You are on page 1of 16

National, State & Local

Building Industry News

2017: Issue 11

Predictions for the 2018 housing market

Slower home price growth, continued inventory issues and evolving design trends ahead

by Marian McPherson
Staff Writer, Inman News

If only we could stare into a

crystal ball to see exactly what
2018 holds for the housing
market. More inventory? Yes!
Slower home price growth?
Absolutely! Oprah giving
everyone a free house? That
would be a dream come true.
For now we have forecasts from
top economists and housing
experts. And Zillow chief
economist Svenja Gudell offered
hers on behalf of Zillow.
Were on the other side of the
housing recovery, and the real
estate market looks quite different
than it did 15 or even five years of buyers will struggle to compete access to a plethora of market, so its no surprise that
ago, Gudell said in a statement. against more seasoned buyers entertainment and shopping Gudell says theyll be driving
We have a huge generation who have profited from a home options and robust tech-centered home design trends in 2018, too.
entering the market. They really sale and know how to negotiate job opportunities. But most New starts and renovated
want to be homeowners, and their way to the top. millennials, especially those homes will feature designs that
theyre faced with an inventory Lastly, Gudell says there are 12 without help from parents, cant appeal to both millennials and
crisis that leaves them with few percent fewer homes to choose afford to live in these areas. baby boomers, such as wide
options. from nationwide than there were a Gudell says 25- to 34-year-olds hallways that can accommodate
Builders wont ignore this year ago, and 51 percent of for- will begin moving to the burbs in both strollers (for young families)
hungry market, and well start to sale properties are in the top one- search of more affordable home and/or wheelchairs (for aging
see a rise in new construction at third of home values, which are prices. boomers).
the more affordable end, instead out of reach for first-time buyers. Furthermore, homes will also be
of all the luxury buildings weve 4. Many homeowners will built using frameworks that make
seen lately, she added. 2. Builders will turn their remodel rather than sell. In it easy to add elements later,
However, builders are also focus to entry-level homes. addition to higher housing starts, including extra support beams
facing high costs, so instead of Economists have said over and experts have said more behind shower walls to which
adding density in cities where over again that increased homeowners selling their homes grab bars can be added as older
zoning laws and land costs often residential housing starts, would help alleviate low inventory generations age in place.
preclude affordable building, well especially at the starter home issues. Well, homeowners,
see the suburbs grow and expand level, are the key to bringing despite having high confidence 6. Homes prices will continue
outward. home prices down. about being in a sellers market, to grow, but at a slower pace.
Housing starts have been well will continue to stay still, says 2017 has been full of record-
Here are the six things Gudell below the 50-year average of 1.2 Gudell. breaking home price growth, with
expects to happen in 2018: million, but Gudell expects Instead of buying a new home, economists calling it nearly
builders to finally hearken to the homeowners will invest in unstoppable.
1. Inventory shortages will call of first-time and lower- to remodeling efforts to make their Gudell says home prices are
drive the housing market. middle-income buyers yearning current homes feel and look expected to climb 4.1 percent in
Gudell says low inventory will for more affordable options. brand new. 2018 1.1 percentage points
continue to push up home prices higher than the normal annual
and serve as a barrier for first- 3. Millennials will move to the 5. Baby boomers and appreciation closer of 3 percent,
time homebuyers who struggle to suburbs. Its no secret that the millennials will drive home but slower than the current
save for a down payment. majority of millennials would design. Baby boomers and annual pace of 6.9 percent.
Furthermore, this demographic rather live in urban centers with millennials are driving the housing
2 Builders Outlook 2017 Issue 11


Home is where traditions begin and memories are made, and a natural gas home is
instantly more attractive to potential buyers.

Natural gas kitchens sell themselves, and natural gas furnaces, water heaters and clothes
dryers offer greater efficiency and lower operating costs than their electric counterparts.

Let us help you plan for natural gas right from the start.

For more information:
William Nieves: 915-496-6126
Jorge Sejera: 915-680-7216

Please continue to direct service line and meter set requests to the Texas Gas Service
Builder Hotline at or 1-866-206-9587.
2017 Issue 11 Builders Outlook 3
Presidents Don

