FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE - CULPEPER
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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 6: Issue 3 March 2022
New home sales declined in January on rising interest rates but still posted a steady reading as demand remains strong. Sales of newly built, single-family homes in January fell 4.5% to an 801,000 seasonally adjusted annual rate from a sharp upwardly revised reading in December, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. 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 January reading of 801,000 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 34.4% over last year, rising to a 6.1 months’ supply, with 406,000 available for sale. However, just 37,000 of those are completed and ready to occupy. The median sales price rose to $423,300 in January from $395,500 in December, and is up more than 13% compared to a year ago, due primarily to higher development costs, including materials. Regionally, on a year-to-date basis, new home sales fell in three regions, down 10.7% in the Northeast, 3.7% in the Midwest and 7.4% in the South. New home sales were up 1.2% in the West.
March 2022
January New Home Sales Lower but Still Solid
Rising Home Values Pricing Out Millions Rising home prices and interest rates are taking a toll on housing affordability, with 87.5 million households — or roughly 69% of all U.S. households — unable to afford a new median priced home. In other words, seven out of 10 households lack the income to qualify for a mortgage under standard underwriting criteria. The data comes from NAHB’s recent 2022 priced-out estimates, which show that if the median price goes up by $1,000, another 117,932 households would be priced out of the market. Townhouse Construction Surged in 2021 Townhouse construction jumped 28.1% in 2021, according to NAHB analysis of the most recent Census data. Medium-density construction lagged for much of 2020, with persistent affordability headwinds, and housing demand shifting to more suburban and exurban areas. However, demand for medium-density neighbor- hoods returned as the economy more fully reopened during the past year. During just the fourth quarter of 2021, single-family attached starts totaled 39,000.
Materials Prices Rise Again in January The prices of goods used in residential construction ex-energy climbed 3.6% in January (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. The index was led higher by a 25.4% jump in softwood lumber prices, and 9% price increases for indoor and outdoor paint. Building materials prices increased 20.3% year over year and have risen 28.7% since January 2020. Over the past four months, the index has climbed 8.4%.
Strong Turnout at 2022 Builders' Show More than 45,000 home building professionals filled the exhibit halls of the Orange County Convention Center in Orlando as the National Association of Home Builders hosted the NAHB International Builders’ Show® (IBS) Feb. 8-10, which followed extensive health and safety protocols. IBS and the Kitchen & Bath Industry Show (KBIS) again combined for the Design & Construction Week® (DCW), which drew more than 70,000 attendees. More than 800 IBS exhibitors displayed their products across 425,000 net square feet.
U.S. Lowers Duties on Canadian Lumber With lumber prices experiencing extreme price volatility this year and harming housing affordability, NAHB has relentlessly been calling on the Biden administration to reduce duties on Canadian lumber shipments into the United States. On Jan. 31, the Commerce Department took a posi- tive step forward by issuing its third administrative review to reduce duties on shipments of Canadian lumber into the United States from 17.99% to 11.64%.
Members Elect NAHB’s 2022 Leadership Team
Home Buyer Preferences Home buyer preferences have continued to reverse trends in home building as builders work to respond to new interests in the wake of COVID-19. Increased desire for bigger homes, suburban locations and more outdoor amenities are driving new home design, resulting in a rise in the average size of a new home to 2,524 square feet, and the percentage of new homes with 4+ bedrooms and 3+ full bathrooms to 46% and 34%, respectively. Baby boomers buck those trends, with a greater interest in smaller homes on smaller lots, preferably in the suburbs. Certain home features do resonate with all generations, however. The top five are: laundry rooms; exterior lighting; ceiling fans; patios; and walk-in pantries.
NAHB members elected senior officers to the association's top leadership positions at NAHB’s Leadership Meetings during the 2022 International Builders’ Show. Taking the helm as NAHB’s Chairman of the Board this year is Jerry Konter, a Savannah, Ga.-based home builder and developer with more than 40 years of experience in the home building industry. Also moving up on the association’s leadership ladder was Alicia Huey, a Birmingham, Ala.-based custom home builder. She was elected First Vice Chairman of the Board. Carl Harris, a Wichita, Kan.-based small volume spec and custom home builder, was elected Second Vice Chairman of the Board. Buddy Hughes, a Lexington, N.C.-based home builder and developer, joined the NAHB leadership ladder with his election as Third Vice Chairman of the Board. 2021 NAHB Chairman Chuck Fowke remains on the leadership ladder as the 2022 Immediate Past Chairman. Rounding out the association’s leadership is NAHB Chief Executive Officer Jerry Howard, from Washington, D.C.
Multifamily Sentiment up in Q4 Confidence in the market for new multifamily housing improved in the fourth quarter of 2021, according to results from the Multifamily Market Survey (MMS) released recently by NAHB. The MMS produces two separate indices: the Multifamily Production Index (MPI) increased one point to 54 compared to the previous quarter while Multifamily Occupancy Index (MOI) decreased six points to 69. The MPI measures builder and developer sentiment about current conditions in the apartment and condo market on a scale of 0 to 100. The index and all of its components are scaled so that a number above 50 indicates that more respondents report conditions are improving than report conditions are getting worse.
