% of the West’s mills shut down. At that time, there were 1,000 mills. The year 2007 started with 210 mills among the association’s 12 Western states, and he expects that number to go below 200 this year. (www.capitalpress.info)
Investors Rode Housing Boom, and Now Many Are Going BustReal estate investors in San Diego who are now in trouble have some things in common. Most bought at the peak of the market and several worked in real estate themselves. In 2003, Stacci Gemigniani bought a two-bedroom, 1,100-square-foot house in City Heights for about $295,000. The next year she got her real estate license and purchased three more homes in the succeeding eight months — two condos and a house — for about $1 million combined. Since October, she has lost all four to foreclosure. Pamela Khamo began a career as a real estate agent in 2002 after selling her coffee shop. As the housing market heated up, so did her commissions and by 2005 her annual income was $360,000. She had begun buying investment properties a year or so earlier, favoring new condo projects in downtown San Diego. In all, she ended up with 13 properties at the peak. Income from renting the properties fell far short of covering the mortgages, but the commissions she earned on the purchases helped offset the rental shortfall, she said. Things started to unravel early last year. The slumping real estate market cut her income to $180,000, she became ill for a time and her adjustable mortgages started to reset from low teaser rates to higher rates — sometimes doubling her monthly payments. She scrambled to refinance and sought loan modifications from banks, but lenders had tightened standards and wanted more equity in the properties than she had. Khamo filed for bankruptcy in February and expects to lose all of the properties. (www.signonsandiego.com)
Bernanke’s Own Home on Capitol Hill Shows Housing Boom and BustFederal Reserve Board Chairman Ben Bernanke’s four-bedroom, 2,600-square-foot house in Washington’s Capitol Hill area may not be worth any more than he paid for it four years ago. The value of the home, which was purchased for $839,000 in May 2004, only a year before values peaked in the area, “probably went up to $1.1 million and it’s probably back down to $840,000,” because prices in Washington just a couple years ago “got out of control,” said William Wheaton, an economist at MIT. Home values in the District of Columbia were up 96% in the five-year period ending with the third quarter of 2007, the second-fasted pace in the country after Hawaii’s 100% appreciation, according to figures from the Office of Federal Housing Enterprise Oversight. Now, the nation’s capital is no longer insulated from the downturn, with the median home price on Capitol Hill last year falling to $545,000, down from $550,000 a year earlier. “Nearly all the Hill stumbled last fall,” said Joel Nelson, an agent with Keller Williams Capitol Property. “There were people who feared in 2005 that things on the Hill would just collapse like they did elsewhere in the country, but I think it’s better described as reaching a plateau.” Still, values in exclusive Washington neighborhoods such as Georgetown and Cleveland Park have held up better than in other parts of the city or elsewhere in the country. (www.bloomberg.com)
Amid the Gloom, Hope Finds PlaceAt the peak of the housing boom in Minneapolis-St. Paul, Twin Cities Habitat for Humanities had no inventory of lots and “couldn’t even talk to people about purchasing land, it was so competitive,” said Sue Haigh, the nonprofit organization’s president. At their peak, lots in suburban Chaska cost more than $60,000, but in the past year Habitat has been able to buy them for $45,000 and $50,000. In Hopkins, Habitat is buying two more traditional single-family lots from the city for $75,000 each, down from the list price of $89,000. The nonprofit and others like it are attempting to lock up as many lots as they can at today’s lower prices before the market rebounds. (www.startribune.com)
Grand Rapids Housing Market Begins to StirOn the edge of the spring selling season in Grand Rapids, Mich., home owners, agents and investors are asking whether the market may be finally pulling out of its deep funk. Home sales inked in the first two months of the year in the area were up more than 7% from a year ago. Single-family home sales alone were up 10%. Much of the sales fervor is being ignited at the lower end of the price range, and agents anticipate it will spread. “The market always starts from the bottom up,” said Sue Kazma-Hilton, a broker-owner of Re/Max Real Estate Professionals. “We should be very optimistic that we could see a rebound in middle-income housing this year.” Keller Williams agent Cheryl Grant said that this year is starting off strong. “Typically, the first quarter is slow,” Grant said. “If you do three sales, for me, that’s not bad. But my gosh, I’ve jumped to eight in the first quarter.” The number of days a home sits on the market is falling too, she said. Foreclosures and job losses that helped push the 2007 inventory to 12,000 homes on the Grand Rapids area market resulted in low-priced properties that are finally getting snapped up, Kazma-Hilton said. Of the homes sold in January and February, more than 27% of them were priced below $60,000. A year ago, only 11% of sales were in that price range. (www.mlive.com)
Slump in Housing Spills on SuppliersShelter Systems, a Westminster, Md. company that makes roof and floor trusses, has seen its employees shrink from 220 in 2005 to 90 today. With permits for new residential units in the Baltimore metropolitan area down 45% last year compared with 2005, according to the Baltimore Metropolitan Council, there has been a lot less demand for trusses, windows, doors, carpeting, countertops and everything else builders need. It’s not only that work is scarcer, said Bernard Markstein, senior economist for NAHB. Suppliers are also making less money — or even taking small losses — on the jobs they’re landing. “It’s been a squeeze on home builders, and the home builders have translated that squeeze on their suppliers,” Markstein said. “They say, ‘Look, I can’t pay these prices.’” Some material prices have plummeted. Lumber prices dropped from $475 per 1,000 board feet in the middle of 2004 to about $238 for the same amount in mid-March, he said. But the price of asphalt is rising, because it’s made from petroleum and requires gas-guzzling equipment to lay down. Pavement contractors are stuck between a rock and a hard place: penny-pinching builders and home owners on the one hand, and on the other, material prices jumping along with oil. (www.baltimoresun.com)
