November 2020
New Home Sales Slow Slightly in September
Sales of newly built, single-family homes in September fell 3.5% to 959,000 from a downwardly revised August number, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Despite the monthly decline, the September rate is 32.1% higher than the September 2019 pace, and on a year-to-date basis, new home sales are up 16.9% in 2020. Inventory inched up to a 3.6 months’ supply, with 284,000 new single-family homes for sale, 32.1% lower than August 2019. This is the third consecutive month with inventory running under four months’ supply. Of the inventory total, just 48,000 are completed, ready to occupy. These inventory numbers point to additional construction gains ahead, as indicated by record levels of the NAHB/ Wells Fargo Housing Market Index. A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. The median sales price was $326,800. The median price of a new home sale a year earlier was $315,700. Regionally, on a year-to-date basis new home sales were up in all four regions: 22.5% in the Northeast, 25.9% in the Midwest, 14.4% in the South, and 18% in the West.
ICC Rules on NAHB's Final Two Appeals The ICC Board of Directors in October issued a final decision on the last two NAHB appeals to the 2021 building code development process. The board sided with NAHB on the scope and intent of two changes to the International Energy Conservation Code (IECC) but rejected another appeal on 20 twice-defeated proposals that were defeated at two different hearings before being approved in the online vote.
Sales Outpacing New Home Construction The home building industry has made a quick and dramatic comeback in the wake of the COVID-induced economic downturn. Housing demand has increased so rapidly in recent months that there is now an unprece- dented gap between sales and home construction. Sales of new single-family homes in August increased 4.8% to an annual rate of 1.01 million units — their highest pace since September 2006. Builder Confidence Hits Another Record In a further show of strength for the housing sector, builder confidence in the market for newly-built single-family homes increased two points to 85 in October, further surpassing the previous all-time high of 83 recorded in September, according to the latest NAHB/Wells Fargo Housing Market Index (HMI). These are the first two months the index has ever been above 80. Builders have noted that traffic remains high and record-low interest rates are keeping demand strong.
NGBS Sees 250,000th Certified Home The National Green Building Standard (NGBS) Certification Program reached a key milestone in October with the certification of its 250,000th home, the Broadstone Junction multifamily community in historic Norcross, Ga. Since the NGBS Green Certification Program began in 2009, it has provided builders with a national standard to define and measure sustainable multifamily and single-family homes, developments and remodeling projects.
DCW to Be All-Virtual, Feb. 9-12 Due to health and safety concerns related to the COVID-19 pandemic, NAHB and the National Kitchen & Bath Association (NKBA) have announced that the 8th annual Design & Construction Week® (DCW), featuring NAHB’s International Builders’ Show® (IBS) and NKBA’s Kitchen & Bath Industry Show® (KBIS), will no longer be an on-site event. Instead, the two groups are planning a robust, all-virtual event. The new all-virtual DCW 2021 will take place Feb. 9-12. Registration for the virtual DCW event is free for all NAHB and NKBA members. Learn more at BuilderShow.com.
Home price appreciation accelerated in August in major markets across the nation. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 12.1% in August, faster than an 8.9% increase in July. It marks the highest annual growth rate since April 2013. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 5.7% annual gain in August, up from 4.8% in July. It is the fastest pace of home price appreciation since July 2018. This month’s acceleration strongly reflected recent activity in existing home sales and tight inventory. Existing home sales in August reached a 14-year high, while the inventory decreased to three-month supply. S&P reported that home prices in August increased dramatically in most metro areas, with annual growth rates ranging from -2.9% to 29.7%. San Diego led the way with a 29.7% increase. Home prices in New York declined by 2.9% in August.
New Inclusionary Zoning Tool Inclusionary zoning (IZ) is often adopted under the assumption that it is a simple, expedient method to address a community’s shortage of affordable housing. But IZ is not as effective as its proponents claim, and a growing body of evidence suggests that IZ often discourages development and raises the price of market-rate homes. NAHB has created an empirical tool, the Inclusionary Zoning Calculator Tool, that enables the user to assess how IZ requirements impact development choices. The IZ Calculator Tool uses a sample developer’s pro forma as the template, and allows the end user to input and revise certain variables to show how different incentives and cost inputs may be used to create an economically feasible development.
