LOABA had its first meeting of 2012 on January 10that Spotlight Theatre and it was well attended by builders, associates and potential members. There was a great presentation organized by the Associates Council that focused on the financial benefits of being a member of LOABA through various national, state, and local member rewards programs. Many positive comments were received and we are looking forward to following meetings, which will expand on additional benefits of membership. Remember to get the information on the “How much can you save” competition and you could be the winner of one free year of LOABA membership. Our next membership meeting is scheduled for February 7 at Lights of Oconee and will be co-sponsored by Pella of Georgia and Lights of Oconee.
Other upcoming events include a 4-hour educational session on proper wall bracing and tall wall framing offered by Weyerhauser on January 26, the annual HBAG legislative reception in Atlanta on February 1stand The Big Event on March 17th. Please contact the LOABA office soon if you are interested in a booth or sponsorship tent for the Big Event. Both are selling quickly on a first-come basis. Booths may be purchased for $275 if you are a member of LOABA and $375 for non-members. We are anticipating a bigger attendance and greater networking opportunities than the very successful event of last year.
Market Update
It is not surprising to any of us that home sales in Georgia were weak in 2011. New home starts were also flat at about 13,800 units. This amount represents about 20% of normal state production levels of 75,000 houses based on numbers prior to the housing boom and bust. The slow pace of economic recovery and continuing high unemployment rate are still hindering any recovery in the housing market by restraining income growth, weakening consumer confidence and depressing demand – which in turn continues to put negative pressure on house prices and worsens the foreclosure problem.
The good news! Single-family housing starts in Georgia are expected to increase 28 percent in 2012 and 61 percent in 2013. This will raise the new housing starts in Georgia to 29 percent of normal levels in 2012 and 47 percent by the end of 2013. Furthermore, it is expected that prices may begin to increase at 3 percent a year beginning in 2013 through the forecasted period ending in 2016. Additionally, the NAHB/Wells Fargo Housing Market Index of builder confidence in the single-family market also made steady gains in late 2011. It rose 7 points since September to a level of 21 in December. With the exception of a reading of 22 at the height of the home buyer tax credit sales in the spring of 2010, the December 2011 level was the highest since August of 2007.
Thank you for your continued interest and support of the Lake Oconee Area Builders Association. We are looking forward to a great year in 2012 and one that will bring positive change to our industry. Please remember to attend the February meeting and bring a potential member as your guest. I look forward to seeing you there.