Home Building News - Home Builders Association of Greater Tulsa

Home Building News
February 2011
The Official Publication of the Home Builders Association of Greater Tulsa,
Founded with Integrity, 1942
King
of the
HBA
Launches
New Web
site
Castle
Steve Wright,
Castlerock
Builders
wins
2010 HBA
Spirit Award
2011
Executive
Committee
President’s Report:
The Spirit of the Association
By HBA President Rob Miles
In February’s Home Building News, we recognize the HBA’s annual Spirit
Award winner. On behalf of the Association, I would like to congratulate
Steve Wright, of Castlerock Builders, on being the 2010 recipient. The Spirit
Award is the highest honor awarded by the Association, and is presented each
year to the building company that best utilizes HBA Associate members.
The award was initiated by the Associates Council of the Home Builders
Association in 1989, and was actually used as a model program and adopted
by other Associations across the country as a means to underscore the
importance of the relationship between builder and suppliers, one of the
cornerstones of the Association.
As the winner, Steve receives a variety of benefits, including a bronze eagle
trophy, web site exposure on TulsaHBA.com, a feature story in the monthly
magazine and even a VIP parking space at the HBA. But none is probably
more rewarding than simply the relationships he has formed with some of
the industry’s top companies.
For more information about Steve’s winning project, as well as his company,
turn to the article on page 20. And, for those of you getting ready to start
projects this year – please keep this award in mind as you select your
suppliers. The call for applications typically begins in October, with the
winner being announced at the annual Installation Gala.
Part of what makes the Association a successful organization, is the teamwork
between our Builders and Associates – which ultimately creates a better end
product. And whether you are a Builder looking for a window supplier, or
even if you are an Associate member, and either looking for partnership
opportunities for your business or products for your own personal project
– I would encourage you to start first by seeking out our Associate member
companies.
Our current membership is 886, with roughly 60 percent of members falling
into the Associate category, and 40 percent of the members representing
builders, developers and remodelers. It has been said many times, but bears
repeating, our Associate members truly are the lifeblood of the Association,
and not only do they represent the best product and service suppliers in the
area, but they also provide an invaluable resource to the Association. Each
March, the Associates Council puts on the single largest non-dues revenue
generating event for the Association, the Greater Tulsa Home & Garden
Show. Funds from this event help to make all of the other activities of the
HBA possible.
Make sure to mark your calendar for March 10-13, and head out to the
QuikTrip Center at Expo Square for the HBA’s largest event of the year.
Oh, and help us spread the word by telling your friends, family, business
colleagues, and the person behind you in line at the hardware store - the
2011 Greater Tulsa Home & Garden Show is the one home improvement
trade show that you do NOT want to miss! It will also provide you with a
great opportunity to share and see first-hand what many of our members,
both Builders and Associates, have to offer, and what sets them apart as the
best in the business.
President
Rob Miles,
Milestone Homes, Inc.
Vice President/Treasurer
Bill Butts,
Pinnacle Properties
Vice President/Secretary
Jeffrey Smith,
CedarRock Homes, LLC
Past President
Gary Soderstrom,
Gem Properties, Inc.
Membership Chair
Mark Priess,
CFR, Insurance
Builders Council President
Brent Green,
Green Homes
Associates Council President
Mark Priess,
CFR, Insurance
Green Building Council President
John Madden,
Quadesign & Company, Inc.
Developers Council President
John Davis
Schermerhorn Development
Remodelers Council President
Chad Potter,
Drywall Repair Specialist
Executive Vice President/CEO
Paul Kane
HBA Headquarters
11545 E. 43rd St.
Tulsa, OK 74146
(918) 663-5820
Fax: (918) 628-0493
www.TulsaHBA.com
If you are an industry leader than be a follower!
www.Facebook.com/TulsaHBA
www.twitter.com/TulsaHBA
Table of
Contents
5
EDITORIAL
Kane’s Corner
6-7 SNAPSHOTS
9
CALENDAR OF EVENTS
11
SPIKE REPORT
12
NEW MEMBERS
16
REMODELERS COUNCIL
INDUSTRY
18 Housing starts
19ECONOMIC FORECAST
FEATURE
20 STEVE WRIGHT, CASTLEROCK
BUILDERS, WINS 2010 HBA SPIRIT
AWARD
22
HBA LAUNCHES NEWS WEB SITE
25
INTERNATIONAL BUILDERS SHOW
27
OSHBA 2011 OFFICERS
29
A NOTE ON APPRAISALS
Your Story Here!
If your business has news that you would
like featured in Home Building News, please
submit the information to Valerie Heritage at
[email protected].
Note: The deadline to submit information is
the 5th of the month prior to publication.
4
HOME BUILDING NEWS
FEBRUARY 2011
Kane’s Corner
By Paul Kane , Executive Vice President/CEO
Whether social media (i.e.,
Facebook, Twitter, etc.) is here to stay
is uncertain. What is certain is that it’s
definitely here right now. More than a
year ago, I started a Facebook account
and a Twitter account for the HBA;
not really knowing what I was going
to do with them. I started out posting
articles relating to housing that I had
run across online. I was attempting to
counterbalance all the negative news
the media was throwing at us.
But then, that wasn’t enough. No
longer was I satisfied just waiting for
articles to just fall in my lap. I started
seeking them out. I regularly did
Google searches for anything related to
“home building” and “Tulsa”. Then I
signed up for searching services which
would deliver residential construction
related articles on the internet to my
email box on a daily basis.
