Wednesday, August 24, 2016

U.S. House Prices Rise 1.2 Percent in Second Quarter; Some Signs of Deceleration

From the Federal Housing Finance Agency:

U.S. house prices rose 1.2 percent in the second quarter of 2016 according to the Federal Housing Finance Agency House Price Index. House prices rose 5.6 percent from the second quarter of 2015 to the second quarter of 2016. Federal Housing Finance Agency’s seasonally adjusted monthly index for June was up 0.2 percent from May. The House Price Index is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. Federal Housing Finance Agency has produced a video of highlights for this quarter.

“Although the appreciation rate for the second quarter was of similar magnitude to what we’ve been seeing for several years now, a close look at the month-over-month price changes during the quarter reveals a potentially significant market shift,” said Federal Housing Finance Agency Supervisory Economist Andrew Leventis. “Our monthly price index indicates that in each of the three months of the quarter, the increase was only 0.2 percent. This is a much more modest pace of appreciation than we’ve seen in some time and most likely reflects accumulated pressures from significantly reduced home affordability,” Leventis said.

While the House Price Index rose 5.6 percent from the second quarter of 2015 to the second quarter of 2016, prices of other goods and services were nearly unchanged. The inflation-adjusted price of homes rose approximately 5.7 percent over the last year.

Significant Findings
  • Home prices rose in every state except Vermont between the second quarter of 2015 and the second quarter of 2016. The top five states in annual appreciation were: 1) Oregon 11.7 percent; 2) Washington 10.3 percent; 3) Colorado 10.2 percent; 4) Florida 10.0 percent; and 5) Nevada 9.6 percent.
  • Among the 100 most populated metropolitan areas in the U.S., annual price increases were greatest in North Port-Sarasota-Bradenton, FL, where prices increased by 15.7 percent. Prices were weakest in Bridgeport-Stamford-Norwalk, CT, where they fell 3.3 percent.
  • Of the nine census divisions, the Mountain division experienced the strongest increase in the second quarter, posting a 1.9 percent quarterly increase and an 8.1 percent increase since the second quarter of last year. House price appreciation was weakest in the Middle Atlantic division, where prices rose 0.6 percent from the last quarter. 
Tables and graphs showing home price statistics for metropolitan areas, states, census divisions, and the U.S. as a whole are included on the following pages.

Other Price Indexes

Most statistics in the quarterly house price index report reference price changes computed by Federal Housing Finance Agency’s basic “purchase-only” House Price Index. In some cases, however, the reported statistics reference alternative price measures. Federal Housing Finance Agency publishes – and makes available for download – three additional home price indexes beyond the basic “purchase-only” series. Although they use the same general methodology, the three alternatives rely on slightly different datasets as follows:
  • “Distress-Free” house price indexes. Sales of bank-owned properties and short sales are removed from the purchase-only dataset prior to estimation of the indexes.
  • “Expanded-Data” house price indexes. Sales price information sourced from county recorder offices and from FHA-backed mortgages are added to the purchase-only data sample. This index is used annually to adjust the maximum conforming loan limits, which constrain the size of loans that can be acquired by Fannie Mae and Freddie Mac.
  • “All-Transactions” house price indexes. Appraisal values from refinance mortgages are added to the purchase-only data sample.
Data constraints preclude the production of all types of indexes for every geographic area, but multiple index types are generally available. For individual states, for instance, three types of indexes are available. The various indexes tend to correlate closely over the long-term, but short-term differences can be significant.

Background

Federal Housing Finance Agency’s House Price Index tracks changes in average home prices by analyzing changes in home values for the individual properties. The underlying “repeat-transactions” methodology constructs index estimates by statistically evaluating price appreciation (or depreciation) for homes with multiple values over time. The purchase-only House Price Index uses sales price information from Fannie Mae- and Freddie Mac-purchased and Enterprise-guaranteed mortgages originated over the past 41 years. The purchase-only House Price Index is estimated with over seven million repeat-transactions.

Workforce Development: Clemson Interns

Clemson University Construction Science and Management program students are seeking part-time internship opportunities during the 2016-2017 school year. These students are active in the Construction Science and Management Guild and the Home Builders Association Student Chapter. If you are interested in helping future home builders build their resume for their planned career, and get access to a valuable workforce for your business, please contact Professor Jason Lucas (jlucas2@clemson.edu) or Michael Dey (mdey@hbaofgreenville.com).

Monday, August 22, 2016

Do you know someone looking for help buying their first home?

Do you know a potential home buyer who needs help in buying their first home? The Greater Greenville Association of Realtors Housing Fair is a great opportunity to visit with the professionals and learn what you need to know to successfully navigate the home-buying process.

This year's event is called "Living the Dream: Going from Renter to Homeowner" and will take place a the TD Convention Center on November 5, 2016 from 9 a.m.-2 p.m. Workshops include:
  • Financial Literacy/Credit 
  • Down Payment Assistant Resources
  • Why Use a Realtor?
  • Identity Theft
  • FHA, USDA Rural Housing, Fannie/Freddie what does it all mean?
  • The Process and what to expect: Searching, Making an Offer, Inspections, Comps, and Closing
Admission is free and open to the public. Be sure to share this opportunity with any potential home buyers looking for guidance in buying their first home.

For more information contact the Greater Greenville Association of Realtors at (864) 672-4427.

Friday, August 19, 2016

Call for Nominations: HBA of Greenville Board of Directors

Dear Home Builders Association of Greenville Membership,

The Home Builders Association Nominating Committee has begun work on identifying and recommending to the membership a slate of officers and directors for 2017. Elections will be held at our Annual meeting in November.

