Lot availability continues to impact builders
A growing trend translates into higher home prices.
A recent survey by the National Association of Home Builders (NAHB) found that 65% of builders reported the supply of developed lots in their areas was low to very low.
Although the latest survey results are up just 1% from June 2017, the overall figure is up 42% from September 2012, the NAHB reported.
According to the NAHB, the 65% mark is the highest low-supply percentage recorded in the NAHB/Wells Fargo Housing Market Index (HMI) since 1997. The latest figure also includes 43% of respondents who characterized the supply of lots simply as low and 22% who said the supply of lots was very low.
The continued low supply of developed lots is a hindrance to housing recovery, and a catalyst for recent week new home sales, the NAHB said.
Additionally, a shortage of buildable lots, especially in the most desirable locations, translates into higher prices.
About 82% of home builders in September 2018 said the price of developed “A” lots – or prime lots – was somewhat to substantially higher than a year ago while 77% and 70% of builders reporting said the price of “B” lots and “C” lots was somewhat to substantially than a year ago
WCLBMA announces board moves
There’s a new slate of officers for the West Coast LBM Association
The 102-year-old West Coast Lumber & Building Material Association elected Mark Boone, president and COO of Champion Lumber as president for the 2019-2020 term. Boone has served on the WCLBMA board of directors the past six years, the last two years as first vice president.
Champion Lumber is a family-owned business established in 1950 in Riverside, Calif. Champion Lumber has been a member of the WCLBMA since 1997.
In addition to Mark Boone as president, other officers and members of the board include:
• First vice president, Frank Addiego, All Bay Mill & Lumber, American Canyon;
• Treasurer, Sean Fogarty, Osborne Lumber, Newark.
• Past president, Victor Fresca, Dixieline Lumber and Home Center
• Dealer director, Brian Pierce Friedman’s Home Improvement, Santa Rosa.
• Associate Director, Pat Zan, Taiga Building Products, Rocklin;
• Associate Director, Vic Hausmaninger, HBLA CPAs, Irvine.
Re-elected to the board of directors for a second three-year term as a Dealer Director was Matt Endriss, Central Valley; and re-elected as an Associate Director was Thom Wright, Sierra Pacific Industries, Redding.
Augie Venezia was re-elected to the board of directors as government affairs chair.
Holdover directors are Barrett Burt, Ganahl Lumber, Pasadena; Rick Deen, Nichols Lumber, Baldwin Park; Marc Mizgorski, Hayward Lumber, Monterey; Chris Fleiner, Reno/Carson Lumber, Reno; Barry Schneider, Bear Forest Products, Riverside; and Glenda DeFrange, Straight Line Transport, Huntington Beach. Ken Dunham, WCLBMA executive director, serves ex officio on the board of directors as corporate secretary.
The incoming president of Second Growth, WCLBMA’s young professionals group, Steve Schroeder, Ganahl Lumber, will join the board in a non-voting capacity in December.
The West Coast Lumber & Building Material Association (WCLBMA) is one of the largest lumber and building material trade associations in the country. It has been active in California and adjacent states since the early 1900s. The organization is also affiliated with the National Lumber & Building Material Dealers Association.
Poll Question: Holiday Sales Preview
Let the holiday sales begin. The warehouse home improvement stores have already made room for Christmas trees and holiday lawn ornaments. Lowe’s has even advanced Black Friday-like sales into the first of November. Of course, independents are getting in on the festivities, too.
For mass retailers, the name “Black Friday” is derived from the kind of sales that push the business into the black. Spring is the biggest selling season for home improvement, but home centers and hardware stores have shown increased sophistication when it comes to seasonal merchandising — especially Christmas season.
This week’s HBSDealer poll question asks: Compared to recent years, how would you describe your emphasis on Christmas and holiday sales this season?
The poll question is active on the right side of this page (or scroll down your mobile device). We invite your extended comments on holiday sales strategy and timing. Share with us here.