Foreclosures Taking a Big Toll on City Finances, Poll ShowsNearly two-thirds of the cities recently polled by the National League of Cities (NLC) reported that foreclosures had increased in their communities over the past year. “Mortgage foreclosures are causing havoc in our communities,” said Cynthia McCollum, president of the NLC. “Cities are already seeing reductions in their revenues at the same time that more services are needed to address the many related problems caused by the foreclosures.” Released on March 11, the results of the online/e-mail survey represent more than 200 cities. Of particular note in the findings is the ripple effect that the housing crisis seems to be having on city finances. One of three reported that funding for programs and projects declined in the past year. One-third of the cities also reported an increase in abandoned or vacant properties and other forms of blight. “In one community in Charlotte, N.C., 115 out of 123 homes were boarded up,” said McCollum. “Where there are widespread foreclosures, cities must ensure the safety of the residents still living in the community, must keep the grass mowed and stop vandalism.” The NLC poll shows that the housing crisis is disproportionately affecting certain residents, with half of the cities reporting that the crisis is having an impact on lower-income families; one-third seeing problems for families headed by single parents; and one in five citing a heavy impact on seniors and people of color. “We know that homeownership strengthens our communities, but the housing crisis is making it more difficult to achieve this goal,” said McCollum. “Overall, financial stability of millions of Americans is in jeopardy.”
Mark Your Calendar for the 2008 NAHB Legislative Conference The 2008 NAHB Legislative Conference provides a unique opportunity for builders to meet with their members of Congress, discuss the issues that affect their business and bottom line and establish a lasting relationship with their elected federal officials. The day-long conference on Wednesday, April 30 coincides with the NAHB spring board meeting in Washington, D.C. Builders are encouraged to travel to the nation’s capital to urge their representatives and senators to support policies that stabilize housing, restore confidence in the credit markets and bolster the nation’s economy. Members of Congress are being urged to:
Mark Your Calendar for the 2008 NAHB Legislative Conference
The day-long conference on Wednesday, April 30 coincides with the NAHB spring board meeting in Washington, D.C. Builders are encouraged to travel to the nation’s capital to urge their representatives and senators to support policies that stabilize housing, restore confidence in the credit markets and bolster the nation’s economy. Members of Congress are being urged to:
Single-Family Starts Hug a Downward Road in FebruarySingle-family housing starts continued on a downward trajectory in February, posting a 6.7% decline to a seasonally adjusted annual rate of 707,000 units, according to figures released on March 18 by the U.S. Commerce Department. Production in the more volatile multifamily sector rose 14.4% in February to a 358,000-unit pace, limiting the decline in total housing starts. Builders broke ground on new homes at a yearly rate of 1.065 million units last month, 0.6% below the revised January rate. "Builders continue to scale back production of single-family homes in an effort to contain inventories amidst ongoing problems in the mortgage finance arena and other challenges that are keeping many potential buyers on the fence," said NAHB President Sandy Dunn. "We're doing what we can to restore balance to the supply-demand equation, but we need the Federal Reserve, Congress and the Administration to take immediate action on several fronts if there's any hope of rebuilding consumer confidence and jump-starting the economy," Dunn cautioned. "Our latest surveys of single-family builders reveal that many prospective buyers are looking into a home purchase at this time, but that they are unwilling or unable to make their move with conditions in the overall economy and financing arena what they are," said NAHB Chief Economist David Seiders. "The Federal Reserve's latest moves to shore up financial markets have certainly been welcome developments,” said Seiders, including a decision by the Federal Open Market Committee later in the day to cut interest rates by three-quarters of a percentage point. "Beyond this, Congress and the Administration should follow up on the recently enacted economic stimulus package with additional measures aimed directly at boosting the housing market. If prompt action is taken in the direction of a home buyer tax credit, FHA modernization and GSE oversight reform, a housing recovery could take shape by this year's second half and the benefits of that to the overall economy would be substantial." Regionally, housing starts were up 5.1% in the West and nearly 4% in the South, unchanged in the Midwest and down 27.7% in the Northeast, which had seen a large boost in January. However, every region was down on a quarterly basis in February. Permit issuance, which can be an indicator of future building activity, declined 7.8% overall last month to a seasonally adjusted annual rate of 978,000 units, with a 6.2% decline registered in the single-family sector to 639,000 units and a 10.8% decline on the multifamily side to 339,000 units. Attend the Spring Construction Forecast Conference in April Plan to attend NAHB's Spring Construction Forecast Conference on Thursday, April 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. Can't attend? Watch the conference webcast live. For more information, or to register for the conference or webcast, visit www.nahb.org/cfc. 