Building Business News June 2012

Volume 17 • NO.7 www.kchba.org July 2011

HBA members came out in full force for the 2010 Annual HBA Golf Tournament on Friday, June 9th at the Falcon Ridge Golf Club in Lenexa, KS. Renewed interest in the tournament was gratifying for everyone involved with 144 golfers and a portion of the proceeds benefiting two important charities. The Salvation Army and Hillcrest Transitional Housing were presented with checks from Home Builders Association Foundation Fund to support their important work.

The day started with a continental breakfast and registration where golfers could purchase mulligans and skirts to raise extra money for the charities on hand. A putting contest sponsored by The Kansas City Star where the winner brought home a new putter.

To spice up this year’s event, co-chairs Tommy Angotti (Factory Direct Appliance) and Deb Swearingen (Pinnacle Bank) offered games throughout the day to keep golfers entertained. The longest drive, longest putt, and everyone’s favorite hole, where golfers could opt to put on a skirt and tee off from the women’s tee box. Finishing the day was a lunch and awards ceremony where checks were presented to the charities and tournament winners.

Building Business NEWSThe Official Newspaper of The Home Builders Association of Greater Kansas City

July 2010

P3

NAHB Remodelers Awards

P5

Tax Credit Extension

EPA Responds to Lead Rule

Inside this Edition

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Mark your calendar for the 2010 Fall Parade of Homes. Since 1947, the Parade of Homes has been Kansas City’s local resource for buying a new home. The 2010 Parade of Homes returns October 2-17.

Parade Entry Schedule

July 16

Late Entry Deadline $1,995

The final deadline for home entires is July 16, 2010. Entry Home Information, Community Information, Region and Housing Style was due on June 25. To submit your entry for the Final Deadline , visit www.kchba.net/parade2010 or call the HBA office at (816) 942-8800

HBA Hosts Golf Tournament

Parade of Homes

2010 Fall

Home Builders Association of Greater Kansas City

Mark your Calendar

October 2-17, 2010

Aristocrat HomesCapitol FederalContinental Title CompanyCrowley FurnitureFactory Direct ApplianceFirst American TitleGrandview Winnelson - The Water Close Kitchen and Bath ShowroomGuier Fence Company, Inc.Huber Engineered Woods

Thank you to the 2010 HBA Golf Tournament Sponsors

Final Deadline

Kansas City Homes and GardenKansas City Star featuring KansasCity.com and HomeFinder.comNebraska Furniture Mart featuring B/S/HPacific Mutual Door & WindowProBuildStewart Title of Kansas CityTile and Stone WarehouseTop MasterWestern Chandelier CompanyWilson Fans & Lighting

Congratulations to the Tournament Winners1st Place A Flight Ken Rosberg Austin Roeser John Judge Jeff Sheppard2nd Place A Flight Don Klamm Josh Bright Ryan Bealmear Matt Nordstrom3rd Place A Flight Bob Kobush Gary Ely Brandon Johnson Jim Bray

1st Place B FlightHarley Saxco

Greg Prieb Randy Bailey Rex Fuller 2nd Place B Flight David Eickman

Richard Wetzel Chris Williams Sterling Cramer3rd Place B Flight Russ Grossman Lea Bailes Brandon Frazee Todd Jennings

June 2012

The Official Newspaper of The Home Builders Association of Greater Kansas City

Building Business News

P4

P5

AreA Buildersin Top 200

nATionAl HomeownersHip monTH

PRSTRT STDU.S. Postage

PAIDPermit No. 108

Lawrence, Ks

INsIde THIs edITION

Above: New members from Beaver Timber, Chad Wastler, Scott Zinn, Jim Breitkreutz, and Jon Beaver

Left: Mike Brown, Brown Midwest and Bob Regnier, Bank of Blue Valley

Bob Regnier, President and CeO of Bank of Blue Valley, was the featured speaker at the May Kansas Area Council membership lunch. Regnier, who first opened the Bank of Blue Valley in 1989 with its first loan being in the Deer Creek community, discussed what he was seeing in the lending community.

“we need to make loans, we are looking for loans,” said Regnier. “It’s been difficult with regulatory pres-sure and the business has changed dramatically over the last five years.”

Regnier pointed out that while most people con-sider housing to have peaked in 2006, he said started peaked in 2003. He says new homes have held their value versus five years ago and thinks the lack of in-ventory will drive new home prices upward.

“We’re going to see some inflation creeping back in as people who want new construction will have to pay for it,” said Regnier.

solid criteria for making loans in paramount in to-day’s environment. The Bank of Blue Valley has an 11-point criteria for receiving a loan. some of the factors they consider include net worth, liquidity, debt service coverage, a stable revenue history and strong

Kansas Governor sam Brownback signed senate sub for HB 2117, May 22, the controversial bill that Brownback hopes will put more money into the hands of Kansas taxpayers and they’ll use those dol-lars to energize the economy and create jobs. The legislation slashes state income taxes by roughly $3.7 billion over five years.

The plan collapses the state’s current three-bracket system to two brackets start-ing in 2013. It cuts the highest income tax rates to 4.9 percent from 6.45 percent and 6.25 percent. It also reduces the lowest tax rate to 3 percent from 3.5 percent.

The tax measure also allows the state sales tax to drop by six-tenths of a cent in 2013.