El Paso Association
of Builders

TAB Fall meetings wind up year on a successful note

I hope this finds everyone doing Projected dates are: strengthened, Home Building Institutes the Multifamily Council. Next, was the
well, especially as we go into a very April 9 -13 Training started, Young Designers Town Hall Meeting and then the area
special time of the year. I just got back April 16 20 Training seminars/contests grew in caucuses meetings. In these caucus
from Austin after attending our fall TAB May 23rd and 24th 2 Day Drive participation, high school trades meetings, positions were filled
meetings. Sponsors will be needed for the kick- classes starting and resuming, home- including GRC-Builder and Alternate,
As usual it was informative, off party, food and drinks for the 2-day pacs grew, build-pacs grew, and speed GRC-Developer and Alternate,
energizing and good fellowship with drive, wrap-up party ideas, PRIZES networking/sales events were held HOMEPAC Representatives, Area Vice
many area leaders from across the and incentives for new members. This once a quarter. One success that President, Area Associate Vice
state. In one of the early meetings, the Drive is of special importance as everyone loved was from here in El President, TAB Committee
Government Relations Committee EPABs retainage rate has been a high Paso, which was our monthly Assignments and Recommendations.
gave a brief overview of the recent priority and center of a lot of breakfast between the El Paso Congratulations to Sam Shallenberger,
85th Legislative Session. discussion at the State and Local Building Department and our EPAB for retaining area 5s associates voting
It was reiterated that TAB was six for levels. officers and Ray. Other associations representative on the Sunbelt Show
six on passage of our priority bills and For the record, this year in El Paso will be looking to implement this in Committee!! Then after lunch were the
none of the bills that we opposed were we had an 82.8% retention rate for their area. Kudos to us! executive committee meeting and
passed. Expectations were more than members, which was the fifth highest The last meeting for Thursday was Board of Directors meetings.
exceeded and probably will never be in the state and well above the state the Codes and Standards Committee, Concluding our fall meetings on
obtained again to this high of a average of 73%. Congratulations to where issues such as the TAB Model Friday evening was the Texas Housing
degree. Ray and Margaret and all our Safety plan, TAB Storm Water Hall of Honor and Excellence in
Congratulations to the TAB staff, as members! Lets not rest with this but Program, TCEQ Storm Water Permit Leadership Dinner. Congratulations to
again we are not burdened or move forward to bigger and better. Renewal, TDLR State Electrical and Randy Bowling, as he is now on the
encumbered with more regulations at The 2018 Leadership Conference Mechanical Code Updates, Code TAB Executive Officers ladder and will
both the state and LOCAL levels. Up will be March 21, 2018, with the TAB Enforcement in the ETJs and Silica be the 2020 TAB President!!
next on the agenda was a working winter meetings to be held on March Rule. Depending on how the TAB staff Follow your passions, Happy
lunch meeting for the local Presidents 22-23, 2018 at the Driskill Hotel in does with each one of these areas in Thanksgiving and be PREPARED TO
Council. The biggest agenda item was Austin. Next, we shared our areas the future, will determine how SUCCEEED!
for next years membership drive. The biggest successes and challenges of encumbered or burdened with
drive will be facilitated by the Oliver this year. The successes of each area additional expenses, we will have in
Group who will work to increase and were very consistent throughout the the building industry. On Friday
retain members. state: Government Relations morning we started again. First up was
Builders Outlook 2017 Issue 11

Message November: Time to turn over a new leaf D

id like to congratulate the incoming away about nine years ago. She and i youd think that since they have been
board of Directors who were voted have a special bond because she taking out SS payments that my o
Ray Adauto, into their spot at the november board was like a second mom to me. i miss information would or should be
executive meeting. The list includes some her. My birthday is the 12th, and as a correct. Dont take that for granted
returning as well as several new kid i used to tell everyone that the friends. it took calls and visits to the A
Vice President
board members. As an organization banks would be closed in my honor SS office as well as getting a certified
the challenge sometimes is finding since we celebrate Veterans day so copy of my birth certificate before c
people to lead and in our case we close to it. My youngest older brother they believed what ive known all my T
seem to find the right people at the Hector is on the 15th. Hes a new life.
right time. We will install them at the octogenarian joining my oldest Just for your information applying
December 8 banquet along with the brother Alex in that group. i joined for benefits can start 3 months prior to P
new executive leadership. the Medicare oldsters, turning 65. let your birthday month, your birthday
edmundo Dena will take on the role me warn you that getting to 65 is a month, and 3 months after your
of President, Don Rassette moves to little bit victory and a little bit fearful. birthday month. if you miss those
Past President, Sergio Cuartas will be There are new rules as you reach months you will permanently lose
VP and edgar garcia will fill the that age, starting with signing up for some of your potential payouts. Stay
Secretary spot. Congratulations to all Medicare and Social Security aware, look for the changes that
of you. Well feature the installation benefits. i found out that planning for come with time, and allow yourself
party in the December issue. those two things is vital if you want to the time to do it right. And get a good
The month of november is a get a handle on them. i ran into a Medicare specialist to help you get
special month for me as i share the problem with social security as they the right supplement. its confusing
month with two siblings for birthdays. had me listed as being born in 1951 and trying if you dont. i hope you get
Sadly, it starts my dear sister Cecilias rather than my actual 1952. i have to experience it someday.
on the 5th, sad because she passed been working since i was twelve, so


SoCiAl MeDiA & WeBSiTe

ConTenT MAnAgeMenT

e-MAil neWSleTTeRS



innovative design & desktop

publishing since 1984

ted escobedo
talk & text: 9158202800

Get Creative. Make it Snappy.
2017 Issue 11 Builders Outlook 5

Builder News

New Home Sales Rate upward revision to the September reading, Regionally in October, combined single- and owners, who will see their housing tax

Reaches 10-Year High

according to newly released data from the U.S. multifamily housing production rose 42.2 incentives severely diminished. The bill
Department of Housing and Urban percent in the Northeast, 18.4 percent in the effectively renders mortgage interest and
Development and the Commerce Department. Midwest and 17.2 percent in the South. Starts property tax deductions unusable for middle
n Sales of newly built, single-family homes
This is the highest housing production reading fell 3.7 percent in the West. class home buyers and home owners. By
in October rose 6.2 percent to a seasonally
since October 2016, when total starts hit a Overall permit issuance in October was up threatening the value of the largest asset held
adjusted annual rate of 685,000 units from a
post-recession high of 1.33 million. 5.9 percent to a seasonally adjusted annual by most Americans, these changes will hurt the
downwardly revised September reading,
Single-family production rose 5.3 percent in rate of 1.297 million units. Single-family permits middle class by lowering household wealth.
according to newly released data by the U.S.
October to a seasonally adjusted annual rate of rose 1.9 percent to 839,000 units while The House bill also severely diminishes the
Department of Housing and Urban
877,000. Year-to-date, single-family starts are multifamily permits fell 9.5 percent to 458,000. effectiveness of the Low-Income Housing Tax
Development and the U.S. Census Bureau.
8.4 percent above their level over the same Permits rose in all four regions. They Credit (LIHTC), which is essential to spur the
This is the highest sales pace since October
period last year. Multifamily starts jumped 36.8 increased 13.0 percent in the West, 4.1 percent production and rehabilitation of affordable
2007. Year-to-date, new home sales are 8.9
percent to 413,000 units after a weak in the Northeast, 3.8 percent in the Midwest rental housing. With the nation already in the
percent above their level over the same period
September report. and 3.0 percent in the South. midst of an affordability crisis, undermining the
last year.
This uptick in housing production is aligned LIHTC will deal a crippling blow to keep
Chairman Granger
The October report shows strong sales
with our reports of strong builder confidence, housing affordable and available for those
growth at entry-level price points, said