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. Close Ties to Lenders Urged as Credit Crunch Spreads to BuildersIn the latest indication that home builders should be working to maintain a healthy relationship with their lenders at this time, the Federal Deposit Insurance Corporation in a March 17 letter advised financial institutions to follow its 2006 guidance on commercial real estate lending. While the FDIC did not tell banks not to make CRE loans, it did remind them of the importance of prudent lending. The tightening of credit standards and the sharp reduction in credit availability for home buyer mortgages has spread to the housing production loan market. Builders are reporting an adverse shift in terms and availability on loans for land acquisition, land development and home construction (AD&C) loans and businesses with outstanding loans are facing mounting challenges. As a result of receiving current appraisals reflecting lower values on lots and homes, as well as market studies significantly scaling back absorption estimates, lenders are seeking additional equity for outstanding credits and balking at loan extensions. With defaults on AD&C loans rising, the bank regulators have raised concerns about real estate lending and are reviewing the methodology used by banks in determining loan loss reserves and levels of delinquent and non-accrual loans for AD&C commitments. In this environment, banks are actively reducing exposure levels to home building credit. This trend is likely to continue through the end of this year, according to NAHB. Although lending conditions are expected to show improvement in 2009 as the housing industry recovers, it is likely that regulators and lenders will remain cautious long after demand for housing bottoms out, putting a drag on the recovery. Association members are being encouraged to maintain open communication channels with their lenders. “Timely communication and good-faith negotiations can minimize the pain from the credit crunch,” NAHB says. “Do not ignore calls or other forms of communication from the lender. If a lender is aware the builder is on top of the situation and seeking solutions, the institution will be more likely to engage in positive dialogue. “More often than not, it is in the lender’s best interest to work with a builder on a loan to achieve the best outcome rather than to foreclose. The lender should be inclined to assist the builder in resolving factors impeding the timely construction, delivery and settlement of homes. The lender and the builder have a mutual interest in ensuring housing production is converted to revenues for the repayment of project debt.” NAHB has developed a primer based on advice from banking experts and experienced builders on actions and options builders can pursue to achieve the best outcome on outstanding AD&C loans. “The consistent message is to take immediate steps to talk to your lender,” NAHB says. To access the primer, click here. For more information, e-mail Michelle Hamecs at NAHB, or call her at 800-368-5242 x8425.
Attend the Spring Construction Forecast Conference in April Plan to attend NAHB's Spring Construction Forecast Conference on Thursday, April 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. Can't attend? Watch the conference webcast live. For more information, or to register for the conference or webcast, visit www.nahb.org/cfc.
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. Albany Faring Better Than Many Other Local Housing MarketsSpeaking to a March 18 symposium on the economic outlook for Albany and other cities and towns in New York’s Capital Region, Jerry Howard, executive vice president and CEO of NAHB, noted that businesses in the area are fundamentally strong and in a much better position than many other parts of the country to weather the current economic storm. The symposium, “Real Estate Reality: Building Momentum in the Capital Region,” was held at Proctors Theater in downtown Schenectady and was attended by an invitation-only audience of 450 people mostly in the construction and real estate industry. The event was sponsored by the Capital Region Builders & Remodelers Association, which has mounted a campaign to alert area residences to home buying opportunities in the local market, which has held up significantly better than the national average. “The Albany-Troy-Schenectady housing market is certainly performing better than many others nationwide, and that’s something to be grateful for,” said Howard, citing business expansion across the region. “One of our biggest challenges at the national front during the ongoing housing market slowdown has been to get the media and consumers to realize that all housing markets are local, and every one is different,” Howard said. “While the slowdown is now affecting most markets across the country, you can’t paint them all with one brush.” The region’s single-family permits were off by about 15% in 2007, only about half the decline registered nationally. With solid growth in employment and population, area home values edged up about 5% last year, when a good part of the rest of the country was experiencing declines. “Looking at the most recent statistics — from unemployment to building permits, home prices and population growth — the region is doing much better than the national average,” he said. It is doing far better, he added, “than the hard-hit markets in Florida, Nevada, Arizona and California that are generating media headlines.” The region has always been protected from sharp spikes in its economy because of the presence of the state government, the home builders association is telling prospective home buyers, and it is fast evolving into “Tech Valley.” With expansion of Sematech, 500 new jobs from GE, biotech research and the probable entry of Advanced Micro Devices into the local marketplace, “we are seeing an upward trend that shows no sign of slowing down,” according to the HBA. “When you combine all this with excellent universities, expansion in the service sector, a stable real estate market, our low cost of living and our proximity to New York City, Boston and Washington, D.C., you’ll understand why Tech Valley is the place to buy now,” the home builders say.
Attend the Spring Construction Forecast Conference in April Plan to attend NAHB's Spring Construction Forecast Conference on Thursday, April 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. Can't attend? Watch the conference webcast live. For more information, or to register for the conference or webcast, visit www.nahb.org/cfc.
