New Homes of the Future: Smaller, Greener and More Casual

The economic downturn has changed the way Americans look at a lot of things, including what they are looking for in their next home. A study by the National Association of Home Builders suggests that the recession has caused prospective home buyers to shift their perspective on the housing they want and need, and that the new home of the future will focus more on efficiency than indulgence.

The survey asked builders, designers, architects, manufacturers, and marketing specialists about what they thought the likely characteristics of the average, new single-family detached home would be in 2015.

First, the typical size of new homes will continue to shrink, with respondents saying they expect homes to average 2,152 square feet. That is 10 percent smaller than the average size of single-family homes started in 2010. Census Bureau data shows that the average size peaked in 2007, at 2,521 square feet.

This decrease is likely influenced by economic hardship, with  consumers focusing on lowering the cost of heating and cooling their homes as well as no longer having a lot of equity in their current homes to finance purchasing a much larger one. An aging population — 29 percent of the U.S. population will be 55 and older in the year 2020 — will also increase demand for smaller homes as empty-nesters downsize into easier-to-manage properties.

A smaller home means the space must be better suited to modern lifestyles. Fifty-two percent of builders expect the living room to be merged with other spaces in the home by 2015 and 30 percent said it will vanish entirely. Respondents also expect the entry foyer and dining rooms to become smaller, or merge with other spaces. A great room comprised of the kitchen, foyer and living room is the most likely room to be included in the average new home. Some of the rooms least likely to be present include two master bedroom suites, a sunroom, a hobbies room, and a media room.   

Kitchens are also expected to become more functional. Double sinks, recessed lighting, table space for eating, a breakfast bar and pull-out drawers are the features most likely to be in the new home kitchen in 2015.

In addition to floor plan changes, it is expected that new homes in 2015 will include more green features and technology, including low-E windows; engineered wood beams, joists or tresses; water-efficient features such as dual-flush toilets or low-flow faucets; and an ENERGY STAR rating for the whole house.

Surprisingly, some new home features that have been popular in recent years are expected to lose favor with home buyers in the future. Less than a third of survey respondents said they thought more technology features, more universal features and more outdoor living features would be the first or second most probable trend.

To find out about trends in new homes in the Grand Traverse area, contact the Home Builders Association of the Grand Traverse Area at 231.946.2305 or visit their web site at www.hbagta.com .

Single-Family Housing Starts, Permits Rise in October

WASHINGTON, Nov. 17 - Single-family housing starts rose 3.9 percent to a seasonally adjusted annual rate of 430,000 units in October, according to newly released data from the U.S. Commerce Department. This improvement was somewhat masked by an 8.3 percent decline in multifamily starts that kept the combined number for nationwide housing production virtually flat at 628,000 units in October. Meanwhile, single-family permits also posted a measurable gain of 5.1 percent to 434,000 units in the latest report, which is their fastest pace since December of 2010.

"The government's numbers for October housing production are very much in keeping with what home builders have been telling us in our recent surveys," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "While we still have a long way to go toward a recovery, some signs of hope are emerging in certain markets where economic and job growth is occurring and where foreclosures have not been an overwhelming obstacle."

"The three-month moving averages for both housing production and permitting activity have been gradually rising since this spring, which is consistent with our forecast for slow improvement in market conditions through the end of this year and a positive sign that a more solid recovery will begin to take hold in 2012," said NAHB Chief Economist David Crowe. "That said, the improvements we are seeing are still limited to scattered local markets where economies are improving, and obstacles such as tight credit conditions for builders and buyers, appraisal issues stemming from new homes being compared to distressed properties, and consumer concerns about job security are definitely slowing the progression of both a housing and economic recovery."

While combined housing starts in October declined by a barely perceptible 0.3 percent to a rate of 628,000 units, the single-family sector posted a 3.9 percent gain to 430,000 units. Meanwhile, the more volatile multifamily sector posted an 8.3 percent decline to 198,000 units following an unsustainably large gain in the previous month.

Combined starts activity was up in three out of four regions in October. Gains of 17.2 percent, 9.7 percent and 1.6 percent were registered in the Northeast, Midwest and South, respectively, while the West posted a 16.5 percent decline.

Permit issuance, which can be an indicator of future building activity, rose 10.9 percent to a seasonally adjusted annual rate of 653,000 units in October on gains in both the single- and multifamily sides. Single-family housing permits rose 5.1 percent to 434,000 units - their highest level since December of 2010 - while multifamily permits rose 24.4 percent to 219,000 units - their highest level since October of 2008.

On a regional basis, combined permitting activity was down 1.6 percent in the Northeast and 3.7 percent in the Midwest, but up 21.5 percent in the South and 5.4 percent in the West.

