FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE - CULPEPER
New home sales fell to the lowest pace in a year, with prices jumping 18% on a year-over-year basis, due to the high costs and uncertain availability of building materials, lots and labor. Sales of newly built, single-family homes fell 5.9% in May to a 769,000 seasonally adjusted annual rate, according to newly released data by HUD and the U.S. Census Bureau. The May number follows significant downward revisions to the April estimate and previous months’ readings. Inventory remains low at a 5.1-month supply, with 330,000 new single-family homes for sale, 3.8% lower than May 2020. Supply-side challenges remain, with the count of new homes sold that had not started construc- tion up 76% over the last year. The count of new homes sold that are completed and ready to occupy is down 33%. The median sales price was $374,400, up 18% from the $317,100 median sales price posted a year earlier. Entry-level buyers are being most affected by higher prices. One year ago, shares of sales priced below $300,000 accounted for 44% of sales, while this May it has dropped to 26%. Regionally on a year-to-date basis, new home sales rose in all four regions, up 48.7% in the Northeast, 33.5% in the Midwest, 32.3% in the South, and 5.6% in the West. These significant increases are due in part to lower sales volume during the COVID crisis a year ago.
New Home Sales in May Decline as Costs Rise
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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 5: Issue 6 July 2021
July 2021
Entry-level buyers are being most affected by higher prices. One year ago, shares of sales priced below $300,000 accounted for 44% of sales, while this May it has dropped to 26%. Regionally on a year-to-date basis, new home sales rose in all four regions, up 48.7% in the Northeast, 33.5% in the Midwest, 32.3% in the South, and 5.6% in the West. These significant increases are due in part to lower sales volume during the COVID crisis a year ago.
Biden Replaces FHFA Director President Biden moved quickly to replace Federal Housing Finance Agency (FHFA) Director Mark Calabria after the U.S. Supreme Court ruled on June 23 that the FHFA director can be removed at will. Biden named Sandra L. Thompson as Acting Director of FHFA. Thompson has served as deputy director of FHFA’s Division of Housing Mission and Goals since 2013. She is likely to pursue the priorities of the Biden administration, such as improving racial equity and addressing climate-related risks.
Construction Exempt from COVID Rule OSHA in June issued an emergency temporary standard with new enforceable requirements for employers to protect workers from COVID-19. But the new standard, which goes into effect immediately, will apply only to workers in healthcare settings. NAHB, through its partnership in the Construction Ind- ustry Safety Coalition, spent months educating OSHA officials about the nature of residential construction work and potential disease transmission. Those effort were successful, as OSHA recognized that home building activities did not need to be included. However, construction firms should maintain awareness of any state or local COVID-19 requirements and implement the appropriate safety measures.
EPA Plans to Revise Definition of WOTUS The EPA and Department of the Army (the agencies) have announced their intent to revise the definition of “waters of the United States” (WOTUS). EPA Admin- istrator Michael Regan said on June 9 that the Navi- gable Waters Protection Rule (NWPR) enacted during the Trump administration to define WOTUS “is leading to significant environmental degradation.” NWPR remains in effect, for now. The federal rulemaking process typically takes more than a year to complete.
NAHB Calls for More Domestic Lumber Appearing at a recent forum conducted by Republican members of the House Natural Resources Committee and GOP members of the House Western Caucus, NAHB Chairman Chuck Fowke called on Congress to increase domestic lumber production from federal lands, both as a means to improve housing affordability and address the resilience of our national forests. HUD Announces New Fair Housing Rule The Department of Housing and Urban Development in June published an interim final rule that is a revised version of the Obama-era Affirmatively Furthering Fair Housing (AFFH) rule. The interim final rule will go into effect on July 31, 2021, and HUD will take comments for 30 days after publication. This 2021 version of the rule will not require local govern- ments to report progress in identifying and addressing affordable housing barriers back to HUD as the Obama- era rule did.