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. News Encouraging on Mortgage Rates, Existing-Home SalesWithin the past week, home builders received encouraging news on mortgage rates and existing home sales. On Thursday, Freddie Mac announced that the average 30-year fixed-rate mortgage was 5.87% for the week, according to its Primary Mortgage Market Survey, down from 6.13% for the previous week and 6.16% for the same time a year earlier. One-year Treasury-indexed ARMs averaged 5.15%, up a tad from 5.14% during the prior week but down from 5.40% a year earlier. “Mortgage rates fell this week as various actions were taken to improve market liquidity,” said Frank Nothaft, Freddie Mac’s chief economist. “In addition,” he said, “the inflation report from the Consumer Price Index reflected weaker price increases than consensus expectations. Unchanged in February both including and excluding food and energy costs, it is the first time the core CPI did not report a monthly increase since November 2006. “Meanwhile, retail sales fell by 0.6% in February, contrary to the consensus forecast of a 0.2% increase, signaling that the condition of the economy might be weaker than previously thought,” Nothaft said. “Slowing consumer spending and weak employment conditions are among the concerns behind the Fed’s decision to lower the target federal funds rate by 0.75 percentage points in the most recent Federal Open Market Committee meeting.” A Sign of the Market Stabilizing On the nation’s housing market, the National Association of Realtors® reported on March 24 that existing-home sales increased in February for the first time in seven months. Existing-home sales — including single-family, townhomes, condominiums and co-ops — rose 2.9% last month to a seasonally adjusted annual rate of 5.03 million units from a pace of 4.89 million in January. Sales, however, remained 23.8% below the 6.60 million-unit rate of a year earlier. The national median existing-home price for all housing types was $195,900 in February, down 8.2% from a median price of $213,500 a year earlier. “We’re not expecting a notable gain in existing-home sales until the second half of this year, but the improvement is another sign that the market is stabilizing,” said Lawrence Yun, the association’s chief economist. “Buyers taking advantage of higher loan limits for both FHA and conventional mortgages will unleash some pent-up demand,” he said. “As inventories are drawn down, prices in many markets should go positive later this year.”
Attend the Spring Construction Forecast Conference in April Plan to attend NAHB's Spring Construction Forecast Conference on Thursday, April 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. Can't attend? Watch the conference webcast live. For more information, or to register for the conference or webcast, visit www.nahb.org/cfc.
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. Eye on the Economy: The Core Problem Is Falling House PricesRevisions in the gross domestic product (GDP) revisions for the fourth quarter of 2007 left the overall economic growth rate at a meager 0.6%, but the estimated contraction in residential fixed investment deepened to a 25.2% annual rate and RFI subtracted a whopping 1.25 percentage points from the GDP growth rate. The housing contraction weighed on GDP growth from other directions as well, including the reeling housing finance system and components of retail sales closely related to housing market activity. Available data, including housing starts and building permits for January and February, point toward another sharp contraction in RFI and another very weak GDP growth rate in the first quarter of this year, a pattern that skates dangerously close to recessionary conditions. We now view a mild recession as a nearly even bet, but we also believe that aggressive actions by the Fed and the recently enacted economic stimulus package virtually guarantee stronger growth by the second half of the year. Labor Markets Weaken on Key Recent labor market conditions are consistent with seriously below-trend GDP growth and tepid growth in labor productivity. The February employment report revealed the second consecutive decline in total payroll employment and the third consecutive decline in private payroll employment, and an ongoing slide in residential construction employment was a key factor in this pattern. Slight declines in the civilian employment rate in both January and February (calculated from the household survey) actually provide little comfort since these declines reflected serious shrinkage of the civilian labor force — hardly a sign of economic vitality. Inflation Picks Up at Exactly the Wrong Time Surging commodity prices (primarily food and energy) have complicated the inflation picture in recent times and there’s also an inflationary impulse from the falling dollar through rising import prices. These developments have prompted speculation about an emerging “stagflation” pattern in the U.S. economy and some observers believe that inflation pressures will limit the Fed’s efforts to revive the flagging economy. Others argue that recent inflationary pressures contain some temporary influences and that evolving labor market conditions hardly suggest upward pressure on unit labor costs — traditionally the Fed’s major inflation concern. We’re in this camp. Another Round of Financial Market Turmoil Erupts Financial markets remain under considerable stress as the mortgage-induced stampede to quality continues unabated. Equity markets have been reeling and quality spreads in corporate bond and mortgage securities markets have been widening once again. Indeed, even key money-market quality spreads have widened out again. On this round, investors have even soured on the debt and mortgage-backed securities issued by Fannie Mae and Freddie Mac, pushing out spreads between “prime conventional conforming” mortgage rates and yields on comparable-maturity Treasuries to the widest in many years. Mortgage Credit Quality Deteriorates Further Concerns about mortgage credit quality actually have intensified as incoming data on delinquencies and foreclosures have worsened and as evidence of serious house price erosion has accumulated. It now has dawned on investors that home owners’ willingness to repay their mortgages is at least as serious an issue as their ability to repay when rates reset on adjustable-rate loans. This realization has directed focus to the equity positions of home owners, and that picture seems to be darkening daily. The Fed Rolls Out Liquidity-Enhancing Innovations The Fed is on red alert as the faltering economy and the serious financial market dislocations present an unprecedented set of challenges to our central bank. The Fed has been fighting a two-front war, not only managing conventional monetary policy so as to reduce the federal funds and discount rates but also rolling out a series of measures to bolster liquidity in key segments of the credit markets. On the liquidity front, the Fed has aggressively encouraged bank use of the discount window and now is using its huge balance sheet capacity