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7EL PASO
BUILDERS
A S S O C I AT I O N O F
National, State & Local
Building Industry News
2017: Issue 6

Builders Discuss Housing Issues in Hill Visits


More Than 800 Industry Professionals Attend Conference
In more than 250 individual meetings with
their representatives and senators, builders
asked lawmakers to make progress on
several key housing issues, including:

Creating a national flood insurance program


that is predictable and affordable.
Reducing regulations that harm small
business.
Protecting middle class tax breaks that
promote homeownership.
Improving the Low Income Housing Tax
Credit to help meet the nations acute need
for affordable rental home options.
Reforming the nations housing finance
system by transitioning Fannie Mae and
Freddie Mac into a private-sector-oriented
system, with the federal government acting as
a backstop in times of crisis.
Promoting sensible and cost-effective energy
codes.
Securing a supply of softwood lumber
sufficient to meet demand.
Rep. Peter Roskam (R-Ill.), who sits on the
House Ways and Means Committee, spoke to
builders before they met with their lawmakers
and said that this year there is a real opportunity
to do something about tax reform.
Roskam added that House Republicans are
working on a tax reform blueprint that would
generate economic growth, simplify the tax code,
stop erosion of the U.S. tax base so that it is no
longer more attractive for U.S. corporations to go
overseas, and provide permanency to the tax
More than 800 builders from across the nation sending a loud and clear message to members code to deliver certainty to the business
marched on Capitol Hill June 14 for the annual of Congress that a strong housing market is community.
National Association of Home Builders (NAHB) critical to spur job growth and create a vibrant, This marks the first year since 2013 that NAHB
Legislative Conference to call on Congress to dynamic economy, said NAHB Chairman has held its annual Legislative Conference in
make housing and homeownership a national Granger MacDonald, a home builder and Washington, D.C. During the past three years, as
priority and to support policies that will keep the developer from Kerrville, Texas. part of a nationwide effort to bring housing
housing recovery moving forward. home, builders across the country met with their
Today, builders from coast-to-coast are federal lawmakers in their home districts.

Homeownership Remains Key quality homes that meet the diverse needs of NAHB must continue working to address the
Part of American Dream; Americans across the country. obstacles for many potential home buyers.
A key component in the ability of families of We have long fought for sensible reforms to
Obstacles Persist for Many all income levels to become home owners is burdensome regulations that needlessly
the mortgage interest deduction, which has increase the cost of homes for low- and
As the National Association of Home Builders been a cornerstone of American housing policy middle-income families, said MacDonald,
(NAHB) celebrates National Homeownership since the inception of the tax code more than noting NAHB research that shows government
Month in June, more than two-thirds of 100 years ago. The deduction primarily regulations add about 24 percent to the cost of
Americans believe that owning a home is an benefits middle-class taxpayers, according to housing.
essential part of the American Dream. data from the Congressional Joint Committee During National Homeownership Month and
Americans continue to place a high priority on Taxation. throughout the year, NAHB and its 700 state
on homeownership and work hard to achieve NAHB supports this tax incentive, as well as and local affiliates work hard to make
this goal for their families, said NAHB provisions that encourage development of affordable housing a reality and that it
Chairman Granger MacDonald, a home builder affordable housing. Yet, with the national continues to be a priority to our nations
and developer from Kerrville, Texas. Our homeownership rate stalled near 64 percent, leadership.
members are committed to providing high-
2 Builders Outlook 2017 Issue 6

THINK OF US AS PART OF
YOUR SALES TEAM.
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Please continue to direct service line and meter set requests to the Texas Gas Service
Builder Hotline at slimgas-metroElPaso@onegas.com or 1-866-206-9587.
2017 Issue 6 Builders Outlook 3
Presidents Don

Message
Rassette
President,
El Paso Association
of Builders

As we near the mid-point of 2017, I will keep driving home sales? Most and helped in this successful event.
hope this finds everyone doing well builders see families driving home Kudos to Ted Escobedo, for bringing

Conditions are
and staying cool. sales, and the major markets in Texas another valuable opportunity to our
According to the national scene, our attest to this and are dominated by members,

good for home


industry does not have a lot of health family buyers. This past week, education and
concerns. This is measured across Switching to our backyard, local information on our EPAB associated

builders.
the nation, with focus on four members have been busy. retirement program was dvailable,
indicators; housing prices, housing The leaders of EPAB, through our with Ruth Rivera. Please be prepared
demand, housing supply and the monthly breakfasts, have been told by and safe-guarded for your future.
mortgage market. These four the City of El Paso Sam Shallenberger and myself
indicators are showing upward spirals Building Department leaders, they were asked to be judges for the
since the housing bust. do not foresee having to implement WTHBA's Parade of Homes. They
Prices nationwide have appreciated any code changes until 2021. We had 31 homes entered,
at about 5% annually for the past five know forces outside our industry and encompassing three different
years. other factors can orchestrate developments. We made some new
Prices nationwide are close to their changes, but another four years of friends, were treated well and had a
peak, in 2006-2007. current codes, without updates, is good time.
Traffic of prospective buyers is back very welcome. A reminder that our Sunbelt Show is
to peak levels. The Young Designers had right around the corner. Darren
There is no glut of unsold houses. numerous entries again and three Woodson, (yes, that Dallas Cowboy's
So, builders don't need to worry about well deserving entries were awarded Ring of Honor inductee Darren
over-building. scholarships. These very well could Woodson) will be the opening speaker
Home-ownership rates are inching be the future leaders in our industry. on August 2. Hope to see you at the
back up, this contrasts with falling 7% Many thanks to all who volunteered Anatole Hilton in Dallas
over the last 15 years. Housing their time and effort. Kudos to John Until then, BE PREPARED TO
affordability is goodn In 2007, 25% of Cheney for overseeing this venture. SUCCEED!
income was committed to mortgage The First Home Buyers Saturday
payments, it's only 15% today. was held on June 10th, at Bassett
Mortgage rates are still historically Place. It was received and attended
low. very well. Thanks to all who had
Which buyer groups are driving and sponsored, supported, volunteered
4
Executives
Builders Outlook 2017 Issue 6

