A recovering economy is great news for the majority of Americans, though for many remodelers, it is a sign they might need to adjust the way they do business … again.
The economic downturn forced remodelers to adopt new strategies to survive in a changing market — strategies that generally led to sustained profit growth.
The newly released 2017 Remodelers’ Cost of Doing Business Study shows that the average gross profit margin for remodelers increased from 26.8% to 28.9% between 2011 and 2015. Average net profit margin increased as well, rising from 3.0% to 5.3% during that same period.
Now that spending is back up and consumers are increasingly interested in buying new (or newer) homes, remodeling expenditures are likely to grow at a more gradual pace than in recent years, according to comments made in January 2017 by National Association of Home Builders economist Paul Emrath during a press conference at the International Builders’ Show.
That means remodelers will have to identify new ways to maintain their share of the market.
“Pacific Northwest consumers are tech-savvy and community-minded,” said National Association of Home Builders Remodelers member Joseph Irons, CAPS, CGP, GMR, a remodeler from Shoreline, Wash. “We’ve reduced costs while growing our business by focusing on social media outreach and community service over traditional advertising.”
The Remodelers’ Cost of Doing Business Study assesses the growth, viability, and demographics of the remodeling industry. The 2017 study was conducted through an online survey sent out to 5,700 residential remodeling/rehabilitation firms across the country in the spring of 2016.
The full study is available for purchase at builderbooks.com. National Association of Home Builders Remodelers members are eligible for a 20% discount off the member price.
The Home Builders Association of Greenville are your neighbors and community leaders providing education and support for building industry professionals. We create jobs, encourage homeownership, and promote responsible growth throughout the upstate of South Carolina.
Wednesday, January 25, 2017
FHFA House Price Index Up 0.5 Percent in November
From the Federal Housing Finance Agency:
U.S. house prices rose in November, up 0.5 percent on a seasonally adjusted basis from the previous month, according to the Federal Housing Finance Agency monthly House Price Index. The previously reported 0.4 percent increase in October was revised downward to a 0.3 percent increase.
The Federal Housing Finance Agency monthly House Price Index is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. From November 2015 to November 2016, house prices were up 6.1 percent.
For the nine census divisions, seasonally adjusted monthly price changes from October 2016 to November 2016 ranged from -0.2 percent in the South Atlantic division to +1.5 percent in the Pacific division. The 12-month changes were all positive, ranging from +4.7 percent in the Middle Atlantic division to +7.7 percent in the Pacific division.
Monthly index values and appreciation rate estimates for recent periods are provided in the table and graphs on the following pages. Complete historical downloadable data and House Price Index release dates for 2017 are available on the House Price Index page.
For detailed information on the House Price Index, see House Price Index Frequently Asked Questions. The next House Price Index report will be released February 23, 2017 and will include quarterly data for the fourth quarter of 2016 and monthly data through December 2016.
The Federal Housing Finance Agency monthly House Price Index is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. From November 2015 to November 2016, house prices were up 6.1 percent.
For the nine census divisions, seasonally adjusted monthly price changes from October 2016 to November 2016 ranged from -0.2 percent in the South Atlantic division to +1.5 percent in the Pacific division. The 12-month changes were all positive, ranging from +4.7 percent in the Middle Atlantic division to +7.7 percent in the Pacific division.
Monthly index values and appreciation rate estimates for recent periods are provided in the table and graphs on the following pages. Complete historical downloadable data and House Price Index release dates for 2017 are available on the House Price Index page.
For detailed information on the House Price Index, see House Price Index Frequently Asked Questions. The next House Price Index report will be released February 23, 2017 and will include quarterly data for the fourth quarter of 2016 and monthly data through December 2016.
