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

Home Buying a Strong Boost to Overall Economy


NAHB economists studied the U.S. Bureau of Labor

A
Statistics Consumer Expenditure Survey to help
quantify the wave of activity and cash spent to
install new refrigerators, buy couches and make other
improvements as new owners personalize their
homes.
While construction jobs are the most obvious
impact of new homes on the economy, its important
new consumer to realize that it doesnt stop there, said NAHB
spending analysis from Chairman Granger MacDonald, a home builder and
developer in Kerrville, Texas.
the National Association Its the architects, the heating technicians, the
of Home Builders lumber suppliers. And its the mom-and-pop owners at
(NAHB) highlights the local furniture or appliance store who are helping
these buyers make their house a home, he said.
another reason why During the first two years after closing on the
home building helps house, a typical buyer of a newly built single-family
drive a healthy home tends to spend on average $4,500 more than a
similar non-moving home owner.
economy: In their first A previous NAHB study based on 2004-2007 data
year of ownership, new collected during the housing boom showed somewhat
home buyers spend higher spending by home owners overall. But the
tendency of buyers to outspend non-moving owners
about $10,601 on on appliances, furnishings and home improvements
appliances, furnishings was similar.
and home improvement In the aggregate, most of the demand for
projects 2.6 times as
appliances, furnishings and remodeling projects in a
given year is generated by non-moving home owners,
much as other home because they outnumber home buyers by such a
wide margin.
But new owners impact is noticeable and vital,
MacDonald said. The health of housing and new
home buying is key to the overall state of our
economy.districts.
See the study page 8-9

Paseo de Casas set to open this month


The work on the upcoming el Paseo de Casas is heard about this parade for the opportunity to be the
progressing with a flurry of activity on the site. Seven Presenting Partner, Rick Aguilar told the Outlook. we
builders are presenting our first ever affordable parade see it as a great opportunity to show the public,
type event on the eastside at Horizon Hills Estates off especially those in the eastside, that were here to be
Eastlake and Rojas. The site was acquired with their supplier as well as to the builder, he continued.
cooperation of Metro Homes who generously offered In addition to Franklin the el Paseo de Casas will
the EPAB an opportunity to have this event. We think welcome these workforces free admission to the
that we can showcase very nice affordable homes to event. Loyalty Homes welcomes First Responders
the public in the hottest area of town, said Fernando (EMS, Sheriff, Police, DPS)
Torres with Metro Homes. Builders Source Appliance Gallery welcomes Military
Joining Metro Homes in the showcase are Loyalty active and veterans
Homes, Pacifica Homes, Rassette Homes, Pointe WestStar Home Loans welcomes Educators/school
Homes, Carefree Homes and Diamond Homes. employees of schools, colleges and universities
August 26 to September 10
We think that joining in el Paseo is one of the best GECU and GECU Mortgage welcomes
4-7 pm Monday Friday; 10-7 Saturday and Sunday
ways to show El Paso what kind of builder we are, Healthcare/Medical employees
said Valerie Baquera of Diamond Homes. I agree that All of these groups simply need to show their work I PREVIEW PARTY ON AUGUST 25
we all have very nice homes in a price range that the D to get in free. Otherwise the show is $5 for adults
working people are looking for, said Laura Loy of 13 and over. Children 12 and under are free
CALL 778-5387 FOR TICKETS
Loyalty Homes. accompanied by an adult. Presented by
The homes are priced from $160,000 to $220,000 in The event starts with an industry preview party on
what has become the sweet spot for the workforce August 25, and is open to the public August 26 to
looking at new homes. The Horizon Hills Estates area September 10. Admission is open from 4-7 pm
is the hottest zip code for new sales. These seven Monday Friday; 10-7 Saturday and Sunday. The
homes will allow the public to see what is available EPAB is asking for volunteers for the ticket booth. Call
from each of the builders. us or send us and email if youd like to help.
Franklin Building Materials is the Presenting Partner
for el Paseo de Casas. I asked Ray the minute I
2 Builders Outlook 2017 Issue 7