Talk about Construction Careers A chronic labor shortage is slowing the residential construction industry. That's why it is essential that housing industry professionals communicate the value of a career in the skilled trades. What is the best way to start the conversation about a career in residential construction? Many NAHB members and home builders associations (HBAs) across the country have ramped up outreach efforts and have shared these key points about the benefits of working in residential construction: The housing industry is hiring. A career in the building trades offers strong earnings potential. This career path is a solid alternative to college. And there are a variety of training programs available. It's a job where you can make a positive impact on people's lives.
Home Price Appreciation Accelerates in August
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
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
Calendar of Events Check GCBA's Monday eMail for current Location & Registration Information. November 2020 SPIKE APPRECIATION MONTH Thursday, November 12, 2020 Cigar Night & Scotch Tasting CUCINA CABANA Wednesday December 2, 2020 GCBA Board Meeting, Board Orientation and 2021 Planning Session ZOOM MEETING 12:00 noon – 4:00PM Friday, December 4, 2020 COFFEE & A CONVERSATION ZOOM MEETING 8:30AM Thursday, December 10, 2020 HOLIDAY PARTY LOCATION TBA
BUILDERS Atlantic LLC Benchmark Design Remodel Make Way Construction, LLC Master Contractor and Subcontractor Association of Florida RTG Construction INC Associates Action Sales LLC Allstate Heating and Cooling Community & Economic Development Council East Coast Repair Services EmbroidMe of Palm Beach Gardens Exclusive Management & Properties inc. JG Painting and Restoration Inc. M2E Consulting Engineers MIW Builders INC Nickcola Wallace Santiago General Services Wall Clic LLC 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!
GCBA 2020 TOP RECRUITERS KT Catlin - 11 Deborah Giarratana - 8 Stuart MacGregor - 6 *Michelle Mockenhaupt - 7 Jay Huebner - 5 Ethan Nelson - 5 Tony Macaluso - 5 Maya Chocron - 2 Steve Dassa - 2 Josh Hedden - 2 Peggy West - 2 Irina Heyaime - 1 Vic Canales - 1 Aldo Conigliaro - 1 Alex Piazza - 1 Ron Qualk - 1 Michael Weiner - 1 *Michelle has also been responsible for 6 renewals. GCBA SPIKE CLUB Members reach the GCBA Spike Club once you recruit 5 or more members in the current year. GCBA Spike Club Members will be recognized at Board Meetings & more!
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DISCOVER THE VALUE OF MEMBERSHIP NAHB members save thousands of dollars each year thanks to NAHB’s advocacy efforts and other member benefits. While home building is a challenging industry, NAHB’s resources, expertise and educational opportunities can help you build a better product, build a better business, and create a more positive business environment. The Four Pillars of NAHB & Membership are: ADVOCACY NAHB fights for our members on Capitol Hill, in your state and in the communities where you do business. EXPERTISE FOR OUR MEMBERS ON CAPITOL HILL, IN YOUR STATE AND IN THE COMMUNITIES WHERE YOU DO BUSINESS. KNOWLEDGE NAHB’s educational programs and professional designations provide opportunities to improve your skills and advance your career. NETWORKING Discover opportunities to build relationships with fellow professionals, future customers and suppliers.
2021 Officers and Board Members assume their rolls January 1, 2021
President Fred Pfister, Toll Brothers 954-540-2624 • fpfister@tollbrothers.com What do you enjoy doing when not working? In my spare time I enjoy watching my boys play baseball on their travel leagues and for myself participating in Triathlons and I am a 2x Ironman finisher. What are you passionate about? I contribute to several charities but am most passionate about St. Jude Children’s Hospital as the work they do is so important to so many deserving families. 1st Vice President Rafael Roca, DR Horton What do you enjoy doing when not working? Boating and skiing are my favorites non work activities What are you passionate about? Curing childhood cancer is what I am passionate about 2nd Vice President Mike Brown, Heroic Construction 561-264-8315 • Mike@HeroicConstructionFl.com What do you enjoy doing when not working? Spending time with my family, Buffalo Bills, Boating, Working on classic cars. What are you passionate about? Operation Underground Railroad, for prevention of child trafficking Associate Vice President Jason Handin, Ward Damon 561.693.0529 • jhandin@warddamon.com What do you enjoy doing when not working? Watching the Heat play, hiking, traveling. What are you passionate about? Habitat for Humanity Finance VP Steven Karp, Melamed & Karp PA (954) 757-3333 • Steve@mkcpa.net Immediate Past President Jay Huebner, HSQ Group Inc. (561) 392-0221 • Jay@HSQGroup.net What do you enjoy doing when not working? Attending rock and roll concerts. What are you passionate about? My charity is Connections of the Palm Beaches school for autism.
