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.
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
Visit the complete KAM Member Mixer photo gallery
KAM Appliances Member Mixer April 12th, KAM showroom 6 Aggregate Way, Hyannis A wonderful night was enjoyed by over 140 HB&RACC members and guests as we were welcomed in to the brand new KAM Appliances showroom in Hyannis. Chef Linda worked her magic with tantalizing taste treats throughout the night. And, can we please have a round of applause for the chocolate covered strawberries? Delightful! A huge thank you to the KAM team for the lovely event – can’t wait until next year!
Hog Island, April 27th A fierce and fabulous fight to the finish but Cazeault came out on top!. Hog Island was the place and Giant Jenga was the game! Fueled by a few “concentration sodas” supplied by Shepley/Andersen and Mid Cape/Marvin, all teams showed fortiutude, professionalism and precision in the quest for bragging rights and a nice growler! During the game, some were height challenged, others not so much but everyone had a great time. The chicken wings and tacos were a big hit, followed by some custom cookie creations sponosored by Tavano Mecanical and brought to you by the @thecookiecaper And.comIn the end, the four finalists (Tequila Mockingbird, Mid-Cape Kitchen, Cazeault Roofing & Siding and SBS OneSource ) battled down to the final two: Tequila Mockingbird (Shepley) and Cazeault Roofing & Siding with the dynamic duo of Bob Cazeault and Frank McMasters claiming overall victory in this year’s Challenge. Thanks to our dream team of emcee Brian Harding/Andersen Windows, time and play caller Bill McMahon/Robert B. Our and our own Chris Flanagan for moving the evening along in such a fun fashion.Thanks to all of our refs as well – not an easy job….. Who is ready for next year? A huge THANK YOU to all of our generous sponsors
Calendar of Events
Monthly Dinner Meeting – May 10th DoubleTree Hyannis American Red Cross Emergency Planning & Preparedness in the Workplace and at Home Blitz Build Kick Off June 7th Bad Marthas Falmouth Island Queen Cruise June 16th Island Queen Falmouth 21st Annual Nailbangers Golf Tournament July 21st Hyannis Country Club Lego Building Competition August 20th Johnny Kelley Park, Dennis HB&RACC/Habitat for Humanity Blitz Build Sept. 19-24 Falmouth Residential Construction Career Day Oct. 6h Barnstable Fairgrounds Annual Meeting & Holiday Party December 13th Coonamessett Inn, Falmouth
WinSupply Contact:Susan Sidney Phone:(508) 775-0740 Email:sjsidney@winsupplyinc.com Website: http://www.winsupplyofwestyarmouth.com Winsupply of West Yarmouth is your one-stop bath & kitchen showroom and supply house. Our showroom provides an inviting environment in which you will find something a little different as well as everything you would expect to find for your project, large or small.Our creative and knowledgeable staff are passionate about plumbing! Building relationships and providing you with allthe information and products to make your project run smoothly is our priority. Cape Home Kitchen & Bath Contact:Jason & Krsitin Phone:(508) 566-8917 Email:info@capehomekitchen.com Website: http://CapeHomekitchen.com Cape Home Kitchen & Bath is a full-service dealer and design firm of cabinetry for kitchens, bathrooms, libraries, studies, built-ins and more. We co-ordinate countertop selections, decorative hardware, accessories, and installation of all if needed. Cape Home Kitchen & Bath also provides full-service remodeling from initial meet and greet to final walk through, our licensed team members are passionate, professional, and prompt. Above all we put a strong focus on customer service unmatched organization and superior products for each project. Purchasing cabinetry for your home is an important investment and we need our customers to know we understand that, and we will be there for them every step of the way. Stop by our showroom located on Rte 28A in Cataumet to learn more or simply say ‘Hello!’.
Membership Minute Sponsored By:
Please welcome our new members when you see them at our events or around town.It’s great when members do business with other members!
UFP Retail Solutions Contact:Matt Chatigny Phone:(617) 943-2035 Email:Matt.Chatigny@ufpi.com Website:https://www.ufpi.com UFP Retail Solutions is the preeminent manufacturer and supplier of lumber and building materials for lumberyards throughout North America. With leading brands like ProWood Treated Lumber, Deckorators Decking, UFP-Edge Siding and Trim, and Ultra Aluminum Fence and Railing our products and services are well-positioned to serve the varied needs of the home improvement industry on Cape Cod and The Islands. New Item Alert!: We are now stocking our Made in USA, Thermally Modified Wood Siding in New England.. Visitwww.UFPEdge.comfor more information. James Hardie Contact:Nick Gallagher Phone:(617) 842-8083 Website:https://www.jameshardie.com/ Email:Nicholas.Gallagher@jameshardie.com James Hardie is the leading exterior solutions brand that offers endless design possibilities, trusted protection and long-lasting beauty. With a wide variety of profiles, textures, widths and colors, James Hardie empowers consumers to bring their unique design vision to life with purposeful fiber cement products built to last. We all have a dream for our home, and with James Hardie, It’s Possible.
News You Can Use 1.If you are thinking about signing up for our Golf Tournament in July, don’t wait too long as we have a limited number of foursomes and sponsorship opportunities. 2.Our Blitz Buildproject with Habitat for Humanity is gearing up for the week of September 19th in Falmouth. Please let us know if you would like to be involved.We will be building one house for one family in one week! 3.RCC day update!!! The date is October 6t h at the Barnstable Fairgrounds. Much more info to come.If you have interest in exhibiting, please contact candice@capecodbuilders.org 4.Mark Your Calendars!!! We are planning the first annual Cape Cod Construction Summit to take place on November 10th that will include CEU credit classes, exhibitors, and networking opportunities.Stay tuned for details – coming soon! 5.Member request: Please Like our Facebook page and Follow Us on Instagram.If you do so, you will get regular updates on upcoming events and info sessions.Don’t miss the chance to stay informed. 6.Need help with marketing/advertising?We have relationships with most media outlets here on Cape, as well as experience in video production, digital, print and radio campaigns.We are planning a Marketing 101 virtual session soon, so please let us know if interested. Got something you would like to share with fellow members?Please send submissions to:candice@capecodbuilders.org
You are Invited!