As More Markets Stabilize, Housing Affordability Hovers Near Record Levels for 10th Consecutive Quarter

WASHINGTON, November 17 - Buoyed by stabilizing home prices and sustained low interest rates, nationwide housing affordability during the third quarter of 2011 hovered near its highest level in the more than 20 years it has been measured, according to National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI) data released today.

The HOI indicated that a near-record 72.9 percent of all new and existing homes sold in the third quarter of the year were affordable to families earning the national median income of $64,200. The affordability measure rose slightly from the 72.6 percent set last quarter and has remained above the 70 percent threshold for 11 consecutive quarters. The HOI rarely rose above 60 percent prior to this period.

"With interest rates at historically low levels and markets across the country beginning to improve, homeownership is within reach of more households than it has been for nearly two decades," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "However, tough economic conditions -- particularly in markets that experienced major changes in house prices and production -- as well as extremely tight credit conditions confronting home buyers and builders continue to remain significant obstacles to many potential home sales."

Lakeland-Winter Haven, Fla., was the most affordable major housing market in the country during the third quarter of the year. In Lakeland, 92.5 percent of all homes sold were affordable to households earning the area's median family income of $53,800.

Other major metro housing markets ranking near the top of the index were Toledo, Ohio; Youngstown-Warren-Boardman, Ohio-Pa.; Indianapolis-Carmel, Ind.; and Ogden-Clearfield, Utah, respectively.

Among smaller housing markets, the most affordable was Fairbanks, Alaska, where 97.8 percent of homes sold during the third quarter of 2011 were affordable to families earning a median income of $91,700. Also ranking near the top were Kokomo, Ind.; Cumberland, Md.-W.Va.; Davenport-Moline-Rock Island, Iowa-Ill.; and Lima, Ohio.

New York-White Plains-Wayne, N.Y.-N.J., led the nation as the least affordable major housing market during the third quarter of 2011. In New York, 23.3 percent of all homes sold during the quarter were affordable to those earning the area's median income of $67,400. The New York metropolitan division has held the least affordable market position for the last 14 quarters.

Other major metro areas near the bottom of the affordability index included San Francisco-San Mateo-Redwood City, Calif.; Honolulu; Santa Ana-Anaheim-Irvine, Calif.; and Los Angeles-Long Beach-Glendale, Calif., respectively.

Ocean City, N.J., where 41.7 percent of the homes were affordable to families earning the median income of $70,100, was the least affordable of the smaller metro housing markets in the country during the third quarter. Other small metro areas ranking near the bottom included Santa Cruz-Watsonville, Calif.; San Luis Obispo-Paso Robles, Calif.; Santa Barbara-Santa Maria-Goleta, Calif.; and Brownsville-Harlingen, Texas.

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

EDITOR'S NOTE: The NAHB/Wells Fargo HOI is a measure of the percentage of homes sold in a given area that are affordable to families earning that area's median income during a specific quarter. Prices of new and existing homes sold are collected from actual court records by First American Real Estate Solutions, a marketing company. Mortgage financing conditions incorporate interest rates on fixed- and adjustable-rate loans reported by the Federal Housing Finance Board.

The NAHB/Wells Fargo Housing Opportunity Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public.

New Exhibits, Latest Education Tracks To Be Unveiled At International Builders' Show

WASHINGTON, Nov. 21 - Excitement is building for the National Association of Home Builders' 2012 International Builders' Show (IBS) Feb. 8-11 as planners report pre-registration figures up nearly a quarter over this time last year and dozens of exhibitors have snapped up remaining booths in the last two weeks.

The Orange County Convention Center in Orlando, Fla., will be packed with IBS events featuring expert speakers, opportunities for networking and entertainment, nearly 175 outstanding education sessions, home tours and more than 700 exhibitors with the products and services that make it the largest light commercial construction show in the world.

Home builders, remodelers, designers, architects and developers will fill the classrooms and trade show floor to learn about and examine the latest energy-efficient appliances and insulation products, technical improvement and innovation in roofing, decking and other building supplies, new design trends for the kitchen, bath and outdoor living areas--and everything in between.

"I do about 10 shows a year, but if you said to me I could only do one, it would be this one," said Brian Stowell, president of Crown Point Cabinetry in Claremont, N.H. The company is exhibiting at the International Builders' Show for the third year in a row. In a still struggling housing market, "unless you are there, you are not going to be in front of the people who are doing the jobs," he said.

They will also gain a better understanding of the country's economic outlook at a special presentation by Federal Reserve Chair Ben Bernanke open to all credentialed attendees on Feb. 10.

Thirteen tracks of education--from "Remodeling" and "Green Building and Sustainability" to "Business Opportunities and New Markets"--offer a wealth of information to professionals in all segments of the industry. Sessions detail tools for innovative project financing in a tough lending market, social media tactics specific to new home buyers and other effective marketing tactics, advanced framing techniques, consumer preference surveys for the 50+ buyer--and more.

