Qualified Remodeler Magazine

JUL 2013

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

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OVERVIEW / NEWS / TRENDS / COMMUNITY SUPPLY TRENDS Building Material Shortages Seen Home builders and lumber dealers are reporting significant shortages of key home building materials such as lumber and wall board, according to surveys by the National Association of Home Builders (NAHB) and the National Lumber and Building Material Dealers Association (NLBMDA). ENERGY Home Performance Bill Introduced in Congress A bill to create a home performance-based rebate program that would provide an incentive to homeowners or contractors based on predicted energy savings of up to $8,000 for a 50 percent energy performance improvement recently was reintroduced in the U.S. House of Representatives. The Home Owners Managing Energy Savings (HOMES) Act, H.R. 2128, emphasizes a technologyneutral approach based on performance with a quality assurance requirement. The HOMES Act was first introduced in the 112th Congress. Representatives David McKinley (R-W.Va.) and Peter Welch (D-Vt.) re-introduced the bill.MARKET Among builders, the highest incidence of shortages was for oriented strand board (OSB), with 22 percent of builders reporting shortages, followed by wall board (20 percent), framing lumber (18 percent) and plywood (18 percent). With the exception of wall board, the lumber dealers reported greater shortages of these products than the home builders. Among lumber dealers, 27 to 28 percent reported shortages of OSB and plywood, 36 percent reported shortages of framing lumber and 12 percent reported shortages of wall board. MARKET INDEX Builder Confdence Hits Milestone Builder confidence in the market for newly-built single-family homes hit a significant milestone in June, surging eight points to a reading of 52 on the National Association of Home Builders/ Wells Fargo Housing Market Index (HMI). Any reading over 50 indicates that more builders view sales conditions as good than poor. This is the first time the HMI has been above 50 since April 2006, and the eightpoint jump in the index was the biggest one-month gain since August and September of 2002. CONSUMER PREFERENCES Size of Homes is Growing Again As the residential market improves, the size of homes has grown in response. This is the case for high-end and custom homes as well as additions to existing homes. Preferences for accessible space, like open-space layouts and single-floor designs, have also continued to rise, according to findings from the American Institute of Architects (AIA) Home Design Trends Survey for the first quarter of 2013. Homeowners also have expressed a desire to blend indoor and outdoor spaces. 8 July 2013 QR ForResidentialPros.com NEW CONSTRUCTION Housing Starts Gain 6.8 Percent Housing starts rose 6.8 percent in May, according to newly released data from HUD and the U.S. Census Bureau. While single-family housing starts held a solid but virtually unchanged pace of 599,000 units in May, multifamily production bounced back from an over-correction the prior month with a 21.6 percent gain to 315,000 units. Combined starts activity regionally was mixed: gains of 17.8 and 5.7 percent in the South and West; declines of 9.0 and 13.7 percent in the Northeast and Midwest. Issuance of new building permits declined 3.1 percent to a seasonally adjusted annual rate of 974,000 units in May. HOUSING MARKETS List of Improving Markets Grows The number of U.S. housing markets on the mend rose to a total of 263 in June, reported the National Association of Home Builders/First American Improving Markets Index (IMI). New entrants included geographically diverse metros like Salinas, Calif.; Sioux City, Iowa; Chicago; Topeka, Kan.; Baton Rouge, La.; Laredo, Texas; and Philadelphia. 1. Listen to a podcast. Hear an interview with architect Steve Mouzon about connection to community. ForResidentialPros.com/10961622 2. Sign up for our e-newsletter. Sign up for our weekly e-newsletter to receive the latest remodeling news, products and more. Cygnus.Omeda.com/QUR 3. Follow a whole-house remodel. Follow an ongoing whole-house remodel by MAW Chicago in the Chicago neighborhood of Lincoln Park. ForResidentialPros.com/ chicagoproject 4. Read about marketing. Read Rich Harshaw's Qualified Marketing blog to learn how to maximize your marketing dollars. ForResidentialPros.com/blogs/ qualified-marketing

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