The result? I make posts to
Facebook and Twitter several times
a week with articles that should be of
interest to anyone connected to the
industry. By doing all this, I’ve also
discovered that I have a more optimistic
view of the future of building than
many of those around me. If all you do
is listen to the “sky is falling” national
media, you’d probably just crawl under
a rock and wait for the Apocalypse.
But the news isn’t all bad. Let me give
you a sampling of what I’ve posted
recently:
• Nov. 1: Posted an article from
NAHB Chief Economist, David Crowe,
in which he was forecasting how the
recovery would play out throughout
the country. Oklahoma was shown on
a map as being the top 20 percent.
• Nov. 4: Noted that 500 new jobs
were coming to the area; Dow had hit
a 2 year high; an Oklahoma energy
company’s profits had quadrupled and
auto makers were reporting stronger
sales.
• Nov. 17: Posted an article from
the Wall Street Journal, discussing
how builder confidence was improving
nationwide.
• Nov. 23: Posted an article
discussing the optimism which is
appearing in the markets.
• Dec. 2: Posted a link to a NAHB
website expressing concerns about
the risk of Congress taking away the
mortgage interest deduction. [This is
still a danger by the way!]
• Dec. 2: Posted an article from
Builder Magazine showing that
building starts were up nationwide
by over 10 percent.
• Dec. 3: Posted an article from
Kansas City, showing how their
market is recovering. This was good
news for us, because their market was
hit much harder than ours.
• Dec. 7: Posted an article from
the Tulsa World, in which forecasters
were predicting good job growth for
the Tulsa area.
• Dec. 10: Posted an article from
Builder Magazine addressing how
Americans’ wealth is growing, lifting
hopes for the economy.
• Dec. 17: Posted another article
showing that building starts are up
nationwide.
• Dec. 22: Yet another article on
improving housing starts.
• Dec. 28: Posted an article that
explains that the increasing housing
starts nationwide were improving
builder optimism nationwide.
• Dec. 28: Posted an article from
top economists on what to expect in
2011.
• Dec. 30: Posted an article from
CNBC pointing that existing home
sales were better than anticipated.
• Dec. 31: Posted an article predicting
that housing starts nationwide would
reach a 3 year high.
• Jan. 4: Posted an article from Tulsa
World showing yet another drop in
Tulsa area unemployment.
Naturally, more postings have been
made since January 4. But this article
was written around that time. The
point of all this is that if you’re reading
the news I’m reading, it doesn’t sound
all gloom and doom. Unfortunately,
FEBRUARY 2011
HBA Management Team
Paul Kane
Executive Vice President/CEO
[email protected]
Bonnie Polak
Assistant Executive VP,
Special Events Director
[email protected]
Valerie Heritage
Public Relations Director
[email protected]
Nikki Pauly
Director of Membership
[email protected]
Marlena Turley
Executive Assistant/Receptionist
[email protected]
Pam Fanning
Bookkeeper
[email protected]
Tara Grotzke
Council Coordinator
[email protected]
you really have to wade through a
lot of doomsdays article to find a
balance in the news. My efforts on
Facebook and Twitter are not to paint
an unrealistically good picture, but to
bring some balance.
If you haven’t joined Facebook or
Twitter, you can do so now and start
following the postings I make. We’re
easy to find on either one. Just log on
and do a search for TulsaHBA. And
I’ll keep on posting.
HOME BUILDING NEWS
5
The students of the Ryal School in Henryetta Oklahoma were all smiles at the annual Ryal Christmas Party, hosted by the
HBA in December. But it was hard to tell whose smiles were bigger - the kids, or the more than 40 volunteers that came to
help out with the event! Thanks to all of the HBA sponsors and volunteers for making this event possible each year - this year
marked the 43rd anniversary of the event! If a picture is worth a thousand words - then this edition of Snapshots is the longest
ever! Mark your calendars for Dec. 8, 2011 to volunteer for next year’s event!
6
HOME BUILDING NEWS
FEBRUARY 2011
Snapshots:
Ryal Christmas Party
December 2, 2010
FEBRUARY2011
HOME BUILDING NEWS
7
Calendar
of Events
February
1 5 p.m. Associates Council
3 5 p.m. Remodelers Council
7 3 p.m. Executive Committee
8 3:30 p.m. Developers Council
8 5 p.m. Board of Directors
8 5:45 p.m. President’s Reception
8 6 p.m. General Membership Meeting
9 11:30 a.m. Owasso Chapter,
Bailey Medical Center, Owasso
10-11 8a.m-4:30p.m.Master Certified Green
Professional Class
15 11:30 a.m. Builders Council
16 11:30 a.m. Southwest Chapter,
Freddie’s Steakhouse
16-20 Total Resource Campaign Trip
Mayan Riviera, Mexico
17-18 1-5 p.m. City of Tulsa Professional Builder program orientation,
City Hall
23 11:30 a.m. Green Building Council
25 4 p.m. Parade of Homes Entry Deadline
March
3 5 p.m.
7 3 p.m.
8 3:30 p.m.
9 11:30 a.m.
10-13 .
10 5:30 p.m.
10 5-9 p.m.
11 10 a.m.-9 p.m.
12 10 a.m.-9 p.m.
13 11 a.m.-6 p.m.
15 11:30 a.m.
23 11:30 a.m.