WERE PROUD TO SERVE THOSE


WHOVE SERVED US ALL.
2017 Issue 7 Builders Outlook 3
Presidents Don

Message
Rassette
President,
El Paso Association
of Builders

TAB fights for our interest, EPABpromotes our industry locally


As many of this years articles have sales price inclusion for filing or staff and the countless events. Here is a sampling:
started from me, this month is no recording of conveyance communications sent to our state TAB meetings and Sunbelt Show
different. Being an odd-numbered Adjustment to minimum wage, representatives and senator. August 7th Finance Committee
year, our state legislature was in counties/cities could adopt rates To help with creating a bigger state meeting
session. I have previously mentioned higher than state minimum machine and one with even more August 9th EPAB Board and
and given details on specific bills of Municipal impact fees, would financial clout, TAB is having a state- general meeting
interest that TAB was either for or allow TXDOT to be more involved wide membership drive in the spring el Paseo de Casas August 26th to
against. There were some that I Corrugated stainless steel tubing, of 2018. Bringing back the Oliver September 10th.
didnt mention, as their importance or conformity to 2008 IRC Group from 2007, expectations are Breakfast with staff of the El Paso
evolution took longer to get on our Solid materials tax, authorization high. In 2007, 2400 members were Building Department
radar. TAB was proud to have been to counties to impose a new tax added in just 2 days. This was an Parade of Homes in 2018,
involved with preventing the passage on mining of pits increase of 21% to state February in Artcraft Estates sub-
of the following unfavorable issues to Bond election requirements for membership. More information will be division
our building industry: MUDs, quorum minimums for forthcoming. And the list goes on.
Mechanics Liens, a shift on who election The 2017 Sunbelt Builders Show is And as life goes on, we need to
would be obligated Low Income Housing Tax Credit, happening now. This is a great time remember those with recent losses.
Mandated fire sprinklers, in some state representatives letters as a to see new products on the exhibit Our deepest sympathies, our
areas and populations higher priority room floor, to get updated information thoughts and our prayers are with
De-regulation of title insurance, Revocation of Certificate of on the next 2 years TAB contracts you.
amended to allow a file and use Convenience and Necessity, and to network with old friends and to
system extended process and modified start new relationships. This also In closing, BE PREPARED TO
Mandated Workers the amount of compensation serves as our summer TAB SUCCEED
Compensation, mandated Some of these, would affect our Committee and Board of Director
coverage industry every day and in substantial meetings. I hope to see you there.
County Zoning Authority, some ways. Others could be hit and miss In our backyard EPAB staff and
counties would have more on timing, but definitely would bring many others have been busy with
authority additional expenses, over time. Hats planning meetings, event
Mandatory sales price disclosure, off for a job well done to our TAB organization details and social
4
Executives
Builders Outlook 2017 Issue 7

Message

Ray Adauto, New City Council, personnel shortages bring challenges


Executive
Vice President
EPAB

The City of El Paso has just those phoenix like creatures Key positions have been lost to
experienced a nearly complete posturing for a comeback, as well as better pay, better conditions, and
change in leadership with the new some of old political foes trying to respect for what they do. It is a clear
city council and Mayor. Some would groom the newcomers. I cant think indicator that the City of El Paso is
say this is good, some wouldnt of anything worse than that woefully losing experienced people
agree more. For the EPAB it is going happening to our members because I due to lack of pay. It should be clear
We must join together to be a challenge once again to want you to recall how difficult it can to the new City council that this
and collectively fight for
teach and learn how to interact with be to be outcasts. Some of the department is crucial to all other
each one of the rookies. issues we will deal with wont be fun departments since it approves the
what weve earned over Only Mayor Dee Margo really because our opponents are smelling growth that grows the tax base. It
the last few years. We knows who and what we are as he an opportunity. We must be vigilant, earns the money that the city uses to
must stand up and fight
was a long-standing member of the careful, and determined not to return fund most of the costs of
association while running J.D. to those dark days. It will mean that government. Why would you let this
for those who fight for Williams company. The company you will be asked to help in the happen to a critical department? That
us, and make sure we was sold and continues membership upcoming fight because make no is a question I am raising with each
educate the new council
under HUB International but Dee is doubt about it that is what is going to member of council and its one you
not affiliated anymore. But what happen. should worry about even if youre not
to be wary of those who about the rest? Good news bad news We have just as much an a builder or developer. When the city
wish to come and create for us. First most if not all come into opportunity to share our mission and cant do the job then everyone is
havoc for us.
office without a preconceived importance to these new reps as the affected. If you know the new folks
prejudice about development and bad guys do. We must join together on council then it is important you let
home construction. It allows for a and collectively fight for what weve them know youre a member and you
clean sheet with few misconceptions. earned over the last few years. We want this fixed.
It is a challenge that will take months must stand up and fight for those Over the next six months we will
or years to educate them on why we who fight for us, and make sure we see more clearly where this council is
exist. The problem as I see it is that educate the new council to be wary going. Mayor Margo and mayor Pro
because of their newness the of those who wish to come and Tem Noe are aware, but we need
resurrection of some not so good create havoc for us. that awareness to stretch to the
bureaucrats can and probably will As of this writing the Planning and others. We cannot afford to take
rise from their ashes assuming that permitting department is down three steps back.
this is a great time to come back. fourteen employees, critical to the
I have heard rumors of some of plan review and permits you seek.

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2017 Issue 7 Builders Outlook 5

Builder News
Texas Developer Joins It is our pleasure to welcome Granger provide safe and affordable housing to
New Home Sales Edge Up
Federal Home Loan Bank 0.8 Percent in June
MacDonald to the FHLB Dallas Board, said consumers.
FHLB Dallas President and CEO Sanjay K. NAHB commends House Financial Services