MacDonald on Senate Tax

said Granger MacDonald, chairman of the citizens who are most in need. And the bill will
Granger MacDonald, chairman of the National
National Association of Home Builders (NAHB) make it far more difficult for small businesses
Association of Home Builders (NAHB) and a
Reform Plan
and a home builder and developer from to compete and thrive because it
home builder and developer from Kerrville,
Kerrville, Texas. Our members are optimistic disproportionately benefits corporations.
Texas. In markets where builders are able to
about the future of the housing market, even as n Granger MacDonald, chairman of the Given the major shortfalls in the House tax
provide homes for families with different
uncertainties remain and they continue to face National Association of Home Builders (NAHB) reform bill, NAHB will look to the Senate to
household budgets, they can fulfill a growing
supply-side issues. and a home builder and developer from craft a better package that meets the needs of
demand for housing.
We are seeing solid, steady production Kerrville, Texas, today issued the following middle class families and the small business
There is solid growth in the number of sales
growth that is consistent with NAHBs forecast statement on the House passage of The Tax community.playing field with large
contracts signed before construction has
for continued strengthening of the single-family Cuts and Jobs Act: corporations.
begun, a strong indicator that new single-family
sector, said NAHB Chief Economist Robert The Tax Cuts and Jobs Act is a bad deal for
home production should continue to grow as
Dietz. As the job market and overall economy hard-working American families. It provides a
we look ahead to 2018, said NAHB Chief
continue to firm, we should see demand for huge windfall to major corporations paid for in
Economist Robert Dietz.
housing increase as we head into 2018. large part by millions of working class home
The inventory of new homes for sale was
282,000 in October, which is a 4.9-month
supply at the current sales pace.
New home sales increased in all four
regions. Sales rose 30.2 percent in the
Northeast, 17.9 percent in the Midwest, 6.4
percent in the West and 1.3 percent in the

Multifamily Developer
Confidence Weakens
n The Multifamily Production Index (MPI),
released today by the National Association of
Home Builders (NAHB), dropped 10 points to
46 in the third quarter of 2017. This is the
lowest reading since the second quarter of
The MPI measures builder and developer
sentiment about current conditions in the
apartment and condominium market on a
scale of 0 to 100. The index and all of its
components are scaled so that a number
above 50 indicates that more respondents
report conditions are improving than report
conditions are getting worse.
The MPI provides a composite measure of
three key elements of the multifamily
housing market: construction of low-rent
units, market-rate rental units and for-sale
units, or condominiums. Two of the three
components decreased in the third quarter:
market-rate rental units and for-sale units
both fell 17 points to 43 and 40, respectively,
while low-rent units edged up one point to
The Multifamily Vacancy Index (MVI),
which measures the multifamily housing
industry's perception of vacancies, increased
three points to 41, with lower numbers
indicating fewer vacancies. After peaking at
70 in the second quarter of 2009, the MVI
first improved dramatically, then edged back
up, and has been fairly stable since 2013.
Were starting to see various markets
across the country become oversupplied with
multifamily construction, so builders and
developers are pulling back a bit, said Dan
Markson, senior vice president of The NRP
Group in San Antonio, Texas, and chairman
of NAHBs Multifamily Council.
Multifamily production had been quite
strong, although it slowed down in the past
three months, said NAHB Chief Economist
Robert Dietz. And with approximately
600,000 units in the pipeline, builders and
developers are taking a cautious approach
until they see how the market absorbs these
units when they come online.
For data tables on the MPI and MVI, visit

Housing Starts Up
Sharply, Near Post-
Recession High
n Nationwide housing starts rose 13.7
percent in October to a seasonally adjusted
annual rate of 1.29 million units after a slight
Los Angeles Takes Top Spot as Nations
Builders Outlook Issue 11

Least Affordable Housing Market

San Francisco, which has been the Meanwhile, Wheeling, W.Va.-Ohio, was rated
nations least affordable housing market for the nations most affordable smaller market,
Insurance developed for builders.
nearly five years, was supplanted by Los with 94.7 percent of homes sold in the third
Angeles in the third quarter of 2017, quarter being affordable to families earning
Developed for builders with the backing of the strongest insurance

according to the National Association of the median income of $56,100.

carriers serving the Texas building industry, our insurance program
offers flexible coverage options and rates that are more competitive
Home Builders (NAHB)/Wells Fargo Housing Rounding out the top five affordable major than ever. As an authorized member of Builder Agent Network, were
Opportunity Index (HOI) released today. housing markets in respective order were
dedicated to providing builders and contractors with the best-in-class
In all, 58.3 percent of new and existing Syracuse, N.Y.; Scranton-Wilkes Barre-
insurance programs, pricing, underwriting, resources and service.
homes sold between the beginning of July Hazleton, Pa.; Indianapolis-Carmel-
and end of September were affordable to Anderson, Ind.; and Wilmington, Del.-Md.-
Product Portfolio Highlights

families earning the U.S. median income of N.J., which tied for the fifth spot with tA rated carriers, several available
$68,000. This is down from the 59.4 percent Cincinnati, Ohio-Ky.-Ind.
of homes sold that were affordable to Smaller markets joining Wheeling at the
t(-PFSJOHDoverage for property damage that results from faulty, defective,
or poor workmanship in your work.
median-income earners in the second top of the list included Lima, Ohio;
quarter. Davenport-Moline-Rock Island, Iowa-Ill.; Bay