It retains all current itemized deductions including the mortgage interest deduction and the state, local property tax deductions.

“After the longest legislative session in Kansas history and debate that reached fever pitch in an election year, the HBA is pleased with the final result that preserved the state’s mortgage interest deduction,” said executive Vice President sara Corless. “The HBA’s commitment all along was to ensure the final legislation was in the best in-terest of Kansas homeowners and new home buyers.”

In addition, the bill also exempts non-wage business income for 190,000 limited-liabili-ty companies, sole proprietorships and the like. That provision, in particular, is aimed at job creation and to encourage entrepreneurs to start businesses.

Kansas Governor Signs Monumental Tax Bill

The 2012 Fall Parade of Homes returns later this year, september 29-October 14, however, now is the time to make plans. Register your home early and receive a special discounted price.

For the early entry Deadline, builder information will be the only information required along with payment. To access the registration forms, go www.kchba.org and click on the Parade of Homes page. Look under Information for Builders and download the entry forms. Follow directions to submit or call the office, 816-942-8800.

Parade Entry Schedule Bw COLOR

Early June 15 $1,095 $1,395Regular July 6 $1,295 $1,595Late July 20 $1,995 $2,295

Fall Parade of HomesEarly Entry Discount

Regnier Addresses Kansas Area Council

future projections. Regnier said appraisals are coming in better but that some still

come in low. Those low appraisals, combined with further implanta-tion of legislation like the Dodd-Frank Act will continue to impact the industry.

Regnier believes that momentum is critical, and that subdivisions with critical mass are the ones that will be successful. He also main-tains a positive outlook on the metropolitan market as a whole.

“This is a good market. It’s a growing market. It can’t be sustained by current levels of inventory,” said Regnier.

June is National Homeownership

Month!SEE paGES 5-9

page 2 www.kchba.org Building Business news Building Business news www.kchba.org page 3

Volume 18 • NO. 6 www.kchba.org June 2012. June 2012 www.kchba.org Volume 18 • NO. 6.

Calendar

For more information or to register for any event, go to www.kchba.org or call 816-942-8800

©2012 ProBuild. All Rights Reserved.www.probuild.com

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June 6-9 nAHB spring Board meeting in washington d.C.June 6 legislative day in washington d.C.June 7, 10 am parade CommitteeJune 12, 11:30 am mo north lunchJune 13-15 Certified new Homes sales professional CourseJune 19, 11:30 am Board of directors meeting

Master the craft of successful selling. This four-session Certified New Homes sales Professional course is designed for specialists in new home sales. Gain a broad understanding of the home building business, discuss consumer psychology and learn the advanced techniques used by real estate veterans for greeting, clos-ing and overcoming objections, June 13 - June 15, 9 a.m. - 5 p.m. at the HBA. see details and register at www.kchba.org.

Donors and guests gathered for an evening of celebration and appreciation for personal contributions to NAHB’s BUILD-PAC, Thursday, May 17 at the stonehaus Farms Vineyard & winery in Lee’s summit. To date, more than $24,000 has been raised and will be key to BUILD-PAC’s success in the fall elec-tions nationally.

In addition to contributions to national races your local accepts contributions to four local political action committees. Your PAC contribution allows the home building industry the opportunity to support pro-housing candidate at home and nationwide. To add your contribu-tion in this important election year to BUILD-PAC’s efforts contact Andrew McKeegan, [email protected].

Get up-to-the-minute education on in-dustry issues, trends and best practices. No matter where you find yourself on wednesdays, participation is easy. even if you can’t participate in the live event, you can participate through the on-demand version. Learn more on these topics: economics and Research, Policy and Fi-nance, Design and Technology, sales and Marketing, and Business Improvement. Information is online: http://www.nahb.org/conference_details.aspx?conferenceID=2957&fromGsA=1

NaHB’s Webinar Wednesdays

Earn Your CSp Designation in June

Build paC Hosted Donor appreciation Event

Tony Siebert, Kenny’s Tile, presents a Build PAC contribution to Bob Frost, Frost Construction Company and Chairman of NAHB Build PAC

plan Now to Enter the pick of the parade Contest

Register for the Pick of the Parade and Distinctive Plan and Design contests to showcase your Parade entry. winners will be recognized at the Awards Celebra-tion, October 3, and listed in the Kansas

City star. Get the early deadline discount by registering by August 3. Forms avail-able online at www.kchba.org or contact Gina Battle, [email protected].

Building Business news www.kchba.org page 3

Volume 18 • NO. 6 www.kchba.org June 2012.

Government & Politics

Now you can give your customers more choices while you spend less time finishing. With the new Andersen® A-Series system, windows and doors can arrive on the jobsite with their interiors perfectly painted or stained. Exterior trim installs in less time than it can take to check voice mail. Best of all, the results are undeniably beautiful. Stop in to learn more.

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Extensive exterior trim options: Our broad array of styles, colors and widths let you complement any architectural style.

“ENERGY STAR” is a registered trademark of the U.S. Environmental Protection Agency. “Andersen” and all other marks where denoted are trademarks of Andersen Corporation. © 2010 Andersen Corporation. All rights reserved.