to unlock portfolios of major financial institutions and improve the functioning of credit markets. In this regard, the Fed is providing outlets for banks and primary securities dealers to “exchange” illiquid private-sector securities ― including private-label mortgage-backed securities ― for cash or Treasury securities on a term basis and at the Federal Reserve discount rate. Monetary Policy Is Becoming More Stimulative On the conventional monetary policy front, the Fed dropped the target federal funds rate and the discount rate by 75 basis points at the conclusion of the March 18 Federal Open Market Committee (FOMC) meeting, saying that “the tightening of credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters.” The FOMC statement also stressed that “downside risks to growth remain,” even after the policy change. We’re projecting an additional 50 basis point cut at the next FOMC meeting on April 30. That move, if implemented, will drop the nominal funds rate to 1.75% and place the real (inflation-adjusted) funds rate in the negative zone — exactly where it belongs when housing and the economy are in deep trouble. The Housing Market Still Is Going Downhill With respect to recent housing market developments, sales of both new and existing homes were down in January and the months’ supplies of unsold homes challenged record highs in both markets. On the production front, single-family housing starts and permits moved down substantially in both January and February, guaranteeing another sharp decline in residential fixed investment in the second quarter as well as ongoing losses of payroll jobs in home building. NAHB’s monthly surveys of single-family builders have yet to provide convincing signals regarding near-term stabilization of buyer demand or housing production. Traffic of prospective buyers has revived to some degree since late last year but the quality of traffic apparently is not high. Furthermore, gross and net home sales still are eroding and sales expectations of builders have not yet improved. The Core Problem Is Falling House Prices It’s increasingly obvious that the core problem for the housing market, the economy and financial markets is actual and expected declines in house prices. This problem is symptomatic of stubbornly weak home buyer demand and an extremely large supply of vacant homes on the for-sale market, and the upswing in mortgage foreclosures in piling more and more vacant homes onto the for-sale market. This critical situation calls for government policies to stimulate home buyer demand and to stem the flow of foreclosed homes onto the market. The Fed clearly is on the job, and major responsibilities also lie with other federal regulators, the Government Sponsored Enterprises, the Congress and the Administration. The deteriorating market situation is forcing serious discussions on all fronts and some adjustments have been made, but the range and depth of policy responses has yet to be determined. The Forecast Is Policy-Dependent NAHB’s housing forecast shows major declines in house sales and housing production for 2008 as a whole, although we’re also showing turning points for sales and starts before the end of the year. There are major downside risks to these forecasts, however, and the ultimate outcome will depend critically on the public policy responses to the destructive downward spiral in house prices and the associated impacts on mortgage credit quality. 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 March 19 edition. To subscribe to “Eye on the Economy,” click here. Attend the Spring Construction Forecast Conference in April Plan to attend NAHB's Spring Construction Forecast Conference on Thursday, April 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. Can't attend? Watch the conference webcast live. For more information, or to register for the conference or webcast, visit www.nahb.org/cfc. 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.
Attend the Spring Construction Forecast Conference in April Plan to attend NAHB's Spring Construction Forecast Conference on Thursday, April 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. Can't attend? Watch the conference webcast live. For more information, or to register for the conference or webcast, visit www.nahb.org/cfc.
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: How to Cope-Cut Quarter-Round Trim
I prefer coped corners to mitered corners, but given the amount of trim required by this job, I had to find an expedient way to cut it all. As shown in the accompanying drawing, I devised a rig that yields accurate results with a minimum of effort.
For quarter-rounds of a different radius, simply cut a groove to fit the trim, and use a hole saw that is twice the radius of the trim. — M. P. Whipple, Afton, N.Y. Tips & Techniques provided by Fine Homebuilding.
To contact Fine Homebuilding, e-mail Christina Glennon.
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. Satisfied Customers Key to Success in Down MarketAt last month’s International Builders’ Show in Orlando, winners of Builder magazine's America’s Best Builder Award shared their thoughts on what qualities make their companies stand out. Jeffrey Abraham, CPA, and chief financial officer of Touchstone Homes, a $90 million company and an industry leader in the Atlanta market, cited customer satisfaction — a commodity that can’t be solicited and must be earned — as the factor behind his company’s win in the award’s larger volume category. “If they (home buyers) do not have an experience that equals or exceeds their expectations, we will lose future sales,” he said. The best way to achieve customer satisfaction is to provide an open line of communication between the buyer and the builder to address any concerns the customer may have during the buying process, said Abraham. “Customer satisfaction is driven through our quality assurance department and that department reports directly to the president of the company,” he said. Touchstone surveys its customers 30 days after closing and again 11 months after closing. The surveys are conducted through independent outside firms to ensure that customers provide more candid responses. “We use this information to change our products or designs in order to continue to meet our customers’ expectations,” said Abraham. Since implementing its quality assurance department, Touchstone Homes has achieved a level of customer satisfaction that is well over 90%, which is critical to being able to obtain referrals. Design Studio a Successful Closing Tool As part of its marketing efforts, Touchstone uses its model home sales centers to demonstrate the products and features of its homes. This includes a 5,000-square-foot design studio to show customers a variety of personalized upgrades that can go into their homes. “The design studio is an important part of our sales process,” said Abraham. “It allows us to display and demonstrate options available to the home buyer and more importantly allows the customer to see them, touch them and feel them. This has been a successful closing tool for converting these prospects into actual