Weekly Update: July 28, 2016

iowa chuck grassley meets with home builders

   Senator Chuck Grassley met with us in the HBAI office last week to discuss a number of issues.  It was another great meeting and it doesn’t take much of a sales pitch for our issues – he’s always been on our side.  Starting with Senator Grassley clockwise – LaDonna Gratias; Keith Butz, Jerry Cable, Sr.; Don Beal; and Rich Fitch.

Iowa Local HBA’s to Change Names

We have two of our local HBA’s that have asked permission to change their organizational names at the NAHB Mid-Year Meetings in Miami next month:

The Greater Cedar Rapids Area Home Builders Association will change to:

The Greater Cedar Rapids Housing and Building Association

The Home Builders Association of Northeast Iowa will change to:

The Cedar Valley Home Builders Association

Both locals believe that a new identity, logo, and marketing plans will bring them further reach into our industry and capitalize on growth and development.  Congratulations on making it all happen!

Iowa Building Code Advisory Council New Member – One More Needed

Governor Branstad just appointed Marsha Bannister to the Iowa Building Code Advisory Council.  The group approves upgrades or amendments to the state building code, works on petitions for rulemaking, alternate methods of construction and appeals.  Click here to see the committee list, Council information, and a handy icon to apply.

Skilled Trades Alliance Meeting August 4

If you’re in Central Iowa and care about the shortage of skilled trades employees, plan to attend a meeting at Forte on Thursday, August 4 from 4:00 – 6:30 p.m.  There will be drinks and hors d’oeuvres provided.  You will hear from Gary Scrutchfield (Lumbermans Drywall and Roofing Supply); Gretchen Critelli (DM Public Schools); and Aiddy Phomvisay (DM Central Campus Director).  RSVP to 515-242-7874.

IBS 2017 orlando buildersAugust Only Savings for IBS

It’s hard to believe that registration for IBS begins August 1, but it’s true.  The NAHB International Builders’ Show® (IBS) is the largest annual light construction show in the world, attracting more than 60,000 visitors from more than 100 countries every year. The industry’s premier event gives you the tools you need to gain the competitive edge by connecting you with key business partners, improving your expertise and allowing you to experience the latest products from top manufacturers and suppliers first-hand.  August Only Specials include:

  • IBS Expo Pass at 50% off
  • IBS Full Registration at $100 off
  • Spouse Registration at $25 off

New Home Sales Highest in Over Eight Years

Sales of newly built, single-family homes rose 3.5% in June from an upwardly revised May reading to a seasonally adjusted annual rate of 592,000 units, according to newly released data by HUD and the U.S. Census Bureau. New home sales are up 9.3% in the second quarter of 2016 from the first quarter.

The inventory of new homes for sale was 244,000 in June, which is a 4.9-month supply at the current sales pace. The median sales price of new houses sold was $306,700.  Regionally, new home sales rose by 10.9% in the West and 10.4% in the Midwest. Sales fell by 0.3% in the South and 5.6% in the Northeast.

Inventory Irritant

While existing home sales in June were at a seasonally-adjusted annual rate of 5.57 million, their highest level since 2/07, sales remain 22% off the peak of mid-2005. A key reason; a low inventory that essentially hasn’t budged since late 2011. And why might that be? A rise in the number of renter-occupied single-family homes (which aren’t for sale) from 10.5 million in 2000 to 17.5 million!   Elliot F. Eisenberg, Ph.D.

 

Weekly Update: July 21, 2016

   Iowa City HBA Executive Officer Karyl Bohnsack and HBAI Executive Officer Jay Iverson represented our state at the NAHB Association Leadership Institute in San Antonio last week.  Several hundred key staff and volunteers from local, state, and national HBA’s gathered together for fabulous educational and networking opportunities.  This photo was at the Buckhorn Saloon for a NAHB Night Out party. Awesome.

We Have a New HBAI Member Rebate Website

It can’t be much easier to do and it puts money in your pocket for using products from over 50 manufacturers.  You’re already using them! The average rebate for participants in 2015 was $1,178.12.  That alone is a 200-300% return on your HBA dues investment.  Go to our new websiteand fill in the online form.

Associate Member Directory Introduced

Here is a free member benefit for our associate members who supply or install any of the 50+ manufacturer brands participating in the Member Rebate Program.  All Associate Member Directory listings are hyperlinked to their business website.  Doing business with a member is super important to our Federation.  It’s a simple online checklist for you to register your business – check it out here.

New HBAI Legal Forms Under Development

We are beginning the process of modifying and developing new legal forms as a member benefit.  If there are any boilerplate forms that you wish for, but didn’t wanted to create or pay the legal bill to build, please let Jay Iverson know as soon as possible.

While in San Antonio at the ALI, all five NAHB senior officers were present for a town hall style meeting.  This has never been done before and it’s part of a new path to connect with our state and local associations.  Chairman Ed Brady (left) did an outstanding job moderating the meeting and there were spirited portions of the dialogue.  Other chairmen included  (left to right after Chairman Brady) Past Chair Tom Woods (Missouri); First Vice Chair Granger MacDonald (Texas); Second Vice Chair Randy Noel (Louisiana); Third Vice Chair Greg Ugalde (Connecticut); and  NAHB VP & Chief of Staff Brett Diggs.

Housing Starts Rise 4.8% in June

Nationwide housing starts rose 4.8% in June to a seasonally adjusted annual rate of 1.19 million units, according to newly released data from HUD and the Commerce Department. Overall permit issuance increased 1.5% to a seasonally adjusted annual rate of 1.15 million.

“This month’s uptick in production is an indicator that the housing market continues to move forward,” said NAHB Chairman Ed Brady. “At the same time, builders are adding inventory at a cautious pace as they face lot shortages and regulatory hurdles.”

Single-family housing starts rose 4.4% to a seasonally adjusted annual rate of 778,000 units in June while multifamily production ticked up 5.4% to 411,000 units.

Affordable Housing Programs Under Senate Reform

It’s great news that the U.S. Senate has approved H.R. 3700 – the Housing Opportunity Through Modernization Act of 2016. This legislation will streamline HUD rental housing programs and ease FHA condo restrictions to promote home ownership.  For those of you who helped in the lobbying efforts, we appreciate you taking the time to contact your Senators to voice your support. Hopefully President Obama will act quickly and sign this legislation.

Foreclosure Stats

The percentage of homes with a mortgage in foreclosure in 5/16 was 1%, compared to 1.3% in 5/15 and a peak of 4.5% in 2010. The current rate is the lowest since 10/07, but is still double the historic average. NJ had the highest foreclosure inventory at 3.6%, followed by NY at 3.2% and HI at 2.1%. AK, AZ, CO, MN and UT all had the lowest rate at 0.3%.

We had a blast playing in the Iowa City HBA Nail Driver’s Golf Outing this past Tuesday, even though we were rained out after ten holes.  It was a sold out event and everyone seemed to have a great time.  We’re a little unsure what sort of tale is being told here, but from left to right are Chad Chiles (Sobaski Abbey Carpet & Floor); HBAI Second VP Tim Ruth (IC); NAHB National Area Chairman and HBAI Past President Keith Butz (DM); and HBAI EO Jay Iverson.