April 2024
New Home Sales Hold Steady in February
A small rise in mortgage rates in February led to a flat reading for new home sales. Sales of newly built, single-family homes in February edged 0.3% lower to a 662,000 seasonally adjusted annual rate, according to recent data from HUD and the U.S. Census Bureau. The pace of new home sales in February is up 5.9% from a year earlier. Mortgage rates averaged 6.78% in February compared to 6.64% in January, according to Freddie Mac. A new home sale occurs when a sales contract is signed, or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the February reading of 662,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory in February remained elevated at a level of 463,000, up 1.3% from January. This represents an 8.4 months’ supply at the current building pace. A measure near a 6 months’ supply is considered balanced. However, with only a 2.9 months’ supply of existing homes for sale, new home inventory can remain above this balanced measure. The median new home sale price in February was $400,500, edging down 3.5% from January, and down 7.6% compared to a year ago. Regionally, on a year-to-date basis, new home sales are up 47.0% in the Northeast, 29.7% in the Midwest and 41.0% in the West. New home sales are down 13.4% in the South.
Congress Restores Job Corps Funds After Congress threatened to entirely eliminate the Job Corps program, lawmakers — thanks largely to the efforts of NAHB — have approved Job Corps funding for $1.76 billion, which maintains its fiscal 2023 funding level. House appropriators last summer proposed to abolish the Department of Labor’s Job Corps program as part of a 30% reduction to the agency’s fiscal year 2024 budget. NAHB has worked long and hard to secure proper Jobs Corps funding and this legislation represents a major win for our industry.
Job Growth Continues Strong According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 229,000 in January, following a gain of 290,000 jobs in December. Across the nation, construction sector jobs data, including residential and non-residential con- struction, showed that 32 states reported an increase in January compared to December, while 17 states lost construction sector jobs. Two states reported no change. Year over year, construction sector jobs in the United States increased by 218,000, which is a 2.8% increase compared to the January 2023 level.
NAHB announced the winners of the 2023 Best in American Living™ Awards (BALA) during the recent International Builders’ Show in Las Vegas. There were 135 platinum, gold and silver award winners, along with seven best in region winners and a WOW award winner. The awards are sponsored by SMEG. Among the winners: Home of the Year, The Burch Creek Home, South Ogden, Utah; Multifamily Community of the Year, Chronicle Mill, Belmont, N.C.; Remodel of the Year, Saguaro Serenity (see image, left), Tucson, Ariz.; Community of the Year, LC Germantown, Nashville, Tenn.; and Room of the Year, Island Breeze- Cabana, Sarasota, Fla. The WOW Award winner is The Viharas Villa Upekka, a single-family custom home in Malibu, Calif. Additional information about the BALA program, including information and images from the 2023 award winners, can be found at bestinamericanliving.com.
Check Out the Winners of the 2023 BALA Awards
Maxwelton (Greenbrier) Princeton (Mercer) Fayetteville (Fayette) Spencer (Roane) Parkersburg (Wood) Cottageville (Jackson) Buffalo (Putnam) Huntington (Cabell)
The announcement last week by the West Virginia Department of Economic Development adds a third district to Greater Charleston territory. Buffalo was designated a year ago. The program aims to assist West Virginia’s growing communities in attracting much needed housing development projects. The credit offers a State Sales and Use Tax exemption for building materials and a 10-year property value adjustment refundable tax credit to offset building costs. West Virginia is one of the fastest growing in-bound states, and the demand for new, residential properties has never been higher. Projects eligible for the BUILD WV Act will meet the following criteria: Be located in a certified BUILD WV District, as designated by the Secretaries of Commerce, Economic Development, and Tourism Generate approved costs in excess of $3,000,000 OR includes at least six residential units or houses Create a significant and positive economic impact on the state Will directly or indirectly improve opportunity in the area where the project will be located for the successful establishment or expansion of other commercial businesses Provide additional employment opportunities in the state Please readWV §5B-2L-16for the entire list of approval considerations
Huntington and Spencer Newest Designated Certified BUILD WV Districts
Weirton (Hancock) Wheeling (Ohio) Browns Mill (Preston) Davis (Tucker) Fabius (Hardy) Martinsburg (Berkeley) Franklin (Pendleton) Clover Lick (Pocahontas)
Jamie Burch has been named Exeutive Officer of Home Builders Association of West Virginia. Watch for communications from info@hbawv.org and confirm a safe sender. Welcome Jamie!