of Dallas Board
Bhasin. His commitment to affordable housing Chairman Jeb Hensarling and Housing
n The Sales of newly built, single-family
and the knowledge and experience he brings Subcommittee Chair Sean Duffy for their
homes in June inched up 0.8 percent to a
n The Federal Home Loan Bank of Dallas to the Board will benefit members throughout leadership in working with us to produce a bill
seasonally adjusted annual rate of 610,000
(FHLB Dallas) announced the election of G. our District. that will preserve rate affordability, shore up the
units from a downwardly revised May reading,
Granger MacDonald to FHLB Dallas Board of Mr. MacDonald holds a Bachelor of Business NFIP and address the concerns of the housing
according to newly released data by the U.S.
Directors (Board). Mr. MacDonald was elected Administration degree in Real Estate and community, said NAHB Chairman Granger
Department of Housing and Urban
by the Board to fill an independent director seat Finance from the University of Texas McCombs MacDonald, a home builder and developer
Development and the U.S. Census Bureau.
that was vacated in April. He will serve out the School of Business. He and his wife, Kathy, from Kerrville, Texas. With the NFIP set to
Although we saw modest gains this month,
remainder of the term for that seat, which live in the Texas Hill Country. expire on Sept. 30, we urge the House to pass
new home sales have risen nearly 11 percent
expires December 31, 2017. this bill quickly.
since the start of 2017, said Granger
The current chairman of the National NAHB and the committee leadership have
MacDonald, chairman of the National
Association of Home Builders, Mr. MacDonald worked together to provide a five-year
Association of Home Builders (NAHB) and a
is also the chairman and CEO of three reauthorization of the NFIP that:
home builder and developer from Kerrville,
multifamily property management and Eliminates a provision that would have
Texas. Our members remain optimistic as the
development companies based in Kerrville, ended NFIP coverage of new homes
single-family housing market continues to
Texas: MacDonald Property Management, constructed in the 100-year floodplain;
recover.
LLC, MacDonald & Associates, Inc. and G.G. Ensures that grandfathering will remain
The months sales report is consistent with
MacDonald, Inc. Mr. MacDonald has developed available for all policyholders if their risk
our forecast, and we should see further gains
over 50 multifamily apartment communities changes, which will enable home owners
throughout the year as the labor market
throughout Texas during four decades in to have continued access to affordable
continues to strengthen, said NAHB Senior
construction and development. flood insurance; and
Economist Michael Neal. While new home
I am deeply honored to be appointed to this Sustains affordability by raising the annual
inventory rose slightly in June, it remains tight
position at the Federal Home Loan Bank of premium floor for rate hikes from its
as builders face lot and labor shortages and
Dallas, said Mr. MacDonald. The programs current 5 percent level to 6.5 percent
increases in building material costs.
offered by FHLB Dallas have benefited instead of the proposed rate of 8 percent.
The inventory of new home sales for sale
communities across the District, and I hope to As a builder who knows first-hand how flood
was 272,000 in June, which is a 5.4-month
use this opportunity to work closely with insurance rate increases can hurt home
supply at the current sales pace.
member institutions to provide financial owners, businesses and communities, I am

NAHB and House Panel


Regionally, new home sales increased 12.5
products and services that will expand pleased that the House Financial Services
percent in the West and 10 percent in the
Committee has made such important progress
Reach Agreement on
affordable housing opportunities for hard- Midwest. Sales were unchanged in the
working American families. on reauthorizing the NFIP, said Randy Noel, a
Northeast and fell 6.1 percent in the South.

Flood Insurance Bill


Mr. MacDonald is a founding member of the home builder from LaPlace, La. and NAHB first
Texas Affiliation of Affordable Housing vice chairman. This bill is critical to allow more
Providers, and he holds memberships in the borrowers to be covered by flood insurance
n The National Association of Home
Texas Association of Builders, the Hill Country and ensure that we can continue to provide
Builders (NAHB) today reached an agreement
Builders Association, Greater San Antonio safe and affordable housing in Louisiana and
with leaders of the House Financial Services
Builders Association and the Home Builders across the nation.
Committee to craft a viable, long-term flood
Association of San Angelo. Mr. MacDonald also insurance reauthorization bill that will keep the
currently serves on the board of trustees for National Flood Insurance Program (NFIP)
Schreiner University. fiscally sound and enable home builders to

BUILDING El Pa
aso SINCE 1950
6 Builders Outlook Issue 7

Economy News Briefs

Debt Debate
The upcoming required legislative increase in the
debt ceiling may be a nasty battle. Republicans will
require Democratic support which will be
legislatively costly, all but guaranteeing a bill that
won't be "clean" or void of concessions. To that
end, Trump's budget proposal that cuts billions from
discretionary non-defense spending will probably
be in play, and Democratic resolve to at least
maintain roughly current spending levels will be
very strong.

Seattle Slew
Seattle raised its minimum wage from $9.47/hour to Employment Exceptions White House wants to get tax reform
$11/hour in 2015 and $13/hour in 2016. While the Rhode Island is the latest state to finally see total bill through Congress by November,
first increase had minimal employment impact, the employment exceed its pre-recession level. That Short says
second damaged low-wage workers. At $13/hour, leaves just Alabama, Connecticut, Illinois, Michigan, The Trump administration is seeking to get a tax-
the number of low-wage hours worked declined by Mississippi, New Mexico, Ohio, and Wyoming with reform bill through Congress by November, White
a whopping 9%, while wages rose just 3%. As a employment levels in 6/17 below what they were in House legislative affairs director Marc Short said
result, low-wage worker income fell on average by 2008 or before. By contrast, in five states, including Monday. Speaking at an Americans for Prosperity
$125/week! Small increases are manageable, large Arkansas, California, Colorado, Tennessee, and event, Short said the goal is to get a bill through the
increases incentivize employers to bypass low- Washington, the unemployment rate in 6/17 was at House in October and the Senate in November.
wage employees. an all-time low and employment was at an all-time "That I think is an aggressive schedule, but that is
high. our timetable," Short said. Last week,
Super Seoul congressional leaders and the White House issued
U.S. freezes assets of Venezuelan a joint statement on tax reform, dropping the so-
Despite a growing nuclear threat from North Korea,
Korean stocks are up 18% YTD. Improved President Maduro called border adjustment tax and saying they
earnings, a better domestic economy, diminished The Treasury Department announced Monday it wanted to reduce tax rates "as much as possible."
political uncertainty, and the spectacular has frozen the assets of and sanctioned Venezuela
performance of Samsung (which accounts for 25% President Nicolas Maduro for undermining The financial and housing market
democracy in going ahead with elections on
of the index and is now more profitable than Apple),
Sunday for a new legislative assembly. "Yesterday's
rescue left many Americans behind
are partly why. But, so is dismissal of political risk Federal Reserve policies and new regulations may
from Pyongyang by investors both domestic and illegitimate elections confirm that Maduro is a
dictator who disregards the will of the Venezuelan have strengthened the financial system, but theyre
foreign due to increasing habituation to the situation making it harder for many Americans to access
over time. people," said Treasury Secretary Steven Mnuchin
in a statement. Under the sanctions, U.S. banks homeownership and gain a foothold in the middle
are prohibited from dealing with Maduro. class, according to a new paper from a Washington
financial policy consultancy
2017 Issue 7 Builders Outlook 7
Editors Note: Within the past few weeks there have been a number of deaths that have deeeply
affected members of our association. In this column, Ray Adauto offers his perspective.

