BMD partners with Marvin in Northern California
Building Material Distributors (BMD), a wholesale distributor of specialty building materials, has announced an agreement with Evolution Window & Door Co. for the exclusive northern California distribution rights of Marvin’s Integrity brand windows and doors. This transaction is effective Nov. 5.
“We look forward to the opportunity to offer our current northern California Marvin customers the full Marvin and Integrity families of products,” said Mike Garrison, Executive VP of BMD’s Marvin division. “As a full-service distributor for both the Marvin and Integrity lines, we are positioned to provide products to meet the ever changing needs of the market.”
BMD has distributed the Marvin Windows & Doors family of products for more than 30 years. Their distribution area includes California, Nevada, New Mexico, Colorado, and parts of Wyoming.
84 Lumber owners give rosy forecast
Pro dealer 84 Lumber opened a new store on Oct. 26 in Bridgeville, Pa., outside of Pittsburgh, marking the first new unit for the pro dealer in six years. The two-story store will be located on a seven-acre property that includes a kitchen and bath design showroom, a lumber warehouse, railroad spur and truss plant.
Company owner and president Maggie Hardy Magerko told the Pittsburgh Tribune Review that the company, which ranked No. 6 on the HCN Pro Dealer 2012 Scoreboard, will turn a profit this year for the first time since the housing downturn.
“We definitely hit rock bottom,” Hardy Magerko said in the interview. Sales at the new location, which will replace an older store located nearby, are projected to reach $25 million next year, she said.
Company founder and patriarch Joe Hardy, also interviewed by the Tribune Review, predicted that new-home construction “will start coming back in another year or so. The inventory is disappearing,” Hardy said, adding housing starts could return to the 1.5 million-a-year level nationwide in a couple years.
The company’s new store count is 251 locations, down from more than 500 units at its peak.
Zelman brings up the house at PDIS
Savannah, Ga. — An optimistic outlook from a normally conservative housing analyst closed the final day of the ProDealer Industry Summit (PDIS) today, sending many attendees home with renewed optimism, a new take on demographics and the green light — in theory at least — to ask builders for price increases next year.
Headliner Ivy Zelman of Zelman & Associates, who predicted the length and the depth of the housing slump early on, told a full audience that the acceleration of household formation, combined with a dwindling number of available rental units, has created a housing shortage that needs to be addressed immediately.
“We, as a country right now, do not have very many opportunities for shelter,” Zelman said. Renters who can’t find apartments are turning, instead, to renting single-family homes. When these come off the housing market, the available inventory drops even lower, she said. And demographics are also adding new buyers to the market as adult children finally decamp from their parents’ homes.
“It’s tough to date when you’re in your 30s and living in your mom and dad’s house,” Zelman observed. And, unlike young adults in many European counties, “people are still falling in love and getting married and having babies,” she added.
Zelman & Associates’ official forecast for 2013 is 980,000 housing starts and 1.22 million in 2014.
These factors are already leading to the sustained rise in home prices, which is at 9% year to date. “We believe we are in the beginning of a pretty strong long-term pricing cycle,” Zelman said.
Zelman & Associates also studies the home improvement industry, where it is tracking an upward trend. “The home improvement value is more dependent on the people who don’t move," Zelman said. As families grow, homes must be renovated to accommodate them. “The power of the female buyer will reignite spending on our homes,” she said.
The hottest potato in Zelman’s presentation dealt with commodity inflation and builders turning down requests for price increases; the housing analyst said a 0.5% price rise in a home’s prices can offset a 1.0% increase in labor and materials. In other words, they can do it.
“[Builders] don’t need as much price appreciation to cover building materials,” she said. “If they’re pushing back on you, I think you should have that discussion again,” she said, adding: “Builders are going to have to pay up [if] they want to make Wall Street happy.”