Though builder confidence remains City, Mich.; and Mansfield, Ohio, which also
tExpanded policy form for commercial projects

strong, they continue to deal with the long- posted a fifth place tie with Binghamton, N.Y.
tBuilders Risk master policies, monthly reporting, annual and one shots
term repercussions of this devastating Los-Angeles-Long-Beach-Glendale, Calif., t Workers Comp - Two highly cost-effective programs
hurricane season, which has exacerbated assumed the mantle as the nations least tExDFTT-JBCJMJUZGPS$PNNFrcial (eneral Contractors
chronic labor and lot shortages and put affordable major housing market. There, just
upward pressure on material and home 9.1 percent of the homes sold during the third
t$PNNFrcial Umbrella

prices, said NAHB Chairman Granger quarter were affordable to families earning
MacDonald, a home builder and developer the areas median income of $64,300. San El Paso, Permian Basin and Surrounding Area
from Kerrville, Texas. Francisco-Redwood City-South San
Solid economic growth, along with Francisco, Calif., which stood as the nations
HUB International Insurance Services

ongoing quarterly job gains and rising least affordable major housing market for the
household formations, are fueling housing past 19 consecutive quarters, fell to No. 2.
demand, said NAHB Chief Economist Other major metros at the bottom of the

Robert Dietz. Tight inventories and a affordability chart were located in California.
forecast of rising mortgage interest rates In descending order, they included Anaheim-
through 2018 will keep home prices on a Santa Ana-Irvine; San Jose-Sunnyvale-Santa
gradual upward path and slowly lessen Clara; and Santa Rosa.
housing affordability in the quarters ahead. All five least affordable small housing
The national median home price rose to markets were also in the Golden State. At the
$260,000 in the third quarter from $256,000 very bottom of the affordability chart was
in the second quarter of 2017. Meanwhile, Salinas, where 11.3 percent of all new and
average mortgage rates inched up two basis existing homes sold were affordable to
points in the third quarter to 4.1 percent from families earning the areas median income of
4.08 percent in the second quarter. $63,100.
For the fourth consecutive quarter, In descending order, other small markets at
Youngstown-Warren-Boardman, Ohio-Pa., the lowest end of the affordability scale
was rated the nations most affordable major included Santa Cruz-Watsonville; San Luis
housing market. There, 90.1 percent of all Obispo-Paso Robles-Arroyo Grande; Napa;
new and existing homes sold in the third and San Rafael.
quarter were affordable to families earning Please visit for tables,
the areas median income of $54,600. historic data and details.
2017 Issue 11 Builders Outlook 7
Economic The Late Great Mortgage Interest Deduction
charitable donations, state and local taxes,
and healthcare expenses. If those
deductions (the most commonly used)
Elliot Eisenberg collectively exceeded the standard
Economic & Policy deduction, itemizing would make sense
Blog and ones tax burden would decline.
Now, not only is the standard deduction
almost doubling, but the deductibility of
state and local income taxes and
healthcare expenses is being eliminated.
With the possibility of tax reform and tax This means that to itemize, the sum of
cuts right around the corner, it is important mortgage interest paid, charitable
to understand how the proposed doubling contributions, and property taxes must
of the standard deduction will impact exceed $24,000. Few married couples hit
households and will essentially render the that threshold. I estimate that no more
mortgage interest deduction irrelevant for than 6 percent of all households will
almost all US home owners! itemize under the proposed plan compared
The current Republican plan raises the to about 27 percent today.
in itemized deductions including $8,000 for percent, with the decline increasing the
standard deduction from $6,350 to $12,000 Moreover, the deductions of those who
state and local income taxes, $2,000 in more expensive the house and the higher
for single filers and from $12,700 to will still itemize will be worth less than
charitable donations, $2,000 in property the bite taken by both state and local
$24,000 for married couples filing jointly. before. This is because the tax advantage
taxes, and $8,000 for mortgage interest. income taxes.
While the much larger standard deduction of itemizing depends entirely upon how
By itemizing now, that couple can reduce By nearly doubling the standard
looks very advantageous, the new tax plan much ones itemized deductions exceed
their taxable income by an additional deduction and doing away with several key
eliminates the personal exemption, which is the standard deduction and ones marginal
$7,300 ($20,000 minus $12,700, the itemized deductions, the proposed
currently $4,050/person. This means that tax rate. Given the increase in the size of
current standard deduction). If in the 25% Republican tax plan will, if it becomes law -
the increase in tax-free income rises by just the standard deduction, the amount by
tax bracket, the tax savings on that and that is still a big if - reduce the value
$1,600 ($12,000 - $6,350 -$4,050) for which ones now smaller itemized
additional $7,300 are $1,825. But, as state of itemizing and the mortgage interest
single filers and by $3,200 ($24,000 - deductions exceed the newer, higher
and local income taxes will no longer be deduction even though mortgage interest
$12,700 - $8,100) for married couples filing standard deduction will necessarily fall.
deductible, this couple would then only will remain deductible. And that will lower
jointly. While these sums are not trivial, And, as lowering tax rates is a part of this
have $12,000 in deductible expenses. As house prices.
they are also not as large as advertised. plan, the after-tax tax savings from
that is lower than the $24,000 standard Have a wonderful Thanksgiving, a merry
The Unified Framework developed by the itemizing will necessarily decline as well.
deduction, they would not itemize despite Christmas and a happy 2018 and see you
White House and the Republicans also As for the mortgage interest deduction, I
paying $8,000 in mortgage interest. in January! (Remember, I will not be writing
proposes eliminating all itemized estimate that the percentage of households
This inability to deduct mortgage interest, an article in December).
deductions except for mortgage interest that currently own their home and will still
despite it being technically deductible, will Elliot Eisenberg, Ph.D. is President of
and charitable donations, and state and be able to deduct mortgage interest will fall
make home ownership slightly less GraphsandLaughs, LLC and can be reached at
local property taxes up to a cap of $10,000. from the current level of about 33 percent His daily 70-word
appealing, and that will reduce the demand
While this appears to largely maintain the to about 7 percent. economics and policy blog can be seen at
for home ownership, thus lowering house You can subscribe and have the
status quo, think again. Traditionally, tax Here is an example to show why.
prices. To be specific, house prices are blog delivered directly to your email by visiting the
filers added up mortgage interest, Suppose a husband and wife have $20,000 website or by texting the word BOWTIE to 22828.
likely to fall by between 5 percent and 10