These deaths are stark reminders for many of us to


examine ourselves internally as well as externally
By Ray Adauto in her sleep. Armando Margarets family and her husband Elmer. Our deaths. How can you console the
The truth is that we live in a circle dad had to endure that loss while prayers continue for the family. inconsolable? You simply cant.
of life. That circle sometimes is suffering himself from cancer. He And just a few days ago Past To those of who experienced
cruel, sometimes relieving, passed away a week or so after we President Frank Arroyos and death in a family or someone you
sometimes unexpected. As a buried Rumalda. His life was full brother Andy lost their 46-year-old know our deepest condolences to
human, it is one of the most and both were surrounded by sibling Marty unexpectedly. The you and yours. To those who
unfortunate realities knowing that at family and friends. They were visit of death surrounded us this reached out to all of us please
some point death will visit us and married 73 years so it was month once again. To the Arroyos know that it means a lot to us to
all those around us. The topic is accepted as fact that neither could family we continue to pray. hear your words or read those
not an easy one to talk about or in or would want to stay apart for These deaths are stark reminders thoughts. Past President and great
some cases even think about. The long. for many of us to examine fried Mike Santamaria gave me
truth of death is that it comes and During this time, we also got ourselves internally as well as these words:
theres not much we can do about word of the tragic death of Ricardo externally. While nothing is certain You cant be sad when you know
it. Aguilars daughter Vannesa, a in this life except death (and taxes) they are in heaven talking about
We have experienced death in bright loving young woman of 22. a death in the family or of a friend my in-laws. I would add this for all
our personal lives as well as in our Her life was taken by a hit and run or neighbor reminds us of mortality. of us: and in your heart.
professional lives. The older we driver. Vannesa was living her And that is the reality of our
get the more death visits us in one dream of music engineering in Las existence. You see death is why
form or another. Sadly, it comes to Vegas. A loss of a child, no matter we live, by that I mean its why we
us in droves sometimes and thats what age, is never something live for today and tomorrow. We
when it seems to stick out. My anyone should have to endure. We are propelled into our lives
Ray Adauto,
father and mother in law were laid continue to pray for Ricardo and because we simply dont know
Executive
to rest this month just a couple of the family. when or where it will end. Death is
Vice President
weeks from each other. Margarets Past President John Cullers lost in fact a reason for living.
EPAB
mom Rumalda died from his mother Dorothy. She was the There is nothing I can say or
complications of dementia early on grandmother to Jason. Her life was write to soothe the pain of death
a Saturday morning while at home full of energy and love for her especially unexpected and tragic
Cover Story:

Spending Patterns
of Home Buyers:
Appliances, Furnishings
and Property Alterations
Home buying typically generates a wave of
activity as people who purchase homes spend
money on improving their homes, installing new
appliances, buying furnishings, and other items.
Consumer spending data from 2012-2014 shows
that home buyers outspend otherwise similar
home owners who do not move.
During the first two years after closing on the
house, a typical buyer of a newly built single-
family detached home tends to spend on average
$4,500 more than a similar non-moving home
owner. Likewise, a buyer of an existing single-
family detached home tends to spend over $4,000
more than a similar non-moving home owner,
including close to $3,700 during the first year.

