Nation's Building News Online: August 25, 2008Print All Articles Text Version |
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Strong Fannie Mae, Freddie Mac Top Priority for NAHBWith investor confidence in Fannie Mae and Freddie Mac continuing to erode, NAHB leaders this week said that one of the highest priorities of the association is ensuring support for the two government-sponsored enterprises (GSEs) as a source of mortgage capital for the nation’s home buyers. Combined, the two institutions account for about 70% of the mortgage finance market in the U.S., and they provide the foundation for the nation’s secondary mortgage market. In an Aug. 25 message to the NAHB Board of Directors, Sandy Dunn, the association’s president, and Joe Robson, NAHB’s first vice president, said that a special member task force has been appointed to study the ramifications of the interim and longer-term impact of the challenges facing Fannie Mae and Freddie Mac. As the situation has unfolded, there has been increased media coverage on the solvency of Fannie and Freddie, the volatility of their stock prices and the possibility of intervention by the U.S. Treasury. “We want to assure the board that NAHB is staying on top of this very fluid situation,” Dunn and Robson said. The association has remained in daily communication with the enterprises, they said, and has requested a meeting with their leadership. NAHB also is continuing to meet with key congressional staff members and Administration officials on this issue, including the new regulator for the GSEs, Jim Lockhart, director of the Federal Housing Finance Agency. “While at this time, NAHB has a limited ability to influence events as they are unfolding, we continue to monitor the markets for any aberrations in pricing of their debt, and media for any additional information that would put us in the best position to help our industry and you, our members,” the two Senior Officers said. Task force findings will be presented to the NAHB Executive Board and the full NAHB Board of Directors this winter. NAHB board members received assurances from Dunn and Robson that the association is continuing to monitor the situation with Fannie Mae and Freddie Mac as it develops. For more information, e-mail Rob Pflieger, NAHB’s senior staff vice president for public affairs, or call him at 800-368-5242 x8403. 50+ Home Buyers in Prime Spot to Lead Housing RecoveryPost-World War II baby boomers are in the prime position to lead housing out of its current cyclical downturn, according to panelists participating in an Aug. 12 audio seminar from the NAHB University of Housing, “Get Hesitant Boomers to Buy Now!” The recent enactment of housing stimulus legislation should convince a significant number of baby boomers that now is the prime time to get off the fence, they added. “This group is determined to move on with the next phase of their life,” said Chuck Covell, president of Covell Communities in Gaithersburg, Md. “As a result, this segment of buyer is out there looking to make that change and is willing to overlook market obstacles in the way and some of the downtrodden feeling that may be out there,” he said. “The general feeling is that we just don’t have time to wait until the next cycle comes back,” said Covell. Seventy-nine percent of the 50+ population owns a home, the highest homeownership rate of any other age group in the U.S., and of those, 67% are mortgage-free, said Rich Carlson, president of Carlson Communications in Northborough, Mass. “Small, medium or large — even in today’s soft market, active adult builders are selling homes,” said Carlson. But builders “have to do the homework” to ensure that what they are offering is what these buyers are looking for. “Amenities to get the lifestyle and perceived value are critical,” Carlson said. “Builders have to distinguish themselves from the competition to show they are different and better from other communities.” Deborah Blake, vice president of sales and marketing for the Southwest Area of Pulte Homes Corporation in Scottsdale, Ariz., said that the 50+ home buyer segment is “the best and the brightest opportunity” in today’s market because it potentially represents millions of qualified buyers with a solid financial profile. “Many don’t need to sell a home to buy a new one,” said Blake, who is in charge of marketing and sales for Pulte's Del Webb brand of active adult communities in the region. “They can move forward without selling their existing home.” Elevating Consumer Confidence Running up through the November elections, “we’re going to see tough times for small to mid-sized builders, who will continue to sell homes at market price,” whatever that is, Blake predicted. But by next spring, there will be “a new outlook, a fresh outlook, consumers should be more confident, and we should take advantage of that.” The impact of the housing stimulus package signed by the President at the end of July is already laying the foundation for that resurgence, she suggested. “The first-time buyer tax credit does help in selling the existing home,” of prospective 50+ buyers, she said. “It just opened up their audience, and if they understand enough about it, they can help first-time buyers understand what opportunities there are.” Changes in the reverse mortgage, which enables elderly home owners to tap the equity in their house, also will “help get boomers off the fence,” she said, and builders need to ensure that their sales teams are educated about provisions in the legislation that revive interest in the housing market. “Most important, is the emotional impact that there is something new in the marketplace that wasn’t there before and an elevation in consumer confidence that things will be fine,” said Carlson of the stimulus bill. An ‘Amazing’ Buyer’s Market Covell noted that 50+ buyers typically haven’t bought a home for a long time, so they need to be educated about the process and asked what’s holding them back. “We need to ask them what issues are in the way," Covell said. Prospective 50+ buyers “have anxiety about selling their current home because they don’t really understand their equity position,” said Blake, but most still have a sizable amount of equity despite the downturn because they have lived in their home for many years. “Buying low is a great opportunity and selling low is not a bad opportunity either,” she said. Buyers today can take advantage of “potentially the lowest prices that they will see for a very long time,” said Blake, with the replacement costs of the homes now in the marketplace sure to rise in the relatively near future. “Solve other issues so they can take advantage of this opportunity,” she said. “This is an amazing buyer’s market. We’re not just talking about a home in the neighborhood, but quality of life that your customer can put a value on. You don’t want to miss another day of living here.” Controlling the Existing Home Sales Process To help move buyers for whom selling the existing home is a concern, Carlson uses a selling solutions program geared to using expert sales associates and Realtors® to help them get the maximum price for their project. Carlson recommends putting together an inexpensive two-page flyer advising home buyers on what to do to make their current home as marketable as possible. “You want to make it sound more like a business proposition where they are trying to maximize the price of their house,” he said. Information can include how to improve landscaping, clean up the clutter in the garage and basement, get the maximum selling price and find the right mortgage and other financial options. “Builders want to retain control of the process of selling the existing home, make sure the house is priced properly” and have the sales team work with specialists to ensure that everything is being done to sell the home, he said. If the home doesn’t sell within a 60- or 90-day period, the 50+ buyer can receive their deposit back from the builder. “We can help you manage the sale better than you can,” Covell said, adding that he advises his buyers, and he agrees to an arrangement in which he will share the downside risks with them of having to sell the home for a low price. Panelists also said that for many 50+ buyers selling an existing home shouldn’t be an obstacle that delays them from moving on to the next stage of their life with the purchase of a new home. For those who don’t need the proceeds from an existing home sale to move, Covell said the focus should be on lifestyle, looking at assets and regarding the home that is being purchased as a second home that will become a permanent home down the road. Blake said that the 50+ buyer should consider the dollar value of the improvements in their quality of life that will result from the purchase. “What is their neighborhood like today? Have all their friends moved away? What about the security? Is there too much idle time?” she asked. A new home can bring new friends, opportunities for part-time jobs and a more secure environment. By emphasizing the emotional side of the transaction, she said, the 50+ buyer can be brought to the conclusion that “I really want that, and I don’t like where I am today.” Early word from the field is finding that some of the suggestions of the three 50+ housing experts participating in the seminar are paying off. "I've been talking with two of my clients about asset recognition, and urging their prospects that don't need to sell their current home to move now while they can take advantage of the soft market. They finally agreed!" siad Larry Armstrong, CAASH, CAPS, MIRM, president and managing director of 50+ Communities of Colorado, LLC and a trustee of the NAHB 50+ Housing Council. Armstrong added that the local home builders association was able to recruit four new members as a result of the quality of information presented at the seminar. To purchase a recording of the audio seminar, click here. For more information about the seminar or NAHB resources related to the 50+ market, e-mail Jeff Jenkins at NAHB, or call her at 800-368-5242 x8292. Nation's Building News Will Not Be Published Sept. 1Nation's Building News will not be published on Sept. 1. Regular weekly publication will resume Sept. 8. Orange County Housing Slump Ends After 33 MonthsFueled by falling home prices, home buyers in Orange County, Calif. got moving in July and pushed sales up 17% over last year, ending a 33-month home buying slump, according to information from Data Quick. Home sales in the county jumped to 2,799, up by 408 units from the same month a year earlier. This was the first monthly year-over-year increase in sales since September 2005. The median price of the homes sold was $461,000 — down $184,000 from the all-time high of $645,000 in June 2007. That’s equivalent to a daily price drop of $431 for the past 13 months. “Houses are becoming a little more affordable (because prices) have dropped 20% to 25%,” said Tom Moon of Pacific Moon Real Estate in Huntington Beach, a top agent in the sale of foreclosed homes. “There has been a pent-up demand. (Buyers) have been waiting to buy a house.” According to Mike Hickman, president of Seven Gables Real Estate, “We’ve been on a winning streak since January. Pricing is finally reaching a level where there’s a perceived value by the consumer.” (www.ocregister.com)
Credit Eases for Buyers of More-Affordable HomesThe one somewhat-bright spot in the mortgage market is that people buying more-affordable homes will find it a little easier to get a home loan now, Anthony Sanders, professor of finance and real estate at Arizona State University, told the Arizona Mortgage Lenders Association. “The housing bill has steadied the nerves of lenders in the conforming-loan market,” Sanders said, which is helping to make more mortgage money available in the $400,000-and-under home-local market. “Funding for jumbo mortgages is still shaky but will start to ease as the general housing market stabilizes,” he said. The difference in the availability of loans is apparent in the interest rates. At the end of July, the average interest rate on a jumbo 30-year mortgage was 7.82%, ompared to an average rate of 6.74% on a conforming fixed-rate mortgage. The housing bill will permanently increase the conforming-loan limits for the Federal Housing Administration, Fannie Mae and Freddie Mac to as high as $625,000. (www.azcentral.com)