Remodelers Council
Executive Committee
Developers Council
Owasso Chapter,
Bailey Medical Center, Owasso
Greater Tulsa Home & Garden Show,
QuikTrip Center, Expo Square
Board of Directors,
QuikTrip Center, Expo Square
Greater Tulsa Home & Garden Show
Greater Tulsa Home & Garden Show
Greater Tulsa Home & Garden Show
Greater Tulsa Home & Garden Show
Builders Council
Green Building Council
Upcoming Events
May 20
HBA Golf Tournament
June 11-19
Greater Tulsa Parade of Homes
All events are at the HBA headquarters,
11545 E. 43rd St., unless noted otherwise.
FEBRUARY 2011
HOME BUILDING NEWS
9
Bill Cassetty - 167.25
Darrell Jenkins - 166.5
Phil Rhees - 162
Calvin Cozort - 161
Rex Alexander - 159.5
Steve Harris - 156
Bill Rhees - 151
A Spike is an
individual who, through
his or her recruiting and
retention efforts, builds a
strong Association base
and strengthens the housing
industry as a whole.
To become a Spike, you
must earn six Spike credits
within two consecutive
years. Credits (points) are
earned by bringing in new
members and retaining
current members.
At each new Spike level,
“Spikes” are recognized
with a series of exclusive
awards. Spike also enjoy
benefits such as visibility
among their peers leading
to increased business
contacts, invitations to
special, FREE events and
celebrations and more.
Spike Points earned by
members of the Home
Builders Association of
Greater Tulsa as reported
by NAHB, September
30, 2010. Due to space
constraints, names are
listed when each has
earned at least two Spike
points.
201+ points
Francine Bandy - 402.75
Burr Kannady - 302.5
Joe Hoffman - 283.75
Charles Gilmore - 236
Ken Klein - 218
Doug Shrout - 201.5
151-200 points
Howard Kelsey - 200
Larry Halve - 199.5
Kristin King - 198
John Brawley - 181.5
Steve Murphy - 180
Sam Hollinger - 171.5
David Blackburn - 168.5
Greg Simmons - 52
Jennifer Ashley - 51.75
26-50 points
Dub Jester - 48
Cheryl Funk - 45.5
Sandy Colgan -41.5
Jim Van Sickle - 41
Ryan Farabough - 37
101-150 points
Toni Rogers - 37
Joe Robson - 146
Bill Eddy - 35.5
Brian Wiggs - 141
Rita Boggs - 35.25
Lana Nelson - 138
Mary Pearce - 34.25
John Kirkland - 137.5
Brandon Jackson - 34
Scott Wood - 131.5
Brandon T. Jackson - 30.75
Mark Priess - 128
Lee Sherman - 28
Mike Fretz - 125
Rod Brunken - 28
Howard Tackett - 119
Wayne Farabough - 117.5 Richard Fredrick - 27.25
Zelda Garrison - 27.25
David Funk - 117
John Fisher - 27
Vern Suess - 116.5
Lindsay Perkins - 112.5
6 - 25 points
Linda Johnson - 110
Brandon Perkins - 105.75 Kevin Blackburn - 25
Bo Armentrout - 23
Rick Martin - 105.5
Chuck Ramsay - 22.5
Tom Wenrick - 102.5
Allen Jenkins - 22.5
Rick Liebman - 21.5
76-100 points
Craig Thurmond - 20
Ed Schermerhorn - 99
Scott Burnett - 19.5
Lora Phillips - 97.5
Mike Walker - 18.5
Bill Butts - 93.5
Leslie Brunken - 16.75
Melanie Haines - 88.5
Jerry Ledford, Jr. - 16.5
Roger Cooper - 87.5
Melisa McCelvey - 14.5
Lantz Day- 84.5
Kyle Bradley - 14
Monte Dunham - 84.25
Jeff Westerfield - 14
Ted Dubie - 80
Steve Wright - 13
Rick Ellison- 77
Steve Holt - 11.5
Kent Stewart - 11.5
51-75 points
Stuart Gallagher - 10.5
Gretchen Casto - 74.5
J.D. Harp - 10.5
Steve Fulps - 72.5
Kyle Smalygo - 10.5
Mary Keane - 72.5
Tricia Stafford - 10.25
Susan Burch - 72
Maria Welch - 10
Glenn Shaw - 71.5
Brant Snap - 9.5
Shawn Linfoot - 68.5
Gary Soderstrom - 8.5
Les Kelsey - 67.5
Robert Hughes - 8.5
Candis Bingham - 67
Vince Mims - 8
Frank Sawyer - 64.25
Ken Saltink - 8
Zachary C. Davis - 60.5
Jeffrey Smith - 7
David Sanders - 58.5
Darby Thomas - 6.75
Barry Helms - 58.25
J.J. Rowe - 6
Fred Pruett - 55.75
J. Donald Walker - 54.5
David Gibson - 54
Steve D. Wright - 53.5
Terry Davis - 53
FEBRUARY 2011
Spike Candidates
(Less than 6 points)
Sonya Fernandez - 5
John Kiska - 4.5
Stephen Brown - 4
Tim Carpenter - 4
Reagan Eden - 4
Andy Pulley - 3.5
Shawn Karnes - 3.5
Chad Potter - 3.5
John Davis - 3.5
Robin Rogers - 3.5
Rodger Tucker - 3
Craig Boos - 3
Donnie Johns - 3
Jimmy Holmes - 3
Scott Sherrill - 3
Thomas Watts - 3
John Esposito - 2.75
Greg Strange - 2.5
Jim Lane - 2.5
Gary McClary - 2.5
Dana Brown - 2
Earl Howard - 2
R. Louis Reynolds - 2
Jill Stroud -2
Kirk Van Vleet - 2
Leland Cable - 2
John Cowen - 2
Travis Detter - 2
Carrie DeWeese - 2
Carl Hudgins - 2
Robert Lemons - 2
Jim Rackleff - 2
Freddie Watkins - 2
Buford Williams - 2
Stacey Pennington - 2
Janet Soderstrom - 2
Aaron Wiltshire - 2
HOME BUILDING NEWS
11
December New Members
BUILDER
3D Solutions
Daniel Doughty
8405 S. Winston Ave.,
Tulsa, OK 74137
(918) 760-3102
[email protected]
Sponsor: Rita Boggs
BUILDER AFFILIATE
Gem Properties, Inc.
