FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE - CULPEPER
April 2022
BUILDERS FRAMEWORK
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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Higher mortgage rates and construction costs pushed new home sales lower in February even as demand remains solid due to a lack of existing home inventory. Sales of newly built, single-family homes in February fell 2.0% to a 772,000 seasonally adjusted annual rate from a downwardly revised reading in January, according to the most recent data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. New home sales are down 6.2% compared to February 2021. 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. In addition to adjusting for seasonal effects, the February reading of 772,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory was up 33% over last year, rising to a 6.3 months’ supply, with 407,000 available for sale. However, just 35,000 of those are completed and ready to occupy. The median sales price rose to $400,600 in February, and is up 10.6% compared to a year ago even as residential construction material costs are up 20% over the same period. Regionally, compared to the previous month, new home sales increased 59.3% in the Northeast, increased 6.3% in the Midwest, decreased 1.7% in the South and decreased 13.0% in the West.
Volume 6: Issue 4 April 2022
Higher Mortgage Rates Dampen New Home Sales
Fed Raises Rates
During March Meeting As widely expected by forecasters and markets, the Federal Reserve raised the federal funds rate by 25 basis points at the conclusion of its March meeting. The Fed also indicated that balance sheet reduction, after significant asset purchases to produce lower long-term rates, will begin at a future meeting. These monetary policy moves will lead to higher mortgage rates in 2022 and 2023 as the Fed attempts to curb elevated inflation. The Fed also reduced its GDP forecast in 2022 to just 2.8%.

Millions Cannot Afford
Dream of Homeownership Rising home prices and interest rates can negatively affect housing affordability, as shown in recent NAHB reports related to its 2022 Priced-Out Estimates. However, a large portion of the roughly 69% of U.S. households that can’t afford a new median-priced home aren’t even able to afford a home that costs a fraction of that price. The minimum income required to purchase a $150,000 home is $36,074. Roughly 36 million U.S. households are estimated to have incomes at or below that threshold.
NAHB Urges Action on Lumber Supply
NAHB Chairman Jerry Konter urged the Biden administration to increase domestic production of timber from federal lands and to work with Canada on a new softwood lumber agreement that will elim- inate tariffs during a March 14 White House virtual meeting on resolving the lumber and building mate- rial supply chain crisis. And after the administration announced on March 23 that it would be ending tariffs on steel and aluminum from the United Kingdom, NAHB asked the White House to negotiate a similar agreement on Canadian softwood lumber.
FEMA Begins New Flood Insurance Rates
The second phase of the transition to the Federal Emergency Management Agency’s (FEMA) Risk Rating 2.0 began on April 1, when home owners who currently have flood insurance will begin to see the revised rates as their policies are renewed. FEMA is transforming the way it calculates premiums for flood insurance policies made available under the National Flood Insurance Program (NFIP) so that they better reflect the actual risks properties face.
Get Your Building Codes Pocket Guide The 2021 Home Builders’ Jobsite Codes guide is now available for purchase on BuilderBooks.com. The quick guide to the 2021 International Residential Code (IRC) covers the impact of 2021 IRC changes to fire resistance provisions, emergency escape and rescue openings, safety glazing adjacent to bathtubs and showers, and much more. The 2021 Home Builders’ Jobsite Codes guide covers construction and remodeling of single-family dwellings, duplexes and townhomes.
NAHB's most recent survey of "What Home Buyers Really Want" asked first-time buyers to rate more than 200 home and commun- ity features using a four-tier scale: essential, desirable, indifferent and do not want. The top 10 most wanted features by first-time home buyers were: laundry room, ceiling fan, exterior lighting, double kitchen sink, hardwood flooring, walk-in pantry, drinking water filtration, patio, security cameras, and space for a kitchen table. The biggest difference in features most wanted by first-time buyers and buyers in general is the absence of energy saving features on the first-time buyers’ top 10 list. Among buyers in general, ENERGY STAR rated windows are the #4 most wanted feature and ENERGY STAR rated appliances ranked #9. A front porch also made the top 10 list among buyers in general.
Tuskegee University Wins at IBS The 2022 NAHB Student Competition enjoyed a return to normal as the teams largely presented in person during the International Builders’ Show in Orlando. In the Production Home Builder competi- tion for four-year programs, teams were asked to create a development plan for a 120-acre parcel in Texas. Tuskegee University won first place for four-year programs. This marks the first time a team from a historically black college or university won the competition. California Polytechnic State University, San Luis Obispo took first place in the new Custom Home Builder competition. Kirkwood Community College in Iowa took the top spot in the competition for associate degree programs.
