Apartment and Condominium Market Remains Strong after Small Correction in the First Quarter of 2013

The Multifamily Production Index (MPI), released today by the National Association of Home Builders (NAHB), inched down two points to an index level of 52. It is the fifth straight quarter with a reading over 50.

The MPI measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100. The index and all of its components are scaled so that any number over 50 indicates that more respondents report conditions are improving than report conditions are getting worse.

The MPI provides a composite measure of three key elements of the multifamily housing market: construction of low-rent units, market-rate rental units and “for-sale" units, or condominiums.

In the first quarter of 2013, the MPI component tracking builder and developer perceptions of market-rate rental properties dropped four points to 61, but has been above 60 for seven consecutive quarters—the longest sustained period of strength since the inception of the index in 2003. For-sale units dipped four points to 42, while low-rent units rose two points to 55.

“The apartment sector overall has largely recovered since the downturn, so we have now reached a level of development that is close to equilibrium and can continue at this pace,” said W. Dean Henry, CEO of Legacy Partners Residential in Foster City, Calif., and chairman of NAHB’s Multifamily Leadership Board. “With that said, there are still certain markets around the country that have room to grow.”

The Multifamily Vacancy Index (MVI), which measures the multifamily housing industry's perception of vacancies, rose seven points to 38. With the MVI, lower numbers indicate fewer vacancies. After peaking at 70 in the second quarter of 2009, the MVI improved consistently through 2010 and has been at a fairly moderate level throughout 2011 and 2012.

Historically, the MPI and MVI have performed well as leading indicators of U.S. Census figures for multifamily starts and vacancy rates, providing information on likely movement in the Census figures one to three quarters in advance.

“The multifamily market has recovered substantially since the end of 2010, and is well on its way to reaching a sustainable level,” said NAHB Chief Economist David Crowe. “However, there are still issues facing builders and developers that could have an impact on future production, such as a shortage of labor with basic construction skills and rising prices for some building materials.”

For data tables on the MPI and MVI, visit www.nahb.org/mms.

NAHB: Home Builders Building Homes that Young Buyers Want

During National Homeownership Month in June, the National Association of Home Builders (NAHB) is telling young people that the time is right to buy a home, and the nation’s builders are building the homes they want.

“As the economy recovers and young people who had to live at home with their parents move forward with their lives and achieve their dreams of homeownership, home builders are delivering homes that cater to the floor plans, features and affordability that this generation desires,” said NAHB Chairman Rick Judson, a home builder and developer from Charlotte, N.C.

More than 80 percent of Generation Y home buyers—people born in 1977 or later—said in NAHB’s 2012 consumer preference survey they prefer a highly energy efficient home that results in lower utility bills during the home’s lifetime over a lower-priced home without energy efficient features. Today’s new homes feature ENERGY STAR-rated appliances; windows, doors and insulation that better control the home’s interior climate; and other modern components such as tankless water heaters and HVAC systems that save costs on utility bills.

And cost-conscious young buyers will be happy to hear that a new home actually costs less to maintain than an older home. An NAHB study found that homes built before 1960 have average maintenance costs of $564 a year, while a home built after 2008 averages $241. Plus, mortgage rates are still very low, bolstering affordability for home buyers.

Generation Y buyers favor media and game rooms more than any other specialty rooms for their next home. New homes today not only contain these spaces, they are outfitted with the state-of-the-art electronic and wiring components that can accommodate high-definition televisions, full-house sound systems, hard-wired fire and security alarms and more.

Young buyers can check out many of the outstanding designs and features being included in homes built by NAHB members at our social media communities facebook.com/homebuildrs, pinterest.com/nahbhome and google.com/+nahb. They can also access home buying and home building information and resources on NAHB’s website at nahb.org/forconsumers.

“The time has never been better for young people to become home owners, whether it be a new home or existing,” said Judson. “There are outstanding opportunities in the current market, with near record low interest rates, competitive prices and new homes being built that include open layouts, energy efficient components and other features that cater to young buyers.”

