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Builders
utlook
2013
issue 12
EdmundoDena
WestStar Bank
Builders Outlook
2013 issue 12
ONEOK, Inc.
Texas Gas Service provides natural gas to more than 620,000 customers in the state of Texas, including customers in Austin, El Paso, the Gulf Coast and the Rio Grande Valley. Texas Gas Service is a division of ONEOK, Inc. (NYSE: OKE), a diversified energy company.
ONEOK is the general partner and owns 41.3 percent of ONEOK Partners, L.P. (NYSE: OKS), one of the largest publicly traded limited partnerships, which is a leader in the gathering, processing, storage and transportation of natural gas in the U.S. and owns one of
the nations premier natural gas liquids (NGL) systems, connecting much of the NGL supply in the Mid-Continent with key market centers. ONEOK is among the largest natural gas distributors in the United States, serving more than 2 million customers in Oklahoma,
Kansas and Texas. ONEOK is a Fortune 500 company. For more information, visit www.texasgasservice.com. 2013
2013 issue 12
Builders Outlook
Presidents Message |
Edmundo
Dena
ElPasoDisposal
President,
El Paso Association
of Builders
772-7495
Showroom:
2131 Missouri
915 533 6045
Builders Outlook
2013 issue 12
Perspective
Ray Adauto,
Executive
Vice President
EPAB
2013 issue 12
Builders Outlook
Industry News
Housing Markets
Continue Slow Climb
Back to Normal
Builder Confidence
Rises Four Points in
December
Builder confidence in the market for
newly built, single-family homes
improved four points to a 58 reading on
the National Association of Home
Builders/Wells Fargo Housing Market
Index (HMI) for December, released
today. This gain reflected improvement in
all three index components current
sales conditions, sales expectations and
traffic of prospective buyers.
This is definitely an encouraging sign
as we move into 2014, said National
Association of Home Builders (NAHB)
Chairman Rick Judson, a home builder
from Charlotte, N.C. The HMI is up 11
points since December of 2012 and has
been above 50 for the past seven
months. This indicates that an increasing
number of builders have a positive view
on where the industry is going.
The recent spike in mortgage interest
rates has not deterred consumers as
rates are still near historically low levels,
said NAHB Chief Economist David
Crowe. Following a two-month pause in
the index, this uptick is due in part to
release of the pent-up demand caused
by the uncertainty generated by the
October government shutdown. We
continue to look for a gradual
improvement in the housing recovery in
the year ahead.
Derived from a monthly survey that
NAHB has been conducting for 25 years,
the NAHB/Wells Fargo Housing Market
Index gauges builder perceptions of
current single-family home sales and
sales expectations for the next six
months as good, fair or poor. The
survey also asks builders to rate traffic of
prospective buyers as high to very
high, average or low to very low.
Scores for each component are then
used to calculate a seasonally adjusted
index where any number over 50
indicates that more builders view
conditions as good than poor.
All three HMI components posted
gains in December. The index gauging
current sales conditions jumped six
points to 64, while the index gauging
expectations for future sales rose two
points to 62. The index gauging traffic of
prospective buyers gained three points
to 44.
Looking at the three-month moving
averages for regional HMI scores, the
South edged one point higher to 57 while
the Northeast, Midwest and West each
fell a single point to 38, 59 and 59,
respectively.
Builders Outlook
2013 issue 12
2013 ISSUE 12
Builders
Builders Outlook
meetings.
At least two other managed lane
projects are in the works. The Americas
Managed Lanes Project will continue the
Cesar Chavez toll lanes at the eastern
terminus from the Zaragoza Port of Entry
north to Bob Hope Drive on El Pasos
East Side. And the massive Border
Highway West project will create a brand
new tolled expressway from Downtown El
Paso to the citys West Side.
The CRRMA will discuss the presentation at its October 9, 2013 meeting.
More information can be found at
www.crrma.org.
Above: The managed toll lane will be the
innermost lane in each direction. Rates
per mile will vary based on congestion
and the time of day. (CRRMA)
more functional, with areas such as cupboards and drawers well lit. The trend for
fluorescents is past, and now we see
recessed lighting installed over stoves,
sinks, and prep areas. Keep in mind that it
must not only be functional, but add to the
ascetic appeal of the kitchen. According to
research done for this article, pewter lighting fixtures are the current hot trend.
Flooring in the kitchen is essential for a well
designed room. Try to apply flooring that
contrasts with the appliances and setting
instead of matching it. Current trends are
towards long plank flooring and the more
exotic darker hardwoods such as
mahogany and cherry. Trending is terracotta, porcelain and even Spanish roofing tiles.
The color goes deep in these materials and
gives any kitchen a well designed look.
Content provided by
El Paso Development News
visit: elpasodevnews.com
10
Builders Outlook
2013 issue 12
The Economy
Rising
mortgage rates
dissuade new
home buyers
Diana Olick CNBC.com
A sharp rise in mortgage rates over the
last few weeks means it may be too late for
some homeowners to benefit from a
refinance.