Coming Up With the CashIn the Washington, D.C. region, many home buyers are being asked to come up with a 10% downpayment, real estate agents and local lenders said. All this has left buyers scrambling for cash or reconsidering how much they can afford to pay for a house. Many are opting for Federal Housing Administration loans, which allow for a downpayment of just 3%. But buyers have several options for raising the money for a downpayment. They can simply put off a purchase and save more or borrow from a family member, financial planners said. They could also tap into the network of nonprofit groups and government-run programs offering help. Some can consider withdrawing money from their retirement accounts. “Before you get into this, before you even start shopping for a home, go and investigate potential sources of money. Don’t dismiss grant programs,” said Keith Gumbinger, a vice president at HSH Associates, a real estate research firm. “It’s really worthwhile to dig into that stuff. You might not qualify, but it doesn’t cost anything” to investigate, he said. (www.washingtonpost.com) Washington Post (8/23/08); Renae Merle Open House: For Many Luxury Buyers, Privacy Is a PriorityAn increasing number of prospective high-end home buyers are seeking a true luxury home — specifically, a multimillion-dollar residence loaded with amenities on a picturesque island. As for location, a recent survey conducted by Coldwell Banker Previews International and the research firm ICR revealed that 27% of home owners with a principal residence valued at over $1 million want to buy a luxury home on an island; 22% want it to be in a rural-county area. The most popular “must-have” luxury items include designer kitchens, formal landscaping, water views, custom-built entertainment centers, swimming pools, indoor gyms and wine cellars. The survey revealed that high-end home owners are particularly optimistic about home values, with a strong majority (85%) of them expecting the price of their homes to rise over the next five years, up sharply from 66% in the same survey a year earlier. Also, four out of five of those expecting higher values believe the increase will be “significant” or “moderate.” (www.palmbeachpost.com)
America’s Bigger-Is-Better Attitude Toward Housing May Be ShiftingAcademic experts and observers with home-building, architectural and historic-preservation groups say America’s bigger-is-better attitude toward housing may be shifting. The American Institute of Architects found last year that home sizes are leveling off and that as the population ages, buyers are increasingly prizing affordability features like fewer steps and wider hallways. The National Trust for Historic Preservation recently compiled 25 different approaches that local governments are using to combat the spread of “McMansions” or “teardowns.” According to U.S. Census data, the number of households without children is climbing; projections indicate that nearly three-quarters of all U.S. homes will be without children in 2025. One housing expert projects that migration back toward cities will become so pronounced that millions of oversized homes in the deepest suburbs will be torn down or chopped up into multi-unit dwellings. The average size of new homes built in recent years is still edging upward, says Gopal Ahluwalia, NAHB’s staff vice president for research, but he expects the average to level off soon around its current figure of about 2,500 square feet. “They are not choosing smaller homes,” he says. “People are not choosing mansions because of the capital cost, the running costs, but they’re still choosing bigger homes.” (www.dallasnews.com)
Apartment Buildings Lose Their Immunity to Housing’s ChillInvestors in multifamily rental properties have been buoyed by the 1.5 million rental households that have entered the market in the past year, including buyers locked out of the for-sale housing market and those who defaulted on their mortgages. The one downside of the housing crisis for apartment owners has been the “shadow market,” which is made up of unsold homes that owners have put on the rental market. But that competition isn’t nearly as big a problem as job-loss trends. “A lot of folks think it’s the shadow market that’s softening rents. It’s really a jobs issue,” says Richard Campo, chief executive of Camden Property Trust. The Houston-based REIT saw rents fall 1.4% last quarter from a year earlier in Phoenix. Arizona shed some 87,000 jobs in June and July. Meanwhile, rents are up in cities such as Houston, where job growth remains strong and where Camden saw 4% rent growth last quarter. Nationally, the apartment owner expects to see rental growth of 2.5% this year, compared with 4.1% growth in 2007 and 7.4% in 2006. The biggest impact from job losses could be seen in cities such as Charlotte, N.C. and Atlanta, which haven’t seen large shadow markets develop. “That group in the middle is starting to show signs of slowing,” says Haendel St. Juste, an analyst at Green Street Advisors, Inc. “When you look at the markets that are starting to slow, it’s spreading beyond the markets that were burdened by housing.” (www.wsj.com)
Builders Rein in Housing Production Further in JulySingle-family home builders continued to aggressively manage their inventory in July by slowing the pace of new production nearly 3% to a seasonally adjusted annual rate of 641,000 units, which was the lowest single-family starts rate since January 1991, according to Commerce Department figures released on Aug. 19. “Though some may be inclined to focus only on the negative aspects of this report, there is definitely a bright side,” said NAHB President Sandy Dunn. “The actions that home builders are taking right now to keep a lid on new production are slowly but surely helping to bring supply and demand back into balance and put us on the road to a much healthier housing market.” “The single-family numbers in this report are very much in sync with what home builders have been saying in our latest surveys,” noted NAHB Chief Economist David Seiders. “While there is definitely a sense that we are nearing the bottom of the downswing in home sales, builders are not ready to start ratcheting up production just yet — nor should they be, until after sales begin to rebound and the inventory overhang is reduced further,” he said. “We anticipate that the new first-time home buyer tax credit will help bring about that rebound,” Seiders added, “and NAHB’s forecast projects that the ongoing contraction in housing starts will end in the first quarter of 2009.” NAHB has developed a Web site at www.federalhousingtaxcredit.com to explain the first-time home buyer tax credit that was implemented as part of the recently enacted Housing and Economic Recovery Act of 2008. For the second month in a row, overall housing starts and building permit numbers were skewed by a building code change in New York City that caused an unusually large fluctuation in multifamily activity for the Northeast region. A 23.6% decline in multifamily starts to 324,000 units partially offset a 41% gain in June and contributed to an 11% decline in total housing starts for July dropping the seasonally adjusted annual rate to 965,000 units. Builders also pulled fewer permits for anticipated new-home construction in July, said the Commerce Department. Single-family permits declined 5.2% for the month to a 584,000-unit rate, the lowest since August 1982. Meanwhile, overall permit issuance and multifamily permit issuance, both heavily affected by the New York City data, declined 17.7% to 937,000 units and 32.4% to 353,000 units, respectively. Regionally, starts activity was somewhat mixed, with the Midwest posting a 10% gain, the South and West each registering declines of 8.2% and the Northeast tumbling by 30.4% — again due to the skewed numbers from New York City. Permit issuance was also mixed on a regional basis, with gains of 1.4% in the Midwest and 4.1% in the South and declines of 14.8% in the West and 63.4% in the Northeast, where permits were also affected by New York City data. Attend the NAHB Construction Forecast Conference Don't miss NAHB's 2008 Fall Construction Forecast Conference and Webcast for the latest economic news about the housing industry. Join NAHB on Oct. 22 in Washington, D.C., where the country’s leading economists and finance experts will provide insight into the uncertainties of the housing market. To register for the conference or Webcast, and to see the full conference agenda, 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. Housing at Its Most Affordable Level in Four YearsHousing affordability improved from April to June of this year for the third consecutive quarter, according to the most recent survey results of the NAHB/Wells Fargo Housing Opportunity Index HOI), which were released on Aug. 19. Homes in this year’s second quarter were roughly the most affordable they have been since the second quarter of 2004, according to the index. Also, for the first time since the HOI was created in 1991, the least affordable major housing market in the U.S. was located outside of California. Meanwhile, Indianapolis held onto its standing as the most affordable major U.S. housing market for the 12th consecutive time, the survey showed. "The latest HOI reading shows that 55% of all new and existing homes that were sold during the second quarter were affordable to families earning the national median income of $61,500," said NAHB President Sandy Dunn. "Several factors combined to increase housing affordability nationwide,” she said. “There was a marginal rise in mortgage rates, which still remain near the historically low levels of a few years ago; family income nationwide held steady; and house prices were lower." In Indianapolis, 91.6% of homes sold in the second quarter were affordable to families earning the area's median household income of $65,100. Also at the top of the list of most affordable major metros were: Youngstown-Warren-Boardman, Ohio-Pa.; Detroit-Livonia-Dearborn, Mich.; Warren-Troy-Farmington Hills, Mich.; and Grand Rapids-Wyoming, Mich., in descending order. The most affordable metro market with a population of less than 500,000 was Canton-Massillon, Ohio, where 96.7% of all homes sold in the second quarter were affordable to families earning the area's median household income of $54,600. New York-White Plains-Wayne, N.Y.-N.J. was the nation's least affordable major housing market, with a scant 11.4% of new and existing homes sold during the second quarter affordable to those earning the median family income of $63,000. The other most unaffordable major metros, in descending order, were: San Francisco-San Mateo-Redwood City, Calif.; Los Angeles-Long Beach-Glendale, Calif., Miami-Miami Beach-Kendall, Fla.; and Nassau-Suffolk, N.Y. In smaller markets with less than 500,000 people, the least affordable were San Luis Obispo-Paso Robles, Calif.; Ocean City, N.J.; Napa, Calif.; Santa Cruz-Watsonville, Calif.; and Salinas, Calif., respectively. Attend the NAHB Construction Forecast Conference Don't miss NAHB's 2008 Fall Construction Forecast Conference and Webcast for the latest economic news about the housing industry. Join NAHB on Oct. 22 in Washington, D.C., where the country’s leading economists and finance experts will provide insight into the uncertainties of the housing market. To register for the conference or Webcast, and to see the full conference agenda, visit www.nahb.org/cfc.