Tax Strategies
by Ruth Rivera, VP Bukaty Financial 70.5 years old who are forced to take
required minimum distributions (RMD's)
Taxes are all the talk right now but that's from their IRA accounts, Congress recently
not why we're reaching out to you. Yes, made permanent a fantastic tax advantaged
there are major proposals being batted way to donate to your favorite charity. If you
around to adjust tax code. This could be the were born in 1947 or earlier, you can
most comprehensive tax reform since 1986 contribute directly to a charity of your choice
when Ronald Reagan was President and a and reduce tax consequences at the same
smart phone could only be described as a time. If you fit the parameters above and
regular phone with a picture of Isaac Newton make sizeable contributions to a qualified
stapled to it. We will let our opinions be charity, this is unequivocally the best option
known as soon as these tax proposals at your disposal.
become the law of the land, but until then, Charitable Gifting Part 2 - Donating
we will leave all pontifications on the matter appreciated assets (like stocks and mutual
to the swamps of Washington. We do, funds) in taxable accounts is a great way for
however, want to reach out to you today to anyone at any age to fund their charitable
make you aware of tax-optimizing strategies preferences. The current tax code
that may be of relevance and need to be encourages charitable contributions by
acted upon before the clock strikes midnight allowing donors, in most cases, to reduce
on the year 2017. Many tax strategies only their taxable income by the amount of any
completion prior to these deadlines. the end of calendar year 2017 may provide
need to be acted upon before the April 15th gift. For example, a donor in a 40%
Funding 529 College Education Savings extra tax related benefits.
tax filing deadline of the following year, but combined federal and state tax bracket
Accounts - Every individual state has their The above list is not all-encompassing
here are several important considerations generally receives $4,000 in tax savings
own laws in place, but most provide and more importantly, needs to be
that require attention before the New Year's from a $10,000 charitable contribution. A
excellent opportunities via 529 College discussed with your tax professional. We do
revelry. They are: donation of appreciated long-term capital
Education Savings Accounts to allow not hold ourselves out as tax professionals,
Maximize funding to Employer-Sponsored gain assets can offer even greater tax
parents, grandparents, or whomever to and we recommend consulting with your tax
Contribution Plans (401k's, 403b's, etc.)- benefits because gifts are deductible at full
contribute (for example, Kansas is $6,000 expert based upon your particular
While each employer-sponsored fair market value - up to 30% of the donor's
per child beneficiary). This amount can be circumstances. In our opinion, tax advice
contribution plan may have slight underlying adjusted gross income. Since the securities
deducted from state income taxes. These and investment advice should come from
differences, traditionally every employee can are donated rather than sold, the donor will
contributions then grow tax-free with no separate sources. The only thing worse than
contribute $18,000 per year to their not incur any capital gains taxes from selling
future capital gains consequences as long Bernie Madoff managing your money would
company retirement plan while workers the securities. The more appreciation the
as the assets are used for qualified have been Bernie Madoff managing your
aged 50 and older can contribute an securities have, the greater the tax savings
education expenses (tuition, books, etc..) taxes as well. However, our job as your
additional $6,000, for a total contribution of will be. This is also a great way for our team
Pre-Payment & Additional Payment Plans dedicated investment team is to manage
$24,000. It is important to contribute to to be able to rebalance your taxable
- Again, if you're blessed enough to have a your investments well and optimize
these tax-friendly plans throughout the year portfolios without incurring tax
little extra money laying around at the end of efficiencies. These are important
but it is a prudent decision to review consequences. PLEASE NOTE: Charles
the year, it is a prudent choice to pre-pay or discussions to have and we would not be
balances before the end of the calendar year Schwab has set a deadline of Friday,
make additional payments where available. doing our job if we failed to encourage you to
to see if you have additional assets available December 1, 2017 for mutual fund gifting,
Making an extra payment on your mortgage put the puzzle pieces of your financial life in
to contribute that will correspondingly and Friday, December 15, 2017 for stock.
or if you make estimated quarterly tax to the correct tax positions.
reduce your taxable income. Please notify us of your intentions so that we
payments getting these payments in before
Charitable Gifting Part 1 - For those over may get necessary paperwork to you for
Young Designers
The school year is about four months old
and our participants in the Young Designer
Contest are busy vying for scholarships.
The students from the El Paso
Independent School Districts CTTE
program took field trips to visit construction
sites with Loyalty Homes. The students
were broken up into two groups, Juniors
and Seniors, due to the large number of
participants. We had to do a two-day
excursion because weve had really good
interest in the YD, Cecilia Orozco,
instructor, told the Outlook.
When contacted about hosting the
students there was a quick response from
Gus Loy, President of Loyalty Homes. Ive
done the presentations with the students
numerous times and I love having them
come out and ask questions, see the work,
and more importantly understand the
complexity of building a home, Gus Loy
said. For the students its a hands-on
opportunity the helps them visualize the
problem they are working on. One student
from Austin High School told us that this
trip really makes their drawings come to
life. Others agreed that it is important to
see the site, look at the steps it takes to
construct a home and the hidden parts that
consumers dont see. I think that it is
important to know how much goes on
behind the walls, a student from El Paso
High told us.
The students were treated to donuts out
at the site by John Chaney, Chairman of
the Young Designer Scholarship Contest.
We get the kids to go out and learn from
what they see, then hopefully they will
continue in the industry and be a
professional in some part of what we do,
he told us. I try to give them some advice
and hope that they understand this is a
great industry that needs them for sure,
Chaney concluded. The students were
then brought to the EPAB office to have
pizza and pop. All of the students were
grateful for the experience and the food.
This is my second time and I told the first
timers how much fun and learning wed get
from this. Tell the members thanks one
student told us.
The contest will not be decided until April
as the students complete the problem and
work to present some outstanding plans
and designs.



