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weekly updates from your association
2935 Breezewood Avenue, Suite 100 Fayetteville, NC 28303         910.826.0648        admin@fayhba.org       RSVP
Week of April 17
NEW HOME BUILDERS WEBSITE LAUNCHED



FABULOUS NEW FEATURES ON THE NEW WEBSITE:
House-Hold Spending  
Elliot Eisenberg, Ph.D., GraphsandLaughs, LLC
   Before the Great Recession, household wealth peaked at $68.8 trillion or $254,600 per person.  If that seems like more money than you have, it’s because wealth isn’t evenly distributed. The rich have much more of it than the poor.  As a result, back in 2007 the median family had wealth of just $126,000 while the average family had $584,000.  Then the recession hit, house prices plunged, stock markets cratered and household wealth hit a low of $56.6 trillion in 2009.  Since then stock markets around the world have staged a remarkable recovery and house prices have been steadily recovering.  As a result, household wealth now stands at $80.7 trillion, almost $12 trillion more than before the recession.  So things have more than recovered, right? Not quite.
   Since 2007 there has been inflation and the US population has grown by 20 million people.  As a result, inflation-adjusted per capita wealth is now $254,000, just a shade less than it was before the Great Recession.  So we are at least back where we were before the recession hit, right?  Not so fast.  The problem is that the asset price recovery has been profoundly unequal and that has caused the distribution of wealth to change dramatically.  And that has huge implications for the economy.
   Homeowner equity hit $10 trillion last quarter, and while way up from a low of $6.3 trillion in 2011, it’s nowhere near the pre-recession high of $13.4 trillion.  By contrast, equities have soared and are now worth almost $23 billion, way more than their pre-recession high of $18.3 trillion.  The economic kicker is that equities are primarily owned by upper-income households, while home equity is the major source of wealth for everybody else.  This means that while the rich are roughly $5 trillion wealthier than they were before the recession, all other households are about $3.5 trillion poorer.  And while the upper classes spend more when their wealth increases, it’s nothing like the increase in spending that occurs when the rest of the population feels better off. 
   A huge chunk of middle class spending is the result of tapping into home equity via cash-out refinancing.  Regrettably, despite rising home prices many households are still under water, credit remains harder to get than ever before, and many households now have mortgages with extremely low interest rates and are simply unwilling to tap into their home equity.  As a result, mortgage equity withdrawal has nearly stopped.  After peaking at $320 billion in 2006, it was just $32 billion last year, a decline of almost $300 billion, and that is the highest it’s been since 2010!     
   In addition to the rich, another group that has done well is older Americans.  Families headed by someone under 40 have on average recovered only one-third of their lost wealth, but families headed by someone middle-aged or older have recouped all their losses as more of their wealth is in stock and less in housing.  And regrettably the middle-aged and the elderly, like the wealthy, are less likely to spend their capital gains than younger middle class families.                                               
   As a result of the profoundly uneven wealth recovery, spending on luxury goods has done very well but firms that rely on middle class spending are not enjoying nearly as much of a renaissance.  For that to change wages will have to start rising.           
Elliot Eisenberg, Ph.D. is President of GraphsandLaughs, LLC and can be reached at Elliot@graphsandlaughs.net.  His daily 70 word economics and policy blog can be seen at www.econ70.com.

 

Adams is having a Masonry EXPO showcasing exciting NEW products for the construction industry and would like to cordially invite you.  They have several speakers who will be discussing the latest trends in construction.  Please RSVP to there website or click on the links below. 
oldcastle.wufoo.com/forms/x1w6sx3y050ulfo/
adamsproducts.com/
May 6
Preston County Club
300 Prestonwood Parkway
Cary, NC 27513


In This Issue In Every Issue
Up Coming

May 1
May Member Mixer
presented by

11:30 am at the Habitat Restore
3833 Bragg Blvd
RSVP
             
May 8
HBAF Board of Directors & Officers Meeting
9:00 am

May 14
Idea House Ground Breaking
9:00 am


May 15
City of Fayetteville New Permitting Software Training
9:00 am at HBAF Office

Register to attend

May 22
City of Fayetteville New Permitting Software Training
9:00 am at HBAF Office
Register to attend

June 19
HBAF Golf Tournament
presented by

Gates Four Golf & Country Club
Sign up to play!
Member Spotlight
 
Professional Builder Magazine



 


April 10, 2014

   New members were voted into the membership: Katelynn Dosch, Rick Stephens, Elizabeth Harris, and Edwin Woods. 
   Casino Night netted $20,600 and the proceeds are to be used to enhance membership services. There were 267 people in attendance, which is 71% of the tickets sold. We have received positive reviews about the event especially it being on a Thursday night.
   Membership numbers are up slightly year over year and retention remains at 82% which is above the state and national percentages.
   The tenant in Suite 103, AFLAC, will not renew their lease as of May 31, 2014. Contact the HBAF office for additional information, 910.826.0648.

NAHB NEWS
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Construction Statistics

Local Stats: March 2014

Local Stats Residential Trend: 2008-2014 

Absorption Report: January 2014

Commercial Building Permit Index: December 2013 

The Market Edge Residential Building Permit Trend: December 2013



NAHB Webinars

A Playbook for Market Domination
Wednesday, April 30 2-3 p.m.
Sales and Marketing series

HBA of Fayetteville
910-826-0648
910-826-0649 fax
www.fayhba.org
admin@fayhba.org

Natalie Fryer, Executive Officer
Pamela Grierson, Communications Manager

NAHB Member Discounts
www.nahb.com/ma
Dues Payments & Lobbying Expense 2014 Disclosure
Dues payments to Home Builders Association of Fayetteville are not deductible as charitable contributions for federal income tax purposes. However, dues payments may be deductible as ordinary and necessary business expenses, subject to an exclusion for lobbying activity. Because a portion of your dues is used for lobbying by NAHB, NCHBA and Home Builders Association of Fayetteville, 8% of the total dues for Builder & Associate Members is NOT deductible for income tax purposes. For Affiliate Members, 1.8% of the total dues is NOT deductible for income tax purposes. Membership Dues are non-refundable.
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