FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE - CULPEPER
June 2022
BUILDERS FRAMEWORK
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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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In a further sign of a housing slowdown, new home sales posted a double-digit percentage decline in April, falling to their weakest pace in two years, as rising mortgage interest rates and worsening affordability conditions continue to take a toll on the housing market. Sales of newly built, single-family homes in April fell 16.6% to a 591,000 seasonally adjusted annual rate from a downwardly revised reading in March, according to newly released data by HUD and the U.S. Census Bureau. New home sales are down 26.9% compared to April 2021. One year ago, 25% of new home sales were priced below $300,000, while in April that share fell to just 10%. 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 April reading of 591,000 units is the number of homes that would sell if this pace continued for the next 12 months. In an indication that builders will be slowing construction, new single-family home inventory jumped to a 9 months’ supply, up 40% over last year, with 444,000 available for sale. However, just 38,000 of those are completed and ready to occupy. The median sales price rose to $450,600 in April from $435,000 in March and is up more than 19% compared to a year ago, due primarily to higher development costs, including materials.
Volume 6: Issue 6 June 2022
New Home Sales Fall to Slowest Pace in Two Years
Administration Announces Housing Plan The Biden administration on May 16 released what it calls a "Housing Supply Action Plan" to ease high housing costs by increasing the supply of quality housing throughout the nation over the next five years. NAHB sees the plan as a good start, but believes it does not go far enough to resolve the many underlying challenges facing the home building industry, including skyrocketing costs for lumber and other building materials.
DHS, DOL Announce Additional H-2B Visas The Department of Homeland Security and the Department of Labor in May announced the avail- ability of an additional 35,000 H-2B temporary non- agricultural worker visas during the second half of fiscal year 2022. These visas are for U.S. employers seeking to employ additional workers through Sept. 30, 2022. H-2B visas allow employers to hire foreign workers who come temporarily to the United States and perform temporary non-agricultural services or labor, including construction work.
Insurance Needs Evolve As Climate Risks Increase A growing number of homes and communities throughout the country are at risk as wildfires, floods, and other natural disasters continue to set records. As a result of these expanding risks, many insurance companies are providing fewer options, drastically increasing premiums or dropping out of certain markets. Resolving these insurance challenges is part of NAHB’s broader support for a comprehensive approach to addressing natural disasters and their effects on the entire housing stock of the United States. Rising Home Prices Keep Buyers on the Sidelines NAHB’s latest Housing Trends Report revealed that the majority (67%) of buyers who were actively house hunting in the first quarter of 2022 have spent at least three months searching for a home without success. And the most common reason these long-term searchers cite for not having bought is their inability to find an affordable home (48%). Other top reasons include their inability to find a desirable neighborhood (34%), followed by the inability to find a home with desirable features (31%), and being outbid by other buyers (29%).
Materials Prices Up 19% Year-over-Year The prices of goods used in residential construction ex-energy (not seasonally adjusted) climbed 0.5% in April, following upwardly revised increases of 1.9% and 2.4% in March and February, respectively, according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. Building materials prices are up 19.2% year-over- year and 35.6% since the start of the pandemic. NAHB is pushing policymakers to negotiate with Canada on a long-term softwood lumber deal and to allow more timber harvesting from U.S. public lands.
Multifamily Confidence Declines Confidence in the market for new multi- family housing turned downward in the first quarter of 2022, according to results from the Multifamily Market Survey (MMS) released today by NAHB. The MMS produces two separate indices. The Multifamily Production Index (MPI) decreased six points to 48 compared to the previous quarter, dipping below the break-even mark of 50 for the first time in three quarters. The Multifamily Occupancy Index (MOI) inched down one point to 68. The MPI measures builder and developer sentiment about current production condi- tions in the apartment and condo market on a scale of 0 to 100. The MOI measures the multifamily housing industry’s perception of occupancies in existing apartments.
On Jan. 1, 2023, new minimum efficiency standards for air conditioners and heat pumps will go into effect across the country. Federal standards for equipment efficiencies are implemented by the U.S. Department of Energy (DOE) in accordance with the Energy Policy and Conservation Act (EPCA) of 1975. This is the first time since 2015 DOE is updating air conditioner and heat pump efficiency standards. All new units will be required to meet the updated standards. Home builders and HVAC contractors should be getting ready for the transition as equipment meeting older standards will be phased out. For the Southeast and Southwest regions (orange and blue areas on map), the Jan. 1, 2023, deadline will also apply to the installation of air conditioning systems at the building. The installation deadline applies only to AC units (not to heat pumps and not to other specialty systems), and does not apply to the North region.
Iowa Career Event Draws 5,000 Build My Future, a hands-on career exploration day held in April on the Iowa State Fairgrounds, drew more than 5,000 students from over 140 high schools across the state. Iowa Gov. Kim Reynolds attended and met with students, parents and educators. The Build My Future event was hosted by Iowa Skilled Trades, a non-profit industry group dedicated to bringing initiatives, education and aware- ness of the skilled trades in the state. New to the event this year was a mobile app option for students to share their information with event partners, many of them local HBA members. More than 3,000 students opted to share their information once they arrived at the event.
