Warmest January On Record Heats Up Housing Construction
A temporary sag in interest rates and the warmest January on record nationwide combined to bring about a 14.5% surge in new home construction for the month, the U.S. Commerce Department has reported.

The January pace of new-home construction rose to a seasonally adjusted annual rate of 2.276 million units, the highest on record since 1973. The pace was 4.0% above a year ago.

Single-family housing starts rose 12.8% to a new record pace of 1.819 million units for the month. This was 2.8% above a year ago.

“Builders apparently took advantage of the good weather and low interest rates in January to pick up the pace of production after a cold and wet December,” said NAHB President David Pressly.

“The January surge in housing starts was mainly weather-related,” said NAHB Chief Economist David Seiders. “Market fundamentals suggest that this pace of activity will be hard to sustain, and NAHB’s survey of single-family builders points toward some cooling down in coming months, largely because of eroding affordability conditions.”

All four regions reported strong increases in housing starts for the month. Construction of new homes and apartments rose 29.2% in the Northeast, 23.7% in the Midwest. 8.7% in the South and 16.9% in the West.

Multifamily housing starts increased by 21.9% for the month to a seasonally adjusted pace of 457,000 units. This was 9.1% above the pace of a year ago. “Our surveys of multifamily builders show that the rental market is firming up to some degree, with declining vacancies and rising rents,” said Seiders.

Issuance of total building permits increased 6.8% to a seasonably adjusted rate of 2.217 million units for the month. Single-family permit issuance was up 2.4% to a pace of 1.685 million units for the month. The pace of multifamily permit issuance increased 23.7% to a pace of 532,000 units for the month.

For comprehensive housing analysis, visit HousingEconomics.com. [return to top]

Builders Applaud Bank Regulators for Efforts to Expand Housing Data
NAHB has applauded a decision by federal regulators that will require banks to provide more detailed data on residential and commercial construction lending when reporting on their quarterly activities.

“This action will allow federal banking regulatory agencies to differentiate the disparate risks posed by residential versus commercial lending activities,” said NAHB President David Pressly. “Providing data on one-to-four family residential construction is an important step in developing a secondary market for single-family housing production.”

As a result of the regulatory changes, large banks and banks with a high volume of residential production loans on their books will be required to break out their one-to-four family housing production data in their quarterly Bank Call Report effective on March 31, 2007. All other banks will begin reporting the breakdown of their construction loans as of March 31, 2008.

“The bottom line is that more residential-specific data will be reported on loan volume and loan performance, which will invite market analysts and investors to treat housing production loans more favorably.  This information will help build a secondary market for construction financing,” said Pressly. [return to top]

NAHB CEO Weighs in on Warren Rudman Fannie Mae Report
In a recent press release, NAHB CEO Jerry Howard commented on the findings of the Rudman report, noting that the report confirms NAHB's long-held belief that the current Fannie Mae management team is taking the necessary steps to put the company back on the right course. 

Howard confirmed that Fannie Mae’s current management and board have taken corrective actions to refocus on the company’s housing mission, rebuild credibility with Washington policymakers and Wall Street investors, and change the company’s structure and corporate culture to ensure that the financial problems that Fannie Mae has been wrestling with will not occur again. He also affirmed that NAHB has great confidence in Daniel Mudd and his management team.

“The Rudman report’s findings underscore the need to pass H.R. 1461 (the Federal Housing Finance Reform Act of 2005), which was introduced by Representatives Richard Baker (R-La.) and Michael Oxley (R-Ohio) and adopted by the House last year by a wide margin, he said. 

Furthermore, the Rudman findings do not support taking any draconian action as some policymakers have suggested.  H.R. 1461 provides the appropriate regulatory structure that allows the Government Sponsored Enterprises (GSEs) to fulfill their housing mission and to deliver the necessary credit to the housing market while, at the same time, guaranteeing that the GSEs operate in a safe and sound manner.” [return to top]

NAHB Women’s Council to meet at NAHB Spring Board
In conjunction wit the NAHB Spring Board meetings — to be held May 9-14, at the Washington Hilton Hotel, Washington, D.C. — the Women’s Council will be holding a number of meetings and events.

Women’s Council 2006 Chair Nicole Goolsby encourages Women’s Council members and prospects to attend the Board of Trustees meeting and committee meetings, as well as any other meeting of interest. “Don’t forget to stop by the Women’s Council Hospitality Headquarters for refreshments,” says Goolsby.

NAHB's National Green Building Conference Features Latest Green Building Techniques
As the leader in the nation’s residential green building movement, NAHB provides home builders and developers with information and research to promote environmentally sensitive land development, resource conservation and energy efficiency. The National Green Building Conference, scheduled for March 11-14 in Albuquerque, N.M., attracts more than 900 builders, architects and engineers to explore construction and marketing techniques with seminars, innovative new product and tool  displays and other special presentations. The greater Albuquerque area is a prime example of unique green building architecture, interiors and design, and the Green Building Home & Technology Tour will provide insights and details through a half-dozen area homes, including Vision House 06, a 4,000 sq. ft. completely sustainable custom home.

Saturday, March 11

• Green Building for Building Professionals, Day 2 of 2
• Green Building Home and Technology Tours
• Green Building Awards Reception & Dinner

Remodeling Slows Moderately In Fourth Quarter
Remodeling activity slowed in the fourth quarter of 2005, according to NAHB's Remodeling Market Index (RMI). However, current market conditions, as well as future expectations of the RMI, were still in the positive range for 2005 as a whole, though slightly below the 2004 average.