sales.” In today’s market, Abraham said that builders need to think outside of the box in order to bring customers to their door. “We advertise on billboards in our market. The billboards say ‘Live Free for Six Months’ and include our Web address,” he said. Location and Design Are Key Stephen Rolston, president of Land Ark Custom Homes based in Stittsville outside of Ontario, Canada, said that location and design are keys to his company’s success. “We have a two-acre niche market. If you can out-market the competition, you can outsell them,” said Rolston, whose firm was the recipient of Builder magazine’s 2004 America’s Best Builder Award. To achieve a “wow” factor, Rolston said that curb appeal must start right at the entrance of the community with the exterior of the sales office and the exterior of the model home. “If people don’t find that to be really appealing, really sensational, we don’t feel that they are going to even drive up the driveway and come in and ask us for a brochure or additional information,” he said. “So one is the land and two is the design of that all-important first model home.” Land Ark has 10 basic plans that allow home buyers to customize a minimum of four front elevations and an unlimited number of floor plan modifications so that everyone can feel like they are customizing their home. In a down market, Rolston said, you can’t cut your sales and marketing budget. “We are in the top 25% because we spent a lot of money on marketing and advertising,” he said. Direct newspaper inserts help in his market, Rolston said, but a one-shot deal won’t work. “They have to be spread out over a two- to three-week period to be effective. We always include information on our Web site. We also targeted soft rock radio stations and had great success in this area.” Another selling point is giving customers a hard copy of a home owners’ manual upfront in the sales process, not after the sale closes. “This makes sure they know that any questions they have about the buying process or home will be addressed,” he said. Knowing the Local Market Inside and Out a Matter of SurvivalSurviving adverse economic conditions means knowing your business, your marketplace — and your competition — inside out, Leon Rogers, president of Construction Management Associates, LLC of Thayne, Wyo., told an audience at the International Builders’ Show in Orlando last month. “Know your local market very well — its history, its trends, its uniqueness,” he said. The same holds true for the competition. “How many specs are your competitors, holding?” he asked. “How many lots? What is their financial staying power? What concessions are they offering? What price-cutting is going on? Monitor their advertising campaigns.” Just as important is being thoroughly aware of your own financial position, Rogers, said. “What is your current profitability, gross and net? What are your conservative sales projects, current contracts with qualified prospects and contracts with potential prospects? What is your current sales/traffic ratio? What is your fall-out ratio — cancellations/sales?” Further, builders need to assess the status of their inventory and keep a close eye on the quantity and quality of their traffic. It is also essential for builders to accurately quantify their expenses. Rogers said they need to know the cost of their fixed and variable overhead, their cost of construction, their overall current and long-term debt and the amount of cash they have on hand, and they need to be able to project their best-case and worst-case cash flow. “What is your financial capacity measured in time? Do you have a one-, two-, three-month reserve or more? Or are you already cannibalizing your operation?” Once builders are able to answer these questions, he said, they need to take the following steps to implement a survival plan:
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. Build a Profitable Relationship Creating positive partnerships with brokers can enhance business and boost sales. Builders can learn how to profit from alliances with brokers by taking the “Increased Profits Through Effective Builder-Broker Cooperation” course from The NAHB University of Housing. The course shows how to use common interests to connect with brokers and how to choose compatible sales professionals. Find out where upcoming courses are being held here, or call 800-368-5242 x8154 for 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. Use a Blog to Enhance New Home Customer ServiceBy Tracey Gundersen, CEO, Warranty Management Technologies To become part of the conversation and reduce or reverse the potential negative impacts of blogs, consider establishing a blog of your own to enhance your customer service and bolster your message and reach. Blogs are simple to set up and maintain and you don’t have to worry about hiring a programmer to get one established. Blog Content Worth Considering With a blog, you can put the content you want on the Web and add content as often as you like. Customer-friendly content to consider that would enhance customer service includes:
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. Build a Profitable Relationship Creating positive partnerships with brokers can enhance business and boost sales. Builders can learn how to profit from alliances with brokers by taking the “Increased Profits Through Effective Builder-Broker Cooperation” course from The NAHB University of Housing. The course shows how to use common interests to connect with brokers and how to choose compatible sales professionals. Find out where upcoming courses are being held here, or call 800-368-5242 x8154 for 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. Researcher Offers 10 Survival Tips for the Housing DownturnLooking at another challenging year for the nation’s housing industry, Paul Cardis, CEO of Avid Ratings Co., recently provided readers of Quality Matters, the official e-newsletter of the National Quality Housing Program of the NAHB Research Center, with a list of 10 things builders can do to attract enough sales to keep them in business until market conditions improve. His survival tips:
Cardis’ company specializes on research and consulting in customer satisfaction for the home building industry, and it provides National Housing Quality Award home buyer satisfaction surveys. Attend 50+ Symposium in New Orleans on May 19-21Many builders in the 55+ market have reported little or no change in sales and traffic since the downturn, with 55+ households accounting for 21% of new home sales and 18% of the total new home buying market. Learn more about this growing market at 2008 Building for Boomers & Beyond: 50+ Housing Symposium at the Sheraton New Orleans Hotel in New Orleans from May 19-21. The symposium features more than 35 sessions on redefining lifestyle communities, design, development and operations, sales and marketing, technology and more. Attendees will discover how to:
For more information, see the symposium brochure on the NAHB Web site, or e-mail The NAHB University of Housing’s Office of the Registrar at registrar@nahb.com, or call 800-368-5242 x8338.