U.S. House Price Index - November 2016
From the Federal Housing Finance Agency:
The Federal Housing Finance Agency House Price Index reported a 0.5 percent increase in U.S. house prices in November from the previous month. From November 2015 to November 2016, house prices were up 6.1 percent. For the nine census divisions, seasonally adjusted monthly price changes from October 2016 to November 2016 ranged from -0.2 percent in the South Atlantic division to +1.5 percent in the Pacific division. The 12-month changes were all positive, ranging from +4.7 percent in the Middle Atlantic division to +7.7 percent in the Pacific division.
Monthly index values and appreciation rate estimates for recent periods are provided in the table and graphs in the attachment.
The Federal Housing Finance Agency House Price Index reported a 0.5 percent increase in U.S. house prices in November from the previous month. From November 2015 to November 2016, house prices were up 6.1 percent. For the nine census divisions, seasonally adjusted monthly price changes from October 2016 to November 2016 ranged from -0.2 percent in the South Atlantic division to +1.5 percent in the Pacific division. The 12-month changes were all positive, ranging from +4.7 percent in the Middle Atlantic division to +7.7 percent in the Pacific division.
Monthly index values and appreciation rate estimates for recent periods are provided in the table and graphs in the attachment.
Friday, January 20, 2017
Clemson Wins Again!
Clemson Football may have won the National Championship, but the Clemson Construction Sciences team brought home an award as well. The National Association of Home Builders Residential Construction Management Competition Team from Clemson University recently competed in the Construction Sciences Competition. With the help and guidance of some of our members, the team won 8th place overall out of 35 teams at the competition in Orlando this January. The judges were impressed with the level of detail in the proposal and how organized the team was in their presentation. Thank you to our Home Builders Association members who helped critique and guide the students before the competition, and congratulations again to the students, our future partners in the building industry!
Thursday, January 19, 2017
BALA Forecasts Design Trends for 2017 and Beyond
There were 127 single-family, multifamily, remodeling, and community projects honored at the 2016 Best in American Living Awards ceremony in January at the National Association of Home Builders' International Builders’ Show in Orlando, Florida.
That means there were 127 examples of the top design trends that home buyers expect to see over the next several years in your building and remodeling projects. They include:
Benches and nooks. In single-family custom and production homes, architects and designers include benches and nooks because they’re cozy, chic and practical, serving as places to snuggle up with the kids or a good book.
Big showers and tubs. Showers continue to get larger and free-standing tubs more luxurious. Walk-in showers feature wall-to-wall glass and universal design features.
Board and batten. You’ll see a lot of this siding on the exteriors of this year’s winners, and they also add a classic touch to today’s contemporary interiors. Some winners add a unique spin by adjusting the width of the boards, giving homes a more customized, one-of-a-kind feel.
Dark door and window frames. On multifamily, custom and production homes, architects and designers are choosing dark brown or black frames around windows and doors instead of whites. Windows pop on white or light siding, and dark frames add a striking effect from the interior looking out.
Modern farmhouse. We’re seeing farmhouse sinks, reused wood siding in interior design details and barn doors that are customized to have a more contemporary feel, incorporating glass, white tints and metal hardware.
Metal roofs. Metal roofs are featured on custom homes across the country, from more traditional homes to modern farmhouse and distinctively modern homes.
Natural wood beams. From remodels to new homes, wood beams left in their original state add a natural touch and create a focal point in interiors.
Natural wood ceilings. Hardwood floors have always been popular with home owners, but this year’s winners included an unusual number of homes with natural wood ceilings. These ceilings add warmth and can be used in traditional and more contemporary designs.
Shiplap inside and out. Horizontal shiplap is increasingly chosen for exteriors and is featured in entryways, bathrooms, living rooms and more.
Under-stair storage. Architects and designers did not let spaces under the staircases go to waste. Often, these spaces include shelves for books and works of art. One winner even included an entire bar under the living room stairs.
Unique wine storage. Wine storage is now a prominent feature in the home. Kitchens include floor-to-ceiling open or glass-enclosed wine storage, and customized wine racks appear in many of this year’s winners. Combining the under-stair-storage trend with this one, one team included an extensive wine collection under the stairs with glass doors and display lighting.