2017 Issue 11

Concerned about health


Premiums increasing
again this year?



Introducing a program
exclusively for members of
the El Paso Association of

As a member of the El Paso Association of

Builders you may qualify for the extremely
EPAB Health valuable benefits offered by the
Program EPAB Health Program.

Call today to get information about the new

HUMANA association medical coverage to
see how you can qualify for outstanding
Administered through coverage at a premium designed for you.

(915) 542-0900
(888) 269-0626
Hablamos Espaol
11240 Vista del Sol, El Paso Texas 79936
10 Builders Outlook 2017 Issue 11



6068 Gateway East
El Paso, TX 79905
Kathleen Carrillo 915.782.2420
Interest rate will be determined by credit worthiness. Any individual or entity with ownership of 25% or more will be required to guaranty the line. Lowest credit score of guarantors will determine
interest rate. Rate is valid beginning 8/1/2017. Opening fee of $775. Applicant authorizes Pioneer Bank to obtain an investigative or consumer report from a credit bureau or a credit agency and to
investigate the references given on any other statement or data obtained from applicant. The sole purpose of the information we request is for verification of eligibility, criminal background and
fraudulent activity. Loan to Value (LTV) based on the lesser of cost to build, if new, purchase price or appraised value. Rates may vary based on competition within an indivudual market. Loan is only
availabl as a 1st lien position. Normal financial documentation and underwriting guideliines apply according to the Commercial Loan Policy. Pre-payment penalty applies from 2-3 years. Loan is
available for owner-occupied and non-owner-occupied.

In Texas anyone with a truck and a hammer can call themselves a builder.
Protect your biggest investment by choosing a Real Texas Builder, a
member of the El Paso Association of Builders.

A Real Texas Builder is a professional who invests in our community and

works hard to build you the best home money can buy .

Real Texas Builders are genuine, legitimate, educated and committed to

the advancement of the home building industry.

Visit for a list of our

Real Texas Builder members
2017 El Paso Association of Builders 6046 Surety Drive El Paso Texas 915-778-5387
2017 Issue 11 Builders Outlook 11
12 Builders Outlook 2017 Issue 11