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Now you can give your customers more choices while you spend less time finishing. With the new Andersen® A-Series system, windows and doors can arrive on the jobsite with their interiors perfectly painted or stained. Exterior trim installs in less time than it can take to check voice mail. Best of all, the results are undeniably beautiful. Stop in to learn more.

WindoW & door SyStem

IntroducIng the

11 Exterior colors: Mix or match colors on sash, frame and trim to achieve hundreds of options.

9 Interior finishes: Six different factory stains, two paint choices or a primed finish let homeowners create or complement any look.

3 Interior wood species: Select from the rich grain of natural pine, oak or maple for the window or door interior.

Extensive exterior trim options: Our broad array of styles, colors and widths let you complement any architectural style.

“ENERGY STAR” is a registered trademark of the U.S. Environmental Protection Agency. “Andersen” and all other marks where denoted are trademarks of Andersen Corporation. © 2010 Andersen Corporation. All rights reserved.

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Signing ExhibiTorSHome show organizers are currently accepting exhibitor applications for this year’s Fall edition to be held on September 14-16 at the Overland Park Convention Center. Prices are held steady for booth spaces this year. exhibitor forms are online at www.kchba.org.

Contact Lori Kodanaz at 816-733-2217 or e-mail her at [email protected] to reserve your space!

Greater Kansas City LIsC is pleased to announce that the Missouri General As-sembly passed legislation supporting the establishment of a land bank in Kansas City, Mo. The legislation is the culmina-tion of two years of behind-the-scenes efforts by Greater Kansas City LIsC to introduce and educate community leaders about the benefits of a land bank to address the 12,000 vacant and abandoned proper-ties in the Kansas City metropolitan area.

“The passage of this important legisla-tion is a victory for Kansas City residents as we all continue to seek solutions that reduce the number of vacant and aban-

doned properties in the urban core,” said Julie Porter, KC LIsC executive Director.

More specifically, the legislation allows the City of Kansas City, Missouri to form a land bank of vacant, abandoned and foreclosed properties to help manage, sell and transfer tax delinquent land in order to return the properties to productive reuse. Allowing the City of Kansas City to form a land bank would allow the City to stra-tegically focus on how best to utilize these properties to aid community redevelop-ment efforts.

“Over the past two years, Greater Kansas City LIsC has worked to educate civic and

community leaders about vacant property issues and share examples of how other municipalities are addressing the prob-lem,” said David Park, Deputy Director of Neighborhood and Community services for the City of Kansas City. Through four LIsC Vacant Properties symposiums, na-tional experts have presented new ideas and LIsC facilitated broad-based commu-nity discussion. In addition, LIsC brought to Kansas City one of the country’s pre-eminent organizations - the Center for Community Progress – to help write the land bank legislation.

“Due, in part to LIsC’s leadership, the

community was able to consider all op-tions available to us and determine the best course of action,” said Crystal williams, Jackson County Legislator. “I’m pleased that a new Kansas City land bank will be able to assume responsibility for working with neighborhoods and businesses to seek creative housing and economic develop-ment opportunities for our city.”

LIsC would like to commend the bill’s sponsors for their outstanding leadership. It received bi-partisan sponsorship support from Rep. Noel Torpey and Rep. Michael Brown in the House, and sen. Victor Cal-lahan in the Missouri senate.

Build paC Hosted Donor appreciation Event

Missouri Passes New LaNd BaNk LegisLatioN LISC’s behind-the-scene efforts culminate in community support

City star. Get the early deadline discount by registering by August 3. Forms avail-able online at www.kchba.org or contact Gina Battle, [email protected].



HBA events & News

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Congratulations to pacific Mutual Door celebrating 100 years of business!A Century of Distinction, 1912-2012.

David Elliott • 913-888-82119070 Park Hill, Lenexa, KS 66215

It was an exciting day for the Person family of Kansas City, Missouri, when Ferguson’s truck delivered to their North-land home the brand new $8,000 appliance package that they won in the Treasure Hunt Card give-away at the spring Home show, Flower, Lawn & Garden show held at Bartle Hall March 24-26.

Gabrielle Person was encouraged by her 8-year-old son, recently adopted from Poland, to take a chance on the package. when Lori Kodanaz, Director of Con-sumer & Trade shows, called Person to arrange for delivery, Person was shocked.

“You have got to be joking,” she said. “I’ve never won a thing in my life!”

The generous electrolux stainless steel

package, donated by Ferguson enter-prises, Inc., featured a 24” Dishwasher, 30” free-standing range, 29 cubic ft. re-frigerator with French doors and a 30” over-the-range microwave.

Kansas City builders ranked in the 2011 top 200 list according to the May issue of Builder Magazine, the magazine of NAHB. The builders listed include:

# 30 McBride & Son Companies, Chesterfield, Missouri (Midwest) with 879 closings# 32 Rausch Colman Homes, Fort Smith, Arkansas (South, Midwest, Southwest), with 823 closings#163 James Engle Custom Homes, Olathe, Kansas, with 114 closings # 198 Rodrock Homes (Brian Rodrock), Lenexa, Kansas, with 84 closingsNationally 430, 800 single family homes were built in 2011 according to census

bureau data. New home sales and multi-family completions fell by more than 10.2 percent last year. Builders had hope of customers returning to the market and in some cases they did for builders ranked on the 100 list as they recorded their highest market share of closings in a decade and gained ground for the second consecutive year.

successful builders have indicated that a variety of strategies differentiate them-selves in the market place. Primarily they tune into buyers wants and needs. In addition, they aggressively work to control and reduce expenses, seek out new talent in their hiring decisions, keep an eye on inventory levels, and make sure customers have a good online experience when they visit their website during their buying experience.