If you have an interest in serving in one of the following positions, or know of a member we should consider, please contact Michael Dey, Executive Vice President and Chief Executive Officer of the Home Builders Association of Greenville, or me or a member of the Nominating Committee.

The following positions on the Home Builders Association of Greenville Board of Directors are open for nominations:
  • Vice President
  • Associate Vice President
  • Secretary/Treasurer
  • Director, Builder Member (3-year term) (1 vacancy)

In addition, the Nominating Committee recommends to the Board of Directors members to be elected to the Home Builders Association of South Carolina Board of Directors and the National Association of Home Builders Board of Directors. If you have an interest in serving in one of these capacities, please contact Michael Dey, or me or one of the members of the Nominating Committee.

Click here to send an email to Michael Dey about nominations.

I would like to thank the members of the Nominating Committee for their participation:

  • Susan Vernon, APB, Chairman, Dillard-Jones Builders
  • Joe Hoover, APB, Vice Chairman, Hoover Custom Construction
  • Robert Markel, APR, CGR, Hadrian Construction Company
  • Bob Barreto, GBS Building Supply
  • Jon Statom, Palmetto Exterminators
  • Matt Vaughn, Brand Mortgage
  • James Speer, APB, Carson-Speer

Susan Vernon, APB, Immediate Past President

HBA of Raleigh-Wake County Needs Judges

Do you want to be a part of the largest judged Parade of Homes on the east coast? The Home Builders Association of Raleigh-Wake County is busy planning its 51st Parade of Homes and would like to invite you to participate as a member of their judging team so that you can see the best of new home building in the area.

The 51st Annual Parade of Homes is scheduled for October 1-2, 7-9, 14-16, 2016, with judging on one day only: Friday September 30, 2016. Judges may receive one night complimentary lodging (Thursday, September 29th) at the DoubleTree by Hilton in Cary, North Carolina. The Home Builders Association will cover the cost of your hotel room and lunch will be provided on judging day. Spouses and significant others are welcome to join you in your hotel room, but they may not accompany you in the car on judging day. A "Welcome to Raleigh" dinner will be provided on Thursday night at a local restaurant, Shucker’s Oyster Bar & Grill.

Judging on Friday begins at 7:30 a.m. at the Home Builders Association office and should be completed by 5:00 p.m.

If you are interested in judging this year, contact Jaclyn Parks at the Home Builders Association of Raleigh-Wake County at (919) 232-5884 or email jparks@hbawake.com.

Wednesday, August 17, 2016

Register for the International Builders' Show Now and Save

The National Association of Home Builders International Builders' Show® is the largest annual light construction show in the world, attracting more than 60,000 visitors from more than 100 countries every year. The industry's premier event gives you the tools you need to gain the competitive edge by connecting you with key business partners, improving your expertise and allowing you to experience the latest products from top manufacturers and suppliers first-hand.


If you register in August, you will save up to $175 on your various passes. See below for details:

INTERNATIONAL BUILDERS' SHOW EXPO PASS [Save 50%]
Explore the products and services of more than 1,400 top industry suppliers on the IBS exhibit floor and meet with business partners to get your questions answered.

Member – FREE                [Increases to $50 on 9/1]
Non-Members – $50          [Increases to $100 on 9/1]


INTERNATIONAL BUILDERS' SHOW FULL REGISTRATION [Save $100]
Explore the products and services of more than 1,400 top industry suppliers on the International Builders' Show exhibit floor and choose from 130+ International Builders' Show education sessions covering 8 industry tracks to strengthen your knowledge and improve your business. PLUS, enjoy a year of streaming access to ALL recorded sessions with International Builders' Show Education On Demand and learn at your own pace!

Member – $275                           [Increases to $375 on 9/1]
Non-Members – $400                 [Increases to $500 on 9/1]


SPOUSE REGISTRATION [Save $25]
All spouse registrations receive the same access to International Builders' Show as the primary registrant.

Bring your spouse for FREE in August!        [Increases to $25 on 9/1]

New Emissions Standards for Heavy-Duty Trucks, Trailers

The Environmental Protection Agency and the Department of Transportation have finalized standards for medium- and heavy-duty vehicles in an effort to improve fuel efficiency and cut carbon pollution.

The standards, which apply to trucks built in model years 2021-2027, are expected to lower carbon dioxide emissions by 1.1 billion metric tons, save vehicle owners $170 billion in fuel, and reduce oil consumption by up to 2 billion barrels over the lifetime of the vehicles sold.

Heavy-duty trucks account for about 20% of greenhouse gas emissions and oil use in the transportation sector, according to Environmental Protection Agency.

The standards apply to semi-trucks, large pickup trucks and vans, and all types and sizes of buses and work trucks.

And for the first time, the agencies are finalizing fuel-efficiency and greenhouse gas standards for trailers. Cost-effective technologies for trailers – including aerodynamic devices, lightweight construction and self-inflating tires – can significantly reduce total fuel consumption by tractor-trailers, while paying back the owners in less than two years due to the fuel saved.

Recognizing that many trailer manufacturers are small businesses, Environmental Protection Agency has included provisions that reduce burden, such as a one-year delay in initial standards for small businesses and simplified certification requirements.

Today’s final rulemaking builds on the fuel efficiency and emissions standards already in place for model years 2014-2018, which are expected to result in carbon dioxide emission reductions of 270 million metric tons and save vehicle owners more than $50 billion in fuel costs, according to Environmental Protection Agency. Truck sales were up in model years 2014 and 2015, the years covered under the first round of truck standards.

For more details on the new standards for medium- and heavy-duty vehicles, visit the EPA website.