FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 4: Issue 11 November 2020
FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE
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New Home Sales Slow Slightly in September
Sales of newly built, single-family homes in September fell 3.5% to 959,000 from a downwardly revised August number, 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.
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.
ICC Rules on NAHB's Final Two Appeals
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.
NGBS Sees 250,000th Certified Home
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.
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.
Sales Outpacing New Home Construction
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.
Hits Another Record
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.
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.
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.
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
• 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.
Additional voter resources regarding NAHB-endorsed candidates and the association's get-out-the-vote efforts are available here.
What Voters Are Saying about Housing this Election Season
The Associates Advisory Council meets the second Wednesday of each month at 9 am. This committee is chaired by the Associate Vice President and plans and organizes several FABA events, and keeps the association focused on the needs of all members.
Fredericksburg City Quarterly Meeting
December 4th, 9:00AM
Spotsylvania County Bi-Monthly Meeting
December 7th, 3:00PM
December 14th, 9:00AM
January 8th, 3:00PM
King George County Quarterly Meeting
January 8th, 10:00AM
Calendar at a Glance
Upcoming County Meetings
Please save these dates and register:
November 12th - Annual Meeting
and Hard Hat
@Carter Lumber, 11631 Shannon Dr
December 10th - Holiday Hard Hat
FABA's first priority has been, and will continue to be, the safety of our members. Both on the job site, at the work place and at social events.
Thank you for your continued support of the Fredericksburg Area Builders Association and the Building Industry in Virginia.
New and Renewed FABA Members (October 2020)
New Builder Members
Childress Construction LLC
Green Matters Construction Inc
T&M Contracting and Construction
George Mason Mortgage
Renewed Builder Members
Renewed Associate Members
C&D Home Improvements
Drafting Surveying Supply
DshaneProfessional Carpet Care
Shiflett’s Waste Services
Spartan Capital Group
The Benchmark Group
Thank you to all of our
Cornerstone Sponsors and Advertisers
Don't forget to refresh or submit your ads!
FABA works to educate, promote and represent the building industry while enhancing the region’s quality of life.
FAB Foundation Workforce Grant
The FAB Foundation is chaired by group of voluntary directors who work to help the Fredericksburg area community through several initiatives.
FAB financially supports non-profit organizations in the Fredericksburg region that specifically coordinate and provide home repair and safer living conditions for those in need. Helping make repairs and improvements related to home ownership affordable.
With a greater emphasis on the growing need for Workforce Development in our region, FAB has partnered with local educators and has established three local NAHB Student Chapters in Stafford, Spotsylvania and Caroline counties, and will continue working toward the establishment of student chapters in all the municipalities that we serve.
FAB Foundation has grant opportunities available for those looking to learn a trade and to potentially partner with member mentors and job placement opportunities. For more information on all the good that FAB Foundation does, call Maria Moore, Fredericksburg Area Builders Association Executive Vice President, at 540-898-2730, email at email@example.com, or go to www.fabava.com and select FAB Foundation tab.
FAB Foundation provided another WorkFoce grant to a student for them to be able to purchase tools and equipment to further themselves in the building industry. Good luck to this student in their career!
If you know of a student pursuing a career in the building trades, please have them reach out to find out more about these
FAB Foundation Workforce Grants.
Fredericksburg Area Builders Association
Nominating Committee Report 2021
Teresa Taylor Griffis
NAHB State Representative
2020 FABA Board of Directors
Spaces Design Studio
1st Vice President
Assurance Financial Group
2nd Vice President
Immediate Past President
Associate Vice President
Embrace Home Loans
NAHB State Representative
Metwood Building Solutions
J. Hall Homes
Republic Home Builders
Legacy Engineering, PC
The Legislative Committee meets monthly to discuss the status of local and state level legislation that affects the building industry. For more information from each county, plan to attend the Legislative Committee meeting - third Thursday of the month at 8:30 am.
The FAB Foundation board of directors meets monthly to discuss ways to involve the association with local workforce educators and help promote workforce development in our area. If you would like to be invoived with these students, contact FABA for more information.
Part of being a great volunteer is loving what you're doing. Find something that you're passionate about or something that inspires you, and then find a need in your community. There are dozens of reasons why you should volunteer - you just need to find the one that feels right.
20 GREAT REASONS TO VOLUNTEER
- Help others
- Make a difference
- Find purpose
· Enjoy a meaningful conversation
· Connect with your community
· Feel involved
· Contribute to a cause you care
· Use your skills in a productive way
· Develop new skills
· Meet new people
· Explore new areas of interest
· Meet good people
· Impress your mom
· Impress yourself
· Expand your horizons
· Get out of the house
· Make new friends
· Strengthen your resume
· Feel better about yourself
The Community Service Committee plans and organizes FABA's outreach and service in the local community and partners with members and non-profit groups to find ways to give back.
NEWS AND HAPPENINGS
Send us your press releases, news, and event information! We can post it here in our newsletter and on the Member Happenings page of our website!
Contact firstname.lastname@example.org for more information.
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