Kim Leitch
PO Box 1340,
Jenks, OK 74037
(918) 492-1226
Fax: (918) 938-0135
[email protected]
gempropertiesinc.com
Sponsor: Janet Soderstrom
Jackson Construction Group, LLC
Jeff Hahn
PO Box 521118,
Tulsa, OK 74152
(918) 227-3386
Fax: (918) 227-2117
[email protected]
jacksonconstructiongroup.com
Sponsor:Brandon T. Jackson
Jackson Construction Group, LLC
Diana Hahn
PO Box 521118,
Tulsa, OK 74152
(918) 271-2792
Fax: (918) 619-9943
[email protected]
jacksonconstructiongroup.com
Sponsor:Brandon T. Jackson
ASSOCIATE
Amy Cook Designs, LLC
Amy Cook
10475 S. 86th E. Ave.,
Tulsa, OK 74133
(918) 269-1896
[email protected]
amycookdesigns.com
Sponsor:Janet Soderstrom
Black Hat Cleaning Services
David Harris
5158 S. 94th E. Ave.,
Tulsa, OK 74145
918) 747-1510
Fax: (918) 384-0901
[email protected]
blackhatnow.com
Sponsor: Donald Merritt
12
HOME BUILDING NEWS
Welcome to the HBA!
Colburn Electric
Scott Lewis
829 W. Elgin St.,
Broken Arrow, OK 74012
(918) 251-8765
Fax: (918) 251-1758
[email protected]
colburnelectric.com
Sponsor: Rita Boggs
Nichtech Roof Systems, LLC
Charles Nichols
21909 S. Amber Dr.,
Claremore, OK 74019
(918) 283-2001
Fax: (918) 923-7039
[email protected]
nichtechroofsystems.com
Sponsor: Rick Liebman
Country Financial
Michael Tillman
2044 W. Houston
Broken Arrow, OK 74012
(918) 251-9222
Fax: (918) 258-9529
[email protected]
Sponsor: Chris Hodges
Oklahoma Farm Bureau Ins.
Ashley Smith
427 E. 2nd Ave.,
Owasso, OK 74055
(918) 376-1933
Fax: (918) 376-9330
[email protected]
okfarminsurance.com
Sponsor: Jeffrey Smith
Crimson Steel Supply, LLC
Dustin Wright
10336 E. 58th St.,
Tulsa, OK 74146
(918) 994-5330
Fax: (918) 994-5331
[email protected]
Sponsor: John Madden
Digital Home Concepts
Jerry Stultz
7131 Riverside Parkway,
Tulsa, OK 74136
(918) 933-5999
[email protected]
digitalhomeconcepts.com
Sponsor: Brian Wiggs
Sunglow
Ted Lacina
6527 E. 46th St.,
Tulsa, OK 74145
(918) 664-5977
[email protected]
Fax: (918) 664-5995
Sponsor: Rita Boggs
2011 HBA Member Directories
COMING SOON!
Jenks Fence
Rusty Wieland
625 E. A St.,
Jenks, OK 74037
(918) 299-5575
Fax: (918) 518-5602
[email protected]
Sponsor: David Blackburn
Lee Insurance & Financial Services
Nickey Lee
6216 S. Lewis Ave., Suite 108,
Tulsa,OK 74136
(918) 329-5270
Fax: (918) 392-5441
[email protected]
lifeagency.com
Sponsor:
FEBRUARY 2011
The 2011 Edition of the HBA
Member Directory will be
available this month. Copies will
be available at the HBA office, and
mailed to all members in March.
Join us for the HBA for the
February General Membership
Meeting!
Make the Most of your membership!
Tuesday, February 8 at 6 p.m.
HBA Headquarters
11545 E. 43rd St.
Members: $10 with RSVP by
Feb. 4, or $15 at the door
Non-Members: $20
Dinner and Drinks included
Your membership with the Home Builders Association of
Greater Tulsa is working for you at three different levels
- local, state and national. As a member of the HBA, you
also receive memberships with the Oklahoma State Home
Builders Association, and the National Association of
Home Builders.
2011 Presenting GMM Sponsor:
Gold Sponsor:
Empire Kitchens & Bath
Happy Valentine’s Day
_________
In the spirit of the holiday,
congratulations to HBA Members
Jane Bullock of GreyHorse
Associates and Lantz Day of Stone
Group Holdings on their recent
enagagement. A love connection
made through the HBA!
14
HOME BUILDING NEWS
FEBRUARY 2011
Benefit of the Month
3 Memberships in 1
Through our affiliated organizations, your membership
helps to ensure that key building industry issues are
kept a priority for state and national policymakers, and
that a team is working on your behalf to defeat excessive
regulations and defend affordable housing initiatives.