MEET THE 2021 OFFICERS
What Voters Are Saying about Housing this Election Season
Housing has long been a key economic driver. So in the wake of the coronavirus pandemic and at the culmination of the 2020 elections, housing is an especially critical topic. NAHB recently surveyed more than 2,200 registered voters from across the country to learn more about how housing has been impacted by COVID-19 and how it could play a role in the upcoming elections. The survey confirmed that housing availability and affordability are growing concerns for many Americans, and that the pandemic has only compounded these issues. Among the key findings, a larger portion of respondents feels that the Democratic party is more likely to address housing affordability than the Republican party. The results also show the large majority of respondents are in favor of an additional financial stimulus. Some of the survey’s other questions specifically asked voters: • How they have used their federal stimulus checks; • If they are more likely to make home improvements, as working remotely becomes more common; and • Where they would prefer to buy their next home, in the wake of COVID-19. The results can be viewed on the NAHB Housing Portal, which also offers a wealth of additional information about the state of housing at the national, state and congressional district levels. The Housing Portal is an easy-to-use resource for industry professionals as well as the general public. Visitors can also easily create downloadable reports to share with their colleagues, clients and legislative contacts. Visit nahb.org/portal. Additional voter resources regarding NAHB-endorsed candidates and the association's get-out-the-vote efforts are available here.
Understanding the "Unbelievable" Housing Numbers by Brad Hunter, Hunter Housing Economics The housing statistics have been so strong it's almost unbelievable. So that they can be rendered believable, and intelligible, let's try to contextualize the new numbers. The national numbers from NAR on existing home sales exploded. Existing-home sales grew for the fourth consecutive month in September to a seasonally-adjusted annual rate of 6.54 million – up 9.4% from the prior month and nearly 21% from one year ago. The median existing-home price was $311,800, almost 15% more than in September 2019. Below is an analysis by my friend Len Kiefer, who is the Deputy Chief Economist at Freddie Mac. He modeled what existing home sales would have been in the absence of the pandemic, and then compared that with what actually occurred. He concluded that part of the recent strength was a "catch-up" from what he called the "Lost Spring." Remember than in most parts of the country, the spring is the peak selling season, and that season got punched in the gut by Covid. Remember that the existing home market (resales) slowed down more than new home sales did. People didn't want to open up their homes to strangers who might touch things or sneeze inside, so listings didn't get shown, and homes didn't get sold. The new numbers reflect the release of the pent-up demand. Source: Len Kiefer, Freddie Mac That being said, the "adjusted" data on the rebound in existing home sales are still extremely encouraging. More importantly, there is still a very believable and very real explanation for the boom in new home demand in South Florida. There has been an acceleration in growth of demand for the suburbs, and it is playing out across family developments and retiree developments alike. The influx of demand from New York residents is still happening. The New York factor will subside to some degree from the extremely high levels of the last few months, but it will remain the driver it has been for the past seventy years. My analysis says that this recovery still has legs, and it'll keep running as we approach 2021 and beyond. The site-specific market studies I'm doing around this market demonstrate that demand is continuing to outrun the industry's rate of home production, so keep watching for good parcels or those juicy land re-use opportunities.
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As FHBA has adjusted to the changing landscape of in-person events in 2020, the 2020 Builder and Exhibitor Exchange (BEX) was adapted to a virtual meeting platform and held earlier this month. More than 20 companies and builders participated in the two day event, reaping the benefits of action-oriented, one-on-one meetings. Don't miss out on BEX in 2021! Reserve your space now for this exclusive, VIP Event!
Event Details When: July 13-15, 2021 Where: Gaylord Palms Resort and Convention Center What: Opportunities for socials, networking and result-focused meetings designed to create lasting strategic partnerships.
