SMC Panel Discussion Event- September 3rd. 8:30-10 a.m.

Come out to our Panel Event on September 3rd.
Hosted and sponsored by Jeff Lynch!
This is a free event for SMC members.
Breakfast is included for this event, we will also be accepting new school supplies for Greenville County Schools.

Don't miss out- Learn More, Earn More!

FHFA: U.S. House Prices Rise 1.2 Percent in Second Quarter

U.S. house prices rose 1.2 percent in the second quarter of 2015 according to the Federal Housing Finance Agency (FHFA) House Price Index (HPI). This is the 16th consecutive quarterly price increase in the purchase-only, seasonally adjusted index. FHFA's seasonally adjusted monthly index for June was up 0.2 percent from May. House prices rose 5.4 percent from the second quarter of 2014 to the second quarter of 2015.

The HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac.

"Home price growth in the second quarter once again far exceeded the pace of overall inflation, even as mortgage rates drifted upwards," said FHFA Principal Economist Andrew Leventis. "Although too early to tell whether it's a sign of a slowdown, the monthly appreciation rate in June was more modest than we have seen in a while."

The seasonally adjusted, purchase-only HPI rose 5.4 percent from the second quarter of 2014 to the second quarter of 2015, while prices of other goods and services fell 1.4 percent. The inflation-adjusted price of homes thus rose approximately 6.9 percent over the latest year.

Significant Findings

• Home prices rose in every state between the second quarter of 2014 and the second quarter of 2015. The top five areas in annual appreciation: 1) Colorado – 10.6 percent, 2) Nevada – 10.5 percent, 3) Florida – 9.7 percent, 4) Hawaii – 9.5 percent, and 5) Washington – 8.8 percent.

• Among the 100 most-populated metropolitan areas in the U.S., four-quarter price increases were greatest in San Francisco-Redwood City-South San Francisco, CA (MSAD), where prices increased by 18.3 percent. Prices were weakest in the Allentown-Bethlehem-Easton, PA-NJ, where they fell -1.1 percent.

• Of the nine census divisions, the South Atlantic division experienced the strongest increase in the second quarter, posting a 1.7 percent quarterly increase and a 6.1 percent increase since last year. House price appreciation was weakest in the Middle Atlantic division, where prices were flat in the second quarter.

Other Price Indexes
Most statistics in the attached release reference price changes computed by FHFA's basic "purchase-only" HPI. In some cases, however, the reported statistics reference alternative price measures. FHFA publishes – and makes available for download – three additional varieties of home price index beyond the basic "purchase-only" series. Although they all use the same basic methodology, the three alternatives rely on slightly different datasets in index estimation.

The alternative measures include:

• "Distress-Free" house price indexes. Sales of bank-owned properties and short sales are removed from 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-endorsed mortgages are added to the purchase-only data sample.

• "All-Transactions" house price indexes. Appraisal values from refinance mortgages are added to the purchase-only data sample.

For some geographic areas, multiple index types are available. For instance, for individual states, three types of indexes are available. The various series tend to correlate closely over the long-term, but short-term differences can be significant.

GBS Building Supply Makes Inc. 5000 List for Second Year

For the second consecutive year, GBS Building Supply made Inc. 5000 list of fastest growing private firms.  GBS ranked 3087, with a 113% increase in revenue.  GBS' 2014 revenue was $50.1 million.  GBS was ranked 3566 in 2014 and added 31 new jobs in the last year. 

Rising Housing Prices Affect Affordability

Firming home prices in many housing markets resulted in a modest drop in nationwide housing affordability in the second quarter of 2015, according to the latest NAHB/Wells Fargo Housing Opportunity Index (HOI).

“Home price appreciation in many markets across the nation are a sign that the housing recovery continues to move forward,” said NAHB Chairman Tom Woods. “At the same time, the cost of building a home is rising due to higher costs for buildable lots and skilled labor.”

In Greater Greenville, even as housing prices have risen, the index improved from 77.7% during the first quarter 80% in the second quarter.  Like the nation, house prices increased to $158,000 from $154,000.  Income remained the same at $58,000.  Greater Greenville's national rank as most affordable among all housing markets improved to 76th nationally from 107th in the last quarter.  Greenville is now 17th in the Southeast, an improvement from 32nd in the first quarter.

Meanwhile, Charleston's affordability declined as housing prices continued to rise.  Charlotte's affordability also also declined, along with Atlanta.  Columbia's affordability improved slightly to 88.7%.  Columbia is among the 50 most affordable housing markets in the country and 10th in the Southeast.

In all, 63.2% of homes sold nationwide between the beginning of April and end of June were affordable to families earning the median income of $65,800. This is down from the 66.5% of homes sold that were affordable to median-income earners in the first quarter.