Message As the mercury rises, so do the challenges in our industry

Ray Adauto,
Executive is challenging in June. The high marketplace like Horizon Hills good thing in that even with new
Vice President temperature this June reached 112 Estates. Several partnership politicians in the mix the
EPAB degrees but happened afterward opportunities will be available in consistency of the City Manager
was the moisture that came into the your email box. Take a look at how Tommy Gonzalez works in our
area created a very sticky and your business could benefit from favor. The political chairs may
dangerous situation. Heat is a killer partnering with us. Our thanks to change but we have a good
June is a very busy month at but heat and humidity kill twice as Franklin Building Materials for the working relationship with Gonzalez
most associations and that is true fast. This office sent out several presenting partnership. Plans are and his staff.
for ours. With our renewed First heat advisories to the already in the works for the 2018 Make sure to plan for the TAB
Home Buyers Saturday the month membership to ensure that Parade of Homes. Yes we have Sunbelt show coming in August to
started with a great consumer show everyone take care with the heat. the site and yes we have builders the Anatole Hotel in Dallas. Its a
and opportunity to network. From June showed us once again that ready. Watch your emails for water park and conference center
all angles the event was positive we live in a desert and the desert is information. tied in with Hilton so you can make
and productive. We hope to hot and dangerous. Finally we want to take time to it a vacation if youd like. For more
continue doing this event next year. Preparations are going well on thank our members for entrusting information see
June is also when the weather the upcoming el Paseo de Casas their businesses with us. As we Sunbeltbuildersshow.com.
begins to play havoc with builders affordable Parade of Homes. This work with the new Mayor and The association offices will be
and suppliers. From extreme heat is the first time weve done an council people know that the closed July 1-9 for vacation. Hope
to large thunderstorms the weather event featuring more affordable association will be working on your you enjoy yours as we will enjoy
houses in a very strong behalf as hard as ever. We have a ours.

Texas Association of Builders


313 E 12th St., Suite 210
Austin, TX 78701
512-476-6346 (office) | 512-476-6427 (fax)

www.sunbeltbuildersshow.com

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National
2017 Issue 6 Builders Outlook 5

Builder News
Multifamily Decline Brings in the Northeast. Permits fell 9.4 percent in the Federal Forests Act of 2017, would
New Home Sales Rise 2.9
Overall Housing Starts Percent in May
Midwest, 0.3 percent in the South and 13.1 significantly reduce red tape that prevents the
percent in the West. U.S. Forest Service from better managing its

Down 5.5 Percent in May


timber lands and increase the delivery of
domestic timber products into the market.
n Led by a decline in multifamily production,
Proposed Forestry Bill a America cannot meet the nations demand
for lumber, which accounts for the largest share
Win-Win-Win
nationwide housing starts fell 5.5 percent in
May to a seasonally adjusted annual rate of of the cost of a home among all other building
1.09 million units, according to newly released materials. Lumber accounts for approximately
data from the U.S. Department of Housing and $18,000 of the cost of constructing a single-
Urban Development and the Commerce family home and lumber price hikes can have a
Department. Multifamily starts fell 9.7 percent detrimental effect on our nations housing
to a seasonally adjusted annual rate of market.
289,000 units while single-family production For decades, timber harvests from the
edged down 3.9 percent to 794,000. National Forest System averaged between 10
n Sales of newly built, single-family homes
Todays report is consistent with builder and 12 billion board feet per year. That number
in May rose 2.9 percent to a seasonally
sentiment in the housing market, indicating plummeted to an average of between 1.5 and
adjusted annual rate of 610,000 units after an
some weakness after a strong start to the 3.3 billion board feet in the mid-1990s and has
upwardly revised April reading, according to
year, said Granger MacDonald, chairman of remained artificially low ever since.
newly released data by the U.S. Department of
the National Association of Home Builders Poor land management marked by
Housing and Urban Development and the U.S.
(NAHB) and a home builder and developer bureaucratic mismanagement and litigation
Census Bureau.
from Kerrville, Texas. Ongoing job growth, during the past 30 years has led to declining
We are seeing solid overall growth in new
rising demand and low mortgage rates should health of our national forests. The result of this
home sales this year, said Granger
keep the single-family sector moving forward decline is fewer jobs and productivity in the
MacDonald, chairman of the National
this year, even as builders deal with ongoing forestry sector, fewer board feet of domestically
n A draft legislative proposal by Rep. Bruce Association of Home Builders (NAHB) and a
shortages of lots and labor. produced lumber entering the market, and a
Westerman (R-Ark.) would encourage better home builder and developer from Kerrville,
After a strong start for single-family building marked increase in acreage ravaged by
management of the nations federal forest Texas. Sales are up more than 12 percent
this year, recent months have recorded softer insects, disease and fire.
natural resources while also ensuring the from this time last year, and we expect
readings, said NAHB Chief Economist Robert Westermans legislative proposal would
continued recovery of the housing industry, the continued gains throughout 2017.
Dietz. However, on a year-to-date basis, strike a balanced approach in how the nation
National Association of Home Builders (NAHB) This months report is in line with our
single-family starts are up 7.2 percent as manages its national forests system by making
told Congress today. forecast, and consistent with solid builder
builders add inventory to the market. more federal forest lands available for logging
The nations home builders believe that confidence readings, said NAHB Chief
Regionally in May, combined single- and in an environmentally sustainable way.
increasing domestic lumber production from Economist Robert Dietz. With more
multifamily housing production rose 1.3 percent This will not only restore the health of one
federal lands, both as a means to improve consumers entering the market, further job
in the West and remained unchanged in the our great natural resources, our forests, but
housing affordability and address the resiliency growth and tight existing home inventory, the
Northeast. Starts fell by 9.2 percent in the also offer the potential to reinvigorate the
of our national forests, must be a top priority of new home sector should continue to expand.
Midwest and 8.8 percent in the South. forestry industry while improving housing
Congress and the Trump administration, said The inventory of new home sales for sale
Overall permit issuance in May was down affordability. Thats the definition of a win-win-
NAHB Chairman Granger MacDonald, a home was 268,000 in May, which is a 5.3-month
4.9 percent to a seasonally adjusted annual win, said MacDonald.the lowest end of the
builder and developer from Kerrville, Texas. supply at the current sales pace.
rate of 1.17 million units. Single-family permits affordability scale included Santa Cruz-
Testifying before the House Natural Regionally, new home sales increased 13.3
inched down 1.9 percent to 779,000 units while Watsonville; Napa; San Luis Obispo-Paso
Resources Committees Subcommittee on percent in the West and 6.2 percent in the
multifamily permits fell 10.4 percent to 389,000. Robles-Arroyo Grande; and San Rafael.
Federal Lands, MacDonald added that South. Sales fell 10.8 percent in the Northeast
Regionally, overall permits rose 3.3 percent and 25.7 percent in the Midwest.
Westermans legislative draft, the Resilient