Earn CAASH Credits at Building for Boomers & Beyond The three required courses for the Certified Active Adult Specialist in Housing (CAASH) designation will be held Saturday, May 17 and Sunday, May 18 at the 2008 Building for Boomers & Beyond: 50+ Housing Symposium in New Orleans. The CAASH designation gives housing professionals serving this rapidly burgeoning market the essential knowledge, tools and skills that will help them succeed. To learn more about CAASH, visit www.nahb.org/CAASHinfo.
Find Out What the 45+ Housing Market Wants “Right House, Right Place, Right Time: Community and Lifestyle Preferences of the 45+ Housing Market,” available through BuilderBooks.com, will help 50+ housing professionals determine the right design, home features and amenities to attract boomer home buyers in their market. Margaret Wylde guides readers through the latest survey results on this important consumer group and explains what their responses mean for today’s and tomorrow’s home building industry. To view or purchase this publication online, click here, or call 800-223-2665. Help Rebuild New Orleans at 50+ Housing SymposiumBuilding for Boomers & Beyond: 50+ Housing Symposium is partnering with Rebuilding Together New Orleans and the NAHB National Green Building Conference on a special two-day community service project in which symposium attendees can help rehabilitate homes in New Orleans that were severely damaged by Hurricane Katrina. The 50+ Housing Symposium will be held in New Orleans May 19-21. Two pre-conference days, Saturday and Sunday, May 17-18, have been reserved for the rebuilding project and symposium attendees are encouraged to volunteer. Attendees participating in the rebuilding project will work on the NAHB house begun on May 10 by volunteers attending the Green Building Conference, also in New Orleans. The Green Building Conference will be held May 11-13. Since Hurricane Katrina struck New Orleans in August 2005, more than 1,700 volunteers have worked with Rebuilding Together New Orleans to help more than 50 low-income, elderly and disabled residents return to their homes. The volunteers have provided more than 40,000 hours of labor worth nearly $1.3 million. Symposium attendees, as well as others interested in participating, are encouraged to volunteer on one or both days. All skill levels are welcome. Participants must be 18 or older. Transportation from the symposium at the Sheraton New Orleans Hotel to the building sites and all tools and building materials, lunch, water and T-shirts will be provided. There is no cost to participate, but participants must register in advance. For more information about the symposium or how to volunteer or make a donation to Rebuilding Together New Orleans, visit www.nahb.org/build4boomers, e-mail Janice Coyle at NAHB, or call her at 800-368-5242 x8386. To be a corporate sponsor for the project, e-mail Harris Floyd at NAHB, or call her at 800-368-5242 x8208.
Tour Top 50+ Communities in New Orleans Sign up for the active adult housing tour at the 2008 Boomers and Beyond: 50+ Housing Symposium in New Orleans, May 19-21. The symposium will also feature the most innovative new community designs during the Best of 50+ Housing Awards gala. Click here to register, or for more information.
Earn CAASH Credits at Building for Boomers & Beyond The three required courses for the Certified Active Adult Specialist in Housing (CAASH) designation will be held Saturday, May 17 and Sunday, May 18 at the 2008 Building for Boomers & Beyond: 50+ Housing Symposium in New Orleans. The CAASH designation gives housing professionals serving this rapidly burgeoning market the essential knowledge, tools and skills that will help them succeed. To learn more about CAASH, visit www.nahb.org/CAASHinfo.
Find Out What the 45+ Housing Market Wants “Right House, Right Place, Right Time: Community and Lifestyle Preferences of the 45+ Housing Market,” available through BuilderBooks.com, will help 50+ housing professionals determine the right design, home features and amenities to attract boomer home buyers in their market. Margaret Wylde guides readers through the latest survey results on this important consumer group and explains what their responses mean for today’s and tomorrow’s home building industry. To view or purchase this publication online, click here, or call 800-223-2665. Industry Experts Headed for Colorado Pillars ConferenceThe Multifamily Pillars of the Industry Conference and Awards Gala, the premier industry event for the multifamily industry, is fast approaching, and attendees will be able to register on site on April 1-3 at the Broadmoor Resort in Colorado Springs, Colo. The conference program focuses on best practices, real-life lessons and how multifamily professionals must adapt to stay ahead of market challenges. The Boardmoor resort features 15 restaurants, cafés and lounges, three golf courses, a tennis club and a world-class spa. New This Year: Roundtables, Marketing Track New this year are two opportunities to learn about and discuss ways to maximize business:
Enter the Best in American Living Awards Competition
Entries are being accepted for the 2008 Best in American Living Awards (BALA), the foremost residential design competition in the country. Builders, interior designers, architects, land planners, developers and marketing and real estate professionals are invited to enter. The competition includes 36 categories — from single-family attached and detached homes in a variety of sizes to rental developments and custom homes, plus categories for interior design, communities and neighborhoods, affordable housing, smart growth and others. A panel of design professionals judge entries on design appearance and curb appeal, interior floor plans, how the project relates to its own local market and the construction techniques and materials used. Homes were completed or that had their first model opened between May 1, 2007 and July 15, 2008 are eligible for this year’s competition. Entry Dates:
