Building the Future of the Lowcountry
Anticipated Rate Cut Slows August New Home Sales
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IN THE NEWS
Fall 2024
Expectations of the Federal Reserve beginning the first in a series of rate reductions kept potential home buyers in a holding pattern in August. Sales of newly built, single- family homes in August fell 4.7% after an unusually strong July, according to newly released data from HUD and the U.S. Census Bureau. August new home sales registered a 716,000 seasonally adjusted annual rate, after an upwardly revised estimate of 751,000 for July. Despite the slip in August, the three-month moving average for new home sales is at its highest level since March of 2022. New home sales are up 4% on a year-to-date basis through August. A new home sale occurs when a sales contract is signed, or a deposit is accepted. The home can be in any stage of construct-
ion: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the August reading of 716,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory increased 1.7% to 467,000 in August, a 7.8 months’ supply at the current sales pace. Completed Completed, ready to occupy inventory increased to 105,000 homes, which is the highest level since 2009. Median new home price fell back to $420,600, down 4.6% from a year ago due to builder price incentives amid multi-decade highs for housing affordability challenges. The Census data reveals a gain for new home sales priced below $300,000, which made up 18% of new home sales in August compared to 12% a year ago. Regionally, on a year-to-date basis, new home sales are up in all four regions, rising 2.1% in the Northeast, 21.9% in the Mid- west, 0.8% in the South and 4.7% in the West.
Lowcountry Lighting Studios: Exploring Current Trends in Lighting and Finishes
Creating the perfect ambiance in your home involves more than just furniture and decor—lighting plays a pivotal role. Charleston residents are increasingly focusing on both the functionality and aesthetic appeal of their lighting choices, both indoors and outdoors. According to Erin Bassily, owner of Lowcountry Lighting Studio, the latest trends in lighting reflect this desire for beauty and practicality. Oversized fixtures are leading the trend, providing bold and impactful lighting solutions. Natural textures like alabaster, concrete, wicker, and hemp are popular choices, offering a timeless coastal look that complements Charleston’s environment. While brass was once a dominant finish, polished nickel has emerged as the favorite this year. Outdoor lighting in Charleston has evolved significantly, driven by the influx of new residents seeking to enjoy the coast's beauty. Bassily notes that today's outdoor lighting options go far beyond the basic ceiling fan. Materials that withstand the harsh coastal climate—such as composite materials—are preferred. Ornate hanging fixtures and wall sconces now grace outdoor spaces, creating environments that seamlessly extend the home’s interior ambiance outdoors. Modern ceiling fans, with sleek three-blade designs, are also gaining popularity, providing both style and essential functionality during hot Carolina summers. The team at Lowcountry Lighting Studio, led by Bassily, is dedicated to helping clients achieve a cohesive and functional lighting scheme. Their expertise ensures that each fixture not only illuminates but also enhances the beauty and comfort of your home. Whether you’re building your dream home or renovating an existing space, Bassily and her team are ready to light the way to your perfect sanctuary.
New Cost of Housing Index A new quarterly Cost of Housing Index unveiled recently by NAHB and Wells Fargo underscores the housing affordability crisis in America by revealing that in the first quarter of 2024, 38% of a typical family’s income was needed to make a mortgage payment on a median priced new single-family home in the United States. Low-income families, defined as those earning only 50% of the area’s median income, would have to spend 77% of their earnings to pay for the same new home. HUD defines cost-burdened families as those “who pay more than 30% of their income for housing†and a severe cost burden is defined as paying more than 50% of one’s income on housing.
Multifamily Confidence Declines Confidence in the market for new multi- family housing declined year-over-year in the first quarter of 2024, according to results from NAHB's Multifamily Market Survey (MMS), released in May. The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 47, down three points year-over-year, while the Multifamily Occupancy Index (MOI) had a reading of 83, up one point year-over-year. Both indices and all their components are scaled so that a number below 50 indicates that more respondents report conditions are poor than report conditions are good. Visit NAHB’s MMS web page for more information.