Ferguson appliances Delivered to Home Show Winner

area Builders Rank in Top 200



National Home Ownership Month

Congratulations to pacific Mutual Door celebrating 100 years of business!A Century of Distinction, 1912-2012.

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Step Up to Higher Profits.

area Builders Rank in Top 200each June during National Home-

ownership Month, Americans have the opportunity to reflect on how home-ownership has enhanced our lives and contributed to the thriving communities we call home. Home builders continue to work with housing finance innovators, consumer education organizations and government officials to advance and protect affordable homeownership oppor-tunities in our country.

Homeownership is an important part of the American way of life, and there may never be a better time to buy than today.

Outstanding Opportunitieswith the country still emerging from the

recent recession, many people are won-dering if this is a good time to buy a home.

The answer is easy: Yes. It’s a very good

time to purchase a home. even though the housing market is beginning to recover, it is still a buyer’s market.

There are many opportunities in today’s market including affordable prices, low mortgage rates and great new homes. But market conditions can change, and these opportunities may not be around for long, so home buyers shouldn’t wait.

And despite the housing downturn, home owners still place high value on owning a home, and recommend home-ownership to others. According to a January 2012 poll*:

96 percent of home owners are happy with their decision to own, and 84 percent who are “underwater,” or owe more on their mortgages than their home is worth, expressed the same sentiment.

79 percent of home owners would

June is Homeownership Month: Celebrate the american Way of Lifeadvise a family member or close friend just starting out to buy a home, and 69 percent of those who are underwater on their mortgage would offer the same advice.

74 percent said that despite the ups and downs in the housing market, owning a home is the best long-term investment they can make.

Great SelectionAn excellent selection of homes on the

market makes today a very good time to buy. A plentiful inventory provides a great choice of homes, and builders that have brand new homes “move-in ready.”

Additionally, many owners of exist-ing homes who postponed trading up or downsizing due to market conditions are now ready to sell. As employment im-proves, the number of relocations will increase, bringing more homes into the market. (Continued on page 8)



America’s home owners and home builders celebrate National Homeown-ership Month in June, bringing attention to the more than 75 million Americans who own their homes, and the millions more who aspire to achieve the American dream of homeownership. But it is also important for American families to know that homeownership is under attack. Legislative and regulatory proposals now under consideration by government policymakers would greatly harm home owners, home buyers, the housing market and the nation’s economy.

To educate Amer-icans about the threats to home-ownership and to provide opportuni-ties for current and future home owners to take action to protect it, the Na-tional Association of Home Builders (NAHB) has launched a website, www.ProtectHomeownership.com. The site features expert economic analysis and reports, data from home-ownership surveys and polls, and the answers to many frequently asked ques-tions about housing and homeownership.

ProtectHomesownership.com high-lights the threats to homeownership by describing how tax, legislative and regulatory policies currently under con-

sideration would scale back or eliminate the mortgage interest deduction and make mortgages and small business loans unaf-fordable and difficult to obtain. It tells how finance and credit-related issues are making it difficult for creditworthy, financially responsible families to buy a home and threaten to ultimately prevent millions of families from ever becoming home owners.

The site documents homeownership’s importance to individual households and to local, state and national econo-

mies. It shows how new home construc-tion and remodeling presently account for about 15 per-cent of the nation’s total economy, and how the financial issues are imped-ing production of new homes. The economic impact of

home building includes construction of single-family and multifamily homes, remodeling and the countless products and services that are related to those activities.

Protecthomeownership.com also em-powers the American public to take positive action to support and protect this very important aspect of American life. Visitors are encouraged to sign an online petition urging Congress to keep housing a national priority, and to join social media communities on Facebook.com/ProtectHomeownership and Twitter.com/4Homeownership.

Information is provided about how to participate in Homeownership Ral-lies that are being held in a number of communities in 2012. The first rally, in Columbia, s.C., drew almost 1,000 people to the statehouse grounds to voice their support and focus the government’s attention on critical housing issues.

National Home Ownership MonthNaHB Website Designed to protect Homeownership

Are you planning to move to a new home in the next few years? Thinking about renovating your current home so it’s more appealing to potential buyers when you do decide to move on? Or maybe you just want to change your space to follow the latest trends?

whatever your plans for your existing or future home, research from the Na-tional Association of Home Builders and Better Homes and Gardens magazine shows what features and floor plans will be popular over the next few years.

According to an NAHB survey of home builders on their expectations for homes in 2015, smaller homes with lower prices and more green features will be the pre-dominant force in the marketplace.

As the average size of new single-family homes continues to decline to 2,377 square feet from a peak of 2,521 in 2007, floor plans are focusing on frequently-used rooms. More than half of the builders surveyed said the size of the family room will increase, while the formal living room, entry foyer and dining room are expected to decrease or disappear.

Other features that builders predict are highly likely to be included in the aver-age new home of 2015 include a walk-in closet in the master bedroom; a laundry room; ceiling fans; a master bedroom on the first floor in homes with two stories; and a two-car garage.