NAHB Advances Builder Perspective at ICC Code Hearings
NAHB members and Construction, Codes & Standards staff successfully argued for decent, safe and affordable housing during the first round of the International Code Council’s (ICC) code development cycle during recent meetings in Rochester, N.Y. These meetings addressed ICC’s Group B cycle, which includes the key International Residential Code (IRC) provisions related to structural design, fire safety and egress, as well as the International Existing Building Code (IEBC) and structural provisions of the International Building Code (IBC). The four ICC code development committees considered some 800 code change proposals over nine days. The committees supported NAHB's position on 90% of the proposals for the IRC and 79% of the proposals overall. Major wins included: Adding U.S. Department of Agriculture textural soil classifications as an option for identifying soil types, in lieu of obtaining a geotechnical investigation. Restoring the ability to use construction-grade 6 mil polyethylene for vapor retarders under slabs-on-ground instead of costly proprietary products. Defeating a proposal to require all dwellings in tornado-prone areas be provided with an ICC 500-compliant storm shelter. Defeating a proposal to require that all trusses have fully sheathed top and bottom chords or an engineered bracing design. There were some proposals that NAHB members opposed that did get through — most notably, a set of proposals to comprehensively revise the duties of the building official, including how they review and approve alternate means and methods. ICC is accepting public comments on the committee hearing results through June 20. All submitted public comments will be heard at the ICC Group B Public Comment Hearings to be held Sept. 14-21 in Louisville, Kentucky.
Upcoming Meetings & Events
July 12th YPN Construction Luncheon Series 11:30-1:00 PM FABA office July 14th FAB BINGO Night Knights of Pythias 5:00-9:00 July 13th Associates Committee Meeting, 9:00-10:00AM FABA Office or Zoom July 13th Membership Committee Meeting,10:30-11:30AM FABA Office or Zoom July 21st Hard Hat Sponsored by Pest Solutions Highmark Brewing July 27th Community Service Committee Meeting, 9:00-10:00AM FABA Office or Zoom
Calendar at a Glance
See you at the, Hard Hat!
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 PM. Hard Hat (5:00 - 7:00 PM) is Thursday, July 21st and sponsored by
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. One of our most popular events is back with a fresh look. Crab Feast is now Summer Fest! Get your tickets now, VIP tents are going fast!
Chair- Mike King- Rayssiddingcompany@gmail.com Rays Siding, Co.
Summer Fest Tickets
Associates Committee
2022 Events Committee Conference President's Gala Spring Golf Spring Clay Shoot Summer Fest 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
King George County Quarterly Zoom July 22nd, 10:00AM Orange County Quarterly Meeting Zoom July 29th, 1:00PM City of Fredericksburg Bi-monthly Meeting Zoom August 5th 9:00AM Spotsylvania County Bi-Monthly Meeting Zoom August 1tst, 3:00PM Stafford County Bimonthly Meeting Zoom August 8th, 9:00AM
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.
Save the date for our Fall work day 516 Project for October 8th. Help support the Fredericksburg Area by giving blood at an upcoming drive. Click the link below to find a drive near you!
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!
Find a drive near you
Community Service Committee
This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM.
Codes and Coffee Friday June 24, 2022 9:00 AM - 11:00 AM
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.
Sean Halsey - Halsey Homes
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. Watch this page for upcoming Young Professionals committee events. To join the FABA Young Professionals committee email Meghan@fabava.com July 12th is our next Construction Luncheon,11:30-1:00! Join the FABA Young Professionals for an educational opportunity and lunch. Tickets are just $10.00 each and lunch is provided. The Learning Lunches will take place every other month on the 2nd Tuesday at the FABA office.
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
How a Brand Plan Will Help Your Business
Member Contributions
Over the past thirteen years helping contractors create brands to attract the type of customer and projects they’re looking for; I’m amazed at how many of them come to us because they’re getting zero traction with their marketing efforts and don’t know why. We’ve found that inevitably it’s because their foundation – their brand and website – started without a plan. Would you build a second-floor deck without knowing the frost line, the size of your footing base, the depth and diameter of your Sonotube, or where you need the footings placed? No good contractor would. So why build a business without planning your brand’s foundation? If you don’t clearly identify what you offer, who you offer it to, and what type of customer you want to reach, how can you build the structure on top of it: your marketing plan? What is supporting all the effort, time, and money you’re spending? It’s time to stop what you’re doing, take a step back and create a plan for your brand. When you do, all your marketing, your website, your social media, and your message will come into focus, and you’ll start seeing the benefits of all your hard work. You’ll start working with the customers you want to work with and who you can help most on the types of projects you want to work on. If you’d like some help with a plan our Builder’s Brand Schematic can help you take your business to the next level, give me a call at (540) 318-1800. We’d love to help!
Cornerstone 2021
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