"Outstanding networking opportunities, special displays and product information for niche markets such as universal design and custom building, and the signature educational events that only NAHB can provide--each of those is reason enough to make plans to attend the International Builders' Show," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev.

Highlights of the opening ceremonies include appearances by hiker Aron Ralston, who survived a harrowing trip through a remote Utah canyon that is retold in the movie 127 Hours, and magicians Penn & Teller.

"I encourage all my home building industry colleagues to visit the Show website at www.buildersshow.com for registration information and a preview of the many activities and events we have planned--and I hope to see you at the International Builders' Show," he said.

Charitable Gifts Offer Special Benefits Now

People frequently give to charitable organizations because they believe in the cause or want to support its mission or values.  However, now through December 31, 2011, donors may give to the causes they care about most and take advantage of a special Michigan Tax Credit.

Gifts made before year-end to Community Foundation endowments, homeless shelters food banks, and to public entities (such as state universities, public broadcasting stations, public libraries, and the state museum) are eligible.

A gift to the Home Builders Association of the Grand Traverse Area Scholarship Endowment at the Community Foundation qualifies for this special credit.  If you wish to make such a contribution that will support the HBA Scholarship fund and afford you an attractive tax credit, click on the following link:  http://www.gtrcf.org/Funds/index.cfm?Fuseaction=record&FundID=928.

To find out more, consult your tax advisor or visit the Grand Traverse Regional Community Foundation website at www.4good4ever.org.

WASHINGTON, Nov. 16 - Builder confidence in the market for newly built, single-family homes rose by three points to 20 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) for November, released today. The gain builds on a revised three-point increase in October, and brings the confidence gauge to its highest level since May of 2010.
"While this second solid monthly gain on the builder confidence scale is encouraging, the overall measure remains quite low due to the many challenges that home building continues to face with regard to the high number of foreclosures, the difficulties of obtaining construction financing and accurate appraisals, and the restrictive lending environment that is discouraging potential buyers," said Bob Nielsen, NAHB Chairman and a home builder from Reno, Nev. "These problems must be addressed so that housing can contribute to economic and job growth the way it has in the past."

"This second consecutive gain in the HMI is evidence that well-qualified buyers in select areas are being tempted back into the market by today's extremely favorable mortgage rates and prices," said NAHB Chief Economist David Crowe. "We are anticipating further, gradual gains in the builder confidence gauge heading into 2012 due to these pockets of improving conditions that are slowly spreading."

Derived from a monthly survey that NAHB has been conducting for more than 20 years, the NAHB/Wells Fargo Housing Market Index gauges builder perceptions of current single-family home sales and sales expectations for the next six months as "good," "fair" or "poor." The survey also asks builders to rate traffic of prospective buyers as "high to very high," "average" or "low to very low." Scores from each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor.

Each of the HMI's three component indexes continued to build on gains registered in the previous month in November. The component gauging current sales conditions rose three points to 20 - its highest level since May 2010 - while the component gauging future sales expectations rose two points to 25 - its highest level since March of 2011. The component gauging traffic of prospective buyers rose one point to 15, which was its highest point since May of 2010.

The HMI rose in three out of four regions in November, with a three-point gain to 17 registered in the Northeast, an eight-point gain to 23 registered in the Midwest, and a two-point gain to 21 registered in the South. After posting a big increase in October, the West returned to trend this month with a six-point decline to 15.

Editor's Note: The NAHB/Wells Fargo Housing Market Index is strictly the product of NAHB Economics, and is not seen or influenced by any outside party prior to being released to the public. HMI tables can be found at www.nahb.org/hmi. More information on housing statistics is also available at www.housingeconomics.com.

Statement from NAHB Chairman Bob Nielsen on the Need to Reinstate Loan Limits

WASHINGTON, Nov. 15 - Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev., issued the following statement regarding the need for Congress to pass legislation to reinstate the higher loan limits for the Federal Housing Administration that expired on Sept. 30:

"Legislation pending in the House and Senate will restore the higher mortgage loan limits for the Federal Housing Administration and is essential to help stabilize the nation's housing financial markets.

"The FHA program is fully self-supporting, and a great example of a public-private partnership with lending institutions. Restoring the loan limits will provide millions of potential consumers in markets throughout the nation access to safe, affordable mortgage financing.

"To help mend the struggling housing market, stabilize home values, provide constancy while private investors re-enter the market and ensure that millions of creditworthy home borrowers can access the best possible mortgage rates, Congress must support this bill to help American families and get the lackluster economy moving forward."

John Courson Named President and CEO of Home Builders Institute

WASHINGTON, Nov. 8 - John A. Courson, an established housing industry executive who most recently served as the president and chief executive officer of the Mortgage Bankers Association (MBA), has been tapped to become the new president and chief executive officer of the Home Builders Institute (HBI).

