FREDERICKSBURG - STAFFORD - SPOTSYLVANIA - CAROLINE - KING GEORGE - ORANGE - CULPEPER
After posting four consecutive monthly declines on rising mortgage rates and worsening affordability conditions, new home sales posted a solid gain in May as some buyers rushed into the market in advance of the Federal Reserve’s June interest rate hike. Sales of newly built, single-family homes in May increased 10.7% to a 696,000 seasonally adjusted annual rate from an upwardly revised reading in April, according to newly released data by HUD and the Census Bureau. New home sales are down 10.6% in 2022 on a year-to-date basis. Though new home sales registered a solid increase in May, we expect sales to decline in June following the Fed’s action to significantly raise interest rates in an effort to ease inflation. While sales were up in May, the 696,000 annual pace was 5.9% lower than a year ago. Existing home inventory remains tight and this supports demand for new construction. New single-family home inventory remained elevated at a 7.7 months’ supply, up 42.6% over last year, with 444,000 available for sale. However, only 8.3% of new home inventory is completed and ready to occupy. The remaining have not started construction (25.9%) or are currently under construction. Regionally, on a year-to-date basis, new home sales fell in all four regions, down 3.8% in the Northeast, 21.7% in the Midwest, 12.3% in the South and 2.2% in the West.
July 2022
BUILDERS FRAMEWORK
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FREDERICKSBURG AREA BUILDERS ASSOCIATION
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Volume 6: Issue 7 July 2022
May New Home Sales up in Advance of Fed’s June Rate Hike
Plan to Apply for an NAHB Industry Award Each year, NAHB recognizes the best of the best in our industry. Our prestigious awards celebrate, honor and recognize excellence. As an award winner, the spotlight shines on your business with year-long promotion. So, gather your photos and the descriptions of your stellar projects. Shout out your biggest accomplishments and get the recognition you deserve. NAHB’s award applications open July 11. Find the award program that’s right for your business and enter. Thousands Attend Second Housing Showcase Visitors came to the National Mall in droves June 10-12 to check out the latest housing innovations and learn more about how they can help address the housing afford- ability crisis. Building on the first Showcase event in 2019, the 2022 Innovative Housing Showcase fea- tured more than a dozen exhibitors of innovative building technologies — including full-size prototype homes — that address affordability and resiliency and emphasize energy efficiency and sustainability. Exhibitors counted a total of 18,000 visits at the displays. NAHB and the Department of Housing and Urban Development co-hosted the event.
NAHB Members Trek to Capitol Hill More than 600 builders, remodelers and associate members visited Capitol Hill on June 15 for NAHB's 2022 Legislative Conference to spotlight the growing housing affordability crisis that threatens to derail the economy. In more than 200 individual meetings, NAHB members urged their lawmakers to support policies that will ease building material supply bottlenecks and increase the production of quality, affordable housing.
Know the Signs of Heat Stroke It’s the peak of the summer, and that means workers may face high heat conditions. During this dangerous time, the most serious heat illness is heat stroke. Symptoms include: Confusion, slurred speech, disorientation, inability to think clearly, collapsing, unconsciousness or potential seizures, and no sweating. If a worker is experiencing heat stroke, cool them down immediately and call 911. Tips to keep workers safe on the jobsite can be found in the NAHB's Heat Stress Safety Toolkit.
Biden Signs Ocean Shipping Reform Act President Biden in June signed into law the Ocean Shipping Reform Act. The measure is designed to move ships into and out of ports faster and to ad- dress barriers to trade and challenges associated with moving goods to their final destination. “This legislation will help ease building material supply chain bottlenecks that are raising the cost of housing and allow builders to increase production of badly needed affordable housing,” said Jerry Konter, NAHB chairman and a home builder and developer from Savannah, Ga.
What Does the Fed's Rate Hike Mean for Housing?
At the conclusion of its June meeting, the Federal Reserve surpassed prior expectations and raised the federal funds target rate by 75 basis points. It was the largest increase for the funds rate since 1994 and a clear response to elevated inflation data from May. Mortgage interest rates are closing in on 6% and will continue to climb as further tightening is expected throughout the year. Given signs of slowing economic activity, including six straight months of declines for home builder sentiment, a clear risk is that by falling behind the curve, the Fed will overshoot on tightening and bring on a recession. There continues to be a housing deficit in the United States. The nation’s aging housing stock will further support demand for remodeling activity. And as mortgage interest rates rise, the demand for rental multifamily and single-family housing will remain solid.