2022 NAHB Chairman Jerry Konter
Top 10 Features Desired by First-Time Home Buyers
Top States for NGBS Certifications With nearly 350,000 homes certified to the National Green Building Standard (NGBS) since its launch in 2009, builders across the United States are continually adding to the pipeline of NGBS projects. Here’s a snapshot of the states that saw the most certification activity in 2021 for single-family and multifamily projects. The top 10 states in 2021 for single-family certifications under the NGBS: North Carolina, Virginia, Delaware, Florida, Texas, Indiana, Maryland, New York, Washington, and Missouri. The top 10 states for multifamily certifica- tions under the NGBS: Texas, Florida, North Carolina, Georgia, Maryland, Virginia, Colorado, Arizona, Tennessee, and Indiana.
NAHB member benefits programs are offering more savings than ever before. Whether it’s on your next product shipment, car rental, office supply order or telecommunications upgrade, we have the solutions to help meet your business needs. Below are a few examples. Savings on Shipping We’re committed to helping you solve shipping challenges, save money and reduce stress. From small packages to freight pallets, members can take advantage of our partnerships with UPS® and YRC for convenient, dependable services that make sending and receiving packages easy and more affordable. Great Savings on Rental Cars You can save money while making your travel experience more comfortable and convenient through the NAHB/Avis and Budget car rental savings program. With the pay-now feature, members can save up to 35% off base rates, plus other offers, such as complimentary upgrades. Savings from Office Depot Whether in the front office or out on a jobsite, the NAHB/Office Depot savings program provides the supplies you need to keep your business going. From personal protective equipment (PPE) — such as face coverings, safety googles, ear plugs and hard hats — as well as a variety of cleaning supplies and other business essentials, Office Depot can make it easier to outfit your business with work essentials. Tech Solutions from RingCentral Imagine your team working seamlessly with all the resources they need to keep conversations moving at their fingertips. Imagine your clients, suppliers and subcontractors connecting with you effortlessly through crystal-clear voice and video calls. Get these features and more when you upgrade to RingCentral’s voice, video and team messaging system. Visit 1800members.com/nahb or call 800-MEMBERS (800-636-2377) weekdays from 8 a.m. to 5 p.m. ET, for more information.
NAHB Member Savings Can Help Your Business Thrive
Upcoming Meetings & Events
May 9th - SOLD OUT FABA Spring Golf Tournament - Fawn Lake Country Club May 10th, 11:30AM-1:00PM Construction Luncheon hosted by the Young Professionals FABA Office May 11th, 9:00-10:00AM Associates Advisory Committee Meeting FABA Office or Zoom May 11th, 10:30-11:30AM Membership Meeting FABA Office May 14th, 7:30AM-4:00PM Community Service Day May 17th, 5:00-7:00PM Legislative Review Federicksburg Nationals Stadium May 19th, 8:30AM Legislative Committee Meeting Zoom May 19st, 5:00PM Hard Hat Sponsored by Froehling & Robertson 10909 Houser Dr, Fredericksburg, VA 22408 May 25th, 2:00-3:00PM Community Service Committee Meeting FABA Office or Zoom
Calendar at a Glance
Membership Committee
The Membership Committee brings builder and associate members together to focus on recruitment of new members and retention of current members. This committee hold a hybrid meeting (in-person or zoom) every 2nd Wednesday at 10:30AM.
Chair - Marc Simes, msimes@tricordinc-va.com
Every Third Thursday of the month, join us for our networking Hard Hat Events from 5:00-7:00. This month's Hard Hat is on Thursday, May 19th 
and is sponsored by Froehling & Robertson
The Associates Committee plans member events to promote doing business with members. These volunteers coordinate networking and social events for business connections. This committee has a hybrid meeting (in-person or zoom) every 2nd Wednesday at 9:00AM.
Chair- Mike King- Rayssiddingcompany@gmail.com Rays
Associates Committee
2022 Events Committee Conference President's Gala Spring Golf Spring Clay Shoot Crab Feast and Auction Fall Clay Shoot Holiday Party A little something for everyone!
Associates Committee Hybrid Meeting Zoom Link: Second Wednesday of each month at 9:00 AM
Sold Out!
City of Fredericksburg Bi-monthly Meeting Zoom June 3rd 9:00AM Spotsylvania County Bi-Monthly Meeting Zoom June 6th, 3:00PM Stafford County
Bimonthly Meeting Zoom June 13th, 9:00AM Culpeper County
Quarterly Meeting Zoom June 9th, 9:00AM Caroline County
Quarterly Meeting Zoom June 15th, 11:00AM King George County
Quarterly Zoom July 22nd, 10:00AM Orange County Quarterly Meeting Zoom July 29th, 1:00PM
Legislative Committee
Upcoming County Zoom Meetings
Latest updates from your three in one membership hard at work for BUSINESS
Developers Council The working mission of the Council is to stay on top of land development issues affecting local builders and developers in our region and work together to advocate for our positions as needed. The Council is open to Builder and Developer members of FABA. 
Jeh Hicks, Jarrell Properties , Inc., is the chairman of the Developers Council. This group meets every other month. For more information contact Chrissy Urian at c.urian@fabava.com
Chair - Bruce Reese, bruce@legacy-eng.com
The Legislative Committee meets monthly to discuss the status of local and state level legislation that affects the building industry. For more information from each county, plan to attend the Legislative Committee meeting. This committee meets virtually every third Thursday at 8:30AM.