Winning entries also will be posted on the Professional Builder Web site for up to one year after the announcement. For additional information and to download a BALA entry form, click here, go to www.probuilder.com/bala, or contact Judy Brociek, Professional Builder, at 630-288-8184 or Jennifer Jones at NAHB, at 800-368-5242 x8343. Census Bureau Stops Collecting Remodeling DataThe U.S. Census Bureau recently announced that it will cease collecting data for its quarterly reports on the amount spent on improving and maintaining residential structures in the U.S. The last published residential improvements and repairs data will be released on May 1 for the fourth quarter of 2007. ”Losing these data from the Census Bureau means remodelers will lose their ability to track changes in their segment of the industry,” said Paul Emrath, of NAHB’s housing policy research. “Builders who may be considering diversifying into remodeling and manufacturers of products used in remodeling will have no data on which to base their business plans,” he added. The federal government also used the data to determine the remodeling component of the nation’s gross domestic product (GDP). That component now will be estimated by the Bureau of Economic Analysis without any data. In 2006, the remodeling component of residential fixed investment totaled $178 billion, or about 1.5% of the GDP. Last week’s decision not to collect data on residential remodeling has been one the Census Bureau wrestled with for more than a year. Last year, the bureau determined that it would no longer spend the annual $1 million to conduct the remodeling survey needed to collect the data. When NAHB learned that the survey was to be discontinued, it swung into action and strongly advocated preserving the government’s remodeling data in letters, phone calls and meetings with members of Congress, the Census Bureau and the Department of Commerce. Following the NAHB action, the Census Bureau on Jan. 14 informed NAHB that it had found enough savings elsewhere in its budget to keep producing residential remodeling statistics through 2008. However, it made no promises beyond 2008 and indicated that the decision could be temporary. In announcing the end of remodeling data collection for the second time last week, the Census Bureau also indicated it could possibly begin issuing remodeling data — based on a new remodeling survey that is being proposed by the bureau’s Manufacturing and Construction Division — as early as 2011. NAHB will work with the Census Bureau on plans for the new survey. For more information, e-mail Paul Emrath at NAHB, or call him at 800-368-5242 x8449. Join the Fun of Remodelers Night Out at Buffalo Billiards on May 1Remodelers Night Out ― where remodelers can relax and network between meetings during NAHB’s upcoming spring board of directors meeting — will be 5:30-8:30 p.m. Thursday, May 1 at Buffalo Billiards in Washington, D.C. Buffalo Billiards features pool tables, shuffle board, darts and 26 televisions for watching sporting events. The fee for the evening is $40 per person and includes appetizers, beer, wine, soda and rail drinks. Reservations Are Required To register for Remodelers Night Out, visit www.nahb.org/RNO. Reservations must be received by April 24. Buffalo Billiards is at 1330 19th Street NW. Cement Consumption Expected to Be Down Until 20092008 is shaping up as another down year for consumption of Portland cement as construction activity remains soft, according to a recent Portland Cement Association (PCA) Economic Research report. U.S. consumption of Portland cement is expected to drop 10% this year — to 102.7 million metric tons — and an additional 3.6% in 2009. “High fuel prices, acceleration of home foreclosures and the impact of the subprime crisis on credit standards are some of the current conditions that lead us to believe the economy is already in a recession,” said Ed Sullivan, PCA’s chief economist. Sullivan projected a 26.5% decline in housing starts for 2008, with high home inventory levels depressing the residential sector until the second half of 2009. With close ties to economic activity, the nonresidential sector will post a 7% decline this year, he predicted. “Nonresidential construction typically takes 18 months to recover,” said Sullivan. “This implies further declines in 2009, coupled with a slowdown in public construction activity during the same period.” The PCA report forecasts a strengthening U.S. economy in the second half of next year as residential inventories are burned off and credit terms ease. This will set the stage for 5.2% growth in cement consumption in 2010, followed by an even stronger gain in 2011. For information on resources available from NAHB’s Concrete Home Building Council, click here; or e-mail Kate Driscoll, or call her at 800-368-5242 x8362. Attend the Spring Construction Forecast Conference in April Plan to attend NAHB's Spring Construction Forecast Conference on Thursday, April 24 at the National Housing Center in Washington, D.C. The conference brings together the nation's premier housing economists and finance experts for an in-depth examination of the economic outlook for the housing industry. Can't attend? Watch the conference webcast live. For more information, or to register for the conference or webcast, visit www.nahb.org/cfc. 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. Concrete Can Do That — Take the Technologies 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. Systems-Built Homes: Get the Big Picture Attend the 2008 Building Systems Councils Modular & Panel Plant Tour May 18-20 in Harrisburg, Penn. Participants will tour several of the top modular factories, getting an insider’s look at the manufacturing process as well as an opportunity to make important contacts. For more information, visit www.nahb.org/planttour. Boost Business Skills During National Designation Month
The designation coursework enables members to hone their business skills and convey to their clients the superior training, practical experience and in-depth knowledge that come with earning an NAHB designation. NAHB offers more than 15 professional designations covering industry basics such as business management and marketing, as well as specialized classes including aging-in-place programs, green |