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. Rules Changed for Capital Gain Exclusion for Second HomesThe recently-enacted Housing and Economic Recovery Act of 2008 provides the housing market with important incentives, including the new first-time home buyer tax credit. (For comprehensive information on how prospective home buyers can use the credit to their advantage, visit the special NAHB Web site: www.federalhousingtaxcredit.com. However, the legislation also includes a change to the capital gain exclusion rules for second homes that is effective for sales after Dec. 31, 2008. Under prior law, home owners could exclude from taxation up to $500,000 ($250,000 for single taxpayers) of capital gain from the sale of a principal residence in which the taxpayer must have lived for at least two of the five years before the home was sold. Since it was established in 1997, this tax exclusion has been beneficial to home owners, saving taxpayers $28.5 billion in tax year 2007 alone, according to the congressional Joint Committee on Taxation. The new law narrows the existing exclusion for owners of second homes. Home owners who own only one home are not affected at all by the new rules and may continue to exclude up to $500,000 or $250,000 in gain from the sale of their principal residence. Under the change in the housing legislation, taxpayers must continue to meet the existing test of living in the home for two of the five years preceding the sale, but the maximum amounts that can be excluded from taxation are reduced proportionately by the number of years in which they owned the home but did not occupy it as a primary residence. For example, suppose a taxpayer purchases a second home on Jan. 1, 2009 and sells it 10 years later on Jan. 1, 2019, using it as a primary residence only during 2017 and 2018. The two-of-five year test has been met, but because the home was only used as a primary residence for 20% of the total ownership period (two of the 10 years), the $500,000 ($250,000) gain exclusion cap is reduced by 80% to $100,000 ($50,000). NAHB insisted on important grandfathering exceptions for existing owners of second homes. Under these exceptions, any time period of ownership prior to Jan. 1, 2009 is treated as a period of primary residency for the purpose of calculating the nonqualified use. For example, suppose a taxpayer purchased a second home on Jan. 1, 2005 and sells the residence on Jan. 1, 2015, using the home as a primary residence only during 2013 and 2014. Unlike the previous example, in which the taxpayer could only qualify for two years of using the home as a principal residence, under the new law’s grandfathering rule six of the 10 years qualify for the tax exemption — 2005, 2006, 2007 and 2008, as well as 2013 and 2014. The taxpayer is able to exclude up to 60% (six of 10 years of qualified use) of the $500,000 ($250,000) gain exclusion amounts, or $300,000 ($150,000.) There are other exceptions to how the law defines nonqualified use; most notably, any period of ownership within the five-year window after the two-year test has been satisfied can be considered a period of qualified principal residence use. For example, if a home is used as a primary residence in 2010 and 2011, then years 2012 through 2014 are treated as years of primary residency even if the home was used for other purposes, including rental or vacation property. Congress made these changes to the principal residence gain exclusion for two reasons. First, for some time there was a desire to tighten the gain exclusion rules so that they applied only to owner-occupied principal residences and not to homes held primarily as rental property, which thereby received an unfair tax advantage over other owners of residential rental property, including multifamily developers. The provision was almost included in the Mortgage Forgiveness Debt Relief Act of 2007, which exempted from tax mortgage forgiveness amounts or interest rate reductions on a principal residence. Second, congressional leadership insisted on making the Housing and Economic Recovery Act of 2008 revenue neutral. The change to the principal residence gain exclusion rules was one of many revenue-raising provisions included for this purpose and needed to enact the landmark housing stimulus package. The provision raises approximately $1.4 billion over 10 years — about 0.5% of the tax expenditure of the prior rules. For more information, e-mail Robert Dietz at NAHB, or call him at 800-368-5242 x8285. Attend the NAHB Construction Forecast Conference Don't miss NAHB's 2008 Fall Construction Forecast Conference and Webcast for the latest economic news about the housing industry. Join NAHB on Oct. 22 in Washington, D.C., where the country’s leading economists and finance experts will provide insight into the uncertainties of the housing market. To register for the conference or Webcast, and to see the full conference agenda, 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: New-Home Sales Are Approaching a BottomEconomic growth improved in the second quarter but the economy now is traveling through rough waters that could tip the economy into mild recession before the ship steadies next year. The economy is being whipsawed by wild fluctuations in energy prices, extreme volatility in national and global financial markets, a deepening housing contraction and important shifts in economic policy. The net impacts of these and other factors figure to be negative in the near term, testing the vaunted resilience of the U.S. economy. NAHB’s baseline (most probable) forecast shows a pronounced deterioration of gross domestic product (GDP) growth during the period ahead ― with negative readings in both the fourth quarter of this year and the first quarter of 2009, followed by a gradual recovery pattern during the balance of 2009 and resumption of trend GDP growth by 2010. Our forecast also shows erosion of payroll employment through the first half of 2009. We expect the unemployment rate to top out at 6.3% in the third quarter of next year before retreating a good bit late next year and in 2010. Financial Market Turmoil Boils Up Once Again The statement issued by the Federal Reserve at the conclusion of the Aug. 5 meeting of the Federal Open Market Committee highlighted “tight credit conditions” and noted that “financial markets remain under considerable stress” — despite the Fed’s stimulative monetary policy stance and maintenance of the Fed’s innovative liquidity-enhancing measures. Our central bank’s perspectives on this front are proving to be right on target. Like earlier rounds of stress during the past year, the most recent round of financial market turmoil has been provoked largely by developments in the housing finance system, including evidence of deepening problems on the mortgage default/foreclosure front as well as a crisis of confidence in the secondary-market government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac — despite establishment of unprecedented Treasury backstop authority in the Housing and Economic Recovery Act of 2008. Symptoms of broad-scale credit market stress have once again shown up as widening quality spreads in bond and mortgage markets. Lower-rated corporations are having to pay very large spreads over comparable-maturity Treasury securities, and even highly-rated corporations have to pay abnormally large spreads over Treasury rates. In home mortgage markets, the spread between rates on prime conventional conforming mortgages (salable to the GSEs) and 10-year Treasury bond rates has widened quite a bit, partly reflecting higher rates on recent GSE issues of senior debt. NAHB’s forecast expects the mortgage-Treasury spread to narrow before long, and we’re projecting a reasonably favorable pattern of rates on both fixed-rate and adjustable-rate prime conventional conforming home mortgages. This forecast assumes that Fannie Mae and Freddie Mac will be able to meet market demands for prime conventional home mortgage credit at reasonable rates. We’re also assuming that the FHA mortgage insurance program will continue to grow. Bank Lending Standards Tighten Systematically Bond and mortgage rates do not tell the whole story about credit market conditions facing businesses and consumers. The rest of the story is told by shifts in lending standards at depository institutions ― and that story is increasingly serious. The Federal Reserve’s recent Senior Loan Officer Opinion Survey (SLOOS), conducted in mid-July and released on Aug. 11, documents a progressive tightening of lending standards in all major components of U.S. credit markets. The July SLOOS also asked banks about expectations for further tightening down the line, and the responses point toward considerably more tightening of lending standards for most types of credit well into 2009 — hardly good news for housing and the economy. Since early last year, the Fed’s SLOOS has provided separate treatment of prime, subprime and “nontraditional” home mortgages (primarily pay-option and interest-only ARMs as well as Alt-A products). The July survey showed that 75% of respondent banks had tightened their lending standards on prime mortgages during the previous three months, and the readings for subprime and nontraditional home mortgages both came to 85%. Of course, this round of tightening comes on top of a series of tightening moves during the past two years, and the cumulative tightening process is alarming to say the least. Looking forward, large percentages of banks said they expect to tighten lending standards for home mortgages (prime or nonprime) during the second half of this year and during the first half of 2009, adding to the cumulative tightening process. The July SLOOS also asked banks about lending standards on commercial real estate loans, a category that includes residential construction and land development loans. Eighty percent of respondents said they had tightened credit standards for approving applications for such loans over the past three months, similar to findings of the Fed’s April survey, and a majority of banks expect to tighten further in the second half of this year and the first half of 2009. NAHB’s surveys of builders also have been identifying substantial cumulative tightening of lending standards on land acquisition, land development and construction loans in recent quarters, and the Fed’s survey suggests that there’s more to come down the line. Production Cutbacks Are Addressing the Supply-Demand Imbalance in Housing Markets Single-family starts and permits continued downward in July, falling by 2.9% and 5.2% respectively. Both measures now are down by roughly 65% from their respective peaks during the boom period, and completions of single-family homes are on a similar downtrend. Single-family starts for-sale (exceeding homes built on owners’ lots) have been falling even faster than total single-family starts. In fact, starts for-sale have been running below new-home sales for the past year, and new-home inventories have been trimmed in the process. This is part of the essential rebalancing of market demand and supply that will pave the way for a sustainable pickup in housing starts down the line. New-Home Sales Are Approaching a Bottom While new-home sales have exceeded starts for-sale in recent times, new-home sales volume has continued to trail downward — albeit at a slower pace than last year. NAHB’s proprietary survey of 30 large builders shows further erosion of gross and net sales in July (seasonally adjusted), and our broad-based single-family Housing Market Index (HMI) was at a record low of 16 in both July and August. On the bright side, the sales expectations component of the HMI moved upward in August, presumably reflecting expectations of support from the $7,500 first-time home buyer tax credit that was created by the Housing and Economic Recovery Act of 2008. Furthermore, surveys of consumer sentiment (University of Michigan) show that rising proportions of consumers say home buying conditions have been improving — primarily because of downward price adjustments in many areas. NAHB’s forecast shows a bottom for new-home sales before the end of this year followed by a 10% gain in 2009 (year-over-year). This sales pattern, if achieved, will produce substantial improvement on the inventory front and lead to an upturn in housing starts by the second quarter of next year — assuming adequate supplies of credit for residential development and construction. 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 Aug. 20 edition. To subscribe to “Eye on the Economy,” click here.