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

EPAB Membership Remember to please do buinsess with fellow members.
Builder members Rassette Homes, Inc. Dorney Security MTI Ready Mix, Inc.
as of June 1, 2017 Donald Rassette John Dorney Tony Mullen
Santana Custom Homes DWS Building Supply LLC
AT Architectural Designs Fernando Santana Sabrina Voorhies Walter Pichardo
Elsa Taracena Southwest Land Development Serv. E.F. Building Materials, Inc. New American Funding
Accent Homes Doug Schwartz Efren Fraire Brenda Trillo
Mark Dyer The Heritage Group Eagle Roofing Products New Era Foam
Bain Construction David Bingham Scott Aguilar George Tollen
Scott Bain Trejo Construction Co. El Paso Building Materials Passage Supply
Bella Homes Juan Trejo Ken Wade John Chaney
Leti Navarrete Tropicana Building Corp. El Paso Disposal Patriot Mortgage
Bella Vista Custom Homes, Inc. Bobby Bowling IV Irma Parsons Randy Bowling
Edgar Garcia Tropicana Development El Paso Mortgage Bankers Association Pella Windows
BIC Homes Greg Bowling Randi Cabrera Jason Bates
Antonio Cervantes Tropicana Homes El Paso Star Ready-Mix Concrete Inc. Performance Glass & Aluminum
Blue Star Construction, LLC. Randy Bowling David Armendariz Hector Hernandez
Carlos Villasana Tropicana Properties El Paso Times Pioneer Bank
Carefree Homes Demetrio Jimenez Jose Molina Kathy Carrillo
Richard Aguilar Villagi Homes, LLC El Paso Truss Prewire of El Paso, Inc.
Casas De Leon, LLC Kristi Eddings Luis Mendiola Steven Drury
Nick Bombach Will Harvey Development El Paso Winnelson Post Tension
Classic American Homes Will S. Harvey Rene Goldfien Dennis Moore
Priscilla Hernandez Winton/Flair Homes Ferguson Enterprises Inc. Powerfoam Insulation:
Crown Heritage Homes Herschel Stringfield Albert Holguin Metlspan NCI Group, Inc.
Lydia Mlouhi Associate Members First American Bank Arnie Pederson
Cullers & Caldwell Builders as of November 30, 2017 Luis Sauceda, RAC Doors Unlimited, Inc.
John Cullers 2-10 Home Buyers Warranty First Light Federal Credit Union Charles Foxx
Cullers Homes Michael Elman Lorenzo Revelez Randall Smith, CPA
Jason R. Cullers 84 Lumber First National 1870 Randall Smith
Custom Dream Homes Ernie Chavez Haley Merritt Real Estate Weekly Newspaper
Leti & Javier Navarrete 915 Siteworks, LLC Firth, Johnston, Bunn & Kerr Riley Stephens
D. R. Horton Homes Dan Guevara Jay Kerr Rebath of El Paso/Las Cruces
Jaime Gonzalez ABC Supply Co., Inc. Foxworth Galbraith Lumber Lisa Walling
Dawco Home Builders Larry Eck Dan Villarreal Remcon Self Storage
Walter O. Lujan Acme Brick Company Franklin Building Materials Will Harvey
Deal-2-Deal Homes Vanessa Rocha; Steve Bush Ricardo Aguilar; Cristina Sheldon Richman Group Affordable Housing Corp.
dba Deal-2-Deal,LLC Adams Moulding & Lumber G2 Ram Electric Kevin Hoffman
Delton Deal Tom Swahlen Luis Cano Rocky Mountain Mortgage Company
Del Rio Engineering, Inc. Area Iron & Steel Works, Inc. GCC Sun City Materials, LLC Dean Inniss
Sal Masoud Fred L. Edmonston Jr. Victor Tito Marquez Roe, Brad
Diamond Homes, LLC Atrium Homes GECU- Greater El Paso Credit Union Bradley Roe
Valerie Baquera Ricardo Bocardo Jr. Brenda Aguirre Rudolph Chevrolet
Donald Ward Builder, Inc. Bank of Texas Greater El Paso Chamber of Commerce Art Smith
Donald Ward Ray Owen Richard Dayoub Saldivar Electric, Inc.
E. Valencia Land Development LLC Barnett & Bennett Construction GEPAR-Greater El Paso Martin A. Saldivar
Eddie Valencia Ben Trzyna Assoc. of Realtors Sarabias Blue Sanitation
Edward's Homes, Inc. Baron Supply Sharron Ramirez Monica Brown
Eduardo Fernandez David Trammell Hardware Specialties Saguaro Corporation dba EP C & D
EPT Land Communities Barragan & Associates Jeff R. Paxton Recycling Sean Gillespie
David Bogas Benito Barragan Harris Real Estate Group Senercon
Everest Homes Barrett Airworks Lane Harris Javier Ruiz
Edmundo Dena, Jr. Alexandro Castro Haskins Electric Sherwin Williams Paint
Fortune Custom Homes Beasley, Mitchell & Co., LLP Charles B. Haskins, Jr. Cruz Lopez
Javier Andrade Brad Beasley Home of Texas Sierra Title Company/Lawyers Title
Gaddy Construction BMC Select Mark Smiley Angelique Roman
Charles Gaddy Jaeson Iovinella Home Performance Testing Simpson Strong-Tie Company, Inc.
GMF Custom Homes, LP Boise Cascade Fernando Garcia/Ray Gonzales Ken Donham
Frank Torres Mike Flores HUB International Snappy Publishing, LLC
Guel Construction Bonded Builders Home Warranty Grp. Luis Rosas Ted Escobedo
Rudy Guel Bill Deal Insight Mortgage Company Solar Smart Living
Hakes Brothers LLC Border Solar Shawn Weeks Larry Perea
Chris Hakes Javier Ruiz Interceramic Tile & Stone Gallery Southwest Dcor El Paso Corporation
Hanson Asset Management, LP Builders Source Appliance Gallery David Holguin Chris Matthews
Russell Hanson Kathy Rose, Sandra Lucero Inter National Bank Spectrum Technologies
Homes by Design C. D. Lee/Britton Insurance & Bonding Natalie Ojeda Miled Daou
Leslie Driggers Hoard Anthony Landavazo; Lisa Daniels J & H Concrete & Post Tension Stewart Title of El Paso
Hunt Communities, LLC Cabinet Masters Jorge Herrera Cindy Bilbe
Kathy Parry Mike Robles James L. Ellis, CPA, PC StrucSure Home Warranty
Icon Custom Home Builder, LLC. Cardel Design Group Jim Ellis Scott Whisenant
Carlos Garcia Lorraine Huit Jimmy Garza Su Casa Magazine
Industrial Realty Group Incorporated Casa Ford & Casa Nissan Emergency Water Removal Bob Skolnick
Brent D. Harris Luke Lowenfield Veronica Buchanan Sun City Winnelson
JER Custom Homes, LLC CEA Engineering Group Jobe Materials, LP Dean Moore
Jorge E. Rodriguez Jorge L. Azcarate Charlie Tellez Texas Gas Services
Kayton Lee Residential, Inc. Central Texas Metal Joe Bernal Insurance Mica Short
Brianna Barnes Roofing Supply Co.,Inc. & Financial Services, Inc. Texas Title Company
LMJ Construction Co., LLC Ben Garza, III Joe M. Bernal Steve Raney
Mike Lopez Chaparral Materials, Inc. L & P Building Supply TFCU
Loyalty Homes Kevin Fortin Denise McConnell Yolie Melendez-Estrada
Gustavo Loy City Bank Texas Legacy Real Estate Services The Dorian Group/Ocean Gallery USA
M A Builders & Design, LLC Bob Kotarski /TTi Prop. Management. Miguel Angel Mercado
Mustafa Ali City Lights Patrick Tuttle The Home Systems Heating & Cooling, Inc.
Metro Homes, Inc. Thomas Brown Lennox Industrie Jesus Chain
Fernando Torres, Judith Arrunada, Cognent, Inc. Sharon Horton Trane Residential Solutions
Millennium Homes Martin Paredes Lone Star Title Co. of El Paso Robert Meske/ Kathleen Chacon
Dan Ruth Commercial Insurance Brokers, Inc. Sam Trimble TRE & Associates
New Horizon Builders Ken Foster Love Engineering, Inc. Linda Troncoso
Georgiana Garcia Conde, Inc. Montez Love Trim Team
Pacifica Homes, Inc. Conrad Conde Majestic Realtors Juan & Kris Hernandez
Juan Jose Vasquez CQC Testing and Engineering, LLC Patti Musshorn USA General Contractors
Palace Homes, Inc. Jaime Rojas MAK Roofing & Construction Javier Olmos
Robert Diaz Dal-Tile Felix Vizarreta Vision Consultants, Inc.
Palo Verde Homes Joseph Cepeda Masco Contract Services Kelly Sorenson
Edgar Montiel Delek US dba 7 Eleven dba Gale Insulation WestStar Home Loans
Pointe Homes Sonja Scanlan Tom Harmon Cinco Houghton
Carlos Villalobos Demcon Disposal Management, LLC McCoy's Building Supplies WestStar Bank
Porter Homes Maria Elena (Nena) Gomez Julie Reyes David Osborn
Albert Porter Dempsey, Cooper & Lane, Llc Mechanical Technologies WestStar Title
R.C. Baeza & Associates Richard T. Dempsey Jaime Zubiate Janette Coon
Robert C. Baeza Desert Quest Plumbing Mingos Painting & Remodeling
R.E. Welch Contractor Hector Gonzalez Erik Chavarria
Gordon Welch Dunn Edwards Paints Morrison Supply
Nathan Gordon Sam Shallenberger
2017 Issue11 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:


