August 2020
New Home Sales Reach Highest Level Since Great Recession
Sales of newly built, single-family homes rose to their highest level since the Great Recession, up 13.8% to a seasonally adjusted annual rate of 776,000 units in June, according to recently released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The June rate is 6.9% higher than the June 2019 pace. Inventory fell to a 4.7 months’ supply, with 307,000 new single-family homes for sale, 7% lower than June 2019. The current months’ supply is the lowest since 2016. Of the inventory total, just 69,000 are completed, ready to occupy. The median sales price was $329,200. The median price of a new home sale a year earlier was $311,800. Regionally, year-to-date, new home sales were up in all four regions: 22% in the Northeast, 12.6% in the Midwest, 0.2% in the South, and 3.1% in the West. Builders are dealing with a number of supply-side concerns such as rising material costs, particularly lumber, which recently surpassed its 2018 price peak. But low inventory levels point to construction gains ahead. Residential construction remains one of the bright spots amid the current coronavirus-caused downturn. Economic indicators suggest housing is poised to lead the nation’s economy back to full strength when the current crisis resolves.
HUD Terminates Fair Housing Rule HUD Secretary Ben Carson recently announced that his agency will terminate the Obama-era Affirmatively Furthering Fair Housing (AFFH) regulation issued in 2015, calling the rule "unworkable." The Preserving Community and Neighborhood Choice final rule replaces the 2015 AFFH regulation and 1994 Analysis of Impediments (AI) requirements. NAHB is reviewing the final rule.
IRS Extends LIHTC Deadlines In a victory for NAHB and its members, the Internal Revenue Service recently announced temporary relief from certain requirements under Section 42 of the IRS code for Low-Income Housing Tax Credit (LIHTC) projects. In general, under IRS Notice 2020-53, deadlines occurring between April 1, 2020, and Dec. 31, 2020, are postponed until Dec. 31, 2020. Agencies are not required to conduct compliance monitoring inspections during this time. Wade Confirmed as FHA Commissioner The U.S. Senate voted on July 28 to confirm Dana Wade as the new FHA Commissioner. NAHB Chairman Chuck Fowke lauded Wade’s confirmation amid the challenges caused by the COVID-19 pandemic. “NAHB looks forward to working with the new FHA commissioner to mitigate the effects of the outbreak on the housing community and to ease regulatory burdens exacerbating the nation’s housing affordability crisis," Fowke said.
Products Used in Home Construction NAHB analysis of government data indicates that new single-family and multifamily construction used about $94.9 billion in building products in 2019. The vast majority of that amount was produced domestically, supporting jobs in the U.S. manufacturing sector, but about $6.1 billion was imported from other countries. Among the major product categories, new residential construction in 2019 used more than $11 billion each of “cement and concrete products” and “architectural and structural metals.” The analysis looked at 51 building materials categories.
Lumber Prices Hit Two-Year High The Random Lengths Framing Composite Price hit $523 per 1,000 board feet for the week ending July 10, the first time prices have topped $500 since July 2018. Lumber prices have risen 50% since April 17, 2020. Several factors are driving rising prices. Some mills closed in the spring due to stay-at-home and social distancing measures. Mills that remained open vastly underestimated demand. Producers did not anticipate the massive uptick in demand from do-it-yourselfers during the pandemic. And housing weathered the storm much better than most anticipated.
NAHB’s 80,000 Associate members account for roughly two-thirds (68%) of total membership. The largest share of Associate members – 43% – are subcontractors or specialty trade contractors, according to the 2019 annual member census conducted by NAHB’s economics department. Roughly 13% of Associate members work in professional specialties such as legal services, accounting, and engineering. About 11% work in retail dealerships. Another 8% are employed in various financial services, including banking, title companies and insurance, and 4% work in wholesale dealerships or distributorships. Roughly 20% listed “other associate” as their primary activity. The median annual company revenue among Associate members was $2.2 million in 2019, down from a median of $2.5 million in 2018. A quarter of Associates (25%) reported annual revenues under $500,000. The largest group (32%) reported incomes of $1 million to $4.99 million. The median age of Associates was 56. More than half of Associate members (53%) have earned a bachelor’s degree or higher.
A New Look at Design Standards Local governments use design regulations to ensure the health, safety and welfare of residents. But excessive regulations that price lower- and moderate-income families out of the market should not be prioritized over the need to address the housing affordability problem. Examples of highly prescriptive design standards include prohibiting the use of exterior materials such as vinyl siding, mandating minimum roof pitch, and dictating the amount of surface area that must be dedicated to windows. A new document from NAHB, “Residential Design Standards: How Stringent Regulations Restrict Affordability and Choice,” explains how these standards harm low- and moderate-income families, and suggests policy alternatives.