NAHB Announces Housing Plan
With a nationwide shortage of roughly 1.5 million housing units that is making it increasingly difficult for American families to afford to purchase or rent a home, the National Association of Home Builders (NAHB) recently unveiled a 10-point housing plan designed to tame shelter inflation and ease the housing affordability crisis by removing barriers that hinder the construction of new homes and apartments. The only way to effectively tame shelter inflation is to build more attainable, affordable housing.
Don't Federalize Codes,
NAHB Tells Congress The recent federal push to require certain new homes to meet the stringent energy efficiency require- ments of the 2021 International Energy Conservation Code (IECC) and ASHRAE 90.1-2019 will price many would-be home buyers and renters out of the market and give them no choice but to stay in older, less efficient homes. Testifying on behalf of NAHB before a House energy subcommittee, Shawn Woods, a home builder from Blue Springs, Mo., said the negatives of a restrictive, costly national energy code, with no consideration for local conditions, outweigh the minimal improvements to energy efficiency.
 Apply Now for Scholarship
To 2025 Builders' Show The NAHB International Builders’ Show® (IBS) Scholarship Program is a way for NAHB members who are 21-35 years old to experience everything IBS offers. Scholarship recipients receive an IBS Registration (IBS Expo+Education Pass), travel stipend, hotel accommodations for the show, and more for IBS 2025, which takes place Feb. 25-27, 2025, in Las Vegas. The deadline to apply is 5 p.m. ET on July 12. Application information, including video sub- mission guidelines, can be found at buildersshow.com.
New Refrigerants Are Coming
The HVAC industry is transitioning to new refrig- erants required by the American Innovation and Manufacturing Act of 2020, which gradually phases down the use of existing classes of refrigerants and establishes new requirements for the refrig- gerants used in air conditioners and heat pumps. The new class of refrigerants has a lower global warming potential. The U.S. EPA has set transition dates for new equipment required to use new refrigerants, commonly referred to as A2Ls.
Jay Piner
President Trae Redmond Vice President Peter Loy
Treasurer Wade Green Past President Board Members Joanie Allen Joshua Balamuta Cassie Cataline Tricia Haggerty Christopher Ibsen Will Jenkinson Mick Jewell Kris Kearney Dion Matheney Jack McSweeney Brett Miller Ward Mungo Jason Pinard Hunter Spivey Taylor Stair Bradley Webster For a full list of life board members, click here
Breakfast with the Builder Aug. 6 | 8:30AM Location TBD Builder/Inspector Meeting Aug. 28 | 8:30AM N. Chs. City Hall Residential Builders License Exam Prep Aug. 20-31 & Sept. 6-7 | 8AM CHBA Office SMC Panel Discussion Sept. 11 | 3PM Nexton Midtown Club Fall Golf Tournament Sept. 17 | 8:30AM Wescott Golf Club Clay Shoot Tournament Oct. 24 | 9AM Kiawah Island Sporting Club For a full list of events from now until the end of the year, click here
Upcoming Events
In the evolving landscape of housing development and urban planning, the adoption of pre-approved housing plans has emerged as a useful tool for increasing the efficiency and speed of the housing approval process. NAHB’s newest report, From Blueprint to Reality: Harnessing the Power of Pre-Approved Housing Plans with Real-World Examples, explores this topic with the goal of spreading awareness of this tool. Pre-approved housing plans are architectural designs and construction blueprints that have already received approval from municipal authorities or regulatory bodies. These plans adhere to local building codes, zoning regulations and other standards, ensuring compliance with local requirements. By providing a pre-approved framework for residential construction, these plans expedite the development process, and promote efficiency, consistency and regulatory adherence. Explore this and other effective planning and housing tools at NAHB’s Land Use 101 Toolkit.
Leadership List
NAHB Offers New Resource on Streamlining Development