In addition, a variety of programs are offered on the
state and national level for HBA members. The Member
Advtantage Program offered by NAHB is a national
version of our local “Do Business with a Member”
program that offers a variety of discounts from top
national companies. OSHBA also offers members a
comprehensive insurance program tailored to meet the
needs of members, which includes competitively prriced
insurance programs for Builder’s Risk, General Liability,
and Worker’s Compensation.
Take advantage of your HBA Membership by getting
involved in all levels of the orrganization!
Remodeling Roundup
PROFIT: advantageous gain or return; benefit
www.thefreedictionary.com
By Remodelers Council President Chad Potter, Drywall Repair Specialists
It’s not just a good idea;
profitability is a necessity for business
survival. That sounds so obvious, but
too many times we have overheard
others “taking a job to keep their guys
busy”, or “I’ll do this job for cost so
I can get my foot in the door”. This
accomplishes setting a new low
price standard for your company and
industry. It also puts your cash flow
in a pinch and is a disservice to your
customers and employees.
I think we all have stories about
the job we bid too low. I know that
I have a few. As these low-to-no
profit jobs progress, we find ourselves
stressed about the potential of losing
money. This stress is passed on to
the employees conducting the work,
which is passed on to the quality of
workmanship provided to the customer.
The end result is an unsatisfactory
project, disappointed customer, and an
employee that may believe that these
practices encouraged by the stressed
manager or owner are now acceptable.
The bottom line is that you have
tarnished your image by bidding too
low.
On the flip side, when a project
has an appropriate profit margin, we
are more apt to take our time to ensure
a high quality service to customers.
Workers are not rushed, which
results in a clean job site, high quality
workmanship and a willingness to go
the extra mile for customers. As stated
above, we all have stories about the
job bid too low. We can also relate to
the job that was properly bid. These
are the projects with high customer
satisfaction and many times lead to
repeat customers, or future work from
referrals.
Profits also help advance your
business by having the ability to invest
in your business. You now have the
resources to offer educational and
safety opportunities to employees.
This also gives you the ability to
expand product lines and purchase
new, safe and more efficient tools and
equipment.
If you’re constantly trying
to prevent loss, you will lose the
opportunity to enjoy your gains and
16
HOME BUILDING NEWS
pass them on to customers.
Thenk you to The Womble
Company, the 2011 Presenting Annual
Sponsor of the Remodelers Council,
and also to Mark Priess with CFR,
FEBRUARY 2011
Insurance, who spoke at our January
meeting. The February meeting is
being sponsored by Marvin Krueger
CPA, CMA Please join us the first
Thursday of the month at 5 p.m.!
Industry Update
Metro Tulsa finishes year with 2,138 starts
The Home Builders
Association
of
Greater
Tulsa announced that new
housing starts throughout the
Tulsa metro area increased
in December to 139, three
percent ahead of November
totals, but and nearly 27
percent behind December
2009. According to a report
from permit tracking service
New Orders Weekly, this
puts total permits issued for
the year at 2,138, a 12 percent
decline from the prior year.
Tulsa, Bixby and Broken
Arrow recorded the highest
levels of activity in December
with 27, 21 and 20 starts,
respectively. And for the
year, Tulsa, Broken Arrow
and Owasso all broke the 200
mark, with the highest levels
of new building activity in
the Tulsa metro. The three
cities have year-to-date start
totals of 337, 298, and 218,
respectively.
“2010 was a challenging
year for the building industry
in Tulsa and the rest of the
country,” said Rob Miles,
veteran home builder and
President of the Home
Builders Association of
Greater Tulsa. “However,
it does appear that the
market has stabilized, and
the expectation is that the
industry will begin to recover
in 2011, as demand for new
homes increases.”
Local housing start
figures
reflect
permit
information for the entire
Tulsa metro area, which
includes Bartlesville, Bixby,
Broken Arrow, Catoosa,
Collinsville,
Claremore,
Coweta, Glenpool, Jenks,
Kiefer, Muskogee, Owasso,
Sand Springs, Sapulpa,
Quality Craftsmen Since 1897
h
g
i
L
Skiatook, Tulsa, Verdigris,
and Wagoner along with
Tulsa, Rogers and Wagoner
Counties.
r
e
tn
Heating
&
Air Conditioning, Inc.
• Design / Manufacture
• Installation
• Service
Frederick Sommers & Western Signs
415 3rd St
Tulsa, OK 74120
918-587-2300
www.fredericksigns.com
18
HOME BUILDING NEWS
FEBRUARY 2011
9881 Hectorville Road
P.O. Box 83
Glenpool, OK 74033
E-mail: [email protected]
Don Lightner, Owner
(918) 322-9548
(918) 224-6548
Fax (918) 322-9553
Housing’s rebound hopeful in 2011:
Local industry experts evaluate market
conditions, review expectations for year ahead
at annual HBA Economic Forecast Seminar
Experts from the real estate,
mortgage and economic arenas took
center stage at the end of 2010 to
look ahead to the future of Tulsa’s
housing industry. And the prediction
was...hopeful but heedful. With three
different perspectives on the market,
attendees at the annual HBA Economic
Forecast Seminar, held at Forest Ridge
in November, were given lots of positive
statistics, tempered with concerns that
are expected to continue to challenge
the marketplace in the coming months.
At the event, which was sponsored
by The Robson Companies/Forest
Ridge and Arvest Bank, Sam Rader,
with Coldwell Banker Select, recapped
Tulsa’s real estate market.
And
Ben Cowen, of Bank of Oklahoma
Mortgage provided a mortgage
industry perspective on the industry
and impending changes and trends.