This just as thousands were gaining
equity in their homes and finally becoming
eligible.AQt the same time, the still-low rates
are encouraging some renters to buy out of
fear that they too will miss the boat on the
best conditions for buying a home.
Refinances dropped 12 percent last week,
while mortgage applications to purchase a
home rose 3 percent and are now up 14
percent from a year ago, according to the
Mortgage Bankers Association.
"Rates rose in response to stronger
economic data and an increasing chance
that the Fed may soon begin to taper their
asset purchases," said Mike Fratantoni of
MBA in a statement.The Federal Reserve
has poured billions of dollars into the
mortgage market since the housing crash
began, pushing mortgage rates to record
lows. But recent remarks by Fed Chairman
Ben Bernanke suggest the monthly
mortgage market infusions may end soon.
That has pushed the rate on the 30-year
fixed conventional mortgage to 3.90 percent,
the highest level in a year, dangerously
close to the emotional 4 percent barrier. This
as home prices are jumping higher and
faster than expected.
It's amazing to see the frenzied pick-up in
home buying, as renters get nervous that
both home prices and rates will rise quickly,"
said Craig Strent, CEO of Maryland-based
Apex Home Loans. "They are trying to catch
the beginning of the curve here."
In Cincinnati, however, Dan Green, a loan
officer with Waterstone Mortgage, said his
refinance clients are being hit the hardest,
especially those who need lower-cost FHA
loans. His home-buying clients seem more
indifferent to the situation.
"Among the Main Street set, there is little
awareness of this month's change in
mortgage rates, let alone the changes of this
week," added Green. "There's been very
little panic among rate-shopping households.
There's an acceptance, almost, a 'low rates
couldn't last forever'-like attitude."
Rising rates could not come at a worse
time for the housing recovery. Home prices
rose over 10 percent in March, according to
the latest surveys from S&P/Case-Shiller.
Every 1 percentage point rise in mortgage
rates reduces the average home buyer's
maximum purchase price by 11 percent,
figures Green.
First-time home buyers will be hit hardest
by rising rates, just as they were beginning
to trickle back into the market. They made
up just 29 percent of buyers in April,
according to the National Association of
Realtors, the lowest level in two years.
Historically, they usually account for about
40 percent of the market.
The 30-year fixed mortgage hit a record
low rate of 3.47 percent in December of last
year. Even though it is still well below
historical norms, this small rise is already
taking its toll. "In my world it's clearly slowing
the market and pricing. Right now I have
properties that are well-priced yet sitting on
the market unsold," said David Fogg, a real
estate agent in Burbank, Calif. "Should rates
continue to rise, values will likely soften."
Housing Affordability
Continues to Slide in
Third Quarter
Strengthening house prices and increased
interest rates in metros across the country
contributed to lower housing affordability in
the third quarter, according to the National
Association of Home Builders/Wells Fargo
Housing Opportunity Index (HOI), released
today.
In all, 64.5 percent of new and existing
homes sold between the beginning of July
and end of September were affordable to
families earning the U.S. median income of
$64,400. This is down from the 69.3 percent
of homes sold that were affordable to
median-income earners in the second
quarter, and the biggest HOI decline since
the second quarter of 2004.
Housing affordability is being negatively
affected by a perfect storm scenario,
observed NAHB Chairman Rick Judson, a
home builder from Charlotte, N.C. With
markets across the country recovering,
home values are strengthening at the same
time that the cost of building homes is rising
due to tightened supplies of building
materials, developable lots and labor.
The decline in affordability is the result of
of the affordability chart included VinelandMillville-Bridgeton, N.J.; Davenport-MolineRock Island, Iowa-Ill.; Bay City, Mich.; and
Springfield, Ohio.
For a fourth consecutive quarter, San
Francisco-San Mateo-Redwood City, Calif.
held the lowest spot among major markets
on the affordability chart. There, just 16
percent of homes sold in the third quarter
were affordable to families earning the
areas median income of $101,200.
Other major metros at the bottom of the
affordability chart included Los Angeles-Long
Beach-Glendale, Calif.; Santa Ana-AnaheimIrvine, Calif.; New York-White Plains-Wayne,
N.Y.-N.J.; and San Jose-Sunnyvale-Santa
Clara, Calif.; in descending order.
All of the five least affordable small
housing markets were in California in the
latest quarter. At the very bottom of the
affordability chart was Santa CruzWatsonville, where 20.3 percent of all new
and existing homes sold were affordable to
families earning the areas median income of
$73,800. Other small markets at the lowest
end of the affordability scale included San
Luis Obispo-Paso Robles, Santa RosaPetaluma, Napa and Salinas, respectively
-NAHB.