Now is the time to get on the schedule to host or sponsor membership events in 2025.
Matt Bonar, WesBanco Michael Pry, Basement Authority of WV Alicia Sanders, Lowe's South Charleston
54th
Exhibitors from 9 states 35 HBA Member Exhibitors Beautiful Landscaping 100 Free Lunches 350 Bird Houses Giveaways . . .GE Appliances, Builders FirstSource Kitchen, Tools, Gift Certificates . . . and more. Early Bird Registrations for 2025
Planning has begun for 2025 . . . April 4 - 5 - 6. Consider sponsorship and exhibiting in your 2025 budgets. The Exhibitor Guide will be mailed early November. Hope you will join us.
Our Thanks & Appreciation GE Ferguson Enterprises HD Media IKO Roofing Crede Lawn & Landscaping 84 Lumber Builders FirstSource
2024 Board of Directors Officers President - Welford Haines* Ferguson Enterprises Vice President - Zach Crede Crede Lawn & Landscaping Associate Vice President - Matt Aldridge* IKO Industries Treasurer - Jason Staats* Rollins, Cleavenger & Rollins CPAs Secretary - Barbara Rucker Summit Community Bank Builder Member-at-Large - John Lee Secure Construction Immediate Past President - Bob Ritenour* Bob's Basic System Directors Brad Cunic House Doctors Tim Cunningham* Cunningham Electrical Service Robert Dorsey* L.R. Dorsey Inc. Jack Grimm Garlow Insurance Cindy Hale* Nitro Carpet Outlet & Design Center Roger Harper 84 Lumber Shannon Hudnall Truist John Kopyscianski* Builders FirstSource Connie Marshall* Encova Insurance Steve Michael* Quality Construction Michael Moore Elk River Design Dale Oxley* Modern Home Concepts Greg Paxton* Mr. Handyman of Kanawha Valley Stephanie Ramsey TTLC Merchant Solutions J.D. Stricklen* Stricklen Realty Steve Zubrzycki East Coast Tees *Life Director Donna Crotty, Executive Officer
Upcoming Events May 14 Membership Mixer In Stitches Embroidery May 21 HBAGC Board Meeting June 13 Membership Bowling River Alley July 16 HBAGC Board Meeting August 20 Membership Mixer WesBanco September 17 HBAGC Board Meeting September 23 HBAGC Golf Tournament Sleepy Hollow Golf Club October TBD HBAGC Cruise-in Builders FirstSource November 5 HBAGC Membership Dinner Election of Officers Holiday Inn & Suites South Charleston November 19 HBAGC Board Meeting December 10 HBAGC Christmas Party Ferguson
Q1'24 Claim Deadline is Friday, May 17, 2024 Builder & Remodeler Members may claim manufacturer rebates for residential jobs completed between January 1 through March 31, 2024.
Differences Between Home Owner and Renter Wealth
Homeownership plays an integral role in a household’s accumulation of wealth. While almost every family owned some assets in 2022, home owners own the vast majority of assets in aggregate. Analysis of the Federal Reserve’s Survey of Consumer Finances (SCF) shows that house- holds that owned a primary residence own most other assets in sum, such as other residential real estate, vehicles, other non-financial assets, business interests, stocks and bonds, retirement accounts, and other financial assets. The analysis found that home owners had a median net worth of $396,000, while renters had the median net worth of just $10,400. Net worth, the measure of households’ wealth, is the difference between house- holds’ assets and liabilities. In aggregate, home owners owned 16 times more stocks and bonds than renters, and 15 times more business interests and retirement accounts than renters. On the debt side of home owners’ balance sheets, the value of the primary home mortgage debt was the largest liability faced by home owners. For renters, the value of credit card and installment debt was the largest liability in their debt category.