October 2021
New Home Sales See an Uptick in August
Strong demand, low interest rates and fewer existing homes for sale contributed to an uptick in new home sales in August even as home prices continue to rise. Sales of newly built, single-family homes in August rose 1.5% to a 740,000 seasonally adjusted an- nual rate from an upwardly revised reading in July, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Sales are up 2.4% on a year-to-date basis. A new home sale occurs when a sales con- tract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or com- pleted. In addition to adjusting for seasonal effects, the August reading of 740,000 units is the number of homes that would sell if this pace continued for the next 12 months. Inventory stands at a balanced level of a 6.1-months’ supply, with 378,000 new single-family homes for sale. While inventory is rising, a growing share of that inventory is homes that have not started construction. As of August 2021, 28% of new home inventory consists of homes that have not started construction, compared to 21% a year ago. The median sales price was $390,900, remaining flat from July to August, but was up 20% from the $325,500 median sales price posted a year earlier, due to higher development costs, including materials. Regionally, on a year-to-date basis, new home sales fell 1.0% in the Northeast and 2.3% in the West, but rose 4.4% in the Midwest and 4.5% in the South.
Vaccine Mandate Won't Affect Small Firms President Joe Biden in September announced a sweeping vaccine mandate to bring the latest surge in COVID-19 cases under control. Central to the plan is a requirement that every employer with more than 100 employees require the vaccine for its workforce or provide for weekly testing. The new mandate will be instituted and enforced through a new emergency temporary standard (ETS) from OSHA in the coming weeks.
House That She Built Promotes Trades Careers The House That She Built is a new book from NAHB’s BuilderBooks that seeks to give children a look at potential careers in construction. Released Sept. 14, 2021, the book is inspired by the real-world team of women who came together to build a one-of-a-kind home in Utah, The House That SHE Built. Young readers will learn about careers in construction through the tradeswomen who contribute their individual skills to build a new home. Don't Miss Remodel Show Home at IBS Staying true to its original character is the primary objective for The New American Remodel® 2022 – a flagship exhibit of the 2022 NAHB International Builders’ Show® in Orlando. As the project continues to take shape and prepares for its debut at IBS Feb. 8-10, the build team is confident show attendees will be impressed with the final product. This project, along with its sister home, the New American Home, are two great reasons to attend the 2022 Builders' Show. Learn more and register for the show at BuildersShow.com.
Legal Victory on PPP Loan Forgiveness In a case brought by NAHB and Michigan builders, The U.S. District Court for the Eastern District of Michigan ruled Sept. 28 that all NAHB members who received Paycheck Protection Program (PPP) loans can have their loans forgiven regardless of whether the loans were made in contravention of the Small Business Administration’s (SBA) eligibility rules. NAHB, along with the HBA of Michigan and HBA of Southeastern Michigan, filed the lawsuit at the height of the pandemic-induced economic downturn to give all NAHB members access to PPP funds.
Congress Averts Government Shutdown Congress on Sept. 30 approved a stopgap spending bill that averts an impending government shutdown by funding federal government agencies at current levels through Dec. 3. Absent congressional action, the government would have shut down on Oct. 1. Of note to the housing community, the legislation will keep the National Flood Insurance Program (NFIP) funded through Dec. 3, 2021. NAHB continues to work with Congress to achieve a long-term reauthorization of the NFIP.
EPA Announces Pre-2015 WOTUS Rule Now in Effect
HBI Opens BuildStrong Academy The Home Builders Institute (HBI) opened a new Orlando-based facility for training individuals for jobs in construction. The BuildStrong Academy of Orlando will train and place area students who want to pursue careers in the skilled trades for the building industry. Funded by The Home Depot Foundation, along with other private, public, and nonprofit sector partners, the program will be free to trainees. Officials expect the training center to serve approximately 500 new trainees by year- end 2022. The training program guides participants through a step-by-step process designed to take them from beginners, with little-to-no trade skills, to tradespeople who are sought after by employers.
Following the U.S. District Court for the District of Arizona’s ruling in early Septem- ber to remand and vacate the Navigable Waters Protection Rule (NWPR), which defines the “waters of the U.S. (WOTUS),” the EPA and the U.S. Army Corps of Engi- neers (Corps) announced that the agencies have halted implementation of NWPR and are interpreting ‘waters of the United States’ consistent with the pre-2015 rule. This unilateral decision by the agencies, without public input, means that landowners must immediately follow the federal definition of WOTUS that existed prior to both the Trump and Obama administration’s WOTUS rules. The two agencies said they plan to change the regulatory definition of WOTUS under the Clean Water Act (CWA), an effort that will likely take more than a year to complete. NAHB urges the agencies to reconsider this decision in light of previous problems with the pre-2015 WOTUS rule.