BUILDING El Pa
aso SINCE 1950
6 Builders Outlook 2017 Issue 6

Economic
Forescast

Retail Sales Growth Slows


Kiplinger's latest forecast on retail sales and
consumer spending
By David Payne, Staff Economist commerce gains is that in-store sales will
Sales paused in May, washing out pick up only gradually, at about a 2%
Aprils momentum. As a result, growth in rate. However, a strong headwind is that
sales, excluding gasoline, is likely to rise department store sales are sliding again,
by 3.5%, falling below its 3.8% pace in possibly linked to announced store
2016. Strong e-commerce and building closures by various chains.
materials sales will not be enough to Building materials are having a strong
compensate for the slowdown in motor year, mirroring the strength in housing
vehicle and restaurant sales. Auto sales construction in general. They are
peaked in December, while restaurant expected to grow 7.3% in 2017.
receipts appear to have plateaued this Food service sales are slowing to a
spring. more sustainable growth pace this year:
E-commerce continues to gobble up 2.7%, down from 5.5% in 2016. Labor
the retail gains. E-commerce sales will shortages will make expansion difficult for
grow 15% this year, compared with 13% some chains, and higher minimum wage
in 2016. The flip side of strong e- laws will boost menu prices.
2017 Issue 6 Builders Outlook 7

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Builders Outlook: On the Scene

Homebuyer Fair
First Home Saturday
welcomed at Bassett Place

First Home Saturday, presented


by the El Paso Association of
Builders was held on Saturday
June 10 at Bassett Place. The
vendors at the event showcased
their businesses to hundreds of
visitors who came to see how to
buy a home, refinance a home, or
to win a chance for $25,000. The
throngs of people were entertained
by some of the vendors including
getting a face paint done or taking
a fantasy photo at the photo
booths. In addition to those items
the display area was decorated
with dozens of balloons that were
handed out to kids.
Ted Escobedo, who originally
started the event in 2005,
organized this years fair and was
happy with the turnout. I think we
hit the sweet spot by bringing the
event to Bassett Place, the mall
where our target market uses, he
told the Outlook. All of our visitors
had a chance to win a big prize
and to visit with the experts, he
continued.
What was evidenced at the event
was that business was being done
as mortgage companies and
financial institutions offered their
services. Were really happy to
have partnered in this, great
turnout, really good event for us,
said Angelique Roman of Sierra
Title. Sierra Title along with GECU
were the title sponsors for the
event. GECU really enjoyed
today, said Brenda Aguirre of
GECU.
Plans are in the works for next
year.

Monthly
Meeting
Board meets in place of
cancelled general meeting
The Board of Directors met after
the Marriott Hotel experienced
problems in the ballroom that
normally hosts the general
meeting. Our scheduled presenter
John Balliew from the PSB Water
utility gave and update to the board
on the status of construction
projects underway in El Paso. Mr.
Balliew told the board that delays
from six years ago are just now
being constructed and that those
new services will greatly enhance
the service expected by the
population. We continue to
provide clean affordable water to
the area, but as with all things as
cost go up so will water rates, he
told the group. We are making
significant investments now for the
future, he concluded.
2017 Issue 6

Lunch & Learn


Smith talks taxes and potential as much as for the public. What Im
pitfalls for business most concerned with is that other
agencies are now looking into things
Randall Smith brought the information like 1099s that most companies dont
many were looking for. He talked pay attention to. What Im seeing is an
about what we dont like to think about, increase of cross agency partnerships,
taxes. That subject brought out a where one agency tips off another and
good crowd for our June Lunch and then the business is visited by two or
Learn on Wednesday June 28. Smith, more agencies based on a one time
a CPA and longtime member told the visit, Randall said. I want our
audience that taxes are just one of members to know that they need to
things a business person needs to be make sure they are in compliance with
sure of and if not then they need to get both the I-9s and 1099s. No doubt if
the expertise to ensure they are doing theres one thing Im stressing today is
the right thing. I think that most of us that these two items can keep you in
honestly want to do the right thing but good shape or cause you problems
the rules change and you need to have including huge fines.
the best advice available, and so thats Randall has a private practice CPA
what I do, Smith told the Outlook. Its accounting business in El Paso. He
not just taxes but now its the I-9 and will present another in his series of
1099s that the federal agencies are presentations later this year on topics
focusing in, he continued. about business. He can be reached at
Smith told the group that over his three 915-225-5200. Patrick Tuttle got
decade professional career the biggest Randall to come out. I think we had a
change in the IRS is that they have great group interested in our lunch and
been required to do more with less learn and I look to having Randall
people, causing headaches for them back, he said.
10
Mortgage Market
Builders Outlook 2017 Issue 6

Fannie Mae survey:


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U.S. home lenders see leaner times ahead
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U.S. mortgage lenders are bracing for mortgage finance agency, said in a
rockier times as consumers demand for statement.
home loans slows and competition in the The margin on the share of lenders
Wide array of programs and services
mortgage industry intensifies, Fannie who saw a drop in consumer demand for
FHA, VA and USDA Approved
Mae's latest quarterly survey released on a loan to buy a home in the past three Limited member liability
Monday showed. months over the share of lenders who
Some lenders are worried about a saw a rise in purchase loan demand fell
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number of them has fallen since the years on a year-over-year basis, Fannie
fourth quarter of 2016, according to the Mae said.
184 mortgage executives who responded
to the survey.
In a response to a tougher climate,
more lenders said they plan to relax their
lending standards, which could attract
The net percentage of lenders which
anticipate lower profit margin in the next
three months stood at 6 points, down
from 12 points in the first quarter and
from 31 points in the fourth quarter of
HOME
O F T E X A S
more borrowers, survey data showed. 2016.
Expectations to ease credit standards The net share of lenders which expect
climbed to survey highpoints in the to ease credit standards rose to 15 points
MARK SMILEY
second quarter as more lenders reported in the second quarter, up from about 3.5
slowing mortgage demand and increasing points a year earlier.
800-445-8173
concerns about competition from other Fannie Mae's quarterly lender sales@homeoftexas.com
lenders, Doug Duncan, Fannie Mae's sentiment survey was launched in March www.homeoftexas.com/ElPasoOutlook
chief economist at Washington-based 2014.