new h o m e s
DECEMBER 14 il y f o u n d h e re
February 2017

el paso


El Paso New
Home Builders
Condolences to the family of
Scotty Clark on the loss of his
magazine & website
mother Phyllis,
November 21, 2017
more information for
Visit www.ElPas

Part of Homes of El Paso magazine

Condolences to the Joseph
Mullings family on the death of
Mailed monthly to thousands of local homes

Haskell Monroe, past President El Paso Airport distribution

of UTEP.
College Station, TX
Stand alone magazine each quarter
November 1, 2017. Call Martha today for more
information at (915) 204-7017.
Connect to the
Another Mesa Publishing Publication, serving El Paso Home
El Paso Association of Builders: Buyers for 25 years.


The material that builders have used

for thousands of years is brick. Time
tested, time honored. Your homes
should be made with ACME Brick.

S h o w ro o m :   #& ' )"'%*'

  - - 

9400 Gateway East  El Paso, TX  79907
(915) 593-1301  (800) 356-9546
& !(%$)&'&$ ("("%%& $"''"%!
14 Builders Outlook 2017 Issue 10

Member News

A great day
for Golf!
The EPAB held its fall golf
tournament on November 1 at Vista
Hills Country Club. The event was the
second fun tournament of the year as
the format changed from a pro-am to
all comers tournament. The field was
full of enthusiastic golfers and
wannabees as the shotgun went off.
Our host professional Terry Jennings
worked with golf Chairman Sam
Shallenberger to bring out a great day
of golf. Predictions of cold or
windy/rainy weather were once again
dismissed as the day turned out
beautiful. Our presenting Partner
Haskins Electric had a terrific day of
sponsorship. We look forward to
helping the Association with the
tournament, something that we really
like to do, said Chuck Haskins.
Breakfast sponsor HUB International
provided breakfast burritos, coffee,
juice and an opportunity to network
before the event. Lunch was
sponsored by partner HUNT
Communities. Kathy Parry told the
Outlook that she really enjoyed the day
out on the course. This is a blast for
us and we (HUNT) enjoy partnering for
A special $10,000 hole in one was
sponsored by Joe Bernal Insurance
and HUMANA our new partner for the
Association Health Plan.
Unfortunately, no one hit the money.
Morrison Supply teamed up with
Electrolux and Kohler to bring some
great gifts for the drawing. First the
Kohler commodes were set up on the
course and required players to tee off
while sitting on one. It was a hilarious
way to break up the game and more
than one player had something to say
about it. I have to say that my drive
was remarkably well hit from the sitting
position, Sam Trimble told the
Outlook. One of his teammates
Patrick Tuttle even took to Facebook
Live to record and present the shot.
We all had fun teeing off from the
commode, said Patrick.
Our thanks to chairman Sam
Shallenberger and to staff Margaret
Adauto for putting this event on. We
would like to thank all the members
who bought tee box signage, brought
goodies for the bags, or volunteered
time on the course. Our next golf
outing will be in the spring so keep an
eye out for the announcement.


! " "  
" """& 
 "  $ %!" #

Builders Outlook 2017 Issue 11 El Paso Disposal
6046 Surety Dr. El Paso, TX 79905
915-778-5387 Fax: 915-772-3038
Don Rassette
Randy Bowling - Life Director
Sam Shallenberger
Edmundo Dena
SergioCuartas Bobby Bowling, IV
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
Jay Kerr, Firth, Johnston, Bunn & Kerr

For All Your Electrical Needs

Frank Arroyos
Greg 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.

Ted Escobedo Snappy Publishing 2017 Builders Outlook is published and distributed for
Patrick Tuttle Legacy Real Estate Services

Total Customer
El Paso Association of Builders

Sam Trimble Lone Star Title by Ted Escobedo, Snappy Publishing, LLC
Luis Rosas Hub International

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

Give your customers

the option of the sun

F Now more than ever,
ElPaso home buyers
are planning for the


Border Solar can help

you oer your

customers solar power
as a sensible


The future starts

Crossing to CleanEnergy

7365 Remcon Circle

El Paso, TX 79912 follow us on twier and
(915) 6134168
Open Saturdays