Don't miss NAHB's 2008 Fall Construction Forecast Conference and Webcast for the latest economic news about the housing industry. Join NAHB on Oct. 22 in Washington, D.C., where the country’s leading economists and finance experts will provide insight into the uncertainties of the housing market. To register for the conference or Webcast, and to see the full conference agenda, visit www.nahb.org/cfc.
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.
Don't miss NAHB's 2008 Fall Construction Forecast Conference and Webcast for the latest economic news about the housing industry. Join NAHB on Oct. 22 in Washington, D.C., where the country’s leading economists and finance experts will provide insight into the uncertainties of the housing market. To register for the conference or Webcast, and to see the full conference agenda, visit www.nahb.org/cfc.
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: Removing Nails From Old Lumber
But removing nails from old boards can be a problem and often is. Pounding the nails through from the back side of the lumber often causes the nails to bend and weaken. So I have figured out a simple and relatively quick way to remove the nails ― using wire cutters and a hammer (see accompanying drawing).
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. Builder-ESC Relationship Could Reap Missed ProfitsBy Mark Aling, Paradigm Electronics
Builders don’t want that. Neither do their home owners. For this reason, the ESC must be responsible for all follow-up service calls, whether it is a minor calibration or a system meltdown caused by a lightning-strike ― and that needs to be established early in the working relationship. In my experience, I have found that many builders prefer not to offer complicated home technologies because they may be unsure of their reliability and performance or because any glitches in the technology could sully their reputation with their home owners. That’s unfortunate because builders who follow that path can miss out on potential profits, especially with demand for these technologies that provide comfort, safety and convenience on the rise. There is a solution, however. Builders need to build long-term relationships with ESCs, much like they do with the other contractors and trades who work their jobs. Knowing that an ESC will be available to provide support over the long haul is essential for any builder exploring options and looking to build a relationship with an ESC. And, if the relationship is to succeed, ESCs should probably develop service agreements with the home owners that remove the builder from any technology service follow-up responsibility. Another key aspect to this builder-ESC relationship is that the ESC should be involved in the project early — specifically in the home’s design phase. Early involvement will enable the builder and ESC to properly plan for the technologies and will enable the builder to avoid costly changes to wiring, closet/outlet placements and other factors that can affect electronics installation and performance.
Manufacturers Are Part of the Partnership Manufacturers also have a role in helping establish strong builder-ESC relationships. Many manufacturers are investing significant resources on training programs for builders ― to provide greater awareness of home technology and the many options that are provided to the home builder or remodeler. When choosing an ESC partner, builders need to know that the ESC has similar training and experience working with the technologies and manufacturers that the builder prefers ― or can help the builder choose different technologies that meet the builder’s needs. Ultimately, it up to builders and ESCs to find a model that works financially and logistically, but careful screening and an open dialogue will go a long way toward establishing a beneficial and prosperous working relationship. Mark Aling is the marketing manager for Paradigm Electronics, which manufactures Paradigm and Anthem consumer audio electronics equipment that is sold in the U.S., Canada and internationally through top independent specialty dealers. For more information, e-mail Aling, call him at 905-632-0180, or visit the Paradigm Web site at www.paradigm.com. Photos courtesy of Paradigm. Information About Home Technology Available From HTA The Home Technology Alliance (HTA) is a partnership between NAHB and the Custom Electronic Design Installation Association (CEDIA) that was formed to position the housing industry to effectively meet the growing home buyer demand for home technology and provide maximum return on investment in the new home building and remodeling process. For more information, visit www.nahb.org/HTA. CEDIA: A Source for Experienced ESCs The Custom Electronic Design Installation Association (CEDIA) is a founding sponsor in the Home Technology Alliance and 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. CEDIA serves as a source for Electronic Systems Contractors (ESCs). For more information on CEDIA, visit the association’s Web site at www.cedia.org. To find an ESC, click here. The Custom Electronic Design Installation Association (CEDIA) is a founding sponsor in the Home Technology Alliance and 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. CEDIA serves as a source for Electronic Systems Contractors (ESCs). For more information on CEDIA, visit the association’s Web site at www.cedia.org. To find an ESC, click here. ‘Recovery by Design’ Offers Buyers What They Don’t HaveIn today’s challenging environment for housing, panelists on a Southeast Building Conference (SEBC) panel in Orlando on July 31 advocated a “recovery by design” approach to sales that emphasizes the latest products and trends in the interior merchandising of models and homes. Much of the current housing inventory “is not selling because it’s just bad housing,” said Dominick Tringali, an architect whose company is based in Bloomfield, Mich. “The leftover product on the market isn’t going to work for certain people,” he said. Home prices can represent a great deal, Tringali said, but even a home that’s priced $100,000 below market may not move if it doesn’t meet the needs of prospective buyers. With demand slow, it is paramount for builders to “give buyers a compelling reason to move,” he said. “Offer the buyer what they don’t already have.” Tringali recommended jettisoning excess rooms and focusing on living areas, starting with the kitchen as the heart of the home, and providing less square footage but more living space — including flex rooms, family rooms and outdoor spaces. Flex rooms can include multipurpose laundry rooms with a washer, dryer and storage; computer centers, such as a 6-foot by 6-foot office for the wife or a children’s computer zone in the kitchen area; and 8-foot by 8-foot drop zones, or mud rooms, with a bench in the middle and hooks along the wall. A pre-fab fireplace can add ambience in the kitchen, he said, and builders should keep up with the latest kitchen appliance trends, “which have really changed nowadays.” Cost Cutting Details Affordability and value are key selling points in the current marketplace, he said, and cost-saving details are required even in large budgets. To pare construction costs, Tringali recommended substituting EIFS materials for limestone and cut brick for real brick; using prefabricated moldings; switching from wood to Styrofoam for bracket details on fascia; using cut stone for trims and sills; and looking for opportunities to use value-engineered details. On another trend that buyers are looking for, Tringali said that 80% of the homes he designs incorporate outdoor living spaces, and every plan has an option for adding on an outdoor area. “Done right, these spaces can be a tremendous add-on to the architecture of the house,” he said. Buyers are also in the market for homes that have a healthy design and mainstream green features, although they do keep an eye on what things will cost. This is “the best way to go,” he said. “People want smaller homes and lower utility bills.” Finally, he cited the advantages of providing authentically historic touches appropriate for the area, which, among other things, can be achieved through door details and window heights. “A house with some historic background gets people in the door,” he said. Among resources worth visiting to get started on some of these design elements, he recommended the Web sites of Jack Arnold (for chimney pots), Lennox Hearth Products (for pre-fabricated fireplaces), Simonini Builders (for how to make the most of historical references), and Owens Corning’s Cultured Stone, which, he said, “lasts longer and is more durable.” Cool and Hip Kay Green, whose design company is located in Orlando, told the SEBC audience that urban references and a clean-line, contemporary look are appealing to both boomers and the Young Gen X and Y crowd prowling the housing market in search of “cool, hip product.” A three-story town home designed to appeal to buyers who are shopping for something new puts a glass storefront on ground-floor work space that can serve as retail — an art gallery, for example. It can be sequestered physically from the rest of the property, if desired, and also rented out. For builders selling from a sales center, she suggested giving it some oomph with a coffee shop feeling. While designers should come prepared to offer the latest products, they also should “always have a more traditional look available” that can be provided for locations or markets where that approach is more suitable, she said. A review by Green of the latest colors and finishes found: black wood flooring; the return of orange; sage and references to sea foam; chocolate brown; entertaining details in the children’s room; flooring with pre-engineered wood planks, distressed wood or wood inlays in tile or marble; putting stone on the wall to help transform a small space into a spa; and painting a screen behind a bed. “Furniture is secondary in merchandising,” she said. Prospective buyers are also looking for green design, she said. In California, she said, the trend is to install toilets that reuse water from the washing machine. Among new products emphasizing green: Kohler is marketing a toilet that reduces water use by 20% more. Moen’s light sensitive faucet automatically turns itself off. For $300, Tapmaster is selling a mechanism that enables the faucet to be turned off with a toe kick or hitting the cabinet door with a knee. Energy Star-rated appliances include induction and steam washers. Whirlpool has invented an appliance that functions as a refrigerator and an oven. “Appliances think these days,” Green said. For information on NAHB design resources, e-mail Jennifer Jones, or call her at 800-368-5242 x8469. Options Selling Can Boost Sales, Make Lasting Impression In “Option Selling for Profit: The Builder’s Guide to Generating Design Center Revenue and Profit,” authors Gina Gullo and Angela Rinaldi share their hands-on understanding of high-powered selling in the ever-expanding market of options for new homes. By offering a range of options and upgrades, the design phase provides the best opportunity to make a lasting impression and ensure that buyers will favorably remember the entire buying experience. To view or purchase this publication online, click here, or call 800-223-2665. Apply for NAHB SAFE Award by Oct. 13Applications for the 2008 NAHB Safety Award For Excellence (SAFE), which provides recognition for home builders who develop outstanding work-site safety programs, are now available. For information, requirements and an online application, click here (nahb.org/SAFE). Applications are due by Oct. 13. The award honors the achievements of builders and trade contractors who have developed and implemented high-quality construction safety programs, as well as those government officials and NAHB-affiliated associations who have made successful efforts to advance safety in the home building industry. Last year, 14 companies were cited for their safety achievements. Read about them here. “The home builders and housing industry professionals who have received SAFE awards during the past two programs are an outstanding representation of the commitment to safe behavior and safety education practiced by NAHB members across the country,” said Buck Roberts, president of A.B. Roberts Construction Company in Anderson, S.C. and chairman of NAHB’s Construction Safety and Health Committee. “We look forward to recognizing many more safety best practices in Las Vegas in January in the 2008 SAFE awards.” NAHB member companies in good standing that build residential homes or town homes using light construction methods can apply for a SAFE award. Specialty trade contractors, remodelers and light commercial and multifamily builders, as well as NAHB-affiliated associations and federal or state Occupational Safety and Health Administration (OSHA) officials who have been nominated by an NAHB member or association, are also welcome to apply. Awards will be made in a variety of categories; for a detailed listing, click here. Award winners will be recognized during a breakfast ceremony on Jan. 20 during the 2009 International Builders’ Show in Las Vegas. Winners will receive an award and coverage in this publication. NAHB is seeking companies to become sponsors for this safety awards program. For sponsorship information, click here, e-mail Andy Flank at NAHB, or call him at 800-368-5242 x8059. NAHB provides members and others in the residential construction industry — including non-English and limited English-speaking employees and trade contractors — with information, guidance and access to training resources to help them protect employees' health and safety. A variety of safety resources and guidebooks, including the NAHB-OSHA Jobsite Safety Handbook: English-Spanish Edition, are available for purchase through www.builderbooks.com. For more information on the SAFE Awards Program, click here; or e-mail Lindsay Cather at NAHB, or call her at 800-368-5242 x8163.
