Remodeling Month Is In Full Swing

May is when the flowers are all blooming, the temperatures are rising, and a large number of home shoppers are interested in buying. But the springtime housing market isn’t just for buyers and sellers.

This is the time of year when a large number of home owners are highly motivated to cross off a few items from their home improvement to-do lists.

Last year, Americans spent an estimated $150 billion on owner-occupied remodeling projects. After a somewhat mild start to 2016, the remodeling industry is primed for continued growth as the year progresses – growth that’s sure to be amplified during the month of May when the National Association of Home Builders Remodelers celebrates National Home Remodeling Month.

Remodelers across the country are encouraged to further emphasize the benefits of home remodeling projects and the advantages of hiring a professional to get the job done right the first time.

Throughout the upcoming month, NAHBNow will feature several recent projects, techniques and strategies from NAHB members that have helped deliver more value to their clients and drive more traffic to their business, despite the increasing competition.

NAHB also makes it easy for remodelers to promote their industry with a toolkit of ready-to-use resources to engage consumers with trending remodeling topics such as:

• Benefits of hiring a professional remodeler
• Facts about aging in place
• Basics of green remodeling
• Lists of top remodeling projects
• Suggestions on how to hire a remodeler

A guide on how to get started promoting National Home Remodeling Month is available on nahb.org, along with tips to maximize consumer outreach.

Federal Housing Finance Agency Index Shows Mortgage Interest Rates Decreased in March

From the Federal Housing Finance Agency:

Nationally, interest rates on conventional purchase-money mortgages decreased from February to March, according to several indices of new mortgage contracts.

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 3.73 percent for loans closed in late March, down 15 basis points from 3.88 percent in February.

The average interest rate on all mortgage loans was 3.76 percent, down 13 basis points from 3.89 in February.

The average interest rate on conventional, 30-year, fixed-rate mortgages of $417,000 or less was 3.95 percent, down 16 basis points from 4.11 in February.

The effective interest rate on all mortgage loans was 3.88 percent in March, down 15 basis points from 4.03 in February. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.

The average loan amount for all loans was $325,000 in March, up $8,300 from $316,700 in February.

Federal Housing Finance Agency will release April index values Thursday, May 26, 2016.

   
Technical note: The indices are based on a small monthly survey of mortgage lenders, which may not be representative. The sample is not a statistical sample but is rather a convenience sample. Survey respondents were asked to report terms and conditions of all conventional, single-family, fully amortized purchase-money loans closed during the last five working days of the month. Unless otherwise specified, the indices include 15-year mortgages and adjustable-rate mortgages. The indices do not include mortgages guaranteed or insured by either the Federal Housing Administration or the U.S. Department of Veterans Affairs. The indices also excluded refinancing loans and balloon loans. March 2016 values are based on 4,319 reported loans from 16 lenders, which include savings associations, mortgage companies, commercial banks, and mutual savings banks.

Revised Department of Labor Overtime Proposal ‘Unacceptable’

The U.S. Department of Labor is considering a plan to reduce the cap on its forthcoming overtime salary threshold rate hike from $50,440 to $47,000. This minimal reduction would still amount to a 99% increase from the current overtime salary limit of $23,660.

National Association of Home Builders Chairman Ed Brady issued an official statement responding to the plan, declaring that “this proposal is a token effort at best” and is “unacceptable to America’s small businesses.”

“The unintended consequences of this aggressive regulatory overreach would hurt job and economic growth, as well as many of the workers the plan is trying to help,” Brady added. “There is no reasonable approach or road map on how this would be phased in without resulting in severe economic repercussions. If the $47,000 overtime threshold were to become law, it would hurt millions of small business owners, including home building firms, by forcing them to scale back on pay and benefits, as well as cutting workers’ hours to avoid overtime requirements. Indeed, it would be particularly harmful to the housing community, as the vast majority of home building firms have fewer than 10 employees.

“The Department of Labor must scrap this unworkable proposal and go back to the drawing board. We stand ready to work with Department of Labor to craft a practical plan that would gradually ramp up the current overtime threshold so that it does not result in real hardship for small businesses. The rule should also take into account regional variations in wages and cost of living when determining its formula. Such a measured response would help small business, workers and the economy.”