NAHB Offers Land Use Resources In a recent article “Opportunities to Increase Housing Production and Preservation,” HUD describes the current housing crisis in the United States and connects an inadequate supply of housing to rising costs. NAHB has been active in advocating for better land development policy and providing resources to help educate the public on the impact bad policies can have on housing affordability. For more infor- mation on effective land development policies, visit nahb.org. NAHB outlines strong examples of alternative types of “missing middle” housing in its report, “Diversifying Housing Options with Smaller Lots and Smaller Homes.”
The NAHB/NAR Home Performance Counts: Virtual Green Home Tour Series continues in October from Northern Virginia with Stanley Martin Homes. Headquartered in Reston, Va., Stanley Martin Homes is Builder Magazine’s 2021 National “Builder of the Year” and ranks #21 on the BUILDER 100 list. Join Stanley Martin Homes and their NGBS Green Verifier partner, PEG LLC, for a tour of Tall Oaks, a high-performance infill project in Reston consisting of modern townhomes and flats certified to the National Green Building Standard® (NGBS). NGBS Green Verifiers will take you through the site and point out what they are looking for in their inspections (rough and final) during the certification process. See what goes into these NGBS Green Certified homes, compare what you are already doing on your builds, and learn how to market green certified homes to prospective buyers. These free 45-minute programs are held the third Thursday of each month and include a Q&A with building and real estate professionals. Register now for access to the Virtual Green Home Tour Series. Registration is free to all for this monthly series showcasing high-performance homes across the country. In addition to the showcase of homes, builders, real estate agents and others will discuss how housing industry professionals can work together to increase sales and provide added value to consumers. Registrants can access the replay for this event and others in the series through NAHB's webinar replay library. The series is a product of Home Performance Counts, a joint educational initiative between NAHB and the National Association of Realtors (NAR).
Virtual Green Home Tour Features NGBS Verifiers in Action
Membership Minute In the spirit of doing business with other HB&RACC members, we are happy to welcome the following new members into the fold.If you see them at any of our upcoming events, please introduce yourself and start a conversation! Mannington Mills Flooring Contact: Ron Chapman, National Accounts Manager – Builder Business Phone: 770.557.2899 Email:Ron.chapman@mannington.com Website: www.mannington.com Ron is the National Home Builder Manager for Mannington Mills -a Family-owned Flooring manufacturer based in Salem NJ. Mannington Mills manufactures and markets residential and commercial floor covering products, including sheet vinyl, luxury vinyl, laminate and hardwood, as well as residential and commercial carpet and rubber. Ron’s focus is on building relationships and partnering with Home Builders, and their trade partners. Upstate Door Contact: Steve White Cell:508-688-2777 Email:swhite@upstatedoor.com Website:www.upstatedoor.com National Phone:800-570-8283 Upstate Door specializes in unique, one-of-a-kind fine door solutions. We are a hardwood door manufacturer that creates custom exterior, interior, and screen/storm doors. We build high-quality, hand-crafted doors that will last for years to come. We can match any detail from the entryway to all the interior doors with ease.
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October event Recap A great night of celebration, awards and recognition happened at the 5th BRICC awards ceremonies on October 7th. The Cape Codder in Hyannis hosted the event and guests began the festivities with a beautiful fall afternoon cocktail and appetizer reception, followed by a delicious surf & turf feast.The evening continued after the awards presentation with a yummy dessert and candy buffet and some photo booth fun! Over 100 entries were received across 40 categories and a total of 60 BRICC awards were handed out in front of a sold-out crowd of over 300 attendees!To quote one of the judges. “Each and every entry is deserved of an award. The caliber of work and craftsmanship was staggering and hard to judge.” The HB & RACC staff congratulates all of the winners, and we are honored to have had the privilege to “Celebrate the Best of the Best”. .
And as they say – It takes a Village. This event would not have been possible with the help and support of our many vendors. Alison Caron Design ASAP Promotions Blossoms Florist The Cape Codder Resort & Spa/Stephanie Sharlet Carlson Audio Visual East Coast Trophy Elevated Impressions The Kandy Korner New England Photo Booth Sunderland Printing Check out our photo gallery here: https://www.capecodbuilders.org/bricc-awards-photo-gallery/