From left, NAHB CEO Jerry Howard, Boys & Girls Clubs CEO Jim Clark and 2021 NAHB Chairman Chuck Fowke prepare to sign proclamation on workforce readiness.
NAHB, Boys & Girls Clubs Announce Partnership
NAHB and the Boys & Girls Clubs of America are teaming up to introduce more of America’s youth to a potential career in residential construction. The announcement was made at a press conference held during the International Builders’ Show (IBS) in Orlando. The announcement comes as the residential construction industry continues to struggle to overcome the lack of available skilled trade workers. In fact, a recent survey of NAHB members showed nearly two thirds rank this issue as the most significant challenge they faced last year. Working together to promote construc- tion career pathways, NAHB and Boys & Girls Clubs of America will connect young people to individuals in the industry, providing them with work-based learning activities and access to essential skills development programs to further their career exploration. To kick off the pilot program, 10 local home builder associations (HBAs) will work with local Boys & Girls Clubs to mentor young men and women, showcase the multiple career oppor- tunities available in the home building industry and help guide them to choose a career in residential construction. The local HBA chapters will host events, i Including career panels, jobsite visits and job shadowing. HBAs interested in connecting with their local Boys & Girls Club can submit a request on nahb.org.
Upcoming Meetings & Events
April 13th, 9:00-10:00AM Associates Committee Meeting FABA Office or Zoom April 13th, 10:30-11:30AM Membership Committee Meeting FABA Office or Zoom April 14h, 11:30-1:00PM Fredericksburg County Spotlight Renatos, Sponsored by Contractors Websites Plus April 21st, 8:30AM Legislative Committee Meeting Zoom April 21st, 5:00PM Hard Hat Sponsored by Dobbins Realty Fredericksburg Country Club following Twilight Golf April 23rd, 9:00-4:00PM FAB beer and wine tour April 27th, 2:00-3:00PM Community Service Committee Meeting FABA Office or Zoom April 28th, 4:00-7:00PM Panel Event hosted by the Young Professionals Renatos
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 is sponsored by Dobbins Realty April 21st at Fredericksburg Country Club
Click here to learn more about the drive
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
Register Your Foursome Now
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
City of Fredericksburg Bi-monthly Meeting Zoom April 1st 9:00AM Orange County Quarterly Meeting Zoom April 1st, 1:00PM Spotsylvania County Bi-Monthly Meeting Zoom April 4th, 3:00PM Stafford County Bimonthly Meeting Zoom April 11th, 9:00AM King George County Quarterly Zoom April 15th, 10:00AM Culpeper County Quarterly Meeting Zoom June 9th, 9:00AM Caroline County Quarterly Meeting Zoom June 15th, 11:00AM
Legislative Committee
Upcoming County Zoom Meetings
Click here to register or sponsor
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
This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM.
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!
An exclusive interview with some of FABA's successful and insightful members. Learn more about their journey in the building industry during this panel-style event. Our panel includes Mike King of Ray's Siding, Janet Holt of Holt for Homes, Chris Reynolds of Atlantic Builders and Scottie Davis of Republic Homes. This event is open to our membership, young professionals, and our student chapters. Space is limited get your tickets now!
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.
Register here
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
Quick question for you: Should I use a staple gun or a screw gun?
Member Contributions
The only reasonable reply to a question like this is: “For what?” Here’s the thing... Clients love researching tips and tricks and tools they think might solve their problems. They'll often bring their findings to you and ask, “Which is better?” or “Which should I use?” But it always depends. Everything has pros and cons. If you don’t know what problem they want to solve, then you cannot possibly give a helpful answer. When a client comes to you because they have (perhaps wrongly) concluded that your favorite tool is the solution to their problem, you shouldn’t accept the work until you’re confident that their self-diagnosis is valid. I don’t care how much you love staple guns or screw guns or open-end wrenches or framing hammers or miter saws or {insert your favorite tool here}, it’s NOT ALWAYS the right tool for the job. Don't believe me? Try hanging sheetrock with a staple gun.
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
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.
Save your seat for the FAB spring wine and beer tour
Save your seat here
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 Shawn Callahan Metwood Building Solutions 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
HBAV Housing Excellence Awards Awards to recognize and highlight HBAV members who exemplify leadership, engagement, and dedication to the success of the HBA, community, and the Virginia building industry. HBAV will announce 2022 award winners at the Housing Excellence Awards Celebration on June 9, 2022, held at the Marriott Virginia Beach Oceanfront. Call for Entries is Open! **announcing 2 new award categories!** CALL FOR ENTRIES PACKET Questions? Contact Emily Lucas: Phone:804.643.2797 Send a Message
Enter here!