1 5/12/2017 11:18:20 AM
11_Outlook_p11.qxp_07_Outlook_p07 6/29/17 1:35 PM Page 1

2017 Issue 6 Builders Outlook 11

ExpertAdvice

401(k)s and HSAs:


Two Great Benefits that Work Even Better Together
new h o m e s
by Ruth Rivera, VP Bukaty Financial HSAs have triple tax advantage.
Contributions go in income-tax free, earnings
for el paso...
Currently, 401(k)s and health savings are income-tax free, and distributions are tax-
y f o u n d h e re
accounts (HSAs) are treated as two siloed
employee benefits. As I continue to be a
free for medical costs. HSA funds are exempt
from FICA and FUTA payroll taxes, too. HSAs
easil
student in the industry, I have come to the can be a viable way to fund expenses beyond
realization that employers need to provide a healthcare in retirement. Workers have the
more conceptual strategy that ties the two option to let HSA funds build up instead of
February 2017
FREE

el paso

most important benefits. Currently, they are using them for todays healthcare expenses.
builders

Introducing
perceived as totally different benefits: HSAs And those who save receipts related to those
for healthcare savings, 401(k)s for retirement expenses can withdraw their HSA funds tax-
savings. Because they are looked at as free in retirement against those receipts, even El Paso New
separate benefits, employees arent though they may be many years old. With
maximizing either one to help save for such benefits, it may make sense for
retirement, and its costing employers money. employees especially younger ones to
Home Builders
As medical healthcare costs keep rising, the max out their HSA up to the annual limits
less the employee saves for retirement. before contributing to a 401(k). magazine & website
As I work in the El Paso community, one So, how do we help the employee leverage
predominant issue for the employee is both great tools?
medical cost. As a matter of fact, many will go So, during your next health open
...
more information
oMoves.com for
Visit www.ElPas

to Mexico for medical treatment that costs enrollment, consider presenting your HSA and
less. Its because of this, that 401(k)s and 401(k) as complementary benefits. Your
Part of Homes of El Paso magazine
HSAs will work to an employers advantage in retirement specialist needs to show the
your community. employees how to determine where they need
Mailed monthly to thousands of local homes
to set aside more money for retirement today,
Lets understand what I mean by that: so they can afford to stop working when they
El Paso Airport distribution
1.A major issue with retirement plans is the choose. In the end, itll help improve workers
ability to withdraw or obtain a loan. Based retirement readiness
Stand alone magazine each quarter
on last year alone, the reason was due to
medical bills. For a better understanding, please Call Martha today for more
2. The younger workforce doesnt realize email rrivera@bukaty.com.
they can use HSAs as a supplemental Seminar will be presented in August on
information at (915) 204-7017.
retirement account. Many also dont this topic.
know they can invest in mutual funds in
an HSA to help grow their money over
Another Mesa Publishing Publication, serving El Paso Home

time, just like in a 401(k).


Buyers for 25 years. www.MesaPublishing.com
www.ElPasoNewHomeBuilders.com

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by
12 Builders Outlook 2017 Issue 6

Updated every month, here is a list of the 2017 EPAB Membership.