Special Studies, July 5, 2017 homes - units built in 2010-2015) - and 6.5 thirds of new homes built in 2015 came similarly large when comparing spending
By Natalia Siniavskaia, Ph.D.
percent bought an existing house (see Fig. with no clothes washers and dryers and 36 on window coverings. New home buyers
Report available to the public as a courtesy of
HousingEconomics.com
1). To analyze spending pooled over percent had no installed refrigerators. At outspend non-moving owners 10 times
several years, all expenditures and income the same time, virtually all new homes ($215 compared to $21), while existing
This article updates a previous study are inflated to 2015 dollars using the came with cooking stoves, ranges, or home buyers (with an average annual
based on 2004-2007 data. The earlier data, Consumer Price Index. ovens. This shows that, on average, new spending on window covering of $78)
collected during the housing boom, showed The study highlights some of the home buyers spent nothing on cooking outspend non-moving owners 4 times.
somewhat higher spending by home differences in spending behavior among stoves, ranges, microwave ovens or built-in The biggest ticket item for new home
owners overall. But the tendency of home the three groups of single-family detached dishwashers. Rather, new home buyers buyers is sofas, with an average spending
buyers to outspend non-moving owners on home owners: buyers of new homes, spent most on items that are less likely to exceeding $700 during the first year after
appliances, furnishings, and home buyers of existing homes and non-moving be included in the price of new homes. moving. This is 60 percent higher than the
improvements was similar. owners. The numbers are based on The most expensive appliances in the amount spent by buyers of existing homes
average annual spending on various budget of existing home owners are and 6.4 times higher than what non-moving
The Data appliances, furnishings and property refrigerators/home freezers, followed by owners typically spend on sofas per year.
The standard source of data on alterations.[1] During the first year after clothes washers/dryers, televisions, The largest furnishings outlay for buyers
consumer spending in the United States is closing on the house, home buyers tend to computer hardware/systems, and of existing home and non-moving owners is
the Consumer Expenditure Survey (CES) spend considerably more on these items lawnmowers. bedroom furnishings, including mattresses
conducted by the U.S. Bureau of Labor compared to non-moving owners. Buyers and springs. Non-moving owners spend
Statistics (BLS). The CES does not only of new homes spend most: $10,601, Furnishings $151 on bedroom furnishings in any given
detail consumer expenditures, it also allows outspending non-movers 2.6 times. Buyers New and existing home buyers spend year. During the first year after moving, old
relating this spending to household of existing homes spend $8,233, twice as even more on furnishings than appliances. home buyers spend $519 on these items.
characteristics such as income, socio- much as non-moving owners. During the first year after buying a home, For buyers of new homes, this expenditure
demographic characteristics, and, essential Nevertheless, in the aggregate, most of the new home buyers spend $3,778 on goes up even higher to $634 during the
to this analysis, whether these households demand for appliances, furnishings, and furnishings, outspending old home buyers first year after moving. This is not
recently purchased homes. Compared to remodeling projects in a given year is 70 percent and non-moving owners 530 surprising, considering that the number of
some other government household generated by non-moving home owners, percent. The differences are not only large bedrooms in new single-family detached
surveys, the CES sample is not particularly because they outnumber home buyers by but also most consistent when comparing homes has been on the rise. In 2016,
large - it collects spending data from 6,000 such a wide margin. expenditures on furnishings. Compared to three, four and more-bedroom houses
to 8,000 households every quarter nor is non-moving owners, new home buyers accounted for 91 percent of all new single-
it specifically designed to capture home Appliances spend more on every single item the CES family detached homes compared to only
buyers. Total appliance spending is highest for counts as furnishings with the exception of 75 percent in 1985, according to the U.S.
To create a meaningful sample of home new home buyers: $3,094, compared with infants furniture and other furnishings. They Census Bureau.
buyers, this study merges 13 quarters of $1,889 for existing home buyers and also outspend existing home buyers on
CES spending data, from the first quarter $1,182 for non-moving owners. The biggest nearly all furnishing items with the Property Repairs and Alterations
of 2012 through the first quarter of 2015. outlay in the appliance budget of new exception of office furniture, dinnerware, Buyers of existing homes spend $4,085
This time frame coincides with the period home buyers are clothes washers/dryers, and infants equipment. on property alterations and repairs,
when the housing sector emerged out of a lawnmowers/other yard equipment, and A home purchase, especially when it is a compared to $3,729 spent by new home
deep recession and new single-family computer hardware/systems. new home, has a particularly large effect buyers, and $2,232 spent by non-moving
starts and sales were at suppressed and Coincidentally, new home buyers outspend on expenditures on living room owners. Considering that new home buyers
historically low levels. To expand the existing home buyers and non-moving chairs/tables and dining room/kitchen move into new homes, it might be
universe of new home buyers, all homes owners on all these appliances. They also furniture. During the first year after moving, surprising that they spend almost as much
that were built in 2012 or later are defined outspend non-moving owners on such big- new home buyers spend $687 on living on property alterations and repairs as
as new homes. ticket items as refrigerators/home freezers room chairs and tables, outspending non- buyers of existing homes, but the specific
The created sample roughly reflects the and televisions. moving owners and existing home buyers types of remodeling projects are quite
national share of home buyers as captured The high level of spending by new home 12 and 5 times respectively. The average different across the groups.
in the 2015 American Housing Survey buyers may seem surprising considering spending by new home buyers on dining Considering that many new homes come
(AHS). According to the AHS, less than 1 that many new homes come with installed room and kitchen furniture is $345. This is with warranties, it is not surprising that new
percent of all single family detached home appliances, but suggests that these 12 times higher than the amount spent by home buyers spend virtually nothing on
owners bought a new home in 2014-2015 purchases are nevertheless more frequent non-moving owners and exceeds the various repairs and replacements. At the
(even though the AHS new homes among these households. The Builder respective spending of existing home same time, existing home buyers spend
category includes a broader group of Practices Survey conducted by the Home buyers nine times. more than new home buyers on every
Innovation Research Labs shows that two- The differences in spending patterns are single item the CES lists as a repair or
2017 Issue 7

replacement, with the exception of HVAC differences in their spending behavior.