Boost Job Site Safety With Fall Protection Training Products In an effort to increase job site safety and reduce the chance of job related accidents, NAHB has produced the “Fall Protection Video, English-Spanish” and “NAHB-OSHA Fall Protection Handbook, English-Spanish.” Both are available through BuilderBooks.com. The 30-minute “Fall Protection Video, English-Spanish” can be used by builders to train workers to use safe work practices that eliminate fall hazards and comply with OSHA fall-protection standards. The “NAHB-OSHA Fall Protection Handbook, English-Spanish” provides guidelines for creating a written fall-protection plan and identifying safe work practices that can prevent costly accidents and injuries. Written with clear text, photographs and illustrations, the book serves as a user-friendly resource for promoting safety on any job site. To purchase the handbook and video online, click here, or call 800-223-2665.
Four common hazards cause 90% of the injuries and fatalities on residential construction job sites. The “Recognizing the Big-Four Safety Hazards for the Home Building Industry” course from The NAHB University of Housing shows how to comply with OSHA regulations and to recognize and minimize those hazards most likely to cause accidents. The course teaches builders to protect their workers from harm and themselves from liability. This course is also available in Spanish. To find out where upcoming courses are being held, click here, or call 800-368-5242 x8154 for more information.
Home Builders Institute Offers New Program to Teach Hispanic Adults English Sed de Saber™-Construction Edition is an easy-to-use, take-home learning tool created exclusively for the construction industry by the Home Builders Institute to improve communication, quality and safety on the job site. The product, now available at www.seddesaberconstruction.com, uses proven LeapFrog technology to allow workers to listen, record and play back their pronunciation of more than 500 vocabulary words and 340 phrases. Participants who practice 30 minutes each day will complete the program in just four months. Learning at home, on their own time, also eliminates scheduling conflicts. Sed de Saber™-Construction Edition was developed by a team of subject matter experts assembled through HBI — including superintendents, craft skills experts, remodelers and builders — to ensure that the information is relevant to today’s home building workforce. To address worker safety issues related to the language barrier, HBI created a seventh book based entirely on the NAHB-OSHA Job Site Safety Handbook. NAHB members can purchase the learning system, all seven books and a skills assessment to chart employee progress for $395 per kit. The non-member price is $495. Order today and empower your workers to learn English at www.seddesaberconstruction.com. Crane Safety Addressed in Georgia Work Stand-Down
The safety stand-down by the Georgia branch of the Associated General Contractors of America (AGC) was the commercial industry’s first statewide effort focusing on crane safety — a topic that has received increased national media scrutiny, with 15 crane-related fatalities and 30 injuries in 2008 to date. Sixty-five host commercial contractors — representing 390 job sites and more than 26,000 workers — simultaneously shut down their job sites to address best practices in crane safety. “This stand-down was an important and progressive way of bringing a strong safety message and best safety practices to the construction workforce,” said Cherri Watson, AGC’s Georgia Branch director of safety, education and workforce development. Organized by the AGC Georgia branch, the stand-down was supported by the Occupational Safety & Health Administration (OSHA) and AGC’s workers’ compensation program, CompTrust AGC Mutual Captive Insurance Company. “This approach is an excellent opportunity to do safety training at the job site and not in the classroom,” said Carl Harris, of the Carl Harris Company in Wichita, Kan. and a member of the NAHB Commercial Builder Council. Harris — an expert in light commercial crane operations — will represent NAHB at the AGC/Engineering News-Record crane safety summit on Sept. 9 to discuss the importance of improving crane safety in the construction industry. “Safety is not a cost, it’s a savings, so it’s good that they shut down to invest in safety now so it minimizes the risk of costing production time later,” Harris said. According to an in-depth report on U.S. crane fatalities by the Center for Construction Research and Training released in June, an averge of 22 workers are killed annually in crane-related accidents. The report was based on 1992-2006 worker fatality data from the Bureau of Labor Statistics, which included the numbers and causes of deaths, the trades of workers involved, the size of employers and types of cranes involved. AGC’s Watson said the spike in crane accidents made it even more important for safety directors, CEO’s and other company managers to participate in the stand-down alongside of their workers. “The support and unity from these contractors across the state is a real credit to the caliber of construction professionals who are leading these organizations,” she said. Industry Awaits New Detailed OSHA Crane Safety Standard Proposal
Last week, OSHA Region VI established a Regional Emphasis Program on cranes in the construction industry to prevent crane-related injuries in Texas, Oklahoma, Arkansas, Louisiana and New Mexico. OSHA is scheduled to announce the Notice of Proposed Rulemaking for the national standard within the next 30 days. NAHB is urging OSHA to differentiate between light, mobile cranes and large industrial cranes in the proposed national crane safety standard so that the rule can properly address the needs and safety requirements for residential and light commercial crane use. Current drafts of the Federal Crane Safety Standard under consideration treat all construction and construction cranes alike. Harris, who participated on a Small Business Regulatory Enforcement Fairness Act (SBREFA) panel in June, said that cranes of less than 50 tons should be treated differently than large industrial cranes. “The small cranes we use in residential and light commercial construction are more similar to forklifts than the huge industry cranes that have been collapsing and making news,” said Harris. “It’s not logical to make one uniform standard for small mobile cranes that lift 2,000 pounds and large stationary cranes that lift 200,000 pounds,” he added. Harris noted that one generic standard would create a greater financial burden on residential and light commercial builders. They would be mandated to apply a safety standard for large industrial cranes that does not specifically pertain to their use of cranes, he said. Persistence, Training Pay Off When Asking for the SaleBy Vanessa Linn, Shea Homes They also wouldn’t be surprised to know that the secret to success in selling houses has not changed over the years — nor has asking for the sale. There was a time early in my career when I didn’t see any value in sales training. Frankly, I didn’t like getting up and going to work on Monday mornings and I rarely practiced my craft. I was an experienced salesperson, I thought. I was good at talking to people. I was good at influencing them. Plus, I had that salesperson’s intuition. That was all I needed to be successful. How wrong I was then. How wrong those thoughts are now.
When I was a sales rep for a major home builder, we had a very specific sales process to present to our customers. During Monday morning meetings, we would role play and practice to make sure we had it right. I dreaded those Monday morning meetings. I couldn’t sleep the night before, and when it was my time to role play, I’d get sick to my stomach and stutter. But, to make my sales manager happy, I memorized everything and practiced my presentations ― just the way they were designed. I was a good studen, and persistence and training paid off, as much as I didn’t want to admit it at the time. Becoming a Believer One day in particular when I was in the sales office working my company’s well-developed sales presentation with a customer, I performed it perfectly — including all the soft closes as well as asking for the sale more than once. But in the back of my mind, I just knew this was only practice. The customer really wasn’t a potential home buyer, I thought, and I was being professionally shopped. Guess what? I was half wrong. Yes, the customer wasn’t a potential buyer. The customer was a buyer. I sold the home. I couldn’t believe it. The sales presentation worked. From that moment on, I was a believer. I thoroughly understood the value of role playing and practice and started to become a role model and mentor to others on my team. I wanted everyone to share in my success, so any time my sales manager needed help with training, I volunteered. Eventually, I became the company’s sales trainer. Now that I am vice president of sales and marketing for Shea Homes, a West Coast and Southeast home builder, I am telling my sales reps to attend Monday morning meetings and to practice their sales techniques and role play. You should do the same. Your employer has invested plenty of resources ― beautiful and furnished model homes, a targeted marketing campaign, extensive sales training ― to help you and your buyers achieve the American Dream of homeownership. And all this happened before the doors to your models opened. Armed and Ready to Sell Backed by these resources, and with its specific sales presentation, your company has armed you with the ammunition you need to be successful. You’ve attended training, listened to tapes, observed senior partners and incorporated aspects of what you have learned into your individual sales presentation. Take the time to provide yourself with the very best strategy for success. Invest in yourself, just as your company has invested in you. Practice, practice and practice again. The better you get at asking for the sale, the easier it will be. Vanessa Linn, vice president of sales and marketing for Shea Homes, the largest home builder in San Diego with 14 communities, is a 17-year veteran in the new home building industry. Linn manages a 26-member sales team, a marketing department and an escrow department. In 2005, the NAHB Sales and Marketing Council named her the "Sales Manager of the Year." For more information, e-mail Linn, or call her at 858-526-6562. This article was originally published in NAHB's Sales + Marketing Ideas magazine.