Chair - Greg Schmidt, greg@pestsolutionsva.com
The Community Service committee seeks to increase civic engagement among the members of FABA and utilize professional skills to actively benefit the Fredericksburg area. We are always looking for new ways to get help and support the community. If you are interested in submitting an idea for the community service committee feel free to join us!
Learn more about CANstruction here
Community Service Committee
Check out the FABA entry in this year's CANstruction. Thank you to Howie and Oliver for helping us assemble our build.
Save the date for spring community service day with 516 Project!
This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM.
click for info
Click here for more!
Meghan Butcher - FABA Staff Meghan@FABAVA.com
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth. Stay tuned for upcoming educational opportunities.
Join us for this month's construction luncheon 
on May 10th.
Sean Halsey - Halsey Homes
Access training and educational materials on YouTube
Education Committee
Young Professionals Committee
Young Professionals committee is for individuals in the 21-40 age group to connect, and provides opportunities for professional development, social networking, mentoring, and personal growth for our members. To join the FABA Young professionals committee email Meghan@fabava.com
As a Cornerstone benefit for Partner, Platinum and Diamond levels they are able to contribute educational content to the newsletter each month. Check out this month's contribution from Contractors Websites Plus
Google Business Profile Changes
Yep! Another Google change is on it’s way… It’s not a critical search algorithm update so there’s no need to worry about updating your website or your SEO strategy. This update is more of a ‘pain in the neck’ sort of update. If you have a Google Business Profile (formerly Google My Business), you’ve probably received an email with the subject line“…the Google My Business app is being replacedâ€. No need to worry. This is simply a new way to access your profile. If you haven’t been to your profile since set up, you’ll probably not care much. That’s a mistake. Google Business is the only ‘gotta have it’ for local search. If you’re not consistently updating your profile you’re losing out on the best tool for getting found. If you need help, call me - we provide Google Business Profile maintenance services. For those who regularly maintain your profile (cudos to you), you may find this a bit confusing at first. To maintain your profile you can now search for your company name and use the edit buttons that appear above your listing or use Google Maps. For now traditional access to your profile is still available but with Google you never know when they’ll pull the plug so get used to maintaining your profile directly in search or Google Maps.
Member Contributions
FABA Student Chapters
Spotsylvania Career and
Technical Center James Monroe High School Stafford High School Spotsylvania High School Gladys H Oberle School Orange County High School Caroline High School
FAB Foundation
Donate or apply today!
FAB Board of Directors Glen Raymond Greg Schmidt Eddie Payne Guy Miller-Richards Emily Hall Christine Singhass Mike King Ricky Robinson Tim Thompson Gary Parker Scottie Davis Sean Halsey
The FAB Foundation board of directors meets monthly to discuss ways to involve the association with local workforce educators and help promote workforce development in our area. If you would like to be involved with these students, contact FABA for more information.
Cornerstone 2021
Did you know one of your Cornerstone benefits includes an ad in the newsletter. For Partner, Diamond, and Platinum you also have the option to provide educational content each month Submit your ad or article to Meghan@fabava.com
2022 FABA Board of Directors
President Scott Hine Union Home Mortgage 1st Vice President Marc Simes Tricord Companies 2nd Vice President Jeh Hicks Jarrell Properties Secretary Michelle Hall J. Hall Homes Treasurer Jeremiah Horstick CORELOT Immediate Past President Stacey Lampman Spaces Design Studio Associate Vice President Michael King Ray's Siding Executive Officer Maria Moore FABA Legal Counsel Charlie Payne Hirschler NAHB State Representative Dan Sandoval Republic Home Builders HBAV State Representative Scott Hine Union Home Mortgage Builder Director Tim Hall Tricord Companies Builder Director Allen Harrison Battlefield Homes Builder Director Steve Flanagan Built Right Homes Builder Director Teressa Taylor-Griffis Foundation Homes Associate Director Sara Fila Legacy Engineering Associate Director Rick Furnival Sullivan, Donahoe & Ingalls, PC Associate Director Emily Hall Spotsylvania Career & Tech Center Associate Director Bruce Reese Legacy Engineering, PC Associate Director Greg Schmidt Pest Solutions Life Builder Director Sean Halsey Halsey Homes Life Builder Director Dan Sandoval Republic Home Builders
FABA has been working with our exclusive, private partner, Small Business Growth Partners (SBGP) to help our members reach maximum growth and potential through their one of a kind BPA Process. This has been refined for over 10 years of working exclusively with Builders, Remodelers & HBA Associate Members. As an exclusive FABA member benefit, we are offering you the chance to register for and redeem your 2021 Business Diagnostic & Plan of Actions. An annual BPA is included 100% with your FABA Member Benefits (A $2,200 value).
Learn More Here