repair. They also outspend new home There are indeed differences between
buyers on kitchen/bathroom addition or home buyers and non-moving owners.
remodeling, and purchasing and installing Home buyers tend to be larger households
new items such as HVAC, plumbing, with children, and on average wealthier,
electrical and security systems, paneling, better educated and concentrated in urban
flooring, siding, windows and doors. areas. Any of these factors could
Average spending of new home buyers on potentially contribute to higher spending on
most of these items is close to nothing, appliances, furnishings and remodeling.
suggesting that new home buyers rarely To control for the impact of household
spend on these items during the first year characteristics on expenditures, a statistical
after moving. model was used.
However, when it comes to outside The analysis confirmed that household
additions and alterations, including a new characteristics influence spending levels on
driveway, walk, or fence, new home buyers furnishings, appliances, and remodeling. It for differences in socio-economic The differences are largest on
outspend existing home buyers and non- also proved that a home purchase alters characteristics of home buyers, the furnishings, close to $2,500 during the first
moving owners by far. spending behavior of home owners and statistical estimates can be used to predict year after closing on a new house. A typical
Non-moving owners outspend home that otherwise similar home owners spend spending levels of identical households that new home buyer is also estimated to spend
buyers on most replacements, as well as more across all three categories during the differ in only one way: one household buys $1,258 more on appliances during the first
repairs of doors, windows and skylights. first year after buying home compared to a home and the other stays put in a house year. In case of property repairs and
non-moving owners (for readers interested they already own. alterations the differences are smallest:
Statistical Analysis in technical details, the statistical output is The study includes estimates for $714. Overall, during the first year after
This clearly illustrates that there are presented in the appendix of the article). households that have socio-demographic purchasing a new home, a typical new
substantial differences in how much home The analysis also showed that the higher characteristics typical of a new home home buyer tends to boost spending on
buyers and non-moving home owners level of spending on furnishings tends to buyer. The spending levels of the typical appliances, furnishings, and property
spend on appliances, furnishings and persist for two years after households new home buyer who buys a new home, alterations by additional $4,455 as a result
property alterations. However, these move into an existing home. In case of and the second column contains estimates of buying a new home.
differences in spending patterns cannot be buyers of newly built homes, spending on for an identical home owner that stays put. Over the two years after the move, the
fully attributed to a home purchase. Home appliances, furnishings and remodeling The last column captures differences in typical buyers of an existing home tend to
buyers and non-moving owners might have tend to come back to normal level after the spending levels attributed to the purchase increase their spending on remodeling,
different income, education, tastes, first year in a new home. of a new house, controlling for differences furnishings, and appliances by over $4,100,
preferences, and other socio-demographic To illustrate the impact that a home in the household characteristics. compared to otherwise identical home
characteristics that could potentially explain purchase has on spending and to control owners who do not move. Remodeling
projects account for half of this extra
spending and mostly occur during the first
year after closing on the house. Only the
additional spending on furnishings tends to
persist beyond the first year.
A legitimate question is whether a higher
level of spending on furnishings,
appliances and property alterations is
achieved by home buyers by economizing
and cutting their spending on other items,
such as entertainment, apparel,
transportations, travel, food at home,
restaurants meals, etc. The identical
statistical model was used to test this
hypothesis. The statistical analysis showed
that while income and socio-demographic
characteristics help explain household
spending on other items, a home purchase
does not suppress spending on
entertainment, apparel, transportation
(including spending on new and used cars
and trucks), food at home and restaurant
meals. Overall, a home purchase does not
have a significant effect on other spending
outside of the added property alterations,
appliances, and furnishings. Thus, home
buyers do not in general seem to pay for
the three considered categories by
economizing in other areas of spending.
It is important to keep in mind that the
averages reported are averages for all
households in the group regardless
whether they purchased a certain
item/service or not. Thus, these averages
are considerably lower than the
expenditure by those households that
actually purchased the item. The less
frequently an item is purchased, the
greater the difference between the average
for all households in the group and the
average of those purchasing.
The particular technique is called Tobit
regression analysis. This technique was
selected because there was a large
number of zero expenditures in the sample
corresponding to households that reported
no spending on either appliances,
furnishings, or remodeling projects. In such
cases, the traditional regression analysis
(OLS) is known to produce biased
estimates. To capture the effects of the
CES sample design, the Tobit regressions
were run within the balanced repeated
replication (BRR) framework where target
statistics are repeatedly re-estimated using
half-sample replicate weights.

For more information about this item,


please contact Paul Emrath at 800-368-
5242 x8449 or via email at
pemrath@nahb.org.
10 Builders Outlook 2017 Issue 7

HOW
W THE NAT
ATIONSS BEST BUILDER
B RS
PROTEECT THEEIR BUYERS
ONE-YEAR WORRKMANSHIP AND MATTERIALSS; TWO-YEAR WIRING, PIPING,
G, AND DUCTWORK; & 10-YEAAR STRUCTURAL HOME WARRANTIES

Coontact Yoour Local Risk Managemennt Expert to Learrn How Yoou Can
Join tthe Nationss Best Builders as a Mem
mber of StrucSure Home Warranty.
SCOTT WHISENANT
Vice President of Sales
Centr
t al & Soutthw
h estt Te
Texas
(210) 232-3947 Home Photo Courtesy of Stru
ucSure Home
Warranty Member, Tropicana
ana Homes
swhisenant@strucsure.com
www.strucsure.com
2017 Issue 7 Builders Outlook 11

