Apply to be PR's Remodeler of the Year

We're now accepting nominations for Professional Remodeler's Remodeler of the Year.

You can nominate your own company or somebody else in the industry. Entries are due October 8! 

The Remodeler of the Year award recognizes the remodeling firm that exemplifies the best in the industry.

We’re looking for companies that:

• Excel in all aspects of remodeling
• Have made innovations in operations to deal with the current market
• Uphold the highest standards of the of the industry

The winning company will be featured in the December issue of Professional Remodeler and on HousingZone.com.

You can get the entry form here in a Google doc or a word doc by e-mailing me at jsweet@sgcmail.com.

NARI hires DC lobbyist - great news for industry

Big move by NARI last week:  the trade association has hired a lobbyist to represent remodelers' interests in Washington, D.C.

This is all part of a great transformation at NARI as the group really works to become a bigger force not only in the industry but for the industry. Sure, NAHB has a very significant presence in D.C., but representing builders takes up a lot of their attention. It's great to see NARI get in the game. And the more people out there advocating for housing the better!

Some more details from NARI:

Thomas M. Sullivan of Nelson Mullins Riley & Scarborough LLP has 19 years of experience in Federal legislative and regulatory advocacy. Tom's background makes him ideally qualified to represent the interests of NARI in Washington, D.C.

In addition to representing a number of clients before Congress and during the regulatory and rulemaking processes, Tom runs the Small Business Coalition for
Regulatory Relief (www.SBCRR.com) which serves as a resource for small business stakeholders who work to ensure their interests are represented in the regulatory process.

Before joining the Firm, Sullivan served as the highest ranking government official charged with exclusively advocating the views and needs of small business before
government agencies and Congress during his seven-year tenure as Chief Counsel for Advocacy in the Small Business Administration. As Chief Counsel, he headed a team of attorneys and economists who worked to remove regulatory barriers and to elevate small business visibility within all levels of government. The SBA's Office of Advocacy under his tenure helped save America's business community more than $65 billion. Inc. magazine in 2006 named Sullivan "an entrepreneur's best friend in Washington, DC."

Before his appointment to the SBA, he represented the National Federation of Independent Business, the nation's leading business advocacy association. From 1994 to 1998, Sullivan served on the Congressional Affairs staff of the U.S. EPA. He also served at the U.S. Department of Justice's Environment and Natural Resources Division.

In October 2008, the National Small Business Association named Sullivan the "2008 Small Business Star," their highest government-service award. In March 2005, the Small Business & Entrepreneurship Council bestowed him with the Small Business Advocate Award and induction into their Hall of Fame. The D.C. Metropolitan Subcontractors Association gave him the First President's Award as Outstanding Public Official, and Fortune Small Business magazine named him a Power 30 Most Influential Folks in Washington.

Upon leaving government, Tom Sullivan joined the Institute for Liberty as their Senior Fellow in Regulatory Policy. Tom was named to the NFIB Small Business Legal Center Advisory Board, and was appointed as an advisor to the Center for Small Business and the Environment.

First issue of Professional Remodeler at the printer

So this makes it a little more real. The first issue of Professional Remodeler officially went to the printer yesterday. You should be seeing it in your mailbox in mid-September.

We'll have copies at the Remodeling Show, as well, where you can visit us at booth #1901.

The other SGC Horizon construction titles (Professional Builder, Building Design + Construction and Construction Equipment) are all scheduled to be delivered to the printer today.

Pending Home Sales Hit Record Low

Or if you prefer the Realtors' spin, "Pending Home Sales Ease in Post-Tax Credit Market."

Either way you look at it, it's the lowest mark since the group started tracking pending sales this way in 2001.

The NAR Pending Home Sales Index, which tracks contracts not closings, fell to 75.7 based on contracts signed in June. That's down from 77.7 in May and 93.0 a year ago. (An index of 100 is equal to the average level of activity in 2001.)

From the NAR:

Lawrence Yun, NAR chief economist, said lower home sales are expected in the short term. “There could be a couple of additional months of slow home-sales activity before picking up later in the year, provided the job market continues to improve,” he said. “Over the short term, inventory will look high relative to home sales. However, since home prices have come down to fundamentally justifiable levels, there isn’t likely to be any meaningful change to national home values. Some local markets continue to show strengthening prices.”

One More Week to Comment on EPA Lead Paint Clearance Requirement

Next Friday is the deadline for public comment on the EPA's proposed change to the LRRP to include a post-project clearance requirement.

