New THIS Month MEMBERS ASSOCIATES Acute Heating & Cooling Builders Wholesale Flooring HB Next Home Elevators Direct of Charleston Smith and Stevenson BUILDERS B3 Construction Finucan Renovations Hamilton Builders EVENTS & EDU Breakfast with the Builder Nov 10th | 8:30AM North Chs. Coliseum Healthcare 101 Nov 12th | 9AM CHBA Office
N O V E M B E R 2020
Charleston HBA
IN THE NEWS
New Home Sales Slow Slightly in September
Building the Future of the Lowcountry
according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Despite the monthly decline, the September rate is 32.1% higher than the September 2019 pace, and on a year-to-date basis, new home sales are up 16.9% in 2020. Inventory inched up to a 3.6 months’ supply, with 284,000 new single-family homes for sale, 32.1% lower than August 2019. This is the third consecutive month with inventory running under four months’ supply. Of the inventory total, just 48,000 are completed, ready to occupy. These inventory numbers point to additional construction gains ahead, as indicated by record levels of the NAHB/ Wells Fargo Housing Market Index.
Sales of newly built, single-family homes in September fell 3.5% to 959,000 from a downwardly revised August number,
continued from page 1)... 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. The median sales price was $326,800. The median price of a new home sale a year earlier was $315,700. Regionally, on a year-to-date basis new home sales were up in all four regions: 22.5% in the Northeast, 25.9% in the Midwest, 14.4% in the South, and 18% in the West.
Sponsored by 84 Lumber Register at hbacharleston.com
THURSDAY, DECEMBER 3RD 4:30PM - 6:30PM | TWO BLOKES BREWERY Presented by Ferguson FREE to attend. Drinks on YOU. Featuring Victor's Lab Food Truck!
Brewery Mixer
What Voters Are Saying About Housing This Election Season
Housing has long been a key economic driver. So in the wake of the coronavirus pandemic and at the culmination of the 2020 elections, housing is an especially critical topic. NAHB recently surveyed more than 2,200 registered voters from across the country to learn more about how housing has been impacted by COVID-19 and how it could play a role in the upcoming elections. The survey confirmed that housing availability and affordability are growing concerns for many Americans, and that the pandemic has only compounded these issues. Among the key findings, a larger portion of respondents feels that the Democratic party is more likely to address housing affordability than the Republican party. The results also show the large majority of respondents are in favor of an additional financial stimulus. Some of the survey’s other questions specifically asked voters: • How they have used their federal stimulus checks; • If they are more likely to make home improvements, as working remotely becomes more common; and • Where they would prefer to buy their next home, in the wake of COVID-19.
The results can be viewed on the NAHB Housing Portal, which also offers a wealth of additional information about the state of housing at the national, state and congressional district levels. The Housing Portal is an easy-to-use resource for industry professionals as well as the general public. Visitors can also easily create downloadable reports to share with their colleagues, clients and legislative contacts. Visit nahb.org/portal. Additional voter resources regarding NAHB-endorsed candidates and the association's get-out-the-vote efforts are available here.
DCW to Be All-Virtual, Feb. 9-12
Due to health and safety concerns related to the COVID-19 pandemic, NAHB and the National Kitchen & Bath Association (NKBA) have announced that the 8th annual Design & Construction Week® (DCW), featuring NAHB’s International Builders’ Show® (IBS) and NKBA’s Kitchen & Bath Industry Show® (KBIS), will no longer be an on-site event. Instead, the two groups are planning a robust, all-virtual event. The new all-virtual DCW 2021 will take place Feb. 9-12. Registration for the virtual DCW event is free for all NAHB and NKBA members. Learn more at BuilderShow.com.
Builder Confidence Hits Another Record
Sales Outpacing New Home Construction ;s
The home building industry has made a quick and dramatic comeback in the wake of the COVID-induced economic downturn. Housing demand has increased so rapidly in recent months that there is now an unprece- dented gap between sales and home construction. Sales of new single-family homes in August increased 4.8% to an annual rate of 1.01 million units — their highest pace since September 2006.
In a further show of strength for the housing sector, builder confidence in the market for newly-built single-family homes increased two points to 85 in October, further surpassing the previous all-time high of 83 recorded in September, according to the latest NAHB/Wells Fargo Housing Market Index (HMI). These are the first two months the index has ever been above 80. Builders have noted that traffic remains high and record-low interest rates are keeping demand strong.
Home Price Appreciation Accelerates in August
Home price appreciation accelerated in August in major markets across the nation. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 12.1% in August, faster than an 8.9% increase in July. It marks the highest annual growth rate since April 2013. On a year-over-year basis, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index posted a 5.7% annual gain in August, up from 4.8% in July. It is the fastest pace of home price appreciation since July 2018. This month’s acceleration strongly reflected recent activity in existing home sales and tight inventory. Existing home sales in August reached a 14-year high, while the inventory decreased to three-month supply. S&P reported that home prices in August increased dramatically in most metro areas, with annual growth rates ranging from -2.9% to 29.7%. San Diego led the way with a 29.7% increase. Home prices in New York declined by 2.9% in August.