Home Buyers Spend More NAHB analysis of Consumer Expenditure Survey (CES) data from the Bureau of Labor Statistics shows that in the first year after closing on a home sale, buyers of new homes spend four times as much as non- moving owners and twice as much as buyers of existing homes. Top Expenditures Alterations and repairs: New home buyers - $11,930 Buyers of existing homes - $5,761 Non-moving owners - $2,966 Furnishings: New home buyers - $5,122 Buyers of existing homes - $2,665 Non-moving owners - $904
Regs Are 40% of Multifamily Costs A recent study by NAHB and the National Multifamily Housing Council found that regulation imposed by all levels of government account for an average of 40.6% of multifamily development costs. Excessive regulations and conflicting requirements can cause delays, increase costs and make it difficult to build new housing that working families can afford. To help builders expand multifamily housing production, NAHB is calling on local, state and federal officials to roll back costly impact fees, inefficient zoning rules, and density and growth restrictions that derail efficient land use and drive up housing costs.
More than 108,000 Americans died last year from accidental drug overdoses. For people struggling with a substance use dis- order, one of the biggest barriers to getting the treatment and support they need is the stigma associated with addiction. Many people who could benefit from treatment and other resources do not utilize them because of the shame and blame associated with addiction. NAHB continues to work with SAFE Project, a national nonprofit bringing a unified and collaborative approach to the fight to end the addiction fatality epidemic. Join NAHB in combating the negative public perception and supporting others in speaking up about their own disorders by signing the No Shame Pledge — SAFE Project's national movement to combat stigma. There's no shame in getting help for addiction and mental health. The No Shame Pledge I understand that addiction is a disease, and I pledge to eliminate the stigma for individuals, family members, and friends experiencing it. I commit to learning more about the disease of addiction and to changing the conversation surrounding it. I support those facing these challenges and want to provide them with a shame-free environment to overcome them. I will learn more about factors that contribute to addictive behavior — such as mental health challenges and trauma — and encourage individuals to seek the help and treatment needed to address them. For individuals in recovery, I pledge to support them in their recovery journey by providing supports, not barriers, as they continue their path of leading a self-directed, safe, productive, and successful life.
Take the ‘No Shame Pledge’ to End Stigma Around Addiction
Upcoming Meetings & Events
August 9th Young Professionals Meeting 3:30-4:30pm FABA Office August 10th Associates Committee Meeting, 9:00-10:00AM FABA Office or Zoom August 10th Membership Committee Meeting,10:30-11:30AM FABA Office or Zoom August 18th Hard Hat Sponsored by Dominion Steel At Dominion Steel 4920 Quality Drive Fredericksburg, VA 22408 August 19th Summer Fest Rod and Gun Club, 5:00-9:00 August 24th Community Service Committee Meeting, 9:00-10:00AM FABA Office or Zoom
Calendar at a Glance
See you at the, Hard Hat!
Membership Committee
The Membership Committee brings builder and associate members together to focus on recruitment of new members and retention of current members. This committee hold a hybrid meeting (in-person or zoom) every 2nd Wednesday at 10:30AM.
Chair - Marc Simes, msimes@tricordinc-va.com
Every Third Thursday of the month, join us for our networking Hard Hat Events from 5:00-7:00 PM. Hard Hat (5:00 - 7:00 PM) is Thursday, August 18th and sponsored by Dominion Steel
The Associates Committee plans member events to promote doing business with members. These volunteers coordinate networking and social events for business connections. This committee has a hybrid meeting (in-person or zoom) every 2nd Wednesday at 9:00AM.
Summer Fest Tickets
Chair- Mike King- Rayssiddingcompany@gmail.com Rays Siding, Co.
Associates Committee
Associates Committee Hybrid Meeting Zoom Link: Second Wednesday of each month at 9:00 AM
One of our most popular events is back with a fresh look. Crab Feast is now Summer Fest! Get your tickets now!
Spotsylvania County Bi-Monthly Meeting Zoom August 1tst, 3:00PM City of Fredericksburg Bi-monthly Meeting Zoom August 5th 9:00AM Stafford County Bimonthly Meeting Zoom August 8th, 9:00AM Culpepper Quarterly Meeting Zoom September 8th, 9:00AM Caroline County Quarterly Zoom September 21st, 11:00AM
Legislative Committee
Upcoming County Zoom Meetings
Latest updates from your three in one membership hard at work for BUSINESS
Developers Council The working mission of the Council is to stay on top of land development issues affecting local builders and developers in our region and work together to advocate for our positions as needed. The Council is open to Builder and Developer members of FABA. Jeh Hicks, Jarrell Properties , Inc., is the chairman of the Developers Council. This group meets every other month. For more information contact Chrissy Urian at c.urian@fabava.com
Chair - Bruce Reese, bruce@legacy-eng.com
The Legislative Committee meets monthly to discuss the status of local and state level legislation that affects the building industry. For more information from each county, plan to attend the Legislative Committee meeting. This committee meets virtually every third Thursday at 8:30AM.