White on white. This trend is back in 2017 and appears universally across homes. Perhaps most prominently, white on white is showcased beautifully in kitchens.
That means there were 127 examples of the top design trends that home buyers expect to see over the next several years in your building and remodeling projects. They include:
Benches and nooks. In single-family custom and production homes, architects and designers include benches and nooks because they’re cozy, chic and practical, serving as places to snuggle up with the kids or a good book.
Big showers and tubs. Showers continue to get larger and free-standing tubs more luxurious. Walk-in showers feature wall-to-wall glass and universal design features.
Board and batten. You’ll see a lot of this siding on the exteriors of this year’s winners, and they also add a classic touch to today’s contemporary interiors. Some winners add a unique spin by adjusting the width of the boards, giving homes a more customized, one-of-a-kind feel.
Dark door and window frames. On multifamily, custom and production homes, architects and designers are choosing dark brown or black frames around windows and doors instead of whites. Windows pop on white or light siding, and dark frames add a striking effect from the interior looking out.
Modern farmhouse. We’re seeing farmhouse sinks, reused wood siding in interior design details and barn doors that are customized to have a more contemporary feel, incorporating glass, white tints and metal hardware.
Metal roofs. Metal roofs are featured on custom homes across the country, from more traditional homes to modern farmhouse and distinctively modern homes.
Natural wood beams. From remodels to new homes, wood beams left in their original state add a natural touch and create a focal point in interiors.
Natural wood ceilings. Hardwood floors have always been popular with home owners, but this year’s winners included an unusual number of homes with natural wood ceilings. These ceilings add warmth and can be used in traditional and more contemporary designs.
Shiplap inside and out. Horizontal shiplap is increasingly chosen for exteriors and is featured in entryways, bathrooms, living rooms and more.
Under-stair storage. Architects and designers did not let spaces under the staircases go to waste. Often, these spaces include shelves for books and works of art. One winner even included an entire bar under the living room stairs.
Unique wine storage. Wine storage is now a prominent feature in the home. Kitchens include floor-to-ceiling open or glass-enclosed wine storage, and customized wine racks appear in many of this year’s winners. Combining the under-stair-storage trend with this one, one team included an extensive wine collection under the stairs with glass doors and display lighting.
White on white. This trend is back in 2017 and appears universally across homes. Perhaps most prominently, white on white is showcased beautifully in kitchens.
Nation’s Home Builders Elect Leadership for 2017
The National Association of Home Builders Board of Directors today elected four senior officers to top leadership positions within the federation during the association’s International Builders’ Show in Orlando, Fla.
With more than 700 affiliated state and local home builders associations and more than 140,000 members across the country, National Association of Home Builders represents the interests of the nation’s housing professionals through advocacy, education and research.
Taking the helm as National Association of Home Builders' Chairman of the Board of Directors this year is Granger MacDonald, a Kerrville, Texas-based builder and developer with 40 years of experience in the home building industry. MacDonald is chairman and CEO of the MacDonald Companies, a diverse development, construction, and property management enterprise with nearly 50 neighborhoods completed and managed throughout Texas.
“We will work this year to prevent expensive, pointless regulations from impeding home building and housing affordability and partner with the Trump administration and new Congress to promote policies that encourage homeownership and affordable rental opportunities for all Americans,” said MacDonald.
Also moving up on the association’s leadership ladder during National Association of Home Builders' Orlando board meeting was Randy Noel, a Louisiana-based custom home builder with more than 30 years of experience in the home building industry. He was elected as First Vice Chairman of the Board.
Noel is president of Reve Inc., a custom home building firm that has developed more than 1,000 custom homes in the greater New Orleans area.
Greg Ugalde, a Connecticut builder and developer with more than 25 years of experience in the home building industry, was elected as Second Vice Chairman of the Board. Ugalde is president and chief legal officer of Torrington-based T&M Building Co., Inc., one of the largest home builders in the state.