ExpertAdvice

by Ruth Rivera, VP Bukaty Financial

Private sector workers have to build


resources to support themselves after working
year. Most workers can only save through
For example, Employees can contribute
3% for 20 years till retirement with
hypothetical 7% Annual Average Return
$40,000: Approximate Total Retirement
Income: $62,998 (Approximately $25 weekly)
new h o m e s
employer sponsored plans. Because retirement
readiness is a concern for the government,
$30,000: Approximate Total Retirement
Income $55,123 (Approximately $18 weekly)
for el paso...
policy makers are considering government $25,000: Approximate Total Retirement re
sponsored plans. To have some insight on this, Income $39,373 (Approximately $15 weekly)
eas il y f o u n d h e
consider the efforts of Obamacare for a health
savings program through the government. UPCOMING SEMINARS:
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February 2017
FREE

marketplaces or multiple employer plansor


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automatically enroll private sector workers who AUGUST 16TH 11:00 AM-5:00 PM
do not have access to workplace plans. If this is Independent consulting: Appointment El Paso New
not a mandate you want to be subjected to or Only
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expensive, very complex and very regulated. If document due diligence of fees and
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by
12 Builders Outlook 2017 Issue 7

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 The Home Systems Heating & Cooling, Inc.
Metro Homes, Inc. Kevin Fortin Sam Trimble Jesus Chain
Fernando Torres, Judith Arrunada, City Bank Texas Love Engineering, Inc. Trane Residential Solutions
Millennium Homes Bob Kotarski Montez Love Robert Meske/ Kathleen Chacon
Dan Ruth City Lights Majestic Realtors TRE & Associates
New Horizon Builders Thomas Brown Patti Musshorn Linda Troncoso
Georgiana Garcia Cognent, Inc. MAK Roofing & Construction Trim Team
Pacifica Homes, Inc. Martin Paredes Felix Vizarreta Juan & Kris Hernandez
Juan Jose Vasquez Commercial Insurance Brokers, Inc. Masco Contract Services USA General Contractors
Palace Homes, Inc. Ken Foster dba Gale Insulation Javier Olmos
Robert Diaz Conde, Inc. Tom Harmon Vision Consultants, Inc.
Palo Verde Homes Conrad Conde McCoy's Building Supplies Kelly Sorenson
Edgar Montiel CQC Testing and Engineering, LLC Julie Reyes WestStar Home Loans
Pointe Homes Jaime Rojas Mechanical Technologies Cinco Houghtoni
Carlos Villalobos Dal-Tile Jaime Zubiate WestStar Bank
Porter Homes Joseph Cepeda Mingos Painting & Remodeling David Osborn
Albert Porter Demcon Disposal Management, LLC Erik Chavarria WestStar Title
R.C. Baeza & Associates Maria Elena (Nena) Gomez Morrison Supply Janette Coon
Robert C. Baeza Dempsey, Cooper & Lane, Llc Sam Shallenberger
Richard T. Dempsey
13
Association
2017 Issue 7 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
UPCOMING ders.co up steam
m a
challeng mid
EVENTS NEW MEMBERS
home S teady em
demand
mortgag
ploymen
t
, affordab and economic gro
le
e rates wi home prices an
wth, pent- es
gradual
upward ll keep the d attractiv up
trend in e
headwind
s related 2016. Ho housing market
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

AUGUST 2-3
ists who overy, ac are
participa cording
ted in a
of Home Nationa

THE HOME SYSTEMS HEATING


Builders l Associa
tion

SUNBELT SHOW
Constru (NAHB)
ction Fo Fall
recastW
ebinar.

& COOLING, INC.


This reco

HILTON ANATOLE
NAHB Chi very is all abo
ef ut jobs,
people can Economist Dav said
get goo id Crowe. they hav
incomes e,
, the hou d jobs that pay If

CONTACT: JESUS CHAIN


about purc the more comforta

industry
to move sing mar dec
forw ket will con ent hasing a ble they

DALLAS, TEXAS
And whi new hom 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
well abo ent of 142 mill 4.5 perc r-term,
ve the prev ion is now percent ent in 201 Single-Fam
that occ ious pea in 2017, 6 and 5.5 ily Continu
urred in k of 138 mill exp ected to Cro we said Turning
The one 2008. ion have an this is not to the fore es to Pos
been con cav eat is that job
recovery
. As the imp act projecting cast, NAH t Gains
cen and wag econom on the housing 719,000 B is
sector, whi trated heavily growth has e growth y gets bett 2015, up
11 percent
single-fa
mily star
in the serv even thou sho er, job
than goo ch tends to pay produce ts

(915) 858-4141
ds producin lower wag ice gh mortgag uld keep pace. d last yea from the 647,000 in
will still e rate So prod uction is r. Sing units
es be s projecte le-family

AUGUST 9
Meanwh g jobs.
very affo low by historical will rise, they
doubled ile, home equity rdable. stan dards and
addition
al 27 percent
d to incr
ease an
sinc has units.
$12.5 trilli e 2011 and now nearly in 2016
to 914,000
on. stands at Supply On the mul

12309 ROJAS DR STE A7


The sing Headwi tifamily side
peoples le biggest Crowe note nds 354,000 ,
asset in d several units last prod uction ran

BOARD MEETING 11:00


portfolio most hinderin factors 331,000 year, slig
said Cro is ga at
we. Thats the home they NAHB surv more robust reco that are level of
level that htly abo
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

EL PASO, TX 79928
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
decline

GENERAL MEETING 12:00


e equity cern nt problem in to 378,000 a modest 3 perc units
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
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
setting up piecing the walls ess
the floor together
Continu
The ann a wall or and the ,
ed Page
ual Fall in the ceil all that goe
brought Home and
6
thousan Garden the faint ing is not s on
Judson ds of peo show hearted. somethi
Will ple Habitat We wer ng for
show kick iams Convention into the for
could from Humanity to don
e asked
by
ed
people wer off October 9. Center as the could, Torr this build, and ate wha t
Im prou we

