off guard. This has resulted in concrete, building materials and labor to pressure the industry to raise prices to cover the increased costs.


“It is quite possible that the demand for housing will remain stronger than the builders’ ability to deliver units for much of the coming year,” Inselmann added.


In the past 15 years demand for new single family homes has averaged 30,000 per year, compared to an average of 22,000 over the past 30 years. Metrostudy calculates the sustainable demand for new single family homes to be approxi- mately 32,000 new homes per year based on job growth and population forecasts for the Houston region.


“In 2012 builders started 23,500 so there is room to grow before reaching that projected demand,” Inselmann reported.


He also added that there are several hurdles remaining that make it difficult to reach that level very soon. They are:


„ Lots, materials and labor to build homes are in short supply.


„ Mortgage underwriting standards remain restrictive, and many trans- actions for new and existing homes that do sell are subject to an ongoing disagreement over appraised values.


„ First time buyers have been severely restricted by credit issues and under- writing restrictions.


“It is unclear whether the local market can reach the 32,000 annual units of demand without some contribution from first-time and low to moderate income buyers. But it will come,” he says. “And in the meantime home builders will likely start construction on between 26,500 and 27,500 new homes in 2013, an additional 13 to 17 percent increase in the coming year. That is, if production can keep up with demand.”


The conclusion of the presentation was that “the outlook for housing, and most types of real estate, is very bright as the New Year begins to evolve. After a long, anxious and scary recession, market conditions are exceedingly favorable for all types of housing sectors in Houston.”


We Love Our Spikes!


GHBA's membership recruiters, called "Spikes," are among the most valued members of the GHBA. Member-to-member recruitment and retention efforts are the largest source of growth for the association. Spikes are the membership leaders of our association, building the voice, power and influence on every level.


At the January 10 Forecast Luncheon, Spike award winners were recognized for reaching recruitment milestones.


Leslie Woods with ACES Builders Warranty (center) reached the Statesman SPIKE level for recruiting more than 500 GHBA members.


She is pictured with 2012 Membership Chair Denny Patterson with Builders Mechanical Inc. (left) and 2013 Membership Chair Judy Crain Bonica with Ferguson Bath, Kitchen & Lighting Gallery.


"Emilio Silvestri Spike of the Year"


Will Holder, Trendmaker Homes (center), was recognized as the Emilio Silvestri SPIKE of the Year. Not only did Will serve as the 2012 GHBA board president, he also recruited 16 new GHBA members in 2012.


"Retention Spike of the Year"


Ron Martin with Grand View Builders (center) was recognized as the Retention SPIKE of the Year. In addition to Ron’s participation on the HomeAid board and president of the Bay Area Builders Association, Ron took time out to participate on the Retention Committee in 2012. Ron recruited 11 new GHBA members and brought back 35 GHBA members whose membership had lapsed.


Congratulations and thank you to Leslie, Will and Ron for their hard work on mem- bership in 2012 and their commitment to the growth of the GHBA!


The following GHBA members were also recognized at the January GHBA board meeting for reaching a NAHB SPIKE milestone in 2012:


Blue Spike (6 - 24 Spikes) Clayton Farmer - 7 Brandon Lynch – 9


Harry Masterson - 17 Jim Nowlin - 8 Pat Wilson - 8


Life Spike (25 - 49 Spikes) Judy Bonica - 43


Ashleigh Genzer - 25 Ron Martin - 44


Green Spike (50 – 99 Spikes) Kevin Frankel – 61 Will Holder – 83 John Madsen – 53


Royal Spike (150 – 249 Spikes) Mike Dishberger - 168


GREATER HOUSTON BUILDERS ASSOCIATION – BUILDING A BETTER FUTURE | HOUSTON BUILDER | FEBRUARY 2013 13


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