HBI is the non-profit workforce development arm of the 160,000-member National Association of Home Builders (NAHB). Courson will be replacing longtime HBI president and chief executive officer Frederick Humphreys, who is retiring at the end of this year after leading the organization for 11 years.

"HBI will benefit tremendously from having a leader with John's outstanding credentials at the helm," said Donald Pratt, 2011 chairman of the HBI Board of Trustees. "His solid understanding of non-profit associations, entrepreneurial spirit, expertise in strategic planning, and passion for the housing industry will be incredible assets for HBI. John's skills will help to further HBI's 40-plus year mission to prepare youth and adults for careers in the residential construction industry."

Courson is a nationally recognized housing industry spokesperson and government affairs expert who served as MBA's president and CEO from 2008-2011. His initial priorities at HBI will be to identify new revenue streams and create new programs that build on HBI's core competencies, such as training, mentoring, curriculum development and job placement services.

"John Courson is the right man for the job," said National Association of Home Builders Chairman Bob Nielsen. "He's a recognized and respected force in the building industry who has the talent and energy required to bring HBI to the next level of success. These characteristics are especially important at a time when major changes are occurring in the marketplace with regard to the availability of government funding opportunities and other evolving conditions."

"I look forward to the opportunity to help HBI successfully meet the challenges that it faces in the current and future marketplace," said Courson. "I can't think of a more important goal than ensuring that this highly respected organization continues to thrive and grow while preparing tomorrow's workforce to meet the needs of an increasingly sophisticated and quality-driven home building industry."

In addition to serving as president and CEO of the national MBA, Courson was its MBA's elected chairman in 2003 and has served as a past president of the California, Dallas and Michigan Mortgage Bankers Associations. He has also served at the head of three different mortgage companies, Central Pacific Mortgage Company in Folsom, Calif., Fundamental Mortgage Corp. and Westwood Mortgage Corp. (formerly Fort Wayne Mortgage Co.), both in Texas. From 2004-2008, he was chairman of the California Housing Finance Agency, a position to which he was appointed by then-governor Arnold Schwarzenegger. Courson also has a participated in international housing initiatives led by the White House and the U.S. Treasury Department.

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About HBI: Home Builders Institute (HBI) is the 501(c)3 affiliate of the National Association of Home Builders (NAHB) that provides training, mentoring, curriculum development and job placement services in support of the housing industry. As the workforce development arm of NAHB, HBI has prepared youth and adults for residential construction careers for more than 40 years. For more information, please visit www.hbi.org.

ABOUT NAHB: The National Association of Home Builders is a Washington-based trade association representing more than 160,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. NAHB is affiliated with 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the new housing units projected for this year.

Congress must act to reinstate the higher conforming loan limits that expired on Sept. 30

To help mend the struggling housing market, provide affordable mortgages for creditworthy home buyers and stabilize home values, which are all critical to creating jobs and helping the sputtering economy, .

The Senate has already approved a plan to reinstate and extend the higher loan limits for an additional two years. In light of the continuing weakness in the overall housing market, it is incumbent upon the House  to follow suit to ensure that millions of homes will still be eligible for Fannie Mae, Freddie Mac and FHA funding.

Last month, the national ceiling for mortgages securitized by Fannie Mae and Freddie Mac or insured by the FHA dropped from $729,750 to $625,500 and the formula for establishing area loan limits became more restrictive, producing decreases in more than 650 counties in 42 states in addition to those bound by the national ceiling.

This ripple effect means that millions of homes nationwide, including a substantial number in our local community, are now ineligible for Fannie Mae, Freddie Mac and FHA funding. In order to obtain a home loan, buyers will be subject to higher mortgages interest rates, fees and downpayments and more stringent credit standards.

Restoring the higher loan limits will provide home owners and home buyers with safe and affordable financing while providing a much-needed boost to housing markets all around the country.

If the House fails to act, the results could prove catastrophic for our local and national economy. The current drop in mortgage loan limits will reduce housing demand and place downward pressure on home prices in our local market and other areas across the nation. In turn, this will trigger more foreclosures, impede job creation and cause the fragile economy to backslide into recession.

The stakes could not be higher. At a time when stabilizing home values is vital to bolster household wealth, spur job growth and get the flagging economy moving forward, the House must act responsibly and reinstate the higher loan limits.

House Price Estimator Shows Value of Homes'Physical Features, Neighborhood Characteristics

WASHINGTON, Nov. 7--According to an online house price estimator and economic model just updated by the National Association of Home Builders (NAHB), a third full bathroom is the one feature that can have the greatest impact on the value of a standard new single-family detached house in a Southern suburb, increasing the estimated price by about $43,000.

The estimator enables builders, developers, prospective home buyers and home owners to see the impact that various physical features might have on the price of a home.

"In an economic environment where consumers are particularly price-and value-conscious, this is an important resource for assessing key features and characteristics that help determine housing prices," said NAHB Chairman Bob Nielsen, a home builder from Reno. Nev.

