Improving Markets List Includes 258 Metros in May

NAHB Press Release

WASHINGTON, May 6 - The number of U.S. housing markets showing sustained improvement in three key measures fell slightly to 258 in May from 273 in April, according to the NAHB/First American Improving Markets Index (IMI), released today. This total includes entrants from all 50 states and the District of Columbia.

The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months. Four new markets were added to the list and 19 were dropped from it this month. Newcomers included the geographically diverse metros of Dothan, Ala.; Elizabethtown, Ky.; Salisbury, Md.; and Salem, Ore.

"The fact that over 70 percent of all U.S. metros are holding onto their spots on the improving list is definitely good news, and representative of the generally brightening outlook for housing markets nationwide," said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. "That said, our industry's progress on the road to recovery is being slowed by rising challenges related to the availability of credit, building materials, labor and lots for development."

"While seasonal trends in home prices resulted in an overall decline in the IMI this month, the index remains at a very strong level and continues to represent markets in every state," noted NAHB Chief Economist David Crowe. "Some metropolitan areas that had previously charted marginal home-price gains dropped off the list this time as a result of typically softer prices seen in the winter months, which is similar to what the index showed in this same period last year."

"Today's report shows that the majority of U.S. metros are experiencing strengthening house prices, employment and permitting activity, which is a much more positive picture than the one we were seeing a year ago," observed Kurt Pfotenhauer, vice chairman of First American Title Insurance Company. "That's the big picture on which consumers need to focus."

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 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 measures for at least six consecutive months following those measures' respective troughs before being included on the improving markets list.

A complete list of all 258 metropolitan areas currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in May, is available at www.nahb.org/imi.

How to Speak Remodeling

By: Karen T. Nakamura, CEO
Building Industry Association of Hawaii

The home building industry celebrates National Remodeling Month in May, but remodeling is popular year-round, and the industry is growing every year. Whether it’s a small cosmetic remodel such as replacing bathroom fixtures, or a major down-to-the-wall-studs overhaul of your kitchen or adding new space to your home, understanding the terminology your professional remodeler is using can be very helpful to ensure you get the finished project you want.

As you interview potential contractors, this glossary of common terms used by builders and remodelers will help you understand the language of your remodeling project — and help you avoid miscommunication with your contractor.

Allowance: A specific dollar amount allocated by a contractor for specified items in a contract for which the brand, model number, color, size or other details are not yet known.

Bid: A proposal to work for a certain amount of money, based on plans and specifications for the project.

Building Permit: A document issued by the county building department, granting permission to undertake a construction project.

Call-back: An informal term for a return visit by the contractor to repair or replace items the home owner has found to be unsatisfactory or that require service under the warranty.

Certified Graduate Remodeler (CGR): A professional designation program offered through the National Association of Home Builders Remodelers Council™. To attain the CGR designation, a remodeler must take a specified number of continuing education courses and comply with a strict code of ethics.

Certified Aging-in-Place Specialist (CAPS): CAPS professionals have learned strategies and techniques to meet the home modification needs of home owners who want to continue living in their homes safely, independently and comfortably regardless of age or ability level. CAPS graduates pledge to uphold a code of ethics and are required to maintain their designation by attending education programs and participating in community service.

Change Order: This is written authorization to the contractor to make a change or addition to the work described in the original contract. The change order should reflect any changes in cost.

Cost-plus Contract: A contract between a contractor and home owner that is based on the accrued cost of labor and materials plus a percentage for profit and overhead — also known as a time-and-materials contract.

Draw: A designated payment that is "drawn" from the total project budget to pay for services completed to date. A draw schedule is typically established in the contract.

Lien Release: A document that voids the legal right of a contractor, subcontractor or supplier to place a lien against your property. A lien release assures you that the remodeler has paid subcontractors and suppliers in full for labor and materials.

Mechanic’s Lien: A lien obtained by an unpaid subcontractor or supplier through the courts. When enforced, real property — such as your home — can be sold to pay the subcontractor or supplier. If a subcontractor or supplier signed a lien release, then this lien cannot be enforced.

Plans and Specifications: These are drawings for the project, and a detailed list or description of the known products, materials, quantities and finishes to be used.

Punch List: A list of work items to be completed or corrected by the contractor, typically near or at the end of a project.

Subcontractor: A person or company hired directly by the general contractor to perform specialized licensed work at the job site.

To find a professional remodeler in your area, contact ktn@biahawaii.org.

Statement from NAHB Chairman on the White House Nomination of Rep. Mel Watt to Head FHFA

NAHB Press Release

WASHINGTON, May 1 - The following is a statement from NAHB Chairman Rick Judson, a home builder and developer from Charlotte, N.C., on the nomination of Representative Mel Watt (D-N.C., 12th District) to be the head of the Federal Housing Finance Agency (FHFA):

"We applaud the nomination of Representative Watt to this important position. After four years in conservatorship, the future of Fannie Mae and Freddie Mac stand at a crossroad.

"Rep. Watt brings years of experience to this position at a pivotal moment as our nation's housing market recovers. NAHB looks forward to working closely with Rep. Watt to help address the many complex challenges facing the U.S. housing finance system upon his confirmation by the U.S. Senate."

Call for Exhibitors! BIA-Hawaii Remodel it Right, Remodel it Green Expo 2013

The Building Industry Association of Hawaii (BIA-Hawaii) will present the 9th Annual Remodel It Right/ Remodel It Green Expo on Friday, August 9 through Sunday, August 11 at the Neal Blaisdell Exhibition Hall. Over 200 exhibitor booths will showcase Hawaii’s top contractors, suppliers, building industry experts and associates. Interested companies are welcome to contact BIA-Hawaii to participate in this convenient central location showcase of remodeling industry expertise. The event theme, “Remodel It Right, Remodel It Green”, will enlighten and educate homeowners on the latest products, services and trends in energy savings and sustainable living.

Unique features of this award winning Expo include the “Meet the Experts” presentations that provide on-going round table interactive discussions from the entire spectrum of the remodeling industry and the “Remodel It Right” Panel of Experts. These in-depth round table discussions will cover key topics that will provide a strong foundation for your remodeling project. Architecture, General Contracting, Contractor Licensing, Permitting Guidelines and Kitchen and Bathroom Remodeling Basics are all offered in the “Meet the Experts” area. A Free Remodeling Planning Kit will be offered to every family attending the sessions, while supplies last.

Companies interested in becoming exhibitors in the August 9-11, 2013 BIA Remodel It Right/ Remodel It Green Expo at the Blaisdell may contact Clarice Watanabe at (808) 629-7503 or email ckw@biahawaii.org for additional information.