EPAB Membership Remember to please do buinsess with fellow members.
Builder members R.E. Welch Contractor Desert Quest Plumbing MTI Ready Mix, Inc.
as of June 1, 2017 Gordon Welch Hector Gonzalez Tony Mullen
Rassette Homes, Inc. Dunn Edwards Paints Neeuhome.com LLC
AT Architectural Designs Donald Rassette Nathan Gordon Walter Pichardo
Elsa Taracena Santana Custom Homes Dorney Security New American Funding
Accent Homes Fernando Santana John Dorney Brenda Trillo
Mark Dyer Southwest Land Development Serv. DWS Building Supply New Era Foam
Bain Construction Doug Schwartz Sabrina Voorhies George Tollen
Scott Bain The Heritage Group E.F. Building Materials, Inc. Passage Supply
Bella Homes David Bingham Efren Fraire John Chaney
Leti Navarrete Trejo Construction Co. Eagle Roofing Products Patriot Mortgage
Bella Vista Custom Homes, Inc. Juan Trejo Scott Aguilar Randy Bowling
Edgar Garcia Tropicana Building Corp. El Paso Building Materials Pella Windows
BIC Homes Bobby Bowling IV Ken Wade Jason Bates
Antonio Cervantes Tropicana Development El Paso Disposal Performance Glass & Aluminum
Blue Star Construction, LLC. Greg Bowling Irma Parsons Hector Hernandez
Carlos Villasana Tropicana Homes El Paso Mortgage Bankers Association Pioneer Bank
Carefree Homes Randy Bowling Randi Cabrera Kathy Carrillo
Richard Aguilar Tropicana Properties El Paso Star Ready-Mix Concrete Inc. Prewire of El Paso, Inc.
Casas De Leon, LLC Demetrio Jimenez David Armendariz Steven Drury
Nick Bombach Villagi Homes, LLC El Paso Times Post Tension
Classic American Homes Kristi Eddings Jose Molina Dennis Moore
Priscilla Hernandez Will Harvey Development El Paso Truss Powerfoam Insulation:
Crown Heritage Homes Will S. Harvey Luis Mendiola Metlspan NCI Group, Inc.
Lydia Mlouhi Winton/Flair Homes El Paso Winnelson Arnie Pederson
Cullers & Caldwell Builders Herschel Stringfield Rene Goldfien RAC Doors Unlimited, Inc.
John Cullers Ferguson Enterprises Inc. Charles Foxx
Cullers Homes Associate Members Albert Holguin Randall Smith, CPA
Jason R. Cullers as of June 1, 2017 First American Bank Randall Smith
Custom Dream Homes Luis Sauceda, Real Estate Weekly Newspaper
Leti & Javier Navarrete 2-10 Home Buyers Warranty First Light Federal Credit Union Riley Stephens
D. R. Horton Homes Michael Elman Lorenzo Revelez Rebath of El Paso/Las Cruces
Jaime Gonzalez 84 Lumber Firth, Johnston, Bunn & Kerr Lisa Walling
Dawco Home Builders Ernie Chavez Jay Kerr Remcon Self Storage
Walter O. Lujan ABC Supply Co., Inc. Foxworth Galbraith Lumber Will Harvey
Deal-2-Deal Homes Larry Eck Dan Villarreal Richman Group Affordable Housing Corp.
dba Deal-2-Deal,LLC Acme Brick Company Franklin Building Materials Kevin Hoffman
Delton Deal Vanessa Rocha; Steve Bush Ricardo Aguilar; Cristina Sheldon Rocky Mountain Mortgage Company
Del Rio Engineering, Inc. Adams Moulding & Lumber GCC Sun City Materials, LLC Dean Inniss
Sal Masoud Tom Swahlen Victor Tito Marquez Roe, Brad
Diamond Homes, LLC Area Iron & Steel Works, Inc. GECU- Greater El Paso Credit Union Bradley Roe
Valerie Baquera Fred L. Edmonston Jr. Brenda Aguirre Rudolph Chevrolet
Donald Ward Builder, Inc. Atrium Homes Greater El Paso Chamber of Commerce Art Smith
Donald Ward Ricardo Bocardo Jr. Richard Dayoub Saldivar Electric, Inc.
E. Valencia Land Development LLC Bank of Texas GEPAR-Greater El Paso Martin A. Saldivar
Eddie Valencia Ray Owen Assoc. of Realtors Sarabias Blue Sanitation
Edward's Homes, Inc. Barnett & Bennett Construction Sharron Ramirez Monica Brown
Eduardo Fernandez Ben Trzyna Hardware Specialties Saguaro Corporation dba EP C & D
EPT Land Communities Baron Supply Jeff R. Paxton Recycling Sean Gillespie
David Bogas David Trammell Harris Real Estate Group Senercon
Everest Homes Barragan & Associates Lane Harris Javier Ruiz
Edmundo Dena, Jr. Benito Barragan Haskins Electric Sherwin Williams Paint
Fortune Custom Homes Barrett Airworks Charles B. Haskins, Jr. Cruz Lopez
Javier Andrade Alexandro Castro Home of Texas Sierra Title Company/Lawyers Title
Gaddy Construction Beasley, Mitchell & Co., LLP Mark Smiley Angelique Roman
Charles Gaddy Brad Beasley Home Performance Testing Simpson Strong-Tie Company, Inc.
GMF Custom Homes, LP BMC Select Fernando Garcia/Ray Gonzales Ken Donham
Frank Torres Jaeson Iovinella HUB International Snappy Publishing, LLC
Guel Construction Boise Cascade Luis Rosas Ted Escobedo
Rudy Guel Mike Flores Insight Mortgage Company Solar Smart Living
Hakes Brothers LLC Bonded Builders Home Warranty Grp. Shawn Weeks Larry Perea
Chris Hakes Bill Deal Interceramic Tile & Stone Gallery Southwest Dcor El Paso Corporation
Hanson Asset Management, LP Border Solar David Holguin Chris Matthews
Russell Hanson Javier Ruiz Inter National Bank Spectrum Technologies
Homes by Design Builders Source Appliance Gallery Natalie Ojeda Miled Daou
Leslie Driggers Hoard Kathy Rose, Sandra Lucero J & H Concrete & Post Tension Stewart Title of El Paso
Hunt Communities, LLC C. D. Lee/Britton Insurance & Bonding Jorge Herrera Cindy Bilbe
Kathy Parry Anthony Landavazo; Lisa Daniels James L. Ellis, CPA, PC StrucSure Home Warranty
Icon Custom Home Builder, LLC. Cabinet Masters Jim Ellis Scott Whisenant
Carlos Garcia Mike Robles Jobe Materials, LP Su Casa Magazine
Industrial Realty Group Incorporated Capital Bank, SSB Charlie Tellez Bob Skolnick
Brent D. Harris David Ortwein Joe Bernal Insurance Sun City Winnelson
JER Custom Homes, LLC Cardel Design Group & Financial Services, Inc. Dean Moore
Jorge E. Rodriguez Lorraine Huit Joe M. Bernal Texas Gas Services
Kayton Lee Residential, Inc. Casa Ford & Casa Nissan L & P Building Supply Mica Short
Brianna Barnes Luke Lowenfield Denise McConnell Texas Title Company
LMJ Construction Co., LLC CEA Engineering Group Legacy Real Estate Services Steve Raney
Mike Lopez Jorge L. Azcarate /TTi Prop. Management. TFCU
Loyalty Homes Central Texas Metal Patrick Tuttle Yolie Melendez-Estrada
Gustavo Loy Roofing Supply Co.,Inc. Lennox Industrie The Dorian Group/Ocean Gallery USA
M A Builders & Design, LLC Ben Garza, III Sharon Horton Miguel Angel Mercado
Mustafa Ali Chaparral Materials, Inc. Lone Star Title Co. of El Paso Trane Residential Solutions
Metro Homes, Inc. Kevin Fortin Sam Trimble Robert Meske/ Kathleen Chacon
Fernando Torres, Judith Arrunada, City Bank Texas Love Engineering, Inc. TRE & Associates
Millennium Homes Bob Kotarski Montez Love Linda Troncoso
Dan Ruth City Lights Majestic Realtors Trim Team
New Horizon Builders Thomas Brown Patti Musshorn Juan & Kris Hernandez
Georgiana Garcia Cognent, Inc. MAK Roofing & Construction USA General Contractors
Pacifica Homes, Inc. Martin Paredes Felix Vizarreta Javier Olmos
Juan Jose Vasquez Commercial Insurance Brokers, Inc. Masco Contract Services Vision Consultants, Inc.
Palace Homes, Inc. Ken Foster dba Gale Insulation Kelly Sorenson
Robert Diaz Conde, Inc. Tom Harmon WestStar Home Loans
Palo Verde Homes Conrad Conde McCoy's Building Supplies Cinco Houghtoni
Edgar Montiel CQC Testing and Engineering, LLC Julie Reyes WestStar Bank
Pointe Homes Jaime Rojas Mechanical Technologies David Osborn
Carlos Villalobos Dal-Tile Jaime Zubiate WestStar Title
Porter Homes Joseph Cepeda Mingos Painting & Remodeling Janette Coon
Albert Porter Demcon Disposal Management, LLC Erik Chavarria
R.C. Baeza & Associates Maria Elena (Nena) Gomez Morrison Supply
Robert C. Baeza Dempsey, Cooper & Lane, Llc Sam Shallenberger
Richard T. Dempsey
13
Association
2017 Issue 6 Builders Outlook