Bob Ball, the economist for the City of
Tulsa, also shared some local economic
indicators.
While things locally have continued
to decline, the consesus is that the
market has bottomed out, and although
it is a “sloppy bottom”, things have
stabilized. Overwhelmingly, it appears
the number one issue facing the market
is consumer confidence as a result of
the economy and foreclosure market.
The average sale price in 2010 was
$171,000 (down about three percent of
the prior year), with the largest decrease
in sales price coming from homes in the
$100,000-$250,000 category. Through
the first three quarters of 2010, there
had been nine percent fewer residential
closed sales than the prior year, and
27 percent less closings than the same
period in 2007. Of homes that have
closed (through August), 78 percent
were $200,000 and under, 17.9 percent
in the $200,000-$400,000 range, and
3.8 percent in the $400,000 and up
category.
In Tulsa, we currently have about
10 months of inventory (new homes
not included). For homes under
$200,000 that figure is just 8.6 months
of inventory, while homes $400,000
and up are at 27.4 months of supply.
Nationally, there are approximately
4.1 million units for sale (an 11 month
supply compared to a typical supply
of 6-7 months), with 35 percent of
sales being distressed properties such
as foreclosures and short sales. Sales
for the year are at 4.5 million, which
is tracking 19 percent behind last year,
and much further behind the industry
high point of 7 million. Thirty percent
of buyers this year fell into the first-time
home buyer segment, and 20 percent of
sales are to investor buyers.
There are several economic factors
that continue to have a major impact
the market; Interest rates, employment
rate and the foreclosure rate. The good
news is that Tulsa’s low cost of living
(89 pecent of the US
average)
has helped the area to continue to fare
better than most major US cities. In
addition, the metro area is expected to
have a two percent personal income
growth in 2010 (compared to a decline
in 2009).
Interest rates have remained at
or near record lows, continuing to
provide motivation for people to buy
and refinance. Currently, 70 percent
of loans are refinance, and 30 percent
are sales, but that number is expected
to change next year, to 70 percent sales
and 30 percent refinance - another bit
of good news for builders. However,
there is a concern that as rates may
increase over the coming years, that
people might grow accustomied to the
lower rate and believe that they are
being “gouged”. The fed is trying to
keep rates around 4.25-5 percent.
Jumbo loans (loans above
$417,000) are not expected to loosen in
2011. With no liquidity in that market,
the loans are pretty locked up, as they
have been for the past year. One option
available for those in that price range is
to do a conforming loan with a second
loan.
2011 is expected to be a tougher
lending environment, although positive
on mortgage rates. Cowen reinforced
that the key for builders is to make
FEBRUARY2011
sure that they are having conversations
with lenders on how to manage the
risk together. Pricing margins are
strong, and the risk is the highest it
has ever been (Fannie and Freddie can
force banks to repurchase if they see
anything wrong), making some loans
unsellable.
In addition, appraisal values
continue to be key - all appraisals are
checked against a national database.
If a valuation is more than 20 percent
higher than the system, it will be
questioned by the agency. Agencies
are also monitoring borrwers to verify
that they have not increased their debt
load.
In terms of employment, most
businesses have said that they do
not plan to expand in the next 12-18
months, however, the good news is that
Oklahoma and Tulsa’s unemployment
rates are still lower than the national
average. As of September, the local rate
was 7.4 percent. The unemployment
rate is not a good indicator of recovery
because it rises and falls for a variety
of reasons, and noteably, people
having been leaving the labor force
entirely. However, local economists
think that we may see a good increase
in unemployment in 2011, as people
rejoin the labor force because they
believe they can get a job.
HOME BUILDING NEWS
19
Steve Wright,
Castlerock Builders,
wins 2010 HBA
Spirit Award
Each year, at the
December Installation Gala,
a bronze eagle trophy is
presented to the annual
HBA Spirit Award winner.
The Spirit Award is one of
the HBA of Greater Tulsa’s
highest honors. The eagle
is the symbol of the Home
Builders Association, and
appropriately, the award
recognizes a builder member
who embodies the spirit
of the Association through
his partnerhsip with our
Associate members.
This year’s honoree
Steve Wright, of Castlerock
Builders, is no exception.
Wright is a first-time
recipient of the Award, which
he received in recognition of
a project that he completed
at 4200 S. Quinoa Ave. in
the Berwick on Cedar Ridge
subdivision.
The project
was featured, and won a
second place award in the
$625,000-$799,999
price
category in the 2010 Greater
Tulsa Parade of Homes.. “When I found out I had won
the 2010 Spirit Award, I was
so excited and honored, ” said
Wright. “The Spirit Award
reflects the relationships
between the builders and
20
the associate members, and
I am very proud to use the
associate members in my
business.”
“I always try to use HBA
Associate members in my
company because they are
great friends, trustworthy
and always look for the best
in your company.”
Steve Wright has been
building quality homes
for satisfied customers
for over 11 years in Tulsa
and the surrounding areas.
Professional
hands-on
construction and customer
service help each Castlerock
client to design and build
the homes of their dreams.
The company will build on
client lots and also offers
lots in numberous area
subdivisions. All of their
homes are designed and
built with the highest quality
materials, while providing
value and special detail in
order to make each home
stand apart from the others.
Steve
said
that
his membership in the
Association
has
been
important to his business
success.
“The HBA
represents integrity and
professionalism
in
our
HOME BUILDING NEWS
FEBRUARY 2011
Steve Wright, above, has been a
member of the HBA since 2002.