For additional cutting-edge sales and marketing information, subscribe to NAHB’s Sales + Marketing Ideas magazine (www.smimagazine.com). Click here to learn about membership benefits of the National Sales and Marketing Council and the Institute of Residential Marketing.
Get Powerful Techniques for Selling More Homes Bill Webb, MIRM, in “Sweet Success in New Home Sales,” available through BuilderBooks.com, provides the most powerful techniques ever devised for selling more homes and making more money in lean times. This instructive guide 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. Rental Apartment Builders See Weaker Second QuarterAmid concerns of a slowing U.S. economy and continuing trouble in other housing sectors, builder confidence in the rental apartment market dipped in the second quarter of 2008, according to NAHB’s latest Multifamily Rental Market Index (MRMI), which was released on Aug. 21. The component of the index tracking builders’ views of market-rate rental apartment starts dropped to 38.1 in the second quarter, down from 52.9 for the same period a year earlier. The component of the index tracking affordable or subsidized apartment starts slipped from 42.9 to 32.9 from the second quarter of 2007 to the same period of this year. "An oversupply of housing inventory in general, combined with systematic job losses, is starting to take a toll on the rental housing market," said David Seiders, NAHB's chief economist. Seiders noted that even where demand for rental units remains relatively strong, problems in the financial markets are making it difficult for multifamily developers to get the capital they need for new apartment construction. The MRMI is derived from a quarterly survey of multifamily builders and developers; the index is on a scale of 0 to 100, with a rating of 50 generally indicating that the number of positive responses is about the same as the number of negative responses. When asked about the overall market conditions expected over the next six months, multifamily developers were more optimistic about market-rate than affordable apartment rentals, which stood at 40.5 and 33.3, respectively, down from 55.6 and 45.7 a year earlier. Components of the MRMI tracking demand for rental apartments also decreased significantly from a year earlier. The decline was most precipitous for Class A (luxury) apartments, which plunged 30 points, from 63.8 to 33.8, from second quarter to second quarter. Class B apartments dropped from 19 points to 48.7 in this year’s second quarter, and Class C apartments rated 50.0, off 12.5 points from the second quarter of 2007. Survey participants were more positive about demand over the coming six months, with the indexes running at 43.9 for Class A apartments, 55.3 for Class B and 56.1 for Class C. This was despite weakness in the component of the MRMI gauging current demand from prospective renters, which was at 52.6, down from 66.1. The recent news that the President had signed into law long-awaited housing stimulus legislation may further bolster multifamily builder confidence in the future. "The housing stimulus legislation that the President signed into law will go a long way to help the housing market and the economy by stimulating demand and getting the capital markets working properly again," said Seiders. "That will be good for the rental apartment market as well as for the for-sale housing market." For more information about NAHB's multifamily housing resources, e-mail Ann Marie Moriarty, or call her at 800-368-5242 x8350. Enter Pillars of Industry Marketing, Design AwardsEntries are open for the 2009 Pillars of the Industry Awards competition honoring excellence in apartment and condominium design and development — including the best mixed-use community — as well as leadership in marketing and property management. Apartment owners and developers, property managers, architects, interior designers and others involved in the multifamily housing industry are invited to enter. The application deadline is Nov. 7. Entry notebooks are due Nov. 21. The Pillars of the Industry Awards program is the largest and most prestigious of its kind, and both housing professionals and the media look to the awards as a showcase of future trends and innovation. The awards recognize superior achievement in three areas: building, marketing and individual excellence, including “Multifamily Development Firm of the Year” and “Best Multifamily Community of the Year.”
For complete details, including eligibility requirements and application forms, go to www.nahb.org/pillarsawards, e-mail multifamily@nahb.com or call 800-368-5242 x8215. Free Workshops, Golf Swing Analysis at Remodeling ShowNAHB Remodelers will be offering eight free educational seminars on green remodeling and better business practices ― and a free golf swing analysis ― at the council’s booth #2609 on the show floor during the Remodeling Show in Baltimore on Sept. 10-12. The seminars range from a half-hour to an hour, depending upon the topic discussed. Attend one of the seminars and be automatically entered to win a 2009 International Builder Show registration ― a $475 value. Better Business Practices Wednesday, Sept. 10
Thursday, Sept. 11
Friday, Sept. 12
Representatives from the American Association of Occupational Therapists will be at the booth to analyze golf swings. In addition, representatives from NAHB membership, the International Builders’ Show, NAHB green building and remodeling, the Home Builders Institute, the NAHB University of Housing, Remodeler 20 Clubs and various local remodeler councils will be at the booth to answer questions. For more information, visit the NAHB Remodelers booth #2609. For more information on other NAHB Remodelers activities at the Remodeling Show, visit the NAHBR Remodeling Show Web page. Earn Your Professional Designation at The Remodeling Show Earning the Certified Aging-in-Place Specialist (CAPS), Certified Graduate Remodeler (CGR) or Graduate Master Remodeler (GMR) designation demonstrates a commitment to excellence and keeps remodelers on top of industry innovation. A number of pre-show courses at The Remodeling Show in Baltimore, Sept. 9-12, qualify for these professional designations, or for continuing education needed for other NAHB designations. For more information, visit www.nahb.org/RemodelingShow. Member Profile: Providing Details, Adding ValueThe latest in a series that profiles members of local NAHB Remodelers who are strengthening their local councils through networking and recruiting new members. The grassroots champions who are being highlighted in this series have collectively recruited more than 400 new members for the NAHB Remodelers to date.
Monarcha Marcet
Monarcha Marcet, the owner of Adventure in Building in Orlando, has a rare combination of skills that serves her well when providing preconstruction management services to builders and remodelers on an outsourced basis. She can visualize architectural plans in three dimensions and she’s very thorough at estimating the specific trades required on a given project. Marcet notes that some of the best fits for her services are smaller companies in central Florida that don’t have the volume of work to support an in-house preconstruction management staff. “By hiring someone like me, they can avoid insurance and other overhead costs for their own company, and they can hire me on a one-time basis or for an ongoing relationship,” she says. Typical client projects include everything from remodeling condominiums to building new single-family homes as large as 10,000 square feet. Adapting to the Market Running a business that provides estimating and consulting services for builders is not what Marcet originally thought she’d be doing. “I started out thinking I’d be an interior decorator, because that’s what women did,” she says. Toward that end Marcet studied architecture, but after earning an undergraduate degree, she decided that she would be a better designer if she also learned how buildings were put together. So she went back to college and earned a masters degree in building construction. With that as her foundation, Marcet began working with a partner on remodeling projects. After gaining enough experience, she started her own company and focused on building and remodeling single-family homes. When she moved to Orlando, however, she repositioned her company to provide estimating services for small-volume builders and remodelers. Making Connections Once in Orlando, Marcet joined and got involved in the Home Builders Association of Metro Orlando and its remodelers council. “Word of mouth in remodeling is so important, so for me, it’s essential to meet remodelers, learn what they do and how they operate and also to let them know what I do,” Marcet says. “Most of my main builder clients have come from my involvement with the council, where I met our area’s most reputable remodelers.” Last year, she served as the remodelers council chair and initiated incentives programs to encourage attendance. In particular, she started the Builder and Builder Buddy Buckets door-prize drawing program to encourage members to bring guests. Since the program began, council meeting attendance has doubled. Helping Others to Be Successful What Marcet likes most about her business is helpin other builders and remodelers to be successful. That’s part of the value she brings to her clients. “I’m very detail oriented and try to see all aspects of what is going to be involved in taking a project ― from what’s on paper to how it’s going to be built in the field,” she says. With that information in hand, it is easier for her clients to justify their value to their clients.