The national median home price increased from $210,000 in the first quarter to $230,000 in the second quarter as average mortgage rates edged slightly lower from 4.03% to 3.99% in the same period.

“Though affordability edged slightly lower in the second quarter, the HOI remains well above 50, where half the households can afford half the homes sold,” said NAHB Chief Economist David Crowe. “Low mortgage rates, pent-up demand and continued job growth should contribute to a gradual, steady rise in housing throughout the year.”

Youngstown-Warren-Boardman, Ohio-Pa. was rated the nation’s most affordable major housing market, and Kokomo, Ind., claimed the title of most affordable small housing market in this year’s second quarter. There, 95.5% of homes sold were affordable to families earning the area’s median income of $55,200.

For the 11th consecutive quarter, San Francisco-San Mateo-Redwood City, Calif., was the nation’s least affordable major housing market. There, only 11% of homes sold in the second quarter were affordable to families earning the area’s median income of $103,400.

Please visit nahb.org/hoi for tables, historic data and details.

Builder Ballot: Greenville City Council Elections are August 11

Amy Ryberg Doyle

Susan Reynolds

Election day for City Council primary races in the City of Greenville is Tuesday, August 11. The polls open at 7 a.m. and close at 7 p.m. If you are registered to vote and live in the City of Greenville, please plan to go to the polls. Not registered to vote? Why not?

Builder Ballot
South Carolina Builders PAC has contributed to the following candidates:

• Susan Reynolds, Republican, incumbent and candidate for reelection to an a-large seat on Greenville City Council
• Amy Ryberg Doyle, Republican, incumbent and candidate for reelection to the District 1 seat on Greenville City Council representing the North Main Street area of the City of Greenville

The right to vote is not only a privilege, it is a responsibility that each voter should take seriously. Elections are how our country chooses the leaders who will represent our interests in the halls of government.

Your Home Builders Association has formed two Political Action Committees that raise money from our members, screens candidates, and makes contributions to the campaigns of the candidates that our Government Affairs Committee members and Board of Directors have determined will be represent the interests of the Home Building, Remodeling, Land Development, and Light Commercial Contracting industries.

South Carolina Builders PAC is organized as a 527 committee, is managed by the Home Builders Association of South Carolina, and regulated by the South Carolina Ethics Commission.  It's scope is statewide, legislative, and local government races in South Carolina.  It is a cooperative PAC in which the HBA of Greenville participates.

BuildPAC is organized under Federal Election Laws. It's scope is Congressional races. BuildPAC does not take a position on the Presidency. BuildPAC is managed by the National Association of Home Builders.
The Government Affairs Committee surveys and interviews candidates and makes recommendations for supporting those candidates to the Board of Directors of the Home Builders Association of Greenville, which makes the final decision on local and legislative races. The S.C. Builders PAC Trustees determines contributions for statewide races, and the BuildPAC Trustees determines the contributions for Congressional races.

FHFA: House Price Index Up 0.4 Percent in May

U.S. house prices rose in May, up 0.4 percent on a seasonally adjusted basis from the previous month, according to the Federal Housing Finance Agency (FHFA) monthly House Price Index (HPI). The previously reported 0.3 percent change in April was revised upward to reflect a 0.4 percent change.

The FHFA HPI is calculated using home sales price information from mortgages sold to or guaranteed by Fannie Mae and Freddie Mac. From May 2014 to May 2015, house prices were up 5.7 percent. The U.S. index is 1.8 percent below its March 2007 peak and is roughly the same as the April 2006 index level.

For the nine census divisions, seasonally adjusted monthly price changes from April 2015 to May 2015 ranged from -0.6 percent in the East South Central division to +1.1 percent in the East North Central division. The 12-month changes were all positive, ranging from +0.9 percent in the Middle Atlantic division to +8.4 percent in the Pacific division.

CANCELLED! Tonight's HBA of Greenville appreciation night at Downtown Alive

UPDATE: Please note that tonight's HBA of Greenville Member Appreciation Night hosted by Piedmont Natural Gas during Downtown Alive has been cancelled due to potential inclement weather. 
 However, The SMC of the Upstate Summer Social is still scheduled for tonight at 5 p.m. at Conservus Realty. 

What: HBA of Greenville Appreciation Night at Downtown Alive
When: Thursday, August 6, 5:30 p.m. until 8:00 p.m.
Where: Piedmont Natural Gas' VIP area on Main Street near the Hyatt (downtown).

No registration necessary. Simply show up and enjoy the evening and food and beverage, courtesy of Piedmont Natural Gas.

We look forward to seeing you next week at the She-Conomy Event on August 13th at 8:30 a.m.