"To get the most out of the estimator, those using it need to understand that the nation's housing marketplace is actually comprised of thousands of local markets and submarkets, with their own dynamics," he said.

The estimator "shows what households are looking for in their homes and zeroes in on basic factors that enable Americans to shape and improve their lives through their individual housing choices," Nielsen said.

Looking broadly at the four principal Census regions of the country and the urban status of areas - central city, suburb or non-metro - the estimator finds a general tendency for house prices to be higher in the Northeast and West, as well as in central cities and suburbs.

The price tends to be lowest for homes built outside of a metro area, although some regional variation exists regardless of urban status.

The model estimates that the standard new home will cost more than $500,000 if it's built in a suburb of one of the large metro areas in California, but only about $155,000 if it is located outside of a metropolitan area in the Midwest region.

The standard new single-family detached home is defined by features based primarily on averages or medians from the Census Bureau's Survey of Construction. Among those features: the home has 2,150 square feet of living space, two full bathrooms and one half bath, three bedrooms, a garage, central air conditioning, a fireplace, a separate dining room and three miscellaneous rooms. The home is also in a neighborhood where satisfactory shopping (such as grocery or drug stores) is available within 15 minutes.

In general, the estimator finds that suburbs show higher prices than their companion central cities, which include the areas inside the city limits and not just a central business district or downtown area.

"Because the model uses data from the Census Bureau's American Housing Survey, which contains somewhat limited geographical detail, the results show averages across a broad region rather than estimates for a particular house in a specific location," said Paul Emrath, NAHB's vice president for survey and housing policy research.

"The model captures the impact of various features in considerable detail, but no model or data base can capture all the features that influence house prices," he said. "For that reason, a home owner shouldn't think that the addition of a certain feature will necessarily increase the cost of their home by the amount specified by the estimator."

The price estimator, which can be accessed on computers with Microsoft Excel, can be useful in a variety of settings, he said. Possible uses include: helping builders determine if the cost of providing a particular amenity will be valued by consumers, giving prospective home buyers a rough idea of likely price differences for various home sizes and amenity packages, enabling customers of remodelers to approximate how much a job would add to the value of their home and helping developers price neighborhood characteristics to evaluate the desirability of potential building sites.

The economic model for the price estimator shows that with no modification, the estimated average price of the standard new home in a Southern suburb is $203,874. Moving that home to an otherwise similar neighborhood on the waterfront increases its estimated price by nearly $90,000. And proximity to adequate public transportation raises the estimated price by about $26,000.

Other neighborhood features, the model finds, can reduce the price of the home. The presence of an abandoned building within half a block, for instance, reduces the estimated price of the standard new home in a Southern suburb by about $28,000. Bad roads, odors, lack of adequate shopping, buildings with metal bars on their windows and litter each reduce the estimated price by more than $6,000.

Looking at the physical features of the home, adding 500 square feet of living space with no other changes increases the estimated price of that home by roughly $13,000. Adding another bedroom or miscellaneous room increases the estimated price by less than $10,000. Eliminating the fireplace reduces the estimated price by about $24,000.

NAHB's Single-Family Detached House Price Estimator can be found on NAHB's website at: www.nahb.org/housepriceestimator.

To run the estimator, Microsoft Excel's security setting must be adjusted to allow macros to run. For those who encounter trouble getting the estimator to run initially, NAHB suggests that they try accessing it from a different computer with a different browser.

A special study from NAHB Housing Economics - "NAHB House Price Estimator Updated" - is available at: www.nahb.org/updatedestimator.

IMPROVING MARKETS INDEX EXPANDS TO 30 METROS IN NOVEMBER

WASHINGTON, Nov. 7 - The number of improving housing markets continued to expand for a third consecutive month in November, rising from 23 to 30 on the latest National Association of Home Builders/First American Improving Markets Index (IMI), released today. The list dropped two metros and added nine new ones - Cheyenne, Wyo.; Corpus Christi, Tex.; Davenport, Iowa.; Fort Collins, Colo.; Hinesville, Ga.; Lima, Ohio; Monroe, La.; Tyler, Tex.; and Williamsport, Pa.

The index identifies metropolitan areas that have shown improvement for at least six months in housing permits, employment and housing prices. The following metros were listed in November:

Alexandria, LA

Amarillo, TX

Anchorage, AK

Bismarck, ND

Casper, WY

Cheyenne, WY

Corpus Christi, TX

Davenport, IA

Fairbanks, AK

Fayetteville, NC

Fort Collins, CO

Hinesville, GA

Houma, LA

Jonesboro, AR

Kankakee, IL

Lima, OH

McAllen, TX

Midland, TX

Monroe, LA

New Orleans, LA

Odessa, TX

Pine Bluff, AR

Pittsburgh, PA

Sherman, TX

Sumter, SC

Tyler, TX

Waco, TX

Waterloo, IA

Williamsport, PA

Winston-Salem, NC

"Texas continues to dominate the list of improving housing markets in November, increasing its net number of entries to eight and continuing a trend in which energy-producing metros seem to be doing better than the average," said NAHB Chairman Bob Nielsen, a home builder from Reno, Nev. "Meanwhile, the geographic diversity of metros also continued to expand this month, with the states of Colorado, Georgia and Ohio all represented for the first time. This is further evidence that all housing markets are uniquely dependent upon local conditions, and some are leading the way toward an eventual, broader recovery."