A federal judge has reaffirmed that members of NAHB are exempt from the nationwide eviction moratorium imposed by the Centers for Disease and Control Prevention (CDC), but ruled that the exemption only applied to the plaintiffs in the case (including NAHB members) and not to all landlords nationwide. So, although the judge would not grant relief to all landlords across the country, he did make clear the CDC’s unlawful action does not apply to NAHB members. Since the case was brought in October 2020, the judge’s ruling protects all NAHB members who were members of the assoc- iation dating back to last October. Those who became new members of NAHB after October 2020 are not exempt under the court order. NAHB brought the lawsuit against the CDC challenging the eviction moratorium in the federal district court in Ohio.
who were members of the assoc- iation dating back to last October. Those who became new members of NAHB after October 2020 are not exempt under the court order. NAHB brought the lawsuit against the CDC challenging the eviction moratorium in the federal district court in Ohio
Mid-Year Economic Outlook On the latest episode of NAHB’s Housing Developments podcast, CEO Jerry Howard and guest host Senior Vice President of Communications Paul Lopez sit down with Chief Economist Robert Dietz to hear his mid-year economic report. Dietz offers his forecast for the rest of 2021 and advice to NAHB members regarding how to weather the upcoming “perfect storm” of high material prices, including the outlook for lumber supply and prices, as well as increased inflationary pressure, rising interest rates and growing regulatory challenges. To view Dietz’s outlook from the beginning of 2021 and see how his predictions held up in the first six months of the year, click here.
FHA Alters Student Loan Formula At NAHB’s urging, the Federal Housing Administration in June updated its student loan monthly payment calculations to help improve access to affordable, single-family FHA-insured mortgage financing for credit- worthy individuals with student loan debt. Previously, FHA presumed a monthly payment of 1% of the outstanding student loan balance, which is almost always larger than the actual payment being made by the potential borrower. NAHB contended that the previous policy disqualified credit- worthy borrowers due to inflated debt-to- income ratios resulting in limited financing options or disqualifying borrowers entirely. The new policy bases the monthly payment on the actual student loan payment, which is usually lower than the presumed pay- ment under the previous formula.
The featured home in the July edition of the Home Performance Counts: Virtual Green Home Tour Series is a showcase of green building and universal design. The concepts of health, efficient energy use and aging in place are now passion points for many buyers. Built with indoor health in mind as well as the flexibility to age gracefully, this month’s featured home blends the latest in modern living designs with contemporary and classic northwest architectural styles. Located in the Urban Downs community of Ridgefield, Washington, the Gladstone has earned 2020 NGBS Green Certified Emerald level certification - the highest available - as well as the Wellness and Universal Design NGBS Green+ badges. Additional certifi- cations include DOE Zero Energy Ready Home and EPA Indoor airPLUS. This edition of the tour, which takes place July 15, will also feature a discussion with Jerud Martin, director of construction and owner of Urban NW Homes in Vancouver, Wash., and Ashley Moala, real estate broker with Cascade Sotheby’s International Realty in Vancouver. These free, 45-minute programs are held the third Thursday of each month and include a live Q&A with building and real estate professionals. Register now for access to the full Virtual Green Home Tour Series. The Virtual Green Home Tour Series is produced by Home Performance Counts, a joint effort of the National Association of Home Builders (NAHB) and the National Association of Realtors (NAR). Registrants can access the replay for this event and others in the series through NAHB's webinar replay library.
The Virtual Green Home Tour Series is produced by Home Performance Counts, a joint effort of the National Association of Home Builders (NAHB) and the National Association of Realtors (NAR). Registrants can access the replay for this event and others in the series through NAHB's webinar replay library
Virtual Green Home Tour Continues in Santa Fe
Upcoming Meetings & Events
TICKETS ON SALE NOW! August 20, 2021
August 11th, 9:00AM Associates Committee Hybrid Meeting (Zoom link or at the FABA office) August 11th, 10:30AM Membership Committee Hybrid Meeting (Zoom link or at the FABA office) August 19th, 5:00PM Hard Hat sponsored by Pest Solutions August 19th, 8:30AM Legislative Committee (Zoom Link) August 20th, 5:00-9:00PM Crab Feast, Rod and Gun Club August 25th, 2:00PM Community Service Committee Hybrid Meeting (Zoom Link or at the FABA office) August 31st, 9:00-3:00PM Blood Drive, Knights of Pythias
Get your tickets here!
Calendar at a Glance
Current Membership - 262 New Members in June - 1 Member Renewals in June - 9
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.
