January 2022
Home Builder Sentiment Strong as 2021 Comes to a Close
Despite inflation concerns and ongoing production bottlenecks, home builder confidence edged higher for the fourth consecutive month on strong consumer demand and limited existing inventory. Builder sentiment in the market for newly built single-family homes moved one point higher to 84 in December, according to the NAHB/Wells Fargo Housing Market Index (HMI) released in December. This ties the highest reading of the year that was posted in February. Derived from a monthly survey that NAHB has been conducting for 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospec- tive buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. The HMI index gauging current sales conditions rose one point to 90 and the gauge charting traffic of prospective buyers also posted a one-point gain to 70. The component measuring sales expect- ations in the next six months held steady for the third consecutive month at 84. HMI tables can be found at nahb.org/hmi.
Fed Tightening May Bring Higher Rates The Federal Reserve on Dec. 15 signaled that it will be shifting from an accommodative monetary policy stance that has supported the economic rebound from the 2020 recession toward a tighter policy as a direct result of ongoing, elevated inflation data. This policy pivot means that mortgage interest rates are likely to rise in 2022. This will reduce housing affordability and again emphasizes the need for policymakers to fix the nation’s supply chains that are impeding more robust housing construction.
Sandra L. Thompson Nominated to Head FHFA President Biden in December nominated Sandra L. Thompson as the new director of the Federal Housing Finance Agency (FHFA). Thompson currently serves as acting director of the FHFA. She replaced Mark Calabria in June after the U.S. Supreme Court ruled that the FHFA director can be removed at will. Thompson previously served as deputy director of FHFA’s Division of Housing Mission and Goals since 2013. Prior to joining FHFA, Thompson worked at the Federal Deposit Insurance Corporation for 23 years in a variety of leadership positions.
EPA Publishes Proposed WOTUS Rule The Federal Register in December published a proposed rule by the EPA and the U.S. Army Corps of Engineers to rescind the definition of “waters of the United States” (WOTUS) as finalized during the Trump administration. If finalized as proposed, the new rule will rescind the WOTUS definition NAHB supported under the Navigable Waters Protection Rule (NWPR) and replace it with a new WOTUS definition that includes elements of the 1986 definition and elements of the Supreme Court’s 2006 Rapanos decision.
Congress Pushes Commerce on Lumber At the behest of NAHB, 84 members of Congress sent a joint letter to Commerce Secretary Gina Raimondo expressing urgent concern regarding the Commerce Department’s recent decision to double tariffs on softwood lumber products from Canada. The letter highlights the critical need for the United States and Canada to renew negotiations in an effort to come to an equitable solution that will satisfy all sides, including domestic industries and consumers, that need a reliable supply of softwood lumber.
NCWVHBA Membership Report Our renewing members are the backbone of our Association... It is for that reason we would like to thank the following members for renewing: Jimmy Barill, American Building Products Trudy Anderson, Fairmont Kitchen Center Kent Pauley, Lanta Contractors Argyle Sheets, Morgantown Power Equipment Ron Martin, Pest Management Services,Inc David Reitz, Stella Construction Drew Harding, Summit Community Bank
NHE Offering Grants to Support Workforce Development
NAHB Provides Safety Videos Working in construction can be dangerous. Workers can be exposed to hazards such as falls, electrical shock, and harmful chemicals. Before your employees step on the jobsite, be sure they understand how to protect themselves while at work. NAHB has published a new safety video toolbox talk, Safety Basics, to help home builders familiarize their staff with the hazards of a residential construction site. While construction work can be inherently dangerous, understanding hazards and creating a safety plan to address them will help keep everyone safe on the jobsite. Visit NAHB's video toolbox page for a Spanish version of the safety basics video.
The National Housing Endowment (NHE) has set a bold goal for 2022 – to introduce 10,000 young people to career oppor- tunities in the residential skilled trades. NHE encourages state and local home builders assoc- iations to apply for the Career Connections grant program. The program is funded by the Skilled Labor Fund (SLF) and managed by NHE. The funding is designed to support career fairs, presentations, participation in school- organized career events, and other activ- ities that introduce students to careers in residential skilled trades. The fund will award grants up to $2,500. A committee will consider each application and will award funds based upon merit and funding availability. Applications are due Feb. 16, 2022, for career events taking place by Nov. 18, 2022. Grant recipients will be announced in March. Contact Mark Pursell, NHE President and CEO, with any questions.
DHS Expands H-2B Visas The Department of Homeland Security (DHS) has announced the forthcoming publication of a joint temporary final rule making available an additional 20,000 H-2B temporary nonagricultural worker visas for fiscal year (FY) 2022. These additional visas will be set aside for U.S. employers seeking to employ additional workers on or before March 31, 2022. H-2B visas allow employers to hire foreign workers who come temporarily to the United States and perform temporary non-agricultural services or labor – including construction work – on a one-time, seasonal, peak-load or intermittent basis. Eligibility and filing requirements can be found on the H-2B Nonimmigrants webpage.
Calendar of Events 20 Jan 22: General Membership Meeting Location: Oliverio's on the Wharf, Morgantown 3 Feb 22: Board of Director's Meeting 17 Feb 22: General Membership Meeting Location: TBD 11-13 March 22, Home Show Location: Hazel & J.W. Ruby Community Center, Mylan Park 11 June 22, HBAWV Annual Auction Location: Mylan Park, Morgantown
POC: Terri Boone (304) 599-0880 info@ncwvhba.org
Christmas Toy Fund: Walmart Registry for Good
Leadership List
President Chris Bailey 1st Vice-President William Burdett 2nd Vice-President Ken Downey Associate Vice-President Tom Board Secretary Terri Boone Treasurer Lisa Novak State Area Vice-President William Burdett National Delegate Kent Pauley Alt. National Delegate Chris Bailey ncwvhba.org
REMINDER: The North Central West Virginia Home Builders Association “Home Show 2022” is scheduled to be held on March 11-13, 2022, at the Hazel & J.W. Ruby Community Center 500 Mylan Park Lane, Morgantown, WV 26501. Space rental applications should be received no later than February 1, 2022. Payment in full must be received by February 18, 2022. No exhibitor will be permitted to erect a display until contract is paid in full. www.morgantownhomeshow.com