"The November IMI remains heavily weighted by smaller cities, with Pittsburgh and New Orleans as the only major metros represented," said NAHB Chief Economist David Crowe. "This is indicative of the tough conditions that continue to prevail across much of the country, particularly in larger markets that have been hit hardest by job losses and foreclosures during the recession and that will take more time to heal. However, momentum is building in pockets of the country where energy and agriculture are the dominant industries and where consistent, measurable improvements in economic conditions are now becoming apparent."

The two metros that dropped off of the improving markets list in November were Iowa City and Wichita Falls. These metros experienced declines in their employment and permit data, respectively.

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three areas for at least six months following their respective troughs before being included on the improving markets list.

Please visit www.nahb.org/imi for additional data, tables and a list of 2011 future economic release dates.

Editor's Note: The NAHB/First American Improving Markets Index (IMI) is released on the fourth business day of each month at 10:00 a.m. ET, unless that day falls on a Friday - in which case, the index will be released the following Monday. A full calendar of 2011 release dates can be found at www.nahb.org/imi.

Keeping in Touch: Smart Sales Tools for Smart Phones

Reposted from BuilderRadio.com

Posted by Administrator on November 6, 2011 · Leave a Comment

Podcast: Play in new window | Download

We speak with Charles Bevier, Bevier Creative

It’s become the indispensable most indispensable tool for today’s sales professional. Every one of us has one in our pocket, purse or on our hip.
Whether your flavor is Android, Blackberry, iPhone or one of a dozen others, you don’t want to be caught without your smart phone.

Now a new free service from Google, Google Voice, makes your smart phone – in fact, every phone you have – even smarter. It coordinates and manages all your separate phone numbers in one location, and routes specific callers to the phone or voice mail you choose. Communications expert, Charles Bevier, of Bevier Creative, explains why Google Voice is a salesperson’s best friend in this week’s interview. Listen to the audio of this week’s program as you review my notes below:

Google Voice features:

• Use your existing phone as your primary Google phone or get a free number from Google.
• Route specific callers to a specific phone.
• Personalize greetings per caller
• Announce and/or screen callers – listen to messages or calls before taking them
• Block calls from specific callers
• Send, receive, store and search SMS text messages
• Text-to-voice, voice-to-text messages
• Store and search voice messages
• Receive text or email notifications when you receive a call or voice mail
• Forward voice mails to others on your team
• Conference calling from any phone, including your cell phone, with unlimited participants
• Digitally record phone conversations
• Switch phones mid-call, i.e. office phone to cell phone

Putting Google Voice to work
Do you have a client who’s call you absolutely don’t want to miss? You can set up Google Voice to recognize that persons phone number or numbers and automatically ring as many of your phones as you want simultaneously. You can set up other callers to go directly to voice mail.

Using a service like Google Voice makes it that much easier to keep in touch with prospects and buyers, giving them the instantaneous service that they expect and that wins more business. It also allows you to compile all voice mails and communications, even those made from different phones and devices, in one convenient location, and to store those for retrieval over many months.

Protect your privacy.
Being the techno-savvy sales and marketing pros we are, we like to keep up with the latest tools. So about every two years we’re apt to upgrade our cell phones. But when you do, warns Bevier, make sure you’re not giving your personal information to identity thieves.
“Cell phones today are being used like mini-computers to store all kinds of data, including contact information, emails, photos, videos, notes and more. This information is stored on the phone’s memory or SIM card. But even if you erase the data, there is software that identity thieves can use to restore it. So, when selling recycling or donating your old cell phones, contact your phone manufacturer to get their recommendations on permanently deleting or overwriting the data. Or, you can take your SIM card with you for use in your new phone, or destroy it so that it can’t be accessed.”
Bevier recommends visiting www.ReCellular.com for tips on making sure all your data is cleaned off of your old phone before you let go of it. They even offer free software that will wipe your phone’s memory completely and permanently.

Media Advisory: NAHB to Host Media Teleconference on the Need to Raise Conforming Loan Limits

November 7, 2011 - The National Association of Home Builders (NAHB) will host a media teleconference tomorrow to discuss the need for Congress to support the extension of higher loan limits for the GSEs and FHA.