Free Brochure Offers Inside Tips On Hiring Home Remodeling Professionals
Homeowners looking for advice on where to turn for remodeling help now have access to a new tool. The NAHB Remodelors™ Council has announced the availability of a free brochure to help consumers find and evaluate professional home remodelers. The brochure, “How to Find a Professional Remodeler,” provides tips on finding candidates and assessing their business, technical and customer service expertise.

• Proper industry credentials and certifications
• A trustworthy reputation among customers, peers and local officials
• Excellent customer service ratings
• Insurance to protect against claims arising from property damage or jobsite injury
• Business longevity to build a lasting relationship for any future needs or problems

Is Your Organization Ready for Today’s Emerging Markets?
Robert, Faheem, Tracee, Kewal, Lois, Hernando, and Dorothy are professionals for a small but rapidly growing company. Their ages range from 23 to 59 years old; two are single, two are married; two have domestic life partners; three are child-free, three are parents; one is blind; one is caring for a parent and two children; and two are single parents. There are four languages, and six religious faiths represented by this group. Welcome to America 2006. Are you ready and able to interact effectively with each of these professionals?

The word, diversity, simply means differences or variety. As used when referring to the American workplace and marketplace, diversity refers to the many differences present among people today that were not recognized in large numbers in the past.

It is important to build your knowledge and understanding of different groups, so that you do not rely on biases or stereotypes due to lack of information. Do your homework by reading books, conducting research on the Internet, talking to people in the group you wish to reach, and getting involved in organizations whose members are representative of the group with whom you wish to do business.

The most effective marketing and sales techniques help you build a lasting relationship with your prospects and clients. This is especially important when establishing a presence within emerging markets. The decision-makers want to know if you are interested in them as people or if you just want their dollars. Developing relationships is a long-term process, and has big pay-offs. Whether you own a motor coach company or are a financial services advisor, the opportunity for a win-win relationship is limitless. Start today by selecting at least one of the ideas below and then develop a plan to put the idea into action.

• Write articles for trade publications that target the markets you want to reach.
• Buy ad space and use it to write quick tips and techniques about your product or service.
• Hire a marketing intern to research segments you want to reach (e.g., ethnic, Gen Xer, Millenials, seniors, etc.).
• Contact Division I - athletic conferences for Historically Black Universities and Colleges (HBCU's): Mid-eastern Athletic Conference (MEAC) 336-275-9961; Southwest Athletic Conference (SWAC) 205-251-7573. Sponsor events, hire interns, place ad banners on their Web sites, etc.
• Become a guest lecturer at local educational institutions, libraries, and civic organizations whose student attendees are your target market.
• Sponsor quarterly or yearly "champagne teas," held in an intriguing location to target women for your product or service.
• Join specialized chambers of commerce: African-American, Hispanic, Asian, and women.
• Create an award/list, patterned after the Fortune 500 lists, e.g., America's 50 Best Companies for Women, that relate to your product or service. Develop a process for nominations and selection, including a media event to announce the winner(s).
• Offer or sponsor a free tele-class to discuss aspects of your product or service or sponsor a speaker who will reach your target market.
• Put free information on your Web site that will draw new market segments and then let everyone know about this service via your business card, voicemail and other marketing materials with your contact information listed.
• Sponsor segments of conferences and conventions held for your target market.

With all the other skills you must develop and keep fine-tuned how can you find time to learn about cultures different than your own? Remember that all interactions start with someone you don’t know. Whether it is with a new family member or co-worker, the initial meeting requires you to find some common ground. The same is true when developing new multicultural relationships. When you meet someone different than you remember that you both have much more in common as humans than you have differences. Assume that the interaction will be positive, and then look for ways to make it so.

Lenora Billings-Harris, CSP is an internationally recognized speaker, diversity consultant, and author with more than twenty-five years experience in the public and private sectors. For more information, please go to www.lenoraspeaks.com.

For more on cultural diversity awareness, pick up a copy of the spring issue of Building Women magazine. [return to top]

Builder-Tested Contracts and Forms Increase Profitability
Systemizing and managing your day-today business operations can make you more efficient, productive and profitable.

“Home Builder Contracts & Construction Management Forms,” available through BuilderBooks.com, is a major tool that will help you save time and money and streamline your business operation.

“Home Builder Contracts & Construction Management Forms," second edition, contains 95 documents of specific use in residential construction, including:

• Contracts
• Specifications
• Change orders
• and many other forms and checklists

These documents, which will improve your ability to manage your building business, are a compilation of business resources that have been generously donated by successful builders across the country.

To order “Home Builder Contracts & Construction Management Forms” online, click here, or call 800-223-2665. [return to top]

See How You Measure Up With ‘The Cost of Doing Business Study’
Find out how your home building business measures up against the competition with NAHB's "Cost of Doing Business Study."

Available from BuilderBooks.com, this one-of-a-kind resource gives home builders a rare glimpse at other builders’ books by providing data about profitability, cost of sales and expenses from hundreds of home builders across the country.

The latest edition of the study provides an opportunity to see how your financial performance stacks up against the industry as a whole — and against your goals for your business.

See how you measure up with industry-wide averages in these important areas:

• Gross margin net profit
• Cost of goods sold
• Financial ratios (current ratio, debt-to-equity ratio, and more)

The "Cost of Doing Business Study" has the data, analyses and guidance you need to boost profitability, increase efficiency, set realistic budget targets and improve your business practices.

To order the "Cost of Doing Business Study," click here, or call 800-223-2665. [return to top]