The Certified Graduate Remodeler (CGR) designation emphasizes business management skills as the key to a professional remodeling operation. Remodelers who earn the CGR become members of an exclusive national program and gain recognition as industry leaders. To learn more about the CGR designation, visit www.nahb.org/CGRinfo, or call The Professional Designation Help Line at 800-368-5242 x8154. Earn Your Professional Designation at The Remodeling Show Earning the Certified Aging-in-Place Specialist (CAPS), Certified Graduate Remodeler (CGR) or Graduate Master Remodeler (GMR) designation demonstrates a commitment to excellence and keeps remodelers on top of industry innovation. A number of pre-show courses at The Remodeling Show in Baltimore, Sept. 9-12, qualify for these professional designations, or for continuing education needed for other NAHB designations. For more information, visit www.nahb.org/RemodelingShow. Custom Builder Symposium Can Help Navigate DownturnThe 2008 Custom Builder Symposium on Oct. 24-26 in Austin, Texas is offering a wide range of educational courses that can help custom home builders navigate through the industry downturn. Courses at NAHB's premier educational and networking event for custom builders feature the latest in home technology, business management, design and green building. “Every educational course will help provide an idea, a concept or new excitement for improving your own home building company,” said Brad Simons, NAHB Custom Home Builders Committee chairman. “In today’s home building environment, only the best will be successful. Investing in making your company the best is now more important than ever before.” In addition, the symposium features a home tour, pre-show designation courses and several networking opportunities. The symposium will be at the Hilton Austin. General business management and technology courses include:
Home Tour Highlights Emerging Trends Design trends that incorporate green initiatives and building techniques and technology that are unique to the Texas home building market will be part of the one-day symposium tour of premier custom homes in Austin and the surrounding area. “Austin is a unique venue,” said symposium chairman Randy Rinehart. “We’re going to see infill within the city, refreshing contemporary architecture along with the green/energy movement and we will see good examples of Western architecture. Those who attend will be very impressed.” NAHB Custom Home Builder of the Year Award The NAHB Custom Home Builder of the Year Award call for entries is now open. The award recognizes a custom builder for his or her outstanding leadership and business practices, as well as craftsmanship in building one-of-a-kind custom homes. To apply, visit www.nahb.org/customaward. The entry deadline is Wedneday, Sept. 10. The award will be presented at the symposium on Oct. 25. To Register for the Symposium Online registration is now open. For more information and to register, go to www.nahb.org/custom. For more information, e-mail Marcia Childs at NAHB, or call her at 800-368-5242 x8388. 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. Panel Looks at Effluent Rule Impact on Small BusinessThe U.S. Environmental Protection Agency has decided to delay a proposal for effluent limit guidelines for the construction industry to allow more time to analyze the impact of the proposal on small businesses. Under court order to revise its Clean Water Act regulations by 2009, the EPA had planned to issue a proposal this summer. But in response to concerns from NAHB, the agency has agreed to a delay so that a Small Business Advocacy Review Panel can examine the cost implications of the rule. NAHB members are serving on the panel, which will be meeting periodically through the end of September. The EPA is expected to release its proposal later in the year, after it has taken the panel’s concerns into account. Effluent limit guidelines are technology-based standards that were designed to control discharges from industrial processes and wastewater treatment. NAHB has long opposed their application to the construction industry because, unlike water coming from a pipe, it’s impossible to control how much rain falls on a construction site. Applying effluent limit guidelines to the home building industry for storm water discharges could result in builders having to meet numerical limits. NAHB has told the agency that a better solution would be a more flexible approach reflecting the challenges, uncertainties and geographic differences associated with storm water discharges across the country. NAHB has also urged Congress to direct the EPA to adopt streamlined, cost-effective permit processes; ensure that all water quality enforcement programs are founded on sound science; and provide educational and outreach materials to construction site operators to help increase compliance. Home building is regulated under Section 402 of the federal Clean Water Act; the clearing, excavating and grading associated with lot and site development can cause soil to wash off the site after rainstorms and affect nearby streams and other water bodies. In July, NAHB sent a letter to EPA leaders asking them to more carefully consider how effluent limit guidelines would affect the home building industry, emphasizing the inappropriateness of numeric effluent limits for construction-related stormwater discharges. The agency was urged to adopt a best management plan-based program in lieu of monitoring and sampling requirements targeted at meeting numeric discharge limits. For more information, e-mail Calli Schmidt at NAHB, or call her at 800-368-5242 x8132. Student Teams Sought for New Solar Decathlon in MadridThe launch of Solar Decathlon Europe was recently announced by the U.S. Department of Energy (DOE), and proposals to participate in the inaugural competition are due on Sept. 30. Twenty teams of university students from around the world will be selected to compete in the event, which will take place in May and June 2010 in Madrid. Following in the footsteps of Solar Decathlon competitions created by the DOE in 2002 and held annually on the National Mall in Washington, D.C., most recently with 100,000 attendees last October, the competitions give engineering and architecture students the opportunity to design, develop and build energy-efficient technology for a self-sufficient house powered only by solar energy. Written proposals to participate in the competition are due to SD Europe by the Sept. 30 deadline (www.sdeurope.org). The teams that are selected will receive about $145,000 in economic support.
With the deadline fast approaching, NAHB members are encouraged to pass along information on the decathlon to individuals, schools, universities or organizations that might be interested in assembling a team and participating. The secretariat of the International Housing Association, the NAHB International Affairs staff and the DOE have been working to promote this event, which will showcase new technologies that can be applied by the housing industries of countries around the world. For more information, e-mail Susanna Connaughton at NAHB, or call her at 800-368-5242 x8415. Register for Construction Law Seminar on Sept. 11-12
David Jaffe, NAHB staff vice president for construction liability and legal research, will participate in a Sept. 11 panel discussion on “Today’s Legal Challenges in Representing the Home Builder.” Other panelists include Jeffrey Berger, general council and secretary for the home building operations of St. Louis-based McBride & Son Enterprises, and Jeffrey Masters, partner in the litigation department for Cox, Castle and Nicholson, LLP of Los Angeles. In addition to the home builder-specific panel, the two-day seminar will also include topics such as right to repair statutes; the business and legal risks associated with building green; destroying or defending construction witnesses with technology in the courtroom; and more. The seminar will even feature a hands-on construction session that will enable participants to build a construction component. The seminar is open to coverage attorneys, in-house counsel for construction or engineering firms, class action coordinating counsel, construction litigators, claims professionals, home builders and product manufacturers. The seminar is being conducted by DRI, the Chicago-based national organization of defense trial lawyers and corporate counsel. To Register For more information and to register, click here, or call 312-795-1101. To read the seminar brochure online and download a faxable registration form, click here (in PDF format). Eliminate Risks, Protect Against Liability With Well-Written Contracts “Contracts and Liability,” available through BuilderBooks.com, provides illustrative cases, sample language, and guidelines for potential clauses of a contract between a builder and buyer or remodeler and home owner. Reduce or eliminate litigation costs by learning how to write better contracts from the start. To view or purchase this publication online, click here, or call 800-223-2665. Independent Study Enhances HBI’s Superintendent TrainingThe Home Builders Institute (HBI) has expanded its popular Residential Construction Superintendent (RCS) designation training with the publication of independent study manuals for each of the eight RCS courses. The manuals provide home builders associations with a new opportunity to increase their non-dues revenue through the RCS courses, reducing the financial and time commitments of offering the training as a service to their members. The independent study provides HBAs with an alternative to hiring certified instructors and hosting RCS classes, although the traditional classes are still being encouraged. Students who pursue the independent study buy the course materials directly from the association, learn at their own pace and return to the HBA for a final exam. The courses are administered through a streamlined five-step process:
The eight courses leading to the RCS designation are arranged in four-hour modules covering subjects identified by NAHB members as critical to the field or site supervisory job. The designation was developed by HBI in 2003 to improve the skills of up-and-coming field superintendents and onsite personnel. Since its inception, approximately 1,000 students have earned the designation and more than 16,000 students in 35 states have enrolled in at least one RCS course. The RCS Designation course topic areas are:
For more information on the RCS and ARCS designations, e-mail Kevin Thorn, or call him at 800-795-7955 x8928.