WHEN:

Tuesday, Nov. 8, 2011

2:00 p.m. ET

WHAT:

The Senate recently passed a bill to reinstate higher loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration that expired on Sept. 30. The limits were raised to a level where they are now usable to those in higher priced markets throughout the country. While the Senate has acted to prevent causing further damage to the local housing markets in the U.S., The House of Representatives has yet to take action on this important issue.

NAHB will host a media teleconference on Tuesday to discuss the importance of Congress ensuring that this measure is enacted into law. NAHB tax expert, Robert Dietz, will break down the data to look at the impact of lower GSE and FHA loan limits by county. He will discuss the spillover effect of home buyers in all price brackets, and how the lower limits place downward pressure on home prices in major markets. Jim Tobin, NAHB Chief Lobbyist will explain the political implications of the lower loan limits and the impact on a housing recovery.

Media participants will have the opportunity to ask questions at the conclusion of the call. To ask a question during the Q&A portion of the call, please dial *1 on your phone to be entered into the phone queue.

WHO:

· Jim Tobin, Chief Lobbyist, NAHB

· Robert Dietz, Assistant Vice President, Tax and Policy Issues, NAHB



TO PARTICIPATE:

Please dial 1-888-283-6901 or 1-719-234-0008 (International Participants). Please let the operator know that you are joining the "NAHB/Conforming Loan Limits Call" and provide them with the access code code 4718988.

NAHB URGES CONGRESS TO RESTORE HIGHER LOAN LIMITS

To help mend the struggling housing market, provide affordable mortgages for creditworthy home buyers and stabilize home values, which are all critical to creating jobs and helping the sputtering economy, Congress must act to reinstate the higher conforming loan limits that expired on Sept. 30.

The Senate has already approved a plan to reinstate and extend the higher loan limits for an additional two years. In light of the continuing weakness in the overall housing market, it is incumbent upon the House  to follow suit to ensure that millions of homes will still be eligible for Fannie Mae, Freddie Mac and FHA funding.

Last month, the national ceiling for mortgages securitized by Fannie Mae and Freddie Mac or insured by the FHA dropped from $729,750 to $625,500 and the formula for establishing area loan limits became more restrictive, producing decreases in more than 650 counties in 42 states in addition to those bound by the national ceiling.

This ripple effect means that millions of homes nationwide, including a substantial number in our local community, are now ineligible for Fannie Mae, Freddie Mac and FHA funding. In order to obtain a home loan, buyers will be subject to higher mortgages interest rates, fees and downpayments and more stringent credit standards.

Restoring the higher loan limits will provide home owners and home buyers with safe and affordable financing while providing a much-needed boost to housing markets all around the country.

If the House fails to act, the results could prove catastrophic for our local and national economy. The current drop in mortgage loan limits will reduce housing demand and place downward pressure on home prices in our local market and other areas across the nation. In turn, this will trigger more foreclosures, impede job creation and cause the fragile economy to backslide into recession.

The stakes could not be higher. At a time when stabilizing home values is vital to bolster household wealth, spur job growth and get the flagging economy moving forward, the House must act responsibly and reinstate the higher loan limits.

WHAT TO DO TO SELL MORE CONSTRUCTION SERVICES?

What to Do to Sell More Construction Services?

by Ted Garrison

During seminars, I usually refer to the need for contractors to focus on value, instead of attempting to compete on price. When you compete on value, you are able to use your innovation, which allows you to differentiate your services from that of the competition. When the construction industry competes on price, it is competing as a commodity. It doesn’t matter that you don’t think what you offer is a commodity or, in fact, that it isn’t a commodity; if the owner is purchasing your service based on price, he thinks your product is a commodity and that is all that matters.

However, this position often causes a considerable amount of pushback from seminar attendees. They argue that prospects typically care about only price. I try to explain that what they must to do is educate the prospect. Their response to that is they don’t want to listen. My answer is you are talking to the wrong people.

A recent study by the Corporate Executive Board Sales Executive Council found that many traditional sales beliefs are invalid. Their study found that most salespeople fell into one of five categories:

The hard worker (21%)

The relationship builder (21%)

The challenger (27%)

The lone wolf (18%)

The problem solver (13%)

There is nothing new about that list, but what is interesting is which style is the most effective. We often hear that we need to build relationships with clients. You need to send the message that you are here to makes things happen. What may surprise many is that this group had the worst results with only 7 percent of those using this style being classified as star performers.

Professor Dean Kashiwagi at the Performance Based Studies Research Group at Arizona State University advises clients not to select contractors based on relationships. Of course, if you work with someone and he or she does a good job, it’s only natural to develop a strong working relationship based on common goals, collaboration and performance. What contractors should avoid is trying to build relationships based on social interaction. This conclusion isn’t unique to Kashiwagi. In earlier Garrison Reports, I’ve discussed how Stephen Covey and Russell White have both emphasized the importance of performance, instead of favors.