Membership Committee
Chair - Marc Simes, msimes@tricordinc-va.com
Know someone who is interested in joining FABA? We want to help you help the building industry. 5 steps to join FABA 1. Speak to a current member about the association 2. Attend Hard Hat and get to know our members 3. Fill out an application 4. Welcome to the FABA family 5. Start taking advantage of all our member savings and opportunities
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.
Chrair- Mike King- Rayssiddingcompnay@gmail.com Rays
Associates Committee
2021 Events FABA Awards Spring Golf Clay Shoot Bingo Crab Feast and Auction Disc Golf President's PAC Reception Twilight Golf Legislative Fall Golf Holiday Party A little something for everyone!
Associates Committee Hybrid Meeting Zoom Link: Second Wednesday of each month at 9:00 AM
FABA's first priority has been, and will continue to be, the safety of our members. Both on the job site, at the work place and at social events.
Spotsylvania County Bi-monthly Meeting Zoom August 2nd, 3:00PM Spotsylvania Builder Round Table Zoom Meeting August 3rd, 12:00 PM Culpeper County Quarterly Meeting Zoom August 5th, 9:00AM Fredericksburg County Bimonthly Meeting Zoom August 6th, 9:00AM Stafford County Bimonthly Meeting Zoom August 9th, 9:00AM
Legislative Committee
Recap from HBAV Annual Conference FABA was honored at the 2021 HBAV annual conference with the HVAC Best Government Affairs Program. We are so grateful for this award and all of our advocacy efforts made over the last year. Thank you to our legislative committee for all your hard work. We look forward to seeing the results from our efforts into the next year.
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. Next Meeting: Thursday, 08/19/21, 8:30 AM - Zoom Link
Want a little taste of what our Community Service Committee can do for our community? Check out this article from The Free Lance Star Be a part of our next project! Join us for our next Community service event on Friday, September 17th with 516 Project.
Chair - Greg Schmidt, greg@pestsolutionsva.com
Join us on August 31st at the Knights of Pythias for our FABA blood drive.
Reserve your spot now
Community Service Committee
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! This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM. The next hybrid meeting is September 22nd at 2:00PM. Zoom link
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Your Picture Here
Chair - TBD
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth.
Access training and educational materials on YouTube
Education Committee
For more information on NAHB Young Professionals click here
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 committees email Meghan@fabava.com
Cornerstone 2021
FABA works to educate, promote and represent the building industry while enhancing the region’s quality of life.
FAB foundation awarded 7 grants to students in the area! Along with 2 HVAC students who were placed in their field and are now working to grow their skills. We are so proud to be a part of the next generation of the building industry! FAB Foundation provides grants to students pursuing careers in the home building trades. Now offering internships and apprenticeships to gain real world experiences in the building industry. If you are interested in making a donation to FAB Foundation please contact Maria at mmoore@fabava.com. If you know of a student pursuing a career in the building trades, please have them visit our FAB webpage to fill out a FAB grant application.
FAB Foundation Workforce Grants
FABA Student Chapters Spotsylvania Career and Technical Center Stafford High School Spotsylvania High School Gladys H Oberle School Caroline High School James Monroe High School James Monroe HS
FAB Foundation
FAB Board of Directors Greg Schmidt Glen Raymond Eddie Payne Guy Miller-Richards Emily Hall Christine Singhass Mike King Ricky Robinson Tim Thompson Gary Parker Scottie Davis
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.
Need help sumbitting your rebates? Below is the contact for Kim Klein (Member Rebate Program) www.HBArebates.com or Direct at -732-612-3865. She can walk you through your first time submitting for these great rebate benefits for products you use in building and renovations.
It is time to start submitting Q2’21 Claims to HBA rebates! Q2’21 Claim Deadline, Friday, August 27th, 2021 Claim for any completed residential addresses from April-June 2021
Member Rebate Program
Reserve your spot here
Register Now Crab Feast August 20th Rod and Gun Club 5:00-9:00
2021 FABA Board of Directors
President Scott Hine Assurance Financial Group 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 Shawn Callahan Metwood Building Solutions Builder Director Tim Hall Tricord Companies Builder Director Sean Halsey Halsey Homes Builder Director Allen Harrison Battlefield Homes Builder Director Pete McGuire Triple Crown Homes Builder Director Dan Sandoval Republic Home Builders 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
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