Survey Says: Larger Remodeling Projects Trending Up

Whole house remodels and additions are regaining market share, according to a new survey of remodelers released May 2nd to kick off May’s National Home Remodeling Month. Released by National Association of Home Builders Remodelers, the survey revealed the most common projects in 2016 compared to results of previous surveys.

“While bathroom and kitchen remodels remain the most common renovations, basements, whole-house remodels and both large- and small-scale additions are returning to levels not seen since prior to the downturn,” said 2016 National Association of Home Builders Remodelers Chair Tim Shigley, CAPS, CGP, GMB, GMR.

In the survey, remodelers reported that the following projects were more common than in 2013:
Whole house remodels, which increased by 10%

• Room additions, 12%
• Finished basements, 8%
• Bathroom additions, 7%

Bathrooms topped the list of most common remodeling projects for the fifth time since 2010. Eighty-one percent of remodelers reported that bathrooms were a common remodeling job for their companies, while 79% reported the same for kitchen remodels. Window and door replacements decreased to 36% from 45% in 2014.

Feds Loosen Building Restrictions Near Threatened Bats

Common sense claimed a victory this week when the National Fish and Wildlife Service determined that it’s “not prudent” to designate any “critical habitat” within the 32-state range of the endangered northern long-eared bat.

The decision, published in the Federal Register today, brings an end to the latest chapter of the fight to save the bat, which has been decimated by reasons having nothing to do with land development and everything to do with the spread of a disease called white-nose syndrome in their typical nesting and breeding grounds.

It’s important for members to remember the bat is still a federally protected, “threatened” species under the Endangered Species Act.

That means developers and builders cannot undertake otherwise lawful activities if the Service determines that a proposed project may result in the intentional injury, harm or death of a bat.

Furthermore, if the developer needs to apply for a federal permit, such as a wetlands permit, the Service may determine that allowing the development to take place may jeopardize the bat.

To avoid violating the law in areas with northern long-eared bat habitats, builders and developers are urged to comply with FWS NLEB 4(d) rules: specifically, that developers avoid clearing trees within a quarter-mile from where the bats are known to hibernate, or within 150 feet of a known roost tree between June 1 and July 31.

Because the bat uses so many types of trees to roost in during the summer, regulators could make no specific determination of “physical and biological features” that are “essential to the conservation of the species” – a requirement for critical habitat designations which require builders to seek a special permit before beginning any construction or development on a property.

And while bats will find locations such as caves and abandoned mine shafts to spend the winters, designating them as protected areas would only encourage bat enthusiasts to further endanger the animals by pointing out specifically where they roost, regulators decided.

Earlier this year, the National Association of Home Builders helped regulators understand that the restrictions the Service had placed on development – not allowing any within a quarter-mile of a nesting site in the summer – would pretty much shut down all home building from Maine to Montana. But the decision to loosen restrictions and add more flexibility has been met with blowback by environmental groups, who are now likely to challenge this one as well.

HBA/ SMC Member night at the Drive

Your HBA of Greenville would like to take you out to the ball game. Don't miss out on the Member Night at the Drive on May 9th. Enjoy a pre-game reception from 6-7:30 p.m. in The Iron Yard 500 Club.
This event is for members of Builder, Associate, and Affiliate members of the HBA, SMC, and PWB only.  Click here to register.                

Not a member become one today!

 The HBA would also like to thank Craig Brown of The Greenville Drive for hosting this event.

SMC Education Session: Home Buyer Insights

Home Buyer Insights: Getting Inside the Minds of Today's Home Buyers

What if you could get inside the minds of today’s home buyers to better understand what motivates them, what inspires them, and what leads them to take action? Join the Sales and Marketing Council and BDX as they present an education session revealing the latest home buyer research and how it will impact your approach and messaging. The event will take place May 12, 8:30-10 a.m. at the KROC Center, 424 Westfield St, Greenville, SC 29601. Register here by May 9th.