In the 1990s partnering developed a bad name in the construction industry. Clive Thomas Cain, in Profitable Partnering for Lean Construction, explained the reason for that problem. Partnering in the construction industry, he wrote, should be on the supply side of the supply chain, not on the demand side. Partnering on the supply side allows contractors, designers and vendors to work together over many projects to improve their processes to eliminate waste and problems. Since most clients have a limited number of projects, it’s difficult at best to develop a true partnering process with the construction team. Attempting to partner with a client can result in establishing false expectations and end with undelivered expectations from the client’s perspective.

Largely this approach has a fundamental flaw because despite the fact the relationship builders build strong personal relationships by being likable and generous with their time, they are in the reactive mode. In this mode the client takes the lead and contractor responds to the client’s needs. If the construction team represents the experts, wouldn’t it be better if the experts led the process?

The contractor needs to coach and advise its prospects on how to create a better solution for their construction-related capital investments. To win these debates requires dominant proof of performance. Only by having consistent provable performance in the past can owners reasonably anticipate similar performance from that contractor in the future.

Of course, prospects may be uncomfortable with this approach at first, but the challenger has the ability to be both assertive and maintain control over the process without being overly aggressive, annoying or abusive. The contractor needs to stand firm when the client pushes back. However, when the challenger can address the prospect’s needs from the prospect’s perspective and provide dominant proof of the past results in similar situations, prospects begin to look at the contractor in a different way.

To learn more about a value-based approach on your projects to ensure superior value and performance, go to www.TedGarrison.com/best-value-model.

 "Ted Garrison, president of Garrison Associates, is a catalyst for change. As a consultant, author and speaker he provides breakthrough strategies for the construction industry by focusing on critical issues in leadership, project management, strategic thinking, strategic alliances and marketing. Contact Ted at 800-861-0874 or Growing@TedGarrison.com. Further information can be found at www.TedGarrison.com."

“CAN”struction Competition January 28, 2012

TRAVERSE CITY, MI – October 26, 2011 – The Father Fred Foundation in conjunction with our local chapter of the American Institute of Architects (AIA) is calling for teams of 5 or more individuals to register now to participate in the 1^st Annual Traverse City Canstruction Competition January 28, 2012. 

The competition challenge is to make a free standing sculpture comprised entirely of canned food products.  Entries will be judged based on 6 categories of performance with the winners of each category going on to national competition via photo documentation.  All of the food used in the competition will be directed to the Father Fred food pantry.     

 Awards Categories:

·         Best Meal          

·         Best Use of Labels

·         Structural Ingenuity

·         Jurors’ Favorite

·         Honorable Mentions

·         People’s Choice

Teams will be comprised of at least 5 individuals with a minimum of one design professional, a corporate or individual sponsor and at least one student.  Design professionals could include engineers, interior designers, architects, graphic designers, and artists consulting to the design industry.  An example of a student team member might be a single student or an entire art, science or engineering class, an eagle scout, a student senate member, a church group, a club or sports team.

Corporate Sponsors will help purchase the cans of food and any construction materials needed for each sculpture and will have naming rights for each team.   Multiple sponsors may be required for some teams.  Organizers estimate that the cost of the building materials (cans of food) for each sculpture will typically range from $1,000 to $2,000 depending on the complexity and size of each design.  Teams may pool their purchasing to maximize the impact of each dollar.  

Team registration can be done by e mailing an expression of interest to David Abeel at dabeel@fatherfred.org or by calling 947-2055 ext 18.  An initial meeting of all interested parties will be held in early November to clarify ground rules, talk about collective food purchases and to do other logistical problem solving.   

Need Help Forming a Team?  Individuals or partial teams who are unable to field a complete team should contact Sue Bauer, at Father Fred’s for a possible match up with a corporate sponsor, other individuals or partial teams. Call Sue at 947-2055 ext 34 or email her at sbauer@fatherfred.org. 

“I am so excited to get the architects, engineers, builders, students, and other design professionals together for this fund raiser; they are all so creative,”  said Sarah Bourgeois, AIA Northern Michigan Chapter President.  “We will bring our expertise of everyday responsibilities to the team: such as design aesthetics, project coordination, structural integrity, budget issues and feasibility. It’s a great opportunity for us to give back.”

“This is our first year of organizing a competition, said David Abeel, Director of Development.  “The amount of creativity and engineering other Canstruction competitions around the country are showing is amazing.  We hope interested parties will visit Canstruction.com and view the photo gallery to get an idea of just how colorful, creative and fascinating entries from around the country have become.  One unique thing about the Traverse City version of this competition is the requirement that each team have at least one student involved.   We think this is a great “teachable” moment.  Each project will involve art, design, engineering, searching for the right canned products at the right price, budgeting, considering what goes into a healthy meal, and how to assemble the final sculpture on a time line.  The fact all of these food items will be providing meals for local families that are struggling makes this a win-win for the whole community.”