Nearly 70 percent of the respondents

said that homes will be greener, and about one-third expect them to have more features related to technology.

The most common green features in 2015’s new homes will be low-e win-dows; engineered wood beams, joists or trusses; water-efficient features such as dual-flush toilets or low-flow faucets; and an energy star rating for the whole house.

The families looking to move into new or renovated homes have high expecta-tions for their new space as well.

A December 2010 survey of Better Homes and Garden readers who consider themselves prospective home buyers or who are planning a major improvement to their home indicated that home buyers don’t want any “wasted space” in their next home and they are seeking signifi-cant value for the money they spend.

eighty-nine percent of consumers want high-efficiency heating and cooling in their next home, 85 percent want high-efficiency appliances, and 78 percent want upgraded features and fixtures such as granite countertops, wood flooring, faucets and lighting fixtures.

Efficient use of space also ranks highly in consumers’ desires. The top-ranked living spaces include a separate laundry room; additional storage space; walk-in closets or built-ins; a home office space, workspace or family computing center; and everyday eating space in or close to the kitchen.

Homes of the Future: What’s Hot & What’s Not q



National Home Ownership Month

aqQ&a for Homebuyers

No. Just as no one can accurately predict the peaks and valleys of the stock market (name one person who sold their tech portfolio in April of 2000), the same holds true for housing. If you wait for what you think is the absolute best deal, you could end up waiting for years. All the market fundamentals show that now is a good time to buy – prices are down, interest rates near historically low levels, and there are lots of homes to choose from.

If you buy now, you will not only be in the driver’s seat during the buying process, you will also reap the gains of price appreciation. Remember, those who purchased homes in the early 1990s during the last big economic and housing downturn came out as big winners.

Shouldn’t I wait until home prices go even lower to buy?

Doesn’t it make sense to wait out the market until can I get the same price on my home that my neighbor got when he sold a year ago?No. It’s always better to trade up in a buyer’s market. while the value of your house has fallen, the prices of higher-end homes have also dropped. Here’s an example:

Your neighbor sold for $300,000. Let’s say values in your area have dropped 10 percent, so you could get only $270,000 for your home today. You have your eye on a move-up home that previously sold for $500,000, but now is selling for $450,000. If you sold your home today for $270,000 and purchased the larger house for $450,000, the difference in price would be $180,000.

But if you waited to recoup the 10 percent value on your home and sold it at $300,000, chances are the move-up home would also increase in price 10 percent to $500,000. That’s a $200,000 price difference. so by selling today, you would actually save $20,000.

Interest rates keep going down. Shouldn’t I wait until they go even lower before I buy a home?Interest rates for 30-year, fixed-rate mortgages are extremely favor-able for buyers. In fact, they are currently hovering near 30-year lows. But waiting to time the market is a dangerous game. even those who follow the market for a living can’t figure out when interest rates will bottom out. If they could, they would all be multi-millionaires.

And home prices don’t necessarily move in unison with interest rates. so, if you decided to wait to purchase a home and the price dropped $10,000 from where it is today, you could still end up losing money. How? If interest rates were to move up by a half-a-point during this pe-riod, the savings on the reduced home price would be more than offset by the higher monthly payment you would be making over the life of the loan.

(Continued on page 8)



National Home Ownership MonthI have $10,000 to invest. Should I put that money in the stock market or buy a home?Purchasing a home is by far the best long-term investment. For example, say you use that $10,000 to purchase a $250,000 home, and the house appreciates a modest 3 percent during the first year. That means after one year, the house would be worth $257,500 – a gain of $7,500. By contrast, putting the same $10,000 in the stock market and posting a similar 5 percent gain would only net a $500 return on investment.

And don’t forget the tax incentives. In most instances, all of the mortgage interest and property taxes you pay in a given year can be fully deducted from your gross income to reduce your taxable income. These deductions can result in thou-sands of dollars of tax savings, especially in the early years of the mortgage when interest makes up most of the payment.

I’m a first-time buyer and still can’t afford the type of home that I want. Is it best to wait, keep renting, and hope that prices will get even lower?If you continue to wait, you may never be able to afford to get into the housing market. even as home prices are cur-rently moderating or falling, depending on where you live, rents continue to climb. when you buy a home, you are also purchas-ing price stability, knowing that you will pay the same monthly payment for the life of your 30-year, fixed-rate mortgage.

Once you become a home owner, you are able to take advan-tage of the tax deductions that homeownership offers, and you begin to build equity in your property.

with so many homes on the market to choose from, your best strategy may be to scale back expectations for your dream starter-home. After a few years, you can use those equity gains to sell your starter home and move into a bigger house. The sooner you make the jump from renter to home owner, the quicker you begin to create and build up wealth for your family.

New Homes Benefit More Than Just Buyers and BuildersThe positive impact of new residential con-

struction is far-reaching, bringing benefits to families, businesses and services throughout a community immediately, as well as for years to come.

According to economists at the National Association of Home Builders, the one-year estimated local impacts of building 100 single-family homes in a typical metro area include $21.1 million in local income, $2.2 million in taxes and other local government revenue, and 324 local jobs.

But what does that economic impact mean in the real, day-to-day lives of community residents?