If you have an event or meeting that you would like to share with
News & Events
EPAB members, please submit your information to:
margaret1@elpasobuilders.com

Advertise your
business Builders National,
State &
Local Bu
ilding Ind
ustry New

Outlook
2015: Iss s

to the
ue 10

2016: H
ousing
Recover
www.elp y to pick
asobuil
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m a
challeng mid
EVENTS NEW MEMBERS
home S teady em
demand
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e rates wi home prices an
wth, pent- es
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upward ll keep the d attractiv up
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headwind
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and labor, to shortag wever, on a
along wi es and av persistent
impedin th rising ailability

building
ga material of lots
to econom more robust rec s prices
are
ists who overy, ac
participa cording
ted in a
of Home Nationa

RAC DOORS UNLIMITED, INC.


l Associa

AUGUST 2-3
Builders tion
Constru (NAHB)
ction Fo Fall
recastW
ebinar.

SUNBELT SHOW CONTACT: CHARLES FOXX


This reco
NAHB Chi very is all abo
ef ut jobs,
people can Economist Dav said
get goo id Crowe. they hav

HILTON ANATOLE
incomes e,
, the hou d jobs that pay If
about purc the more comforta

8001 N. MESA, STE. E-224


industry
to move sing mar dec
forw ket will con ent And whi
hasing a
new hom
ble they
feel
The goo ard. tinue le mortgag e.
d news, expecte e interest
total U.S Crowe add d to
. employm ed, is that averaging rise over the nea rates are

DALLAS, TEXAS
well abo ent of 142 mill 4.5 perc r-term,
ve the prev percent ent in 201 Single-Fam

EL PASO, TEXAS 79932


that occ ious pea ion is now in 2017, 6 and 5.5
urred in k of 138 mill exp Cro we said ily Continu
The one 2008. ected to this is not Turning es to Pos
ion have an to the fore
been con cav eat is that job
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sector, whi trated heavily growth has e growth y gets bett 2015, up
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produce
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ts

915-259-8795
ds producin lower wag ice will still e rate So prod r. Sing units
be uction is
Meanwh g jobs. es s
very affo low by historical will rise, they projecte le-family
doubled ile, home equity rdable. stan dards and
addition
al 27 d to incr
ease an

AUGUST 9
sinc has units. percent
$12.5 trilli e 2011 and now nearly in 2016
to 914,000
on. stands at Supply On the mul
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peoples le biggest Crowe note nds 354,000 ,
portfolio asset in d several units last prod uction ran
is most hinderin factors 331,000 year, slig at
said Cro ga
we. Thats the home they NAHB surv more robust reco that are level that htly abo

BOARD MEETING 11:00


level of ve the
primary
purchas importa own, ey of its very. Citin producti is considered a
sellers of ers of new nt because the builders
reported members, 13 perc g an sam expecte
d to rise
on. Multifam normal
ily starts

DESERT QUEST PLUMBING


existing homes are labor was the ent of e concern this yea 9
homes. the a significa cost and availab r and pos percent to 387,000 are
The mor that con ility of that ratio sho s regarding lots t

Fall Hom
nt problem decline
e equity cern in to 378,000 a modest 3 perc units

GENERAL MEETING 12:00


About one jumped to 61 perc in 2011 and Concern t up to 58 percent 2011 and unit ent

e and
Res idential s in
-fifth of buil ent
ders sha in 2014. at 58 perc s over building in 2014.
forecasted remodeling 2016.

Garden
ent amo mat
red the from 33 ng builders erials stood over last to increase 6.8
activity is

Show

CONTACT: HECTOR GONZALEZ


percent in 2014, year and perc
No doubt in 2011. up percent rise an add ent in 2015

attracts

EL PASO CLUB
ideas that that the home in 2016. itional 6.1
brought

thousand
really mad together
that muc e the sho
h
of actually more interesting. wcase home
s
The proc

11171 NAUTICAL
setting up piecing the walls ess

TOP FLOOR CHASE BANK BLDG.


the floor together
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EL PASO, TEXAS 79936


ed by

DOWNTOWN
people wer off October 9. Center as the could, Torr this build, and ate wha t
presente e greeted by a
The thro
ngs of Im prou we
d show very nice the showca es told the Out d that we
produce complim ly look. The
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Antonio. Technology of the take
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915-253-4908
could be e
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showcase featured a spe Ove
showcase rall a very bea
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was mad es. The design ber to come. tinue to

AUGUST 26
e of The Fall give
site in orde to be partially con the display show of Home and
structed
established r to meet the time off its Garden
center was kind this year sinc was the only some time
that eve for the lines e the civic , said Ass
n with that show. I have to Bowling taken ove
r for the Sam Sha
llenberg ociates
Chairma
hustled addition tell Cha Mens
al time we you center turn mpionship (AB

SEPTEMBER 10
and exh er.
to make ibitors and We had new n

SALDIVAR ELECTRIC, INC.


product sure we C). bring to
had a grea really complet ed into a large bow The civic have. that was disp the
CTU Met
to show,
said Fernan t e with state ling alle a nice thin lays whats hot consumer bec
run into The pres g to in the wor ause
ro
staged the Homes. Beautifu do Torres of situations of the art lanes. y enting attra said. ld of wal I know
l and eleg center or like this We Wiz ard, Bria ction was ls, Santos
the show house became halls we when the n Santos Our sinc

EL PASEO DE CASAS
antly that can use are civic demons the Wall
efforts.
winning
Best of
the favo
rite of fit the trati ons duri
who did several and all the ere thanks to CTU
of Show our shows, said only ones I really
love com ng the three day