He is a current Board Member,
and Spike Member, and also
served as Builders Council
President in 2006.
industry,” said Wright. And
the organization has plated a
valuable role in keeping him
up-to-date with the industry
in regards to national issues,
code changes, and new
trends and ideas.
Each year, many worthy
companies enter projects for
consideration of this honor,
which are then analyzed by
the HBA accounting firm
to determine which projects
involved
the
greatest
percentage of work by
HBA members. The award
symbolizes the teamwork
between the contractor and
the subcontractor, and how
very important it is when
building a new home to use
only qualified craftsmen and
suppliers...HBA Associate
members.
Soundbite:
An interview with Steve
Below is sampling of snapshots from
Castlerock Builders’ winning project.
In addition, get to know 2010 Spirit
Award Winner Steve Wright when
we ask “hard-hitting” questions about
life and the industry.
time, introduced me to the business by
helping me build my own house. At that
time, I decided to change occupations
and try the construction busness.
2. If you could describe yourself in three
words, what would they be?
S.W.: Driven, Loyal and Honest
3. What is your favorite part of the
home?
S.W.: Kitchen
4. What is something most people don’t
know about you?
S.W.: I have coached the defensive backs
1. Why did you decide to become a
builder?
S.W.: I was an independent consultant
traveling 52 weeks a year for over six
years and wanted to be home with my
family. A friend, that was a builder at the
FEBRUARY 2011
for Bixby High School football for 5 years
as a volunteer.
I also am a die hard Texas Longhorn fan
living in Oklahoma. (the writers at Home
Building News think maybe Texas needs
to tap into his coaching talents?)
Castlerock Builders specializes in
client relationships and service by
personalizing a design/build concept
to ensure the homebuyer gets the best
product for the best value. The company
builds in South Tulsa, Owasso, Jenks
and Broken Arrow subdivisions such as
Wind River, Berwick at Cedar Ridge,
Millicent Pond, Stone Canyon, Clear
Brook, Ridge at South County and
Dutchers Crossing.
HOME BUILDING NEWS
21
HBA launches new web site
Visitors
to
the
TulsaHBA.com site are being
greeted with an entirely new
look, after the launch of a
new Association web site in
January. The PR Committee
unveiled the new design,
which was developed to be a
customizeable tool that will
better serve the public and
members alike.
In addition to a fresh,
clean look that complements
the latest HBA branding
campaign, the site also takes
advantage of several new
technologies to provide
visitors with an easier to
navigate, and more visuallyappealing format. The home
page features a rotating
feature image that will be
used to highlight upcoming
events, major announcements
or campaigns, or just convey
general Association and site
information, making it easier
22
HOME BUILDING NEWS
for visitors to find important
info.
The site also features a
Members Only section where
members can download
the HBA logo, update their
membership
information
directly or request a change.
The section requires a
Username and Password
to access, which you can
receive by calling the HBA
Office at 918-663-5820.
In addition, the new site
will house a comprehensive
calendar of events, where
members will have the ability
to RSVP for upcoming
meetings.
This can be
found under the Members
Only Section, as well as the
Events tab.
The Find a Professional
section offers users the
chance to search through an
online membership database,
which is updated in real time
FEBRUARY 2011
- enabling the Association
to provide more current data
than ever before.
One other new feature
is the addition of a New
Homes and Lots search
tool, which will be available
FREE to Builder Members.
This new system will enable
companies to list their
available homes, and make
is easy for buyers in the
market for a new home to
browse existing inventory,
and see a sampling of
homes available from HBA
Member companies. To post
your homes or available lots
of the site, contact the HBA
Office and the staff will
direct you to the third party
company that is managing
and creating the listings
portion of the site.
Take some time to visit
the new TulsaHBA.com your online HBA resource!
Builders’ Show Keeps Home
Builders at Top of Game
Have you ever wondered
what sets professional home
builders apart from guys who
work “out of the back of their
trucks”? Well, the answer
is simple and it comes from
the word “professional.” As
with most professions, home
builders and remodelers who
keep up-to-date with new
laws, methods and materials
can offer the most to their
clients.
In the home building
profession, there are new
building codes every three
years, in addition to new
energy,
fire,
plumbing,
electrical and mechanical
codes, all of which come
with countless upgrades.
There are state-wide, county,
municipal and city codes.
Professional home builders
and remodelers have to be
on top of these and take them
into consideration when
building a new home.
Because
buying
a
new home is such a huge
investment, one that you will
live with for many years, it
makes sense to have it built
by someone who knows
the latest codes, as well as
someone who knows what
the newest materials and
techniques are, where to get
them, and how to use them.
Each year there are hundreds
of new products available to
make your home better and
your life easier.
Many
residential
construction
industry
professionals keep abreast
of new rules, product
advancements and changing
technology by attending
the annual International
Builders’ Show (IBS). More
than 50,000 of the industry’s
top professionals – builders,
remodelers, architects and
suppliers – attended the IBS,
which was held January 1215 in Orlando, Fla.
One of the largest
professional trade shows in
the country, the IBS is a weeklong learning experience
consisting of around 200
seminars covering everything
from housing trends to new
products and services to the
latest installation techniques.
In additional to the education
sessions,
about
1,000
manufacturers and suppliers
display their products across
approximately 500,000 net
square feet of exhibit space
during a four-day trade
show.
During
Green
Day
at
IBS,
manufacturers
showcased their newest
energy- and water-efficient
appliances and products and
there are classes for green
project management, design
trends and building science.