Just think about it. when a family moves to a community and buys a new house, they will likely shop at local stores to buy furniture and accessories to decorate the home. They will fill their cars at local gas stations to get to stores, have local mechanics work on the car when it breaks down or needs the oil changed, or buy a new car at a local dealer when it’s time to re-place the old one.

The children will enroll in local schools. This increases enrollment, meaning more teachers, janitors, cafeteria workers and other school support staff will need to be hired. Those kids will also join sports leagues and

other activities, buy equipment and pay regis-tration fees that provide stipends for referees and coaches.

All of this economic activity puts income into the pockets of local business owners and their families, who can then afford to go out and spend money themselves, which recycles even more money into the community’s economy.

The new family also pays local and state taxes. These tax revenues help pay for a wide range of government services, includ-ing school teachers, police departments, parks maintenance and road repairs.

Over the long term, as the families who move into new homes become part of the community, their positive impact continues. NAHB esti-mates that those 100 new homes also provide the community with additional, annually-recur-ring impacts of $3.1 million in local income, $743,000 in taxes and other revenue for local governments, and 53 local jobs.

Families who buy a newly built home enjoy benefits including safety, amenities, energy ef-ficiency and floor plans to fit a modern lifestyle. But the advantages of new homes extend far beyond the buyers and the builders—residen-tial construction has a positive, direct impact on the local community for years.

attractive pricingIf there’s a silver lining to the recession and

the housing downturn, it’s that homes in many markets are more affordable. Prices in some areas have moderated significantly, especially in major markets where they increased the most during the housing boom that occurred in most of the country.

Low Interest RatesLike inventory and pricing, mortgage in-

terest rates are still at very favorable levels, but rates are sensitive to market forces and can change quickly. There’s no indication that rates will suddenly surge upward, but even

a slight rate increase can push monthly pay-ments to the point that a buyer might miss out on their first choice for a new home.

Prospective home buyers also should be aware that lenders are looking more closely at borrowers today than in recent years. To ensure that the process goes smoothly, buyers should consider pre-qualifying for a mortgage and having financing in place before shopping for a new home. Buyers also may find that some home builders have arranged favorable financing for their customers or offer financial incentives.

Greener and Betterwith energy costs

June is Homeownership Month: Celebrate the american Way of Life

(Continued from page 7)


(Continued on page 9)




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(Continued from page 8) near the top of consumer concerns, it’s good to know that new homes can be more energy ef-ficient than ever. Innovative materials and construction techniques mean that today’s new homes are built to be much more energy efficient than homes constructed a generation ago. Not only can they be more affordable to operate, new homes also are significantly more resource efficient and environmentally friendly.

Designed With Buyers in MindDesigned to accommodate today’s busy

lifestyles, new homes feature open floor-plans, flexible spaces, improved safety features, low-maintenance materials and other amenities that make them more ap-pealing than ever before.

And in many areas, prospective home

buyers who wish to live in age-qualified communities for those 55 and older will find a large selection of homes tailored to the evolving lifestyles of the baby boom generation.

Benefits for Home OwnersHomeownership also provides impor-

tant benefits to owners.

Tax Benefits: For Home Owners Only

Unique tax benefits that apply only to housing help lower the cost of home-ownership. Both mortgage interest and property taxes are deductible. Moreover, for married couples, profits of up to $500,000 on the sale of a principal resi-dence ($250,000 for single taxpayers) are excluded from tax on capital gains.

The advantage of LeveragingLeveraging is another advantage of

homeownership. A buyer can purchase a home and receive the full benefit of home-ownership with a cash downpayment that is only a fraction of the total purchase price. This is called leveraging, and it makes the rate of return on a home pur-chase greater than on other purchases with the same value, such as stocks, where the buyer must put up the entire price.

Building personal ResourcesFor most Americans, homeownership

is a primary source of net worth and an important step in accumulating personal financial assets over the long term. Al-though property values have declined in many markets, Americans currently have a total of more than $6 trillion in equity in

their homes, and for most families, home equity represents the largest share of net worth.

There Really is No place Like Home

Although there are many positive finan-cial aspects to homeownership, a home cannot be valued in monetary terms alone. Not only can homeownership be a step-pingstone to greater financial well-being, it provides a permanent place to call home and great personal satisfaction.

Academic research also shows that homeownership provides a wide range of social benefits and strengthens the na-tion’s people and its communities.

Homeownership is truly a cornerstone of the American way of life.



BuildingBusinessNewsTHE OFFICIaL pUBLICaTION OF THE HOME BUILDERS

aSSOCIaTION OF GREaTER KaNSaS CITYJune 2012 Volume 18 Issue 6

Copyright 2012

published by the Home Builders association of Greater Kansas City

600 E. 103rd Street, Kansas City, Mo. 64131 (816) 942-8800

Executive Vice president sara Corless Editor stephanie stollsteimer

Graphics karla Peterie, Creative servicesContributing Writer steven Cowen

2012 Executive CommitteeHome Builders association

of Greater Kansas Citypresident kevin stucker

Vice president Fred deliberoSecretary/Treasurer Chris ragland

associate Representative kevin kirtleyImmediate past president travis graham

to subscribe to Building Business News, call (816) 733-2224

to advertise in Building Business News call (816) 942-8800

For change of address requests, please fax changes to (816) 942-8367

or call (816) 942-8800

For more information, visit the HBa online at www.kchba.org

to Call K&E Flatwork Today!816-746-6100

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HBa MEMBERS HappY aNNIVERSaRY

These companies’ continued membership shows their support for the local home building industry. The strength of an association is in its membership and a thank you goes out to all of those members who continue to support the HBA. (If you know these members, please encourage them to renew and remember all the benefits they’ll miss by not renewing their membership)

Save the Date for the NaHB Rally

NAHB’s Rally for Home-ownership is coming to Kansas City, september 25. events will showcase homeownership as a top priority for policymakers as housing challenges face commu-nities across America. sites will be designated to feature speakers and lawmakers who will reach out to industry, business, civic and community groups.