CONTACT: MARTIN A. SALDIVAR


We Show for
off our mod are excited to the Technology Tommy ing Acosta Reasuppliers and the Metro Homes
flexible but Mantini so many to El Pas event.
estate age els to the public
be able . We hav folk of gratitud l Estate. We also staff of David
nts becaus and to the
to show
we would then again I kno e to be the Outlook s for the first time o and seeing e to the owe a

HORIZON HILLS
civic cen exhibito
market and
we think
e were
new to the
real showed
have pen
t up dem
w that this
year Builders . The El ,
Paso Ass Brian told ter with rs who fille debt
product we have duri ng and has help ocia thin gs goo d prod d the
this eve and it other ass ed me get tion for the visit ucts and
to
continued. offer the consum a very good
What imp other gigs of

508 JAMES ST.


nt. ociation Home and or to see lots of
aisles and ressed many was recomm s
endation, and Im grateful with . Our Spr
er, Torr
es 11-13, 201 Garden Show is ing
comforta the amount of roomthe carpeted who has he continu for the on
bly mov to authored ed. San reach pote 6. Dont miss this for March
e around. and is an several
was one
of the nice I thought inventor how to tos, Technologyntial customers. opportunity to
st shows this com panies and innovato boo ks today at Visi t Show
www
relationship including Home

EL PASO, TEXAS 79915


weve had r for sev
in Depot. eral info .showtechnolog
Depot and with Rubber Mai My rmation y.co
on the Spr m to get
Lowes is d and Hom ing show.
really a
great thin e
g to

915-778-7085
See Mor
e Photos
Page 8

TRANE RESIDENTIAL The Builders Outlook is the official publication of the El


SOLUTIONS Paso Association of Builders. Our award winning
monthly newspaper is the only publication to target El
CONTACT: ROBERT
MESKE/KATHLEEN CHACON
21415 NORTH 15TH LANE Paso home builders and related businesses.
PHOENIX, AZ 85027
623-687-220
Widely distributed throughout the city and available to

7
MINGOS PAINTING & readers online, the Builders Outlook is an important

7
advertising medium for any business that want to reach
REMODELING
CONTACT: ERIK CHAVARRIA
220 TRINIDAD this valuable market.
SUNLAND PARK, NM 88063
Connect to the
915-8672034

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El Paso Association
EL PASO
more information
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BUILDERS
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14
Successful Marketing Ideas for Home Builders
Builders Outlook 2017 Issue 6