Welcome to this months Newest HBA of Greenville members.

The HBA of Greenville would like to recognize our newest associate members

Digital Home Tech, LLC - Greg Ollie
Screenmobile of the Piedmont- Butch Rambish
Alpha Omega Inc.- Duane Bellamy

Welcome!

Verizon Discount for HBA members has been updated

National Purchasing Partners, the program that has brought HBA members a 22 percent discount on their Verizon Wireless plan, has been updated and renewed for another year.

For members with corporate accounts receiving the 22 percent discount, nothing has changed.  However, for their employees receiving 18 percent on their personal plans, they must enroll in paperless billing to continue to receive the 18 percent discount.  After June 7, any employees still receiving paper bills will have their discount reduced to 15 percent.

Click here to read instructions on how to enroll in paperless billing.

Below is the current rate structure for corporate plans under the NPP/Verizon Wireless discount program for HBA members:

• 22% off corporate lines.
• Data for 3G/4G devices is now $20 for 3GB. Data for 4G smartphones is now $30 for 5GB with Mobile Hotspot. The previous unlimited data feature will be grandfathered onto the account until a price plan change or device upgrade occurs.
• Machine to Machine plans added to portfolio
• New Text Options:
• $250 text messages package at no charge
• $5 for 500 texts
• $10 for Unlimited
• Does not include picture or video (.25 perpicture/video message additional)

It was a GREAT day on the links Thursday, May 23rd for the 2013 Golf Classic.

There were no shanks or misses for the 2013 Golf Classic sponsored by Stock Building Supply and presented by Piedmont Natural Gas. The Preserve at Verdae golf course was full and so were the beverage carts. There was a great breeze, the sun was shining, and lunch was provided by Builders First Source- it was perfect weather to be outdoors, especially to be playing golf. The afternoon ended with an Awards Dinner sponsored by Charter Business, in which there were lots of prizes and give aways and 1st, 2nd, and 3rd place winners received cash prizes. The 1st place winner of the tournament was Charter Business with a score of 57 and included team members Chris Robertson, Ernie Sallas, Phil Macowski, and Ken Mullins. 2nd place went to the Waste Industries Team with a score of 58 including Cody Hutmaker, Shawn Haines, Keith Dowling, and Mac Johnson. 3rd place was Greenville Carpet One with a score of 58 and included Michael Wilson, Chip Pringle, Tommy Dacus, and Matthew Porter.

The HBA of Greenville would like to thank all of the sponsors and participants who helped to make this event such a success and so much fun!

A special thanks to our volunteers who included:
Deana Long - GBS Building Supply
Mike Freeman- ACA/ Freewood Builders
Eddie Howard- Howard Custom Builders
Tim Joner- Palmetto Exterminators
Andrew Woodford- ABW Construction
Mike Bell- The Cook's Station
Wayne Moore- Harold Moore Builders

If you missed out this time we are looking forward to next years Golf Classic and hope to see you then!

HBA Office closed Monday May 27th.

The HBA of Greenville office will be closed Monday, May 27th in observance of Memorial Day. The office will reopen on Tuesday, May 28th.
Thank you and have a GREAT weekend!

Blu-Sky Group formed by Dillard and Vass

Greenville business owners and HBA members Thomas Dillard and Kathy Vass have formed a new Greenville-based real estate company.  Blu-Sky Group LLC is a real estate development, marketing and sales firm that focuses on residential and commercial properties.

Dillard is president of Dillard-Jones Builders LLC. Vass is president of Vass Markets Inc., a marketing and public relations firm.

Blu-Sky Group is representing The Ridges at Paris Mountain, a new 18-residence master planned community on Altamont Road that features views of the city of Greenville on the development’s south side and the Blue Ridge Mountains on its north side.  The Ridges at Paris Mountain has been selected as the site of the 2014 Southern Living Showcase Home by Dillard-Jones Builders, which will open next spring.

Dillard and Vass will serve as managing partners of Blu-Sky Group.