CLICK HERE FOR A QUICK REVIEW
CLICK HERE TO SEE LIST OF PARTICIPANTS
WEDNESDAY, DECEMBER 2, 3PM
EXHIBITORS CLICK HERE FOR MORE
FHBA Members Get First Access To Latest CE Offerings Today, FHBA is announcing two new live continuing education courses focused on changes coming to the Florida Building Code Residential Edition. Course registration opens today for FHBA members for two identical courses, both offered for free by FHBA in partnership with Florida DBPR, the Florida Building Commission and Building a Safer Florida. Click the button below to register today!
FHBA Legislative Priorities 2021 Twelve-months ago the topics of the day were a Florida law that went into effect allowing teachers to carry firearms in schools, tens of thousands of Hong Kong protesters marching in defiance of a new ban on face masks at public assemblies, and a record 12 Democratic presidential candidates participating in a live TV debate in Westerville, Ohio. To cap it off, in the final months of 2019, the buzz word in preparation for the 2020 Legislative Session was “resiliency” to rising sea levels. A lot has changed in a year, and although we still expect the Florida Legislature to move forward with “resiliency” (and maybe one day defining it), we are certain this Legislative Session and possibly a preemptive Special Session will look to address a near $3 billion budget shortfall, COVID-19 liability protections, and a surplus of issues that have risen in the aftermath of the pandemic. In the past month, the Governor’s office and the Florida House have both reached out to FHBA inquiring what actions can be taken to keep Florida builders building. Whether it is streamlining the building permit process and increasing efficiencies, incentivizing electronic plan reviews, continuing virtual hearings, or simply fighting back local governments who look to balance their depleted revenues on the backs of builders – the issues in 2021 will not be hard to come by. Below is a quick excerpt on FHBA priority issues:
WEDNESDAY, NOVEMBER 11, 3PM
BUILDERS CLICK HERE FOR MORE
The Countdown until #GivingTuesday: December 1, 2020. Connections is proud to help unleash the power of people to transform the world through this annual international day of charitable giving through "A Day in the Life of a Connections Student" Campaign to support pandemic-related costs for specialized communication and tech devices for students with autism and their families in Palm Beach County. Campaign Goals: Engage with new friends through a meaningful corporate partnership to broaden awareness about the mission of Connections Education Center in Palm Beach County. Encourage new gifts through the online #Giving Tuesday Campaign "A Day in the Life of a Connections Student." All gifts support education for students who have autism in our community. $5 provides protection to keep a child safe from the spread of illness. $17 provides supplies for home so parents can encourage consistent learning. $22 provides before and after school care for a student with autism, giving a family flexibility and respite. $300 provides specialized iPad software so a child can “speak” with his mom for the first time. Any amount supports specialized communication and tech devices for students with autism and their families in Palm Beach County. How Your Company Can Help: Say Yes! Agree to be a #GivingTuesday Connections Corporate Partner.Please email Sarah Baker atSbaker@danforthdevelopment.com.You will be asked to provide a high-resolution Corporate logo that will be included in all of Connections “A Day in the Life of a Connections Student” Campaign social media posts and emails. Then wait to receive the Social Media Posts to promote the Campaign among your colleagues. The Campaign will feature what it’s like to live through the pandemic for families who have a student with autism, what a child with autism experiences during the day at school, and how the many challenges and triumphs from the moment they wake up to the end of the day are helped by your gift. The week before #GivingTuesday: Announce the Partnership within your Corporation and ask colleagues to get involved by committing to liking and sharing Campaign social media posts. The day of #GivingTuesday: Forward and post, email, and text all your Corporate Colleagues, members of your family, friends, and acquaintances throughout December 1 to ensure that our Campaign is a success. Please share the posts on your own pages! Reaching as many people as possible will help us share the story of our Connections students and families. Raise awareness about what our families need now – and how Connections provides unique supports to students and families throughout a given school day. You will help shed light on the importance of critical programs and services for students with autism and their families -- that need them the most. Your followers will learn about the challenges Connections students face getting to school, describe the myriad therapies available to ensure academic success. As lunch time approaches, your followers will understand the food insecurity 91% of Connections students face. Then finally about learning to swim, trips to the grocery store, riding a horse and other extracurricular outings and how they both inspire and encourage a student’s aspirations. #GivingTueday will end the day on a high note by sharing students and families hopes and dreams for the future. Thank you! Your #GivingTuesday Corporate partnership with Connections: Directly helps families with children with autism in our community. Provides hope for our students by raising awareness and encouraging acceptance. For more information please contact Sarah Baker atSbaker@danforthdevelopment.com.