ExpertAdvice

As a home builder, your top priority is looking for when they perform that search. may discuss local brands or companies
satisfying your customers. Creating a There are also several off-page signals without directly mentioning them. Being
custom home suited to their exact needs that play into your sites ability to rank well. aware of these conversations, and the
and specifications can be a challenge, but The most important is links from other sentiment behind them, can be very
you enjoy the hard workand if theyre not authoritative sites. Search engines look at advantageous for your business.
happy, youre not happy. links from reputable websites as proof of
When it comes to marketing, however, your credibility, and sites with lots of links
youve found that reaching new customers have a better chance of ranking highly in Idea #5:
can be a bigger struggle than building a search engine results. Write Compelling, Informative
home. New home builder marketing Thats why in addition to optimizing your Content for Buyers
strategies are home to come by, and you own site, a comprehensive SEO strategy Finally, one great online marketing
may be having difficulty putting together a for home builders also involves earning strategy for home builders involves the
cohesive, effective plan that allows you to links from other sites. creation of compelling content. This content
reach your target audience without Of course, these arent the only steps you may take the form of blog posts, articles,
spending a fortune. need to take in order to rank well but videos, infographics, or something else, but
How can you reach more potential theyre a great start towards achieving the its end goal is always to inform and
customers? Online marketing is the answer. rankings you want. Its no longer acceptable educate.
The Importance of Online Marketing to simply have a website and hope that Content helps you educate your potential
Strategies for Home Builders Google connects the dots and decides to customers about specific topics. For
As time goes on, consumers begin to rank you for specific keywords. And the eyou to reach new audiences and grow example, someone may come to your site
respond differently to marketing. Strategies higher you rank, the more traffic youll get closer to your target audience in new ways, wondering how long it takes to build a
that were once effective are no longer able from potential customers, so it is definitely and offer a whole new level of customer custom home, assuming youve written a
to have the same kind of impact. In this day beneficial to do everything you can to take service as well. very detailed page to answer that question
and age, marketing methods like direct that top spot. Home builders using Facebook usually that ranks highly in searches. If you answer
mail, billboards, and commercials no longer Idea #2: Create Customer Case find that it is the best place to answer the question well, the consumer may stay
get through to consumers in the same way Studies and Photo Galleries questions that potential buyers have about on your site for a while, become interested
that they once did. Custom homes are a very personal and homes. Facebook also makes it easy to in your company, subscribe to your email,
Todays consumers see these visual item requiring a large investment of quickly share photos of new homes or and later choose you as their home builder.
advertisements as interruptions to their time and money. It can be difficult to capture construction, and have conversations with On its own, content does not usually
daily lives and they arent wrong. Instead the interest of a potential customer without fans of your company. Twitter is great for result in a sale. However, it can help lead to
of taking them into consideration, they showing them the work youre capable of curating related content, like articles about awareness of your company, improve your
simply tune them out and go about their but the best way is to include case studies new construction or businesses in the same SEO, and lead to future conversions. Thats
days. and galleries of your previous work. area of your company. Pinterest is also a why its so important to create this content,
hen, when theyre in need of a specific By utilizing a case study or customer great way to extend your reach by creating and why content marketing is becoming an
service or product, they research their stories section, you can harness the power boards for interior design, paint colors, or important part of nearly every online
options on their own. They go online and of your previous customers to gain new home details, which others many find and marketing plan!
use search engines like Google to find ones. Collect photos, quotes, videos, or explore, ultimately leading them to your -www.webpagefx.com/
businesses that provide what theyre testimonials from previous customers who business.
looking for. In most cases, theyll visit were happy with the custom homes you Social media also allows you to find
several sites and compare their options built for them, and put them together in conversations that are already happening
before contacting one or making a compelling pages to tell stories from start to about your company and respond to
purchase. finish. You could show a before and after, or themfor example, on Twitter, where some
If you want to be part of this process for simply show a photo gallery with a quote
your potential customers, you need to be or video from a customer talking about
able to effectively reach and connect with how happy they are.
people who are interested in buying a Seeing is believing, and this is
custom built home. Internet marketing especially true with custom homes. Photo
makes this possible. And not only is galleries are another great way to
marketing online more effective than accomplish thisjust ensure that website
traditional methods, but in most cases, its visitors can enlarge the photos and look
also more affordable. at small details, and that there are
Five Effective Home Builder accompanying quotes or testimonials to
Marketing Methods see, because the customer feedback is
Lets explore five marketing strategies for just as important as the photos!
custom home builders that will allow you to This will not only show your potential
reach more customers, communicate with customers the quality of work youre
them, and convince them to become a lead capable of, but can also help you
at a lower price than the conventional accomplish your SEO goals. If you
marketing methods you may be using right optimize these pages for keywords like
now. Well start with search engine custom home gallery, you can attract
optimization, or SEO, one of the methods traffic from search engine users looking
with the highest ROI and the lowest cost. for inspiration and ideas. And if theyre
Idea #1: Optimize Your Companys impressed with your work, they may even
Website for Search choose you as their builder.
When you type a word or phrase into a Idea #3:
search engine like Google, dozens (if not Set Up an Email Newsletter
hundreds or thousands) of calculations take Sometimes potential customers are
place behind the scenes to determine which interested in your company or what you
websites show up in the results. Search have to say, but arent quite ready to
engine optimization, or SEO, is all about make a purchase. In this case, its a good
improving your website so you have a idea to have an option to keep in touch
better chance at showing up in those with themand stay in the back of their
results when you should. mindfor that future opportunity. Email
Lets say you think your companys marketing is one of those options.
website should be #1 when someone By creating an email newsletter that
searches for custom home builder in potential customers can sign up for on
Michigan (because you build custom your website, you have a great
homes in Michigan). If you dont already opportunity to talk about new homes your
rank #1 for that phrase, you might use SEO company has built, discuss innovations in
to get there by doing the following: the home construction industry, and even
Putting that phrase in the titles of your mention trade shows or local events youll
pages be attending. You can communicate with
Putting that phrase in the copy on your your subscribers as often as you wish,
homepage and even address your emails as if youre
Writing content about the custom speaking to them personally, which can
homes you build in Michigan help make them more effective.
These steps show search engines like Idea #4:
Google that your site provides content Be Present on Social Media
relevant to users who search that particular Social media for home builders may
phrase. That being said, you cant just sound difficult, but it can be one of the
stuff your site with a specific keyword and best ways to communicate with potential
hope to rank well. In order to earn the leads and strengthen your relationships
rankings you want, you also need to with customers online. Platforms like
provide the information that customers are Facebook, Twitter, and Pinterest allow
Builders Outlook 2017 Issue 6 El Paso Disposal
6046 Surety Dr. El Paso, TX 79905
915-778-5387 Fax: 915-772-3038
ExECuTiVE OFFiCERS
PRESiDENT
Don Rassette
ViCE PRESiDENT
TABSTATE DiRECTORS
Randy Bowling - Life Director
Sam Shallenberger
Edmundo Dena
772-7495
EdmundoDena
SECRETARY/TREASuRER NATiONAL DiRECTORS
SergioCuartas Bobby Bowling, IV
ASSOCiATES ViCEPRESiDENT Demetrio Jimenez
SamShallenberger Leslie Driggers Hoard -Alternate
ExECuTiVE ViCE PRESiDENT Antonio Cervantes - Alternate
Ray Adauto
PAST PRESiDENT Honorary Life Members
Carlos Villalobos Mark Dyer
Wayne Grinnell
COMMiTTEE CHAiRS Don Henderson
Membership Anna Gill
Ted Escobedo Brad Roe
Patrick Tuttle Rudy Guel

Finance Committee Past Presidents


Kathy Carrillo Committed to Serve
Henry Tinajero Edmundo Dena
Edgar Montiel
ADViSORYTOTHEBOARD Frank Torres
Jay Kerr, Firth, Johnston, Bunn & Kerr

For All Your Electrical Needs


Frank Arroyos
Greg Bowling
BOARDOFDiRECTORS Randy Bowling
Bobby Bowling Iv
Fernando Torres Metro Homes Doug Schwartz
John Cullers

Residential Specialists
Henry Tinajero West Star Bank
Jay Kerr Firth, Johnston,Bunn & Kerr Robert Baeza
Joe Bernal Employer Benefits Ep Mark Dyer
John Chaney Passage Supply Kelly Sorenson

Tract Homes Custom Homes


John Dorney Dorney Security Rudy Guel
Kathy Carrillo Pioneer Bank Brad Roe
Kathy Parry Hunt Companies Herschel Stringfield
Leti Navarette Bella Homes/Custom Dream Bob Bowling Iii
Linda Troncoso TRE & Associates Pat Woods
Leslie Driggers-Hoard Homes By Design
EPAB Mission Statement:
Robert Foster Southwest Land Dev. Services
The El Paso Association of Builders is a federated professional
Walter Lujan Dawco Builders organization representing the home building industry,
Edgar Garcia Bella Vista Custom Homes committed to enhancing the quality of life in our community by
Jason Cullers Cullers Homes providing affordable homes of excellence and value.
Samira Gonzaelz Icon Custom Homes The El Paso Association of Builders is a 501C(6) trade
Sal Masoud DRE Development organization.

915-208-9313
Ted Escobedo Snappy Publishing 2017 Builders Outlook is published and distributed for
the
Patrick Tuttle Legacy Real Estate Services

Total Customer
El Paso Association of Builders

800-853-3996
Sam Trimble Lone Star Title by Ted Escobedo, Snappy Publishing, LLC
Luis Rosas Hub International ted@snappypublishing.com

Satisfaction
Delton Deal Deal -2-Deal Homes El Paso Texas 915-820-2800
J. J. Vasquez Pacifica Homes

2016 Builder Member Of The Year 2016 Associate Of The Year


Carlos Villalobos StrucSure Home Warranty

Pointe Homes


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