NAHB, NAR Look at Sustainability NAHB and the National Association of Realtors® have launched a joint initiative to inform consumers about the high- performance home market. Through the joint Home Performance Counts initiative, NAHB and NAR have come together to offer a comprehensive resource that informs consumers about the qualities and benefits of high-performance homes and facilitates communication on home performance between buyers, builders and real estate agents. Demand for high-performance homes has expanded in recent years, with the number of homes certified to the National Green Building Standard® increasing by more than 57% since 2017. These are homes that prioritize comfort, sustainability, wellness, resource efficiency and affordability.
Subcontractors Largest Share of NAHB's Associate Membership
Calendar of Events Check GCBA's Monday EMail for current Location & Registration Information. Friday, August 7, 2020 / 8:30AM / ZOOM MEETING Coffee & A CONVERSATION Thursday, August 27, 2020 PRISM 2020 September 2020 ASSOCIATE APPRECIATION MONTH Tuesday, September 1, 2020 Kick off Fall Membership Drive Friday, September 4, 2020 / 8:30AM / ZOOM MEETING COFFEE & A CONVERSATION Friday, October 2, 2020 / 8:30AM / ZOOM MEETING COFFEE & A CONVERSATION Thursday, October 15, 2020 Annual Meeting of the Members and Election of Officers 6pm-8pm, Location TBD November 2020 SPIKE APPRECIATION MONTH Thursday, November 12, 2020 Cigar Night to Benefit GCBA, FHBA & NAHB PAC Cucina Cabana Friday, November 6, 2020 / 8:30AM / ZOOM MEETING COFFEE & A CONVERSATION Friday, December 4, 2020 / 8:30AM / ZOOM MEETING COFFEE & A CONVERSATION Thursday, December 10, 2020 Holiday Party Location TBD
Leadership List 2020 GCBA Officers and Directors OFFICERS PRESIDENT Jay Huebner, HSQ Group 1ST VP Maya Chocron, K Hovnanian 2ND VP Rafael Roca, DR Horton Homes ASSOCIATE VP Jason Handin, Ward Damon PL VP FINANCE Steve Karp, Melamed & Karp PA IMMEDIATE PAST PRESIDENT David Kanarek, Pulte Home Company LLC DIRECTORS Fred Pfister, Toll Brothers Inc Karl Albertson, DR Horton Homes Steve Dassa, Lennar Homes LLC Michael Nuziata, 13th Floor Homes Tony Macaluso, GFA International Ken Lebersfeld, Capitol Lighting Irina Heyaime, Pulte Home Company LLC David Donvito, Minto Communities Josh Hedden, Hydroshield South Florida Peggy West, GRS Management Associates, Inc. Executive Officer: KT Catlin Design: Gregory J. Del Deo
If you are interested in serving on the Board and/or Becoming an Office please contact KT at 561-228-6137 or KT@GCBAFlorida.com
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BUILDERS daltile Stock Custom Homes W Development Group Associates Blue Flame Gas Services Corp. Fuse Appliances Glasrail KMAC Marketing Solutions, LLC Rhys Dylan Design, LLC Spoonhoward Enterprises Audio Command Systems If you sponsored one of these individuals please let KT or Robin know! We will be having year long contests and recognition for Recruiting & Retention!
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The Rebound in South Florida Homebuilding - Evaluating the Risks By: Brad Hunter, Hunter Housing Economics www.hunterhousingeconomics.com It is a decidedly "V"-shaped recovery for the homebuilding business in South Florida. Sales by many builders have been increasing week-by-week since the middle of April. Some said that May, June, and July were their best months yet, and we are hearing the word "amazing" and "wild" uttered by executives at local homebuilding companies. Builders are feeling more confident about their outlook for the rest of the year, homebuilder stock values are double what they were in March. When forbearance programs and foreclosure moratoria come to an end, we might see an uptick in foreclosure activity, but this will not have a major impact on homebuilding business here.About 8% of mortgage loans are currently in forbearance nationwide, according to the Mortgage Bankers Association, which hints at the extent to which there is economic distress that has not yet been reflected in mortgage delinquencies. That said, a survey by LendingTree revealed that70% of the people who applied for forbearance actually had the money to pay their mortgage, and didn't 'need' it in the strict sense of the word.
CONTINUING EDUCATION YOUR WAY Little time for classroom CEUs? Need multiple licensure renewals? Have licenses in additional states? No problem. FHBA has partnered with @ Home Prep to offer online CEU coursesto help keep your licenses up-to-date at your own pace.Use Promo CodeFHBA15toreceive15% Off! The 411 Code program has been a great FHBA member resource. The knowledge of the Florida Building Code and the associated appeals processes has helped us to overcome multiple challenges that were presented by various building departments across the state. We would like to thank you for providing this service to FHBA members. We look forward to working with and learning from the 411 Code on unforeseen challenges well into the future. Builder - Sunrise, FL My experience working with the 411 Code program has been very helpful with our project. They very quickly got up to speed on the specifics of my issue and then figured out in short time on how best to approach the problem with the state. My customer was very impressed by the 411 Code program’s service and that I could bring to the table on their behalf. This is a valuable service provided by FHBA! It’s nice to know that we have someone we can go for help. Builder - Springhill, FL
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