Dean Mon joined the National Association of Home Builders leadership ladder with his election as Third Vice Chairman of the Board. He is president of the D.R. Mon Group Inc., which specializes in the development and construction of classic urban living projects throughout New Jersey. Since 1985, the company has created communities throughout Morris, Hunterdon, Union, Hudson and Monmouth counties.
2016 National Association of Home Builders Chairman Ed Brady, from Bloomington, Ill., remains on the leadership ladder as Immediate Past Chairman. Brady is president of Brady Homes, a company founded in 1962 by his father, William Brady Sr.
One of the longest standing home building firms in central Illinois, Brady Homes has developed 20 residential communities throughout the state, building more than 1,800 single-family homes, 2,000 apartment units and more than 100,000 square feet of light commercial property.
Rounding out the association’s leadership is National Association of Home Builders Chief Executive Officer Jerry Howard, from Washington, D.C. Howard heads up a professional staff of more than 240 working out of the National Housing Center in Washington. He has served as the association’s CEO/EVP since February 2001. Previously, Howard was National Association of Home Builders' chief tax counsel.
With more than 700 affiliated state and local home builders associations and more than 140,000 members across the country, National Association of Home Builders represents the interests of the nation’s housing professionals through advocacy, education and research.
Taking the helm as National Association of Home Builders' Chairman of the Board of Directors this year is Granger MacDonald, a Kerrville, Texas-based builder and developer with 40 years of experience in the home building industry. MacDonald is chairman and CEO of the MacDonald Companies, a diverse development, construction, and property management enterprise with nearly 50 neighborhoods completed and managed throughout Texas.
“We will work this year to prevent expensive, pointless regulations from impeding home building and housing affordability and partner with the Trump administration and new Congress to promote policies that encourage homeownership and affordable rental opportunities for all Americans,” said MacDonald.
Also moving up on the association’s leadership ladder during National Association of Home Builders' Orlando board meeting was Randy Noel, a Louisiana-based custom home builder with more than 30 years of experience in the home building industry. He was elected as First Vice Chairman of the Board.
Noel is president of Reve Inc., a custom home building firm that has developed more than 1,000 custom homes in the greater New Orleans area.
Greg Ugalde, a Connecticut builder and developer with more than 25 years of experience in the home building industry, was elected as Second Vice Chairman of the Board. Ugalde is president and chief legal officer of Torrington-based T&M Building Co., Inc., one of the largest home builders in the state.
Dean Mon joined the National Association of Home Builders leadership ladder with his election as Third Vice Chairman of the Board. He is president of the D.R. Mon Group Inc., which specializes in the development and construction of classic urban living projects throughout New Jersey. Since 1985, the company has created communities throughout Morris, Hunterdon, Union, Hudson and Monmouth counties.
2016 National Association of Home Builders Chairman Ed Brady, from Bloomington, Ill., remains on the leadership ladder as Immediate Past Chairman. Brady is president of Brady Homes, a company founded in 1962 by his father, William Brady Sr.
One of the longest standing home building firms in central Illinois, Brady Homes has developed 20 residential communities throughout the state, building more than 1,800 single-family homes, 2,000 apartment units and more than 100,000 square feet of light commercial property.
Rounding out the association’s leadership is National Association of Home Builders Chief Executive Officer Jerry Howard, from Washington, D.C. Howard heads up a professional staff of more than 240 working out of the National Housing Center in Washington. He has served as the association’s CEO/EVP since February 2001. Previously, Howard was National Association of Home Builders' chief tax counsel.
Friday, January 13, 2017
Save the Date - Housing Market Forecast Will Be February 9th
The Home Builders Association of Greenville will once again partner with the Greater Greenville Association of Realtors and the Upstate Mortgage Lenders Association in order to produce the Upstate Housing Market Forecast. Save the date, February 9, for a day of educational classes and a luncheon featuring the National Association of Home Builders' Chief Economist. This event is sponsored by BNC Bank, and vendor table sponsorships are still available. Contact Crystal for more details.
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