Save the date for our Fall work day 516 Project for October 8th. Help support the Fredericksburg Area by giving blood at an upcoming drive. Click the link below to find a drive near you!
Chair - Greg Schmidt, greg@pestsolutionsva.com
The Community Service committee seeks to increase civic engagement among the members of FABA and utilize professional skills to actively benefit the Fredericksburg area. We are always looking for new ways to get help and support the community. If you are interested in submitting an idea for the community service committee feel free to join us!
Find a drive near you
Community Service Committee
This committee holds a hybrid meeting (in-person and virtual/zoom) every 4th Wednesday at 2:00PM.
Stay tuned for more education opportunities Site plan 101 Not my monkeys September 14th FAAR Realtor expo on builder row 9-1:00 PM Contracts Blower door training Impact to work place, support after Covid Mental and physical health
Meghan Butcher - FABA Staff Meghan@FABAVA.com
The Education Committee coordinates workshops and virtual learning opportunities focused on industry safety, marketing, and personal growth. Stay tuned for upcoming educational opportunities.
Sean Halsey - Halsey Homes
Education Committee
Young Professionals Committee
Young Professionals committee is for individuals in the 21-40 age group to connect, and provides opportunities for professional development, social networking, mentoring, and personal growth for our members. Watch this page for upcoming Young Professionals committee events. To join the FABA Young Professionals committee email Meghan@fabava.com Join our next meeting on August 9th at the FABA office. We want to hear from you on how we can all help each other grow!
As a Cornerstone benefit for Partner, Platinum and Diamond levels they are able to contribute educational content to the newsletter each month. Check out this month's contribution from Contractors Websites Plus
How a Brand Plan Will Help Your Business
Member Contributions
Over the past thirteen years helping contractors create brands to attract the type of customer and projects they’re looking for; I’m amazed at how many of them come to us because they’re getting zero traction with their marketing efforts and don’t know why. We’ve found that inevitably it’s because their foundation – their brand and website – started without a plan. Would you build a second-floor deck without knowing the frost line, the size of your footing base, the depth and diameter of your Sonotube, or where you need the footings placed? No good contractor would. So why build a business without planning your brand’s foundation? If you don’t clearly identify what you offer, who you offer it to, and what type of customer you want to reach, how can you build the structure on top of it: your marketing plan? What is supporting all the effort, time, and money you’re spending? It’s time to stop what you’re doing, take a step back and create a plan for your brand. When you do, all your marketing, your website, your social media, and your message will come into focus, and you’ll start seeing the benefits of all your hard work. You’ll start working with the customers you want to work with and who you can help most on the types of projects you want to work on. If you’d like some help with a plan our Builder’s Brand Schematic can help you take your business to the next level, give me a call at (540) 318-1800. We’d love to help!
Cornerstone 2021
2022 FABA Board of Directors
President Scott Hine Union Home Mortgage 1st Vice President Marc Simes Tricord Companies 2nd Vice President Jeh Hicks Jarrell Properties Secretary Michelle Hall J. Hall Homes Treasurer Jeremiah Horstick CORELOT Immediate Past President Stacey Lampman Spaces Design Studio Associate Vice President Michael King Ray's Siding Executive Officer Maria Moore FABA Legal Counsel Charlie Payne Hirschler NAHB State Representative Dan Sandoval Republic Home Builders HBAV State Representative Scott Hine Union Home Mortgage Builder Director Tim Hall Tricord Companies Builder Director Allen Harrison Battlefield Homes Builder Director Steve Flanagan Built Right Homes Builder Director Teressa Taylor-Griffis Foundation Homes Associate Director Sara Fila Legacy Engineering Associate Director Rick Furnival Sullivan, Donahoe & Ingalls, PC Associate Director Emily Hall Spotsylvania Career & Tech Center Associate Director Bruce Reese Legacy Engineering, PC Associate Director Greg Schmidt Pest Solutions Life Builder Director Sean Halsey Halsey Homes Life Builder Director Dan Sandoval Republic Home Builders
FABA has been working with our exclusive, private partner, Small Business Growth Partners (SBGP) to help our members reach maximum growth and potential through their one of a kind BPA Process. This has been refined for over 10 years of working exclusively with Builders, Remodelers & HBA Associate Members. As an exclusive FABA member benefit, we are offering you the chance to register for and redeem your 2021 Business Diagnostic & Plan of Actions. An annual BPA is included 100% with your FABA Member Benefits (A $2,200 value).
Learn More Here