April 2022
Higher Mortgage Rates Dampen New Home Sales
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.
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.
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.
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.
Top 10 Features Desired by First-Time Home Buyers
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
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.
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.
Calendar of Events Check GCBA's Monday eMail for current Location & Registration Information. Masks are recommended if vaccinated for all indoor events.
April 8 – Coffee & Conversation on ZOOM April 28 – Hard Hat Happy Hour May 5 – Hurricane Preparedness Summit May 26 – GCBA Golf Outing June 1-3 – Ready To Work Boot Camp and Career Fair June 14-18 – NAHB Spring leadership & Legislative Conference June 22 – GCBA Board Meeting & Hard Hat Happy Hour August 3-4 – SEBC Orlando August 25 – Hard Hat Happy Hour September 21 – GCBA Board Meeting September 29 – PRISM Awards October 20 – GCBA Annual Meeting & Hard Hat Happy Hour October 24-27 – NAHB Fall Boards November 18 – 2nd Annual Chili Cook Off December 13 – 9 Wine & Dine & Hard Hat Happy Hour
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
2022 GCBA Officers and Directors OFFICERS PRESIDENT Rafael Roca, DR Horton 1ST VP Michael Nunziata, 13th Floor Homes 2ND VP Frank Coppola, Coppola Brothers LLC ASSOCIATE VP Tony Macaluso, Universal Engineering Sciences VP FINANCE Steve Karp, Melamed & Karp PA IMMEDIATE PAST PRESIDENT Fred Pfister, Toll Brothers DIRECTORS Mark Richards, Stock Custom Homes Herb Tremble, Master Contractors & Subcontractors Assoc. of FL. Karl Albertson, DR Horton Mark Welsh, Lennar Jon Long, Ryan Homes Steve Dassa, Mattamy Homes Ethan Nelson, UMI Stone Peggy West, Capitol Lighting PRO Rick Baxter, Localiq (Palm Beach Post) Mark Anderson, US Bank Executive Officer: KT Catlin Design: Gregory J. Del Deo
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Leadership List
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
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mEMBERSHIP NEWS
GCBA 2022 TOP RECRUITERS Katherine Catlin - 6 Rafael Roca - 5 Michele Mockenhaupt - 4 Robert August - 2 Beth Cohen - 1 HV Tremble - 1 Jamil Mikati - 1 Jay Huebner - 1 Kate Nordstrom - 1 Katherine Macaluso - 1 Lorali DePaula - 1 Matthew Blum - 1 Michael Acevedo - 1 Michael Brown - 1 Peggy West - 1 Ray Puzzitiello - 1 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!
Welcome to our Newest Members!
BUILDER Sandra Backman AjMadison - Miami Patrick Vaillancourt Luxury Builders Group ASSOCIATES Rita Williams Merchandising Plus Inc Marcia King-Gamble Reliable Services Hugh Bailey HB Enterprises, LLC Kathy Bass K2B Consulting, LLC Rick Heaston Reimagine Selling LLC Livia Morais City Furniature Aaron Meek Manning Building Supplies AFFILIATE Dwight Moore HSQ Group 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!
MEMBERS SAVINGS & REBATE PROGRAMS
Contact Us - FHBA Private Insurance Exchange Phone: (800) 282-8626 Fax: (904) 212-2058 Address: FHBA Member Benefits 10739 Deerwood Park Blvd. Suite 200-B Jacksonville, FL 32256
Last Chance To Enter For The 2022 Aurora Awards Don't miss your last chance to enter before entries go up $50 on Friday, April 1! More than 60 categories recognizing work across the southeast along with categories for sales and marketing work are open for entry. Winners will be celebrated August 4, 2022, at the Gaylord Palms Resort and Convention Center during 2022 SEBC. You don’t want to miss this exciting opportunity for the region’s top honors to recognize the work you’ve been doing!
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FHBA's New Monthly Webinar Series: Laying the Foundation for Member Benefits Have you heard? FHBA is launching a new webinar series to help you maximize your membership! Join us each month to learn about a member benefit or cost savings program. The FHBA Monthly Webinar Series: Laying the Foundation for Member Benefits will launch Friday, April 1 at 11 a.m. and will feature an overview of the newly updated contract templates available exclusively to all FHBA members.
Save the Date! We are looking forward to seeing you again at the Southeast Building Conference (SEBC). SEBC will take place August 3-4 at the beautiful Gaylord Palms Resort & Convention Center in Kissimmee, Florida. Registration opening soon! Please contact Kailin Koch at kkoch@sebcshow.com with any questions
Residential Building Worker Wages Continue to Rise Compared to a year ago, average hourly earnings for residential building workers continue to rise, as the construction labor market remains tight. According to the Bureau of Labor Statistics (BLS) report, average hourly earnings (AHE) for residential building workers were $28.66 in February 2022, increasing 6% from $27.01 a year ago. This was 16.7% higher than the manufacturing’s average hourly earnings of $27.90, 12.9% higher than transportation and warehousing’s, and 10.8% lower than mining and logging’s. In February, the job openings rate in construction remained elevated at 4.8% and the unemployment rate fell to 3.6% in March. As skilled labor shortage persists, rising wages may be one of the effective ways to attract employees to fill empty positions. Average hourly earnings for residential building workers have increased significantly since the COVID-19 pandemic recession. Between December 2019 and December 2021, residential building workers’ average hourly earnings increased about 12%.
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