AUGUST 26 SEPTEMBER 10
The thro
presente e greeted by a ngs of
the showca es told the Out d that we
d show very nice look. The
produce complim ly
r Show ents waiting for se was quickly rest of
Antonio. Technology of the take
out of San parts that some of the fram n to a lot
could be e
The sho
w waste. used so and other
showcase featured a spe

EL PASEO DE CASAS
Ove to not go
ctac showcase rall a very bea to
Metro Homhome by new buil ular for years home that will con l green
utifu
der mem
was mad es. The design ber to come. tinue to
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 its Garden

HORIZON HILLS
for the lines
off center was kind this year sinc was the only some time
that eve 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
to make al time we you center turn mpionship (AB and exh er.
ibitors and We had new n bring to
product sure we C).
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 antly that can
halls we when the
civic demons n Santos the Wall Our sinc
winning the favo use are trati who did and all the ere thanks to CTU
efforts. Best of rite of fit the ons duri several
We Show for of Show our shows, said only ones I really
love com ng the three day
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
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
to this eve and it other ass ed me get tion for the visit ucts and
continued. offer the consum a very good
What imp nt. ociation other gigs of 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
weve had
in relationship including Home r for sev
eral info .showtechnolog
Depot.
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 See Mor
e Photos
Page 8

The Builders Outlook is the official publication of the El


Paso Association of Builders. Our award winning
monthly newspaper is the only publication to target El
Paso home builders and related businesses.

Widely distributed throughout the city and available to

7
Connect to the
readers online, the Builders Outlook is an important

7
El Paso Association of advertising medium for any business that want to reach
this valuable market.
Builders:
www.elpasobuilders.com Call 778-5387 today for
EL PASO
more information
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14
Appraisals
Builders Outlook 2017 Issue 7

Hot Topic

The recent turmoil in the housing and restore confidence in the residential real This is not only unfair and unreasonable,
credit markets brought greater focus to the estate market and to establish a but it hurts home owners and home buyers
importance of fair and accurate appraisals. foundation for sustainable economic alike. Many home owners seeking to
In response to criticism that lax appraisals growth. To address shortfalls in the refinance and take advantage of todays
contributed to the financial crisis, tighter appraisal process, appraisers must affordable low interest rates are unable to
appraisal policies have been implemented develop realist valuations based on sales do so because their house appraisals are
by lenders, the Federal Housing that are truly comparable and lenders coming in too low. A move-up buyer is out
Administration, Fannie Mae and Freddie need to use appraisers who are of luck if the appraisal on their existing
Mac. knowledgeable and experienced in home comes in below what they owe on
However, the pendulum has now swung appraising specific property types located their current mortgage. Likewise, many
too far and reports of homes failing to in a given market. Regulators, appraisers, prospective home buyers have been left
appraise at the sale price, or even lenders and all of the stakeholders in this out in the cold because their dream house
construction cost, have become prevalent. debate must come together to establish was appraised below the sales contract
Inaccurate appraisals remain a major regulatory guidelines for appraisers that price.
impediment to the housing recovery, and acknowledge the reality of todays appraisers are improperly using distressed Major reforms in appraisal practices and
therefore, finding solutions to these marketplace. properties many of which have been oversight are needed to ensure that
problems continues to be a major priority Why It Matters neglected and are in poor physical appraisals accurately reflect true market
for NAHB. Flawed appraisals are harming new condition as comparables in assessing values and dont contribute to price
Policy Statement home values and killing sales in many the value of brand new homes without volatility or harm aspiring home owners
NAHB believes that fundamental markets because they do not accurately accounting for major differences in and move-up buyers.
appraisal system reform is essential to reflect the value of the home. Some condition and quality.

Member News Tropicana Building Achieves Tax Credit Awards


Tropicana Building has been awarded million in 9% tax credits, providing most of and operate 3,284 apartments in the El
over $17 million in tax credits from the the funding for just under $500 million of Paso area in conjunction with their various
state of Texas's housing agency (TDHCA). construction work on apartments in El Tropicana entities.
The credits will provide 70% of the Paso County. No other developer in the Tropicana Properties is a management
financing for Tropicana's 2 latest state of Texas has been awarded as many company dedicated to offering affordable
developments--Alameda Palms (at the 9% tax credits in that period of time, housing low income families since 1999. IT
corner of Alameda and Loop 375) and making Bobby and Tropicana one of the has been growing continuously due to the
Vinton Palms (in the Village of Vinton). largest 9% new construction tax credit commitment to the community and its
These 2 new awards are Tropicana's developers in the United States over the tenants.
31st and 32nd tax credit developments in past 17 years. For more information about Tropicana
El Paso County. Since Tropicana's entry Tropicana also owns and operates all of Properties, visit
into the Low Income Tax Credit its tax credit developments along with www.tropicanaproperties.org
development business in 2001, Bobby other units in the El Paso area. When the Bowling IV, Randy Bowling, and Demetrio
Bowling IV has been awarded over $300 new developments are complete, Bobby Jimenez (Pictured in order above) will own

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You a Nueva Coming Soon:


Su Cas
All-new Edition
in Spring 2017
e
e best tim
NOW is th w home
yo ur ne
to buy
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el tiempo
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nueva en
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Call Margaret today 778-5387
Builders Outlook 2017 Issue 7 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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