Sponsor of the 2020 High Performance Council Meetings
NGBS Sees 250,000th Certified Home
ICC Rules on NAHB's Final Two Appeals
The National Green Building Standard (NGBS) Certification Program reached a key milestone in October with the certification of its 250,000th home, the Broadstone Junction multifamily community in historic Norcross, Ga. Since the NGBS Green Certification Program began in 2009, it has provided builders with a national standard to define and measure sustainable multifamily and single-family homes, developments and remodeling projects.
The ICC Board of Directors in October issued a final decision on the last two NAHB appeals to the 2021 building code development process. The board sided with NAHB on the scope and intent of two changes to the International Energy Conservation Code (IECC) but rejected another appeal on 20 twice-defeated proposals that were defeated at two different hearings before being approved in the online vote.
Talk About Construction Careers
A chronic labor shortage is slowing the residential construction industry. That's why it is essential that housing industry professionals communicate the value of a career in the skilled trades. What is the best way to start the conversation about a career in residential construction? Many NAHB members and home builders associations (HBAs) across the country have ramped up outreach
efforts and have shared these key points about the benefits of working in residential construction: The housing industry is hiring. A career in the building trades offers strong earnings potential. This career path is a solid alternative to college. And there are a variety of training programs available. It's a job where you can make a positive impact on people's lives.
New Inclusionary Zoning Tool
Inclusionary zoning (IZ) is often adopted under the assumption that it is a simple, expedient method to address a community’s shortage of affordable housing. But IZ is not as effective as its proponents claim, and a growing body of evidence suggests that IZ often discourages development and raises the price of market-rate homes. NAHB has created an empirical tool, the Inclusionary Zoning Calculator Tool, that enables the user to assess how IZ requirements impact development choices. The IZ Calculator Tool uses a sample developer’s pro forma as the template, and allows the end user to input and revise certain variables to show how different incentives and cost inputs may be used to create an economically feasible development.
Leadership List
Chrs Klick President Ward Mungo Vice President Brett Miller Treasurer Adam Copenhaver Secretary Lane Baker Past President Board Members Ted Terry Chris Brace Jesse Bray Jay Piner Wade Green Jamey Nelson Tricia Haggerty Jamie Doyle Robby Arnold Mick Jewel Tom Lauderdale Gus Brabham For a full list of life board members, visit our website hbacharleston.com
BREAKFAST WITH THE BUILDER North Charleston Coliseum Nov. 10th, 8:30AM HEALTHCARE 101 CHBA Office Nov. 12th, 9:00AM BUILDER INSPECTOR MEETING North Charleston Coliseum Nov. 18th, 8:30AM LUNCH & LEARN: SECOND CHANCES CHBA Office Dec. 1st, 11:30AM BREWERY MIXER Two Blokes Brewery Dec. 3rd, 4:30PM BUSINESS MGMT & LAW FOR RESIDENTIAL BUILDERS CHBA Office Dec. 3rd - 4th SMC VIRTUAL NEW HOME BUS TOUR Summerville & Moncks Corner Dec. 9th, 9:30AM *** If you have any questions, contact Ashley at ashley@charlestonhomebuilders.org
Upcoming Events
President Trump Signs USMCA Trade Pact In a positive development for the housing industry, President Trump on Jan. 29 signed the U.S.-Mexico- Canada Agreement (USMCA). The U.S. residential construction and remodeling industries rely on tens of billions of dollars in building materials sourced from Mexico and Canada each year. By modernizing and strengthening free trade with our largest trade partners, the USMCA will boost U.S. economic growth and help keep the price of homes and home improvements low.
New App Offers Accessibility Guidance NAHB unveiled the "Pocket Guide to the Fair Housing Act," a free app to help home builders, contractors and designers meet the accessibility requirements of the act, during the Builders' Show in Las Vegas. “HUD welcomes the efforts of this important housing industry partner in working to meet the needs of persons with disabilities,” HUD Secretary Ben Carson told NAHB's Leadership Council.
EPA Announces Water Rule at IBS EPA Administrator Andrew Wheeler announced a final “waters of the United States” (WOTUS) rule during the International Builders’ Show in Las Vegas. “The Navigable Waters Protection Rule is a big win for states, municipalities, builders and developers, landowners and the American public,” Wheeler said in remarks to NAHB’s Leadership Council. “It will make it easier to understand where the Clean Water Act applies and, as importantly, where it does not.” The EPA administrator noted the new water rule is good for the economy and the environment.
NAHB Unveils All-New Website To better serve the needs of its members, industry partners and other key stakeholders, NAHB recently unveiled an all-new nahb.org website. The site not only features a much more modern look, but also greatly improved search performance, enhanced content functionality and improved navigation for a better user experience. DOL Announces Joint Employer Rule In a win for NAHB, the Labor Department in January announced a final rule to provide a clearer method for determining joint employer status. The rule will provide clarity and certainty regarding employers' responsibility to pay federal minimum wage and overtime for all hours worked over 40 in a week. The new rule will take effect March 16. It includes a set of joint employment examples to further assist in clarifying joint employer status.