The proposed change would require remodelers to test for lead and provide the results to owners and occupants after projects in a pre-1978 house.

To comment on the rule and see past comments, visit www.regulations.gov. The docket number for the rule is EPAHQ-OPPT-2005-00492. NAHB members can also access tips that the association put together for its members to comment on the proposed revision.

This is separate from the removal of the opt-out provision, which has already taken effect, but is being challenged in court by NAHB and other trade associations.

NAHB Remodeling Market Index Takes a Nasty Dip

Remodelers are feeling decidedly less optimistic about the remodeling market, according to the latest Remodeling Market Index from NAHB.

The index, released today, shows a drop from 47.9 in the first quarter to 40.7 in the second quarter. An RMI below 50 means more remodelers feel the market is deteriorating than feel it is improving. Last quarter was the closest the RMI has come to 50 since 2005.

The RMI increased in the Midwest (from 43.8 to 44.7) and West (42.0 from 34.8), but dropped in the Northeast (46.6 to 41.4) and South (44.1 to 42.4).

Two comments on the drop from NAHB officials:

"Remodelers are suffering from weak consumer confidence and constricted credit lines," said NAHB Remodelers Chairman Donna Shirey, CGR, CAPS, CGP, a remodeler from Issaquah, Wash. "Homeowners are delaying remodeling projects because of economic uncertainty."


"While remodelers are continuing to struggle, we expect the rest of 2010 to be a period of stabilization for remodeling, with the first stages of recovery emerging by the end of the year, followed by a more robust recovery beginning early next year," said NAHB Chief Economist David Crowe. "For now, professional remodelers are taking on smaller projects and working to find consumers willing to spend money despite the economic uncertainty."

Other questions showed that NAHB members are undertaking smaller projects than in the past, as well, with marked decreases in room additions and kitchens and increased work in bathrooms and handyman projects. We saw similar results in our Business Results Study released in April, which showed a 47 percent drop in average project size. (No link, because HousingZone isn't back up yet, but e-mail me if you'd like more info.)

Submit your homebuilding products for 101 Best New Products

Hey, product manufacturers, suppliers and PR folks.

The editors of Professional Builder and Professional Remodeler magazines are in search of the latest “breakthrough” products for the residential construction industry for our annual 101 Best New Products report.

The winners will be featured in the November 2010 issues of Professional Builder and Professional Remodeler magazines, as well as online at HousingZone.com.

To be considered for the report, products must be geared toward the home building and remodeling industries. Product categories include (but are not limited to):

•    Appliances
•    Decking/outdoor living
•    Doors
•    Flooring
•    Home technology
•    HVAC
•    Insulation
•    Kitchen & Bath products
•    Lighting
•    Molding & millwork
•    Paints, caulks & sealants
•    Roofing
•    Siding
•    Software
•    Structural
•    Tools & equipment
•    Walls & ceilings
•    Windows/skylights

Submissions are free, and companies can submit multiple new products. Submissions should include 1) a detailed press release that discusses the key innovations and features of the product, and 2) at least one high-resolution color image of the product (you may submit multiple images). Submissions are due September 7.

You can send your entries to me at jsweet@sgcmail.com.

Mixed bag for housing: New home sales down, delinquencies down, too

It's a little from column A, a little from column B today for housing.

No surprise this morning with the Commerce Dept's announcement of new home sales: The tax credit hangover continues with the worst June ever and second worst month on record, but hey, at least sales were up 24 percent from May (which happened to be the worst month ever.)

On the positive side, mortgage delinquencies (while still near record highs) were down ever so slightly, according to the Wall Street Journal's Developments blog:

Some 9.39% of all loans were 30 days or more past due, down from 9.54% in May, according to LPS Applied Analytics, which tracks loan data. An additional 3.69% of mortgages were in some stage of foreclosure, down from 3.72% in May and the record high of 3.81% in March.
The ratio of loans that were seriously delinquent, or 90 days or more past due, to the amount of loans in foreclosure still shows a sizeable overhang but fell for the second straight month, to levels last seen last September. The fact that there are still more than double the number of delinquent loans than loans in foreclosure suggests that the glut of bank-owned properties will continue to weigh on housing markets for many months to come.
Foreclosure starts increased sharply during the month on loans owned or guaranteed by Fannie Mae and Freddie Mac as more government loan-modification trials failed to convert to permanent modifications. On Friday, Freddie said that its share of seriously delinquent loans fell for the fourth straight month, to 3.96% in June.