2013 issue 12
11
Builders Outlook
W wish you a
We
HAPPY AND
PROSPEROUS NEW YEAR
stewart.com/el-paso
Program Highlights
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12
Builders Outlook
2013 issue 12
Ho, Ho, Ho: Toys bring joy to kids and givers alike
The El Paso Association of Builders
installation dinner was overwhelmed by
generous party goers who brought gifts
for boys and girls ages 0-13. The annual
installation banquet has requested
guests to bring unwrapped toys to the
event over the years. The response this
year allowed the EPAB to provide two
area nonprofits with gifts for their charity.
Bags of toys were gathered at the
Marriott Hotel ballroom lobby and spent
the night with Executive Officer Ray
Adauto.
I must admit that some of these trucks
and remote control cars, the games and
puzzles all looked like fun to play with,
he said. Its pretty cool to play Santa for
the Association, and all I can say is
thank you to all who brought something
with them, he continued. Frank and
Isela Torres loaned their SUV for the
transport to the association office. Once
there Santa Ray and his elf Margaret
separated them into boys, girls, older
and younger and laid them out for the
two groups to pick up.
First was the Junior Womens Club of
El Paso founded in 1934 is comprised of
about 30 ladies from the El Paso area
who in private life are police officers,
business owners, teachers, doctors,
businesswomen and in other
professions. They come together to
provide resources for some community
services and providers like Ronald
McDonald House, Childrens Crisis
Center, McGruff the crime fighting dog,
the Reynolds Home, Anthony Fire
Department community effort, Special
Olympics, City County Nutrition, Reach
2013 Issue 12
13
Builders Outlook
www.elpasobuilders.com
www.epbuilders.org
Membership News
UPCOMING EVENTS |
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Builders Outlook
2013 issue 12
Associates Council
Sam Shallenberger
Western Wholesale Supply
Happy holidays to everyone. The
associates council had one of its best years
as well as the association did. I want to
thank all of you that helped us with the golf
tournaments, and bowling outings, Parade
and all our other events.
The spring Pachanga during a tornado
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Your New H eva
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builders.co
www.elpaso
Builders
utlook
www.elpasobuilders.com
www.epbuilders.org
6046 Surety Dr. El Paso, TX 79905
915-778-5387 Fax: 915-772-3038
execuTive oFFicerS
edmundo Dena President
Accent Homes
Frank Torres vice President
GMF Custom Homes
edgar montiel Secretary/Treasurer
Palo Verde Homes
Sam Shallenberger Associates chair
Western Wholesale
Frank Arroyos- immediate Past President
Cisco Homes
ray Adauto executive vice President
El Paso Association of Builders
TABSTATe DirecTorS
Doug Borrett, Karam Co., Life Director
Randy Bowling, Tropicana Homes
NATioNAL DirecTorS
Bobby Bowling IV.
Demetrio Jimenez
NATioNAL ASSociATioN oF
Home BuiLDerS
(800) 368-5242
TexAS ASSociATioN oF
couNciL/commiTTeecHAirS
Associates council
Sam Shallenberger
Build PAc
Randy Bowling
Desert Green Building council
Javier Ruiz
Land use council
Sal Masoud
Young Designer Award
John Chaney
remodelers council
Rudy Guel
membership retention
Mike Santamaria, Greg Bowling
Finance committee
Edgar Montiel
Womens council
Lorraine Huit
ADviSorYToTHeBoArD
J. Crawford Kerr, Attorney, Firth, Johnston
& Martinez
BoArDoFDirecTorS
Juanita Garcia, Icon Custom Builders
Samira Gonzalez, Edwards Homes
Walter Lujan, Dawco Construction
Carlos Villalobos, Pointe Homes
Don Rassette, Rassette Homes
Beverly Clevenger, Automated Division 6 Builders
Frank Spencer, Aztec Contractors
Kathy Parry, Hunt Communities
Sal Masoud, Del Rio Engineering
Robert L. Foster,
Southwest Land Development Services
Leti Navarette, Custom Dream Homes
Linda Troncoso, TR-Engineering
Lance VanDeman, Hub International
John Chaney, Passage Supply
Joe Bernal, El Paso Employee Benefits
Ken Wade, El Paso Building Materials
Ruben Orquiz, MTI Ready Mix
Kathy Carrillo, Pioneer Bank
Henry Tinajero, West Star Bank
Paul Zacour, Zacour & Associates
Chuck Gabriel, Carpets West
Ted Escobedo, Snappy Publishing
Lorraine Huit, Cardel Design
Javier Ruiz, Border Solar & Senercon
BuiLDerS
(800)252-3625
Past Presidents
committed to Serve
Greg Bowling
Kelly Sorenson
Mark Dyer
Mike Santamaria
John Cullers
Randy Bowling
Doug Schwartz
Robert Baeza
Bobby Bowling, IV
Rudy Guel
Anna Gil
Bradley Roe
Bob Bowling, III
E. H. Baeza
Hershel Stringfield