Sponsored by Lowe’s Commercial Services, Sed de Saber™-Construction Edition was developed by a team of subject matter experts — including superintendents, craft skills experts, remodelers and builders — to ensure that its contents was relevant to today’s home building workforce. HBI also created a seventh book based entirely on the NAHB-OSHA Job Site Safety Handbook to address job site safety issues related to the language barrier. Sed de Saber™-Construction Edition uses proven LeapFrog technology to allow learners to listen, record and play back their pronunciation of more than 500 vocabulary words and 340 phrases. Participants who practice 30 minutes each day will complete the program in about five months. Learning at home, on their own time, also eliminates scheduling conflicts. NAHB members can purchase the learning system, all seven books and a skills assessment to chart progress for $395 per kit. The non-member price is $495. Order today at www.seddesaberconstruction.com or at www.lowesforpros.com. New Andersen Windows Feature Recycled MaterialsAt PCBC in San Francisco earlier this summer, Andersen Windows introduced its 100 Series windows, a product line designed for builders in the West featuring environmentally responsible construction, an economical price and energy-saving performance. The windows are made from the company’s Fibrex material, which is a highly sustainable structural composite blending the best attributes of sawdust and polymer — much of it reclaimed directly from Andersen’s manufacturing plant operations. Fibrex material combines the strength and stability of wood with the low-maintenance of vinyl. Independent testing has found that the material has a low thermal expansion and contraction rate, is resistant to rotting and termites, and retains its rigidity and stability in high temperatures. Fibrex material features 43% pre-consumer recycled content, and the glass used in 100 Series windows also contains more than 12% recycled cullet. “There’s a lot of engineering that goes into Andersen products and you really notice it in our new 100 Series windows,” said Blaine Verdoorn, marketing manager at Andersen. “This product line is tailored to the likes and needs of builders in the West, and we know they and their customers will appreciate its sustainable design.” Anderesen 100 Series windows feature a clean, contemporary design and are available in single-hung, gliding, casement, awning and specialty fixed styles in more than 1,200 sizes and can be specified in more than 20,000 combinations. There are four exterior color options available: White, Sandstone, Terratone and Cocoa Bean. All have matte finishes and white interiors. There are 50 glass options, including the new American SmartSun Low E-glass, standard Low-E glass, dual-pane and specialty glass. Finelight grilles-between-the-glass are available, with a sculpted profile and duplex color capability, so the interior and exterior colors match those of the windows. Anderesen 100 Series windows meet Energy Star qualifications in all climate zones. Fibrex material is durable and long-lasting, and it can be reclaimed to make new windows. Also, the product is protected by minimal packaging to help reduce cardboard usage, job site waste and shipping costs. Andersen is committed to using only wood from sources certified by the Forestry Stewardship Council, Sustainable Forestry Initiative or similar organizations. For more information about this and other products from Andersen Windows, e-mail www.andersenwindows.com; or call 800-426-4261. Headquartered in Bayport, Minn., Andersen Windows 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
"I Want That" on Fine Living
HGTV Seeking ‘Dream Home’ Builder/Architect Teams HGTV is seeking developers, builders and architects to create 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. Applications for Endowment IBS Scholarships Due Oct. 31
Applications for students to attend the 2009 International Builders’ Show (IBS) in Las Vegas are now available and due by Oct. 31. The scholarships ― sponsored by the National Housing Endowment in conjunction with the Home Builders Institute ― enable NAHB Student Chapter members to offset some or all of their travel and attendance expenses at IBS. Providing funding to students has proven to be instrumental in helping them learn outside the classroom and prepare careers in the home building industry. The IBS scholarship program also helps give young NAHB members the tools to enter into the federation as graduates and to become future leaders. The endowment has allocated $100,000 for scholarships in this, the second year of the program. “IBS is something that everyone who intends to enter into residential construction should see,” said one student scholarship winner last year. “The National Housing Endowment is proud to continue this scholarship program for NAHB’s student chapter members,” said Gary Garczynski, endowment chair and 2002 NAHB President. “The endowment is working to increase the number of college graduates entering residential construction and this scholarship, along with other programs we sponsor, is leading the effort to reward and encourage the best and brightest to choose a rewarding career in residential construction.” To be considered for funding, a student must meet the following qualifications:
State and local home builders associations can apply for up to $2,500 in matching funds to distribute to their local NAHB Student Chapter. Students can apply for up to $500 in non-matched funds. Individual NAHB Student Chapters can apply for up to $2,500 in non-matched funds. Preference will be given to chapters represented by a Residential Construction Management Competition team at the IBS. To apply online, visit www.NAHB.org/2009IBSscholarship. Recipients will be notified by Nov. 21 and funds will be distributed in mid-December. More Endowment Scholarship Programs The endowment administers 12 scholarships and awards more than $350,000 each year to students pursuing careers in residential construction and related fields. For more information, visit the endowment's Web site at www.nationalhousingendowment.org. NAHB Fall Board Meeting Set for San Diego Sept. 23-26OFFICIAL MEETING NOTICE OF
The following schedule of events is a partial listing provided as a notice for the upcoming NAHB Fall Board of Directors Meeting to be held in San Diego on Sept. 26, 2008 and other associated NAHB meetings to be held on Sept. 23-26. Meetings will be held at the San Diego Marriott Hotel and Marina. The fall board program will identify the exact time and place of each cheduled meeting. Tuesday, Sept. 23
National Vice Presidents
Thursday, Sept. 25
Committee Meetings
Friday, Sept. 26
Presentation Skills Sold Out; Few Spots Remain for Interview SkillsThe “Presentation Skills” session has already sold out and only a few spots remain for the “Interview Skills” session of Spokesperson Training at NAHB's upcoming fall board of directors meeting in San Diego. NAHB members and leaders of state and local home builders associations can now register securely online with a credit card for the remaining open "Interview Skills" sessions. In the “Interviewing Skills” session of the Spokesperson Training Program, NAHB members will learn how to give clear, concise answers in a high-pressure, spur-of-the moment interview. The "Interview Skills" course has been scheduled for one day and registration is limited to 12 participants. Registration is on a first-come, first-served basis. Spring Board Spokesperson Sessions:
For more information and to register, click here. Each seminar is led by professional communication consultants who have more than 30 years of experience training NAHB members on the critical issues they face every day. More than 15,000 NAHB leaders have taken Spokesperson Training since the program began in 1979. For more information, e-mail Brooke Fishel at NAHB, or call her at 800-368-5242 x8061. Use NAHB PR Toolkit to Help Promote Tax CreditThe NAHB PR Toolkit, a comprehensive guide and resource that helps home builders associations and NAHB members plan, implement and measure public relations programs, has been updated and is now available online on the NAHB Web site at www.nahb.org/prtoolkit. The toolkit can be used as a resource as members and HBAs plan strategies to promote the $7,500 first-time home buyer tax credit for consumers and to get the facts about their particular housing markets out to local media and buyers. Members and HBAs can access and read or print toolkit chapters that cover topics such as working effectively with the media, how to leverage NAHB resources, what to consider when developing key messages and other tips on how to generate favorable publicity. Promotional materials are also available from NAHB to help promote the new $7,500 tax credit, which has garnered plenty of interest since it was passed. In the first two weeks after NAHB’s tax credit information Web site www.federalhousingtaxcredit.com went live, the site attracted more than 100,000 unique visitors. Access the materials here. Members and HBA staff must be logged in to the NAHB Web site in order to view the PR Toolkit and Myth Buster materials. For more information, e-mail NAHB Public Affairs, or call 800-368-5242 x8447. HBAs: Apply for NAHB/NOD Disability Initiative Award by Sept. 2State and local home builders assocations are invited to enter the 2008 NAHB/NOD Disability Initiative Recognition Awards program. Entries are due by Sept. 2. The award, conducted in partnership with the National Organization on Disability (NOD) and the National Housing Endowment, recognizes outstanding examples of programs, projects and activities conducted by HBAs that further the goal of full participation of people with disabilities in community life. The winner will be announced at the 2009 International Builders Show in Las Vegas in January. The winning HBA will receive $1,000. To Apply For more information and an application, click here, or e-mail Ariel Moyer at NAHB or call her 800-368-5242 x8595. Office Depot: $10 Off First $100 for New Member CustomersOffice Depot is offering $10 off any delivery order of $100 or more (excluding technology) for NAHB members who register for the first time as new customers through Sept. 30. This offer includes home builders associations who also sign up as new customers. The one-time $10 off is in addition to the everyday 10% Office Depot discount available to NAHB members who have signed up for the program. The one-time offer will be applied to purchases made during the entire month of September. To register, new customers should call 800-274-753 and mention coupon code 35235365 to receive the additional $10 off a $100 order. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to www.nahb.org/MA.
Free NAHB Kit Gives Builders Back-to-Basics Tips 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. Fix Credit Card Processing Rates for Two Years With SolverasSolveras Payment Systems offers members and home builders associations the opportunity to fix their credit card processing rates for the next two years if they sign up with Solveras by Sept. 15. Solveras sales consultants are available to review current credit card processing rates and other payment costs. They can help save members money or determine if their existing rates are good. For more information or to sign up for this free service, call 800-613-0148, or e-mail info.1@solveras.com. To learn more about Solveras’ Complete Payment Processing and Virtual Terminal Pro, visit www.solveras.com/nahb. Other Member Advantage Discounts For information on the Member Advantage discount program and all its participating companies, go to www.nahb.org/MA.
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. Dell Offering Double Discounts in SeptemberDell is offering double discounts to NAHB members from Sept. 1 through Sept. 30 on an array of products designed to meet the technology needs of your company. That means Dell’s normal discounts of 3% to 5% to NAHB members will double to 6% to 10% on essential small business technology, including business-class desktops and cutting-edge notebooks. Dell not only has the technology to make your home building business run more efficiently — it also offers NAHB members a more efficient way of doing business. To Get Your Discount Visit www.dell.com/nahb for complete details and to make your selection. To Maximize Your Dell Member Advantage Discount After you have made your selections and are ready to purchase, call your dedicated Dell sales representative at 888-577-3355, Monday through Friday, 7:00 a.m. to 8:00 p.m. (CST) and Saturday, 8:00 a.m. to 5:00 p.m. (CST). Mention link ID# 115762620. Your sales representative will apply your NAHB member discount to your order. NAHB members who have previously ordered from Dell also receive a monthly catalog, which includes this double discount offer. The Dell Double Member Discount* offer is valid Sept. 1 through Sept. 30, 2008. * Double discounts do not apply to the preconfigured systems that are already priced at up to 20% off. Other Member Advantage Discounts For the most up-to-date details on the Member Advantage discount program and all of the participating companies, go to the Member Advantage main page on the NAHB Web site.
Free NAHB Kit Gives Builders Back-to-Basics Tips 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. GM $500 Private Combined With GM Employee Discount Till Sept. 2Now through Sept. 2, NAHB members can combine the GM $500 Offer with the GM Employee Discount for Everyone. Follow these simple steps to get your GM authorization number and turn it in at your GM dealer for your $500 discount. The $500 NAHB private offer may be combined with most current GM incentives: One: Create a username and password.
Other Member Advantage Discounts For information on the Member Advantage discount program and all its participating companies, go to www.nahb.org/MA.
Free NAHB Kit Gives Builders Back-to-Basics Tips in 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. Calendar of Events
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.- |