The federal Department
of Energy’s 20 college
Solar Decathlon teams also
displayed models of the
solar-powered homes they’ll
be building on the National
Mall this fall.
IBS is just one of the many
programs, certifications and
on-going educational efforts
offered by NAHB
that
provides
professional
home builders and
remodelers with
information
on
the latest products
and
services
available when it
comes to home
construction.
The International Builders’ Show is the largest annual light
construction show in the world—over miles and miles of the
latest and most advanced building products and services ever
assembled. Showcasing the latest innovations with hands-on
demonstrations and working
models, the annual convention
of NAHB features products
in over 300 building industry
categories.
Think of it as a convenient
corner marketplace. It’s where
you’ll find more builders and
more suppliers than anywhere
else in the world.
4554 S. Harvard Ave.
Tulsa, OK 74135
(918) 499-1282
www.friscotitle.net
FEBRUARY 2011
HOME BUILDING NEWS
25
QuickBooks Accounting
& Tax Center
Workshops • Training • Consulting
Accounting & Tax Services
Home Builders • Contractors • Individuals
All New and Small Businesses
Stephen J. Litwack, CPA
Certified QuickBooks ProAdvisor
5200 S. Yale Ave., Suite 100
International Tower
Tulsa, OK 74135
Tel. (918) 828-9807 • Fax (918) 828-9806
[email protected]
“We Make QuickBooks Easy • Your Success is Our Business”
2011 OSHBA Officers Installed
During its annual
installation gala,
held Jan. 7 at the
Hilton Skirvin
Hotel in OKC,
the Oklahoma State Home
Builders Association
(OSHBA) installed the
following officers for 2011:
President
Michael Herndon
PO Box 1609
Kingston, OK 73439
(580) 564-1100
Vice President/Treasurer
Brandon Perkins
2223 E. Skelly Dr., Suite 10
Tulsa, OK 74105
(918) 747-5687
Vice President/Secretary
Jeff Click
15812 N.Pennsylvania Ave, Ste. 3
Edmond, OK 73013
(405) 348.1525
Past President
Tom French
PO Box 30357
Edmond, OK 73003
(405) 677-4426
FEBRUARY 2011
Exec. Vice President
Mike Means
917 NE 63rd
OKC, OK 73105
(405) 843-5579
Chariman, Associates
Council
Casey Felix
Central National Bank
PO Box 3448
Enid, OK 73702
Oklahoma Professional
Women in Building
Barbara Franks
ONB Bank
623 S Main
Stillwater OK 74074\
(405) 707-8039
Remember, all members
of the Tulsa HBA are also
members of OSHBA.
We encourage you to get
involved on the state level as
well as the local level!
OSHBA
917 NE 63rd St.
Oklahoma City, OK 73105
www.oshba.org
(405) 843-5579
Toll-Free: (800) 256-9980
HOME BUILDING NEWS
27
28
HOME BUILDING NEWS
FEBRUARY 2011
Tips to win the fight for
fair appraisal values
A Message from NAHB
Creating Dream Kitchens Since 1968
www.QualityCabinetsJenks.com
918-299-2721
The following letter was sent to NAHB Directors from 2008
NAHB President Sandy Dunn on Dec. 28, 2010:
For the past several years one of the
major problems our builders have
been facing are low appraisals.
The National Association of Home
Builders (NAHB) has been working
diligently to help solve these
problems. Two Appraisal Summits
were held in the last quarter of 2009
and the third Summit was held at the
end of 2010. All the players were
gathered in one room at the Housing Center to try to come
up with solutions. Progress is being made.
In the meantime while NAHB is working to solve the
problems with the process here are some things you can do
to help bring your appraisals in at Market Value:
1) Help yourself by helping the appraiser
Most appraisers today are under such a short time line that
they only look at sales that are recorded in the MLS. A lot
of new construction never makes it to the MLS, therefore
you should talk to other builders to see what they have
sold. This will be beneficial to both of you. Then access
courthouse records and see what other sales have been
recorded.
2) Go to nahb.org
In the search engine type in “appraisals”. Then click on
“capturing new home sales information for use as appraisal
comparables” and go to the last sentence in the second
paragraph and click on the highlighted area. An appraisal
form will now appear with one column. This is the same
information the appraiser gathers. Fill this form out for each
sale you can find. Then take a picture of each house that has
sold and attached it to the form. When the Appraiser comes
to appraise your house give him/her this information and
tell them that this is some information you have gathered
that you thought they might find helpful. This is legal and
trust me when I tell you it will be greatly appreciated! I am
a Certified General Appraiser and if a seller did this for me
I would kiss the ground they walk on.
3) Last but not least, make a list of all of the up-grades
you have put in your house that might not be in a
comparable sale.
Meet with the Appraiser and explain all of the pluses your
house has that may or may not be seen by the naked eye.
If you follow these three simple steps I promise that
your appraisals will improve....they may not be perfect, but
you will get better results than you’re getting now.
FEBRUARY 2011
HOME BUILDING NEWS
29
Home Builders Association of Greater Tulsa
11545 E. 43rd St.
Tulsa, OK 74146
Mission Statement
As leaders in the housing industry since
1942, we are dedicated to protecting the
industry while promoting ethical
business standards. We support our
community through education, membership
requirements and philanthropic efforts.
PRSRT STD
U.S. POSTAGE
PAID
TULSA OK
PERMIT NO. 351
Editor and Advertising Sales:
Valerie Heritage
11545 E 43rd
Tulsa, OK 74146
918-663-5820
Fax: 918-628-0493
www.TulsaHBA.com