Finally, the Wall Street Journal over the weekend had an interesting article on people who are choosing to "double down" on their investment in housing in light of the uncertain stock market and bargains to be had. Interesting read.

Existing home sales still getting a tax credit boost

Existing home sales were up 9.8 percent from a year ago, but down from May, according to numbers released by the National Association of Realtors this morning.

Lawrence Yun, NAR chief economist, said the market shows uncharacteristic yet understandable swings as buyers responded to the tax credits. “June home sales still reflect a tax credit impact with some sales not closed due to delays, which will show up in the next two months,” he said.

“Broadly speaking, sales closed after the home buyer tax credit will be significantly lower compared to the credit-induced spring surge. Only when jobs are created at a sufficient pace will home sales return to sustainable healthy levels.”

Distressed sales represented about a third of all sales, basically unchanged from a year ago, but inventory continues to rise. There's about an 8.9 month supply of homes on the market right now, down from the worst of the crash, but certainly still a buyer's market.

Every region except the West (sales up only 0.9 percent) saw double-digit sales increases from a year ago.

Unlike new home sales, we're still not seeing the post-credit crash because existing sales are reported when the deal closes and new sales are reported when the contract is signed.

Professional Remodeler is back!

We're officially back up and running this week at Professional Remodeler under our new ownership (read more about that here.)

We plan to publish our first issue and relaunch the website in September. I'll continue to make posts here while waiting for the new site to be live.

In the meantime, you can also contact me at (847) 954-7940 or by e-mail at jsweet@sgcmail.com.

Professional Remodeler thisclose to relaunch with new partnership

The good news I hinted at a few weeks ago has finally come about. MB Media, the company formed to purchase the Construction Media Group from Reed (which includes Professional Remodeler) has signed a deal with Scranton Gillette Communications to relaunch the magazines.

I know a few people at the company, and am pretty excited about getting a chance to work with them. (Some of you may remember Rick Schwer, the publisher of Qualified Remodeler during my time there.) And unlike Reed, SG is a company that is dedicated to B2B communications instead of it just being a part of a much larger portfolio, which should pay big dividends when it comes to getting the resources to produce quality information.

The plan calls for the magazines to relaunch with their September issues. We are very close to getting this thing going again!

New Home Sales at Record Low

We expected the news to be bad, but this is really bad.

New homes were at a record low in May as buyers fled the market following expiration of the tax credit, down 33 percent from April (which itself was revised downward.)

This is why anyone with any sense (including me!) argued against the extension after it expired last time. We moved demand forward, artificially inflated prices and set ourselves up for another dip in home prices. Couple these declining sales with the rise in inventory as more sellers flood the market, and it's going to be ugly, probably for the rest of the year.

Once again it just points to the trouble builders are going to be facing, and that's going to trickle down to remodelers as well. Typically, the housing sector leads us out of a recession. That's clearly not going to happen here, which could be very bad news for all of us.

This week we pay the home sales piper

We're going to get our first indication on Wednesday just how big the crash is going to be following the expiration of the new home buyer tax credit. That's the day new home sales for May come out. May's the first month the credit won't have been a factor.

If early indications are any clue, it's going to be ugly. Everything I've been reading and hearing from people out there is that sales are down 20 to 50 percent depending on your market. We'll see how the national numbers come out.

Don't let Tuesday's numbers on existing home sales fool you. Those should still be good because existing sales are reported when the deal is closed, while new sales are reported when the contract is signed. With the recent move to extend the time for buyers to close on deals and get the tax credit, it could be months of those sales trickling in.

EPA Delays Lead-Paint Rule Enforcement

Great news from the EPA today, via NARI.

The agency has agreed to delay enforcement of the LRRP rule until October 1, 2010, citing the need for more time for firms to get trained and certified.

Click here to read the EPA's letter announcing the delay.

More news coming next week on Professional Remodeler

Hopefully, we should know more about the future of Professional Remodeler by next Tuesday.

As I've written before, a lot to be figured out with structure of the new construction group, who's going to be involved, what it's all going to look like.

Word from on high is we should know how the business is going to be structured next week. That's what will allow us to move forward on everything else.

I'll keep you posted!

Inventory growth outpaces home sales surge

So the good news is existing home sales were up 7.6 percent for April -- no surprise. That was the last month home buyers could take advantage of the tax credit.

Unfortunately, more sellers than usual tried to get in on the game, too, with inventories surging 11.5 percent from