1952 Ferguson enterprises, Inc.Pacific Mutual Door & Window

1974 Dulaney Construction Co.

1976 Madden-McFarland Interiors

1978 Tom French Construction, Inc.

1984 O’Donnell & sons Construction Co.

1985 MarKirk Construction, Inc.

1990 straub Construction Co. IncChildress Painting & Associates, Inc.

1992 Ashner Construction Co., Inc.

1999 stewart Title of Kansas City

2000 Liberty Homes, Inc.

2001Atronic Alarms, Inc.First American Title

2002KGH Building Group LLCHardee Custom Homes, LLC

2003Apex engineers Inc.

2004 Highland Park Builders LLCFallbrook Building, LLC

2004 C & M Builders, Inc.National Bank of Kansas CityHaynes equipment Co., Inc. shaw Construction Inc.

2005Martens, Inc Lumber One LLCValley View state Bank

2006Tabernacle Homes LLC K & e Flatwork LLC

2007Joseph Lane Homes LLCCrossFirst Bank Jim Larson Homes LLC

2008Park Ridge Homes, LLC.

2009RubinBrown LLP H & H steel, Inc.Klein Products of Kansas

2010Legacy Flooring ContractorsNiteLites of Kansas CityAbsolute Access, LLCContinental Title Company

2011Armstrong Cabinets Corporation e & M Consulting, INC.



BuildingBusinessNewsTHE OFFICIaL pUBLICaTION OF THE HOME BUILDERS

aSSOCIaTION OF GREaTER KaNSaS CITYJune 2012 Volume 18 Issue 6

Copyright 2012

published by the Home Builders association of Greater Kansas City

600 E. 103rd Street, Kansas City, Mo. 64131 (816) 942-8800

Executive Vice president sara Corless Editor stephanie stollsteimer

Graphics karla Peterie, Creative servicesContributing Writer steven Cowen

2012 Executive CommitteeHome Builders association

of Greater Kansas Citypresident kevin stucker

Vice president Fred deliberoSecretary/Treasurer Chris ragland

associate Representative kevin kirtleyImmediate past president travis graham

to subscribe to Building Business News, call (816) 733-2224

to advertise in Building Business News call (816) 942-8800

For change of address requests, please fax changes to (816) 942-8367

or call (816) 942-8800

For more information, visit the HBa online at www.kchba.org

Find out how you can reach

over 1,000,000 weekly Star

readers with a customized

profile story. Show potential

buyers why your community

is a great place to call home.

Tell the story of your great homes

To advertise, call your account executiveor Kate Mariani-Vacek at (816) 234-4097.

WELCOME NEW MEMBERS Congratulations to our new members. Let’s make them feel at home!

Beaver TimberJon Beaver3133 Merriam Lane, Kansas City, Ks 66106 (913) [email protected]

SunSource Homes Inc.Keith Graepler7832 Rosewood Ln., Prairie Village, Ks 66208 (816) [email protected]

Valor ConstructionKelley Hrabe5602 e. 139th st., Grandview, MO 64030 (816) [email protected]/

Prairie Homes, Inc.Robert ewy12917 RichardsOverland Park, Ks 66213 (913) [email protected]

City Wide Overhead DoorJim Jones702 sw south AveBlue springs, MO 64015 (816) 444-1444jjones@citywideoverheaddoor.comwww.citywideoverheaddoor.com

Sod Shop, Inc.wade wilbur1783 e. 1500, suite BLawrence, Ks 66044 (913) [email protected]

register for events online www.kchba.org



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register for events online www.kchba.org

Sara Corless executive Vice [email protected], 816-733-2216

Gina BattleTour & Membership Records [email protected], 816-733-2219

Marcia JurgensPermit & Accounting [email protected], 816-733-2215

Stephanie StollsteimerDirector of Marketing [email protected], 816-733-2213

Lori KodanazDirector of Consumer & Trade [email protected], 816-733-2217

Andrew McKeeganAssociation services [email protected], 816-733-2224

Natalie Tuckerevents [email protected], 816-733-2247

HBa STaFF Office: 816-942-8800

Online Resources for HBA Members!Register for HBa Events

safe & secure online registrationPersonalized calendar of events.

Notification of your events

Update Your MembershipChange your profile, contact info & membership directory listings.

Call today 816-942-8800, or email [email protected] or

[email protected]

Click this logo atwww.kchba.org

to login to your account

Existing-Home Sales Rose in april



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New Home Sales Up in Aprilsales of newly built, single-family

homes rose 3.3 percent in April to a sea-sonally adjusted annual rate of 343,000 units, according to newly released data from HUD and the U.s. Census Bureau.

“The increase in April sales activity is in line with other important housing measures that have shown continued, gradual improvement from the first quarter as more consumers look to take advantage of today’s low interest rates and affordable home prices,” noted Na-tional Association of Home Builders (NAHB) Chairman Barry Rutenberg, a home builder from Gainesville, Fla.

“In markets where demand is rising, we could be seeing a faster pace of recovery if not for persistently tight lending condi-tions that are slowing both the building and buying of new homes.”

“Today’s report is representative of the kind of modest but consistent gains that we expect to see in new-home sales through the remainder of 2012,” said NAHB Chief economist David Crowe. “As indicated by our most recent build-er surveys, more consumers are taking advantage of historically low mortgage rates amidst firming economic and job market conditions in certain areas.”

Existing-Home Sales Rose in april

existing-home sales rose in April and remain above a year ago, while home prices continued to rise, according to the National Association of Realtors®. The improvements in sales and prices were broad based across all regions.

Total existing-home sales, which are completed transactions that include single-family homes, townhomes, con-dominiums and co-ops, increased 3.4 percent to a seasonally adjusted annual rate of 4.62 million in April from a down-wardly revised 4.47 million in March, and are 10.0 percent higher than the 4.20 million-unit level in April 2011.

Lawrence Yun, NAR chief economist, said the housing recovery is underway. “It is no longer just the investors who are taking advantage of high affordabil-ity conditions. A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home

prices,” he said. “The general downtrend in both listed and shadow inventory has shifted from a buyers’ market to one that is much more balanced, but in some areas it has become a seller’s market.”

Total housing inventory at the end of April rose 9.5 percent to 2.54 million ex-isting homes available for sale, a seasonal increase which represents a 6.6-month supply at the current sales pace, up from a 6.2-month supply in March. Listed in-ventory is 20.6 percent below a year ago when there was a 9.1-month supply; the record for unsold inventory was 4.04 mil-lion in July 2007.

“A diminishing share of foreclosed property sales is helping home values. Moreover, an acute shortage of inventory in certain markets is leading to multiple biddings and escalating price conditions,” Yun said. He notes some areas with tight supply include the washington, D.C.; Miami; Naples, Fla., and Phoenix.



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ors Starts in New Home

Construction Continue at Positive Pace

“Homes are being built, ground is being broken, and lots are selling as the Home Builders Association reports a 50 percent increase in permit activity over the same four months of 2011,” according to executive Vice President sara Corless. January through April’s permits totaled 915 outpacing 601 last year. This is the

highest four months of activity since 2008 when permits totaled 1,277. April marks the fourth consecutive month in which starts showed improvement over the same month last year with 277 over 210 in 2011.

“Builders reported increased traffic as well as increased sales during April’s Parade of Homes” said Corless. “Home sale closings in May indicate permit ac-tivity will continue into the summer.”

The top four counties ranked by permit numbers are Johnson, Clay, Jackson and Platte, respectively. Of note, Platte County has increased its share of permits year or year from 7 to 12 percent.



Building Business news www.kchba.org page pB


page 16 www.kchba.org Building Business news

June 2012 www.kchba.org Volume 18 • NO. 6.

1. Networking with your fellow mem-bers from other states.expanding who you know is very impor-tant in life and with social media sites like Facebook and LinkedIN our world is expanding like the original “Big Bang.” You never know who you could help and who could help you by increasing your professional network. NAHB involve-ment is the positive step to take in that direction.

2. Taking part on a national committee.Members from different areas of the United states work towards like-minded goals. Not only can this help you with the committee work back home at your local with similar committees, it also help you become a better professional, working with such a diverse group of people. The

mannerisms, the attitudes, the way oth-ers “look at life” are so varied but it helps you develop a unique set of people skills you wouldn’t normally receive by being bound within your own state.

3. Learn about advocacy for our mem-bers at the federal level.Now more than ever, “The Hill” is where our industry will recover. Gaining insight to the advocacy process not only helps you understand what affects you, but helps you take action to protect yourself.

4. Gain a better understanding of hous-ing issues in other areas of the country.when certain anti-home-building groups find a successful tactic it becomes only a matter of time before it spreads like weeds in your garden. what happens in

New Jersey and California, our two most industry legislated and regulated states, has and will appear elsewhere. It’s great to know, if there is a particular plan to stop housing in your state that others have already “been there, done that” and could help you plan and prepare.

5. Engage in discussion about best practices.NAHB builder members have a program designed to help them called “The Builder 20 Club” designed to help these members discuss their businesses with their peers, but peers that are no competition because they are in different parts of the country. while associates don’t have that particu-lar program we do have our NAHB As-sociate Members Committee which can give you the same types of discussions.

As an example, if you are a marketing professional in your state and you would like to discuss tactics on growing your business, someone who is your competi-tor is not likely to help. However, a fel-low marketer from another state that you have successfully networked with and de-veloped into a friendship would. Open your minds to the idea that not all things are confined within a state and let the world of our Federation flow toward you.

Top 5 Reasons to Become Involved Within NaHB

By Dianne Beaton, CGA, CAPS. Dianne is the 2012 NAHB Associate Members Committee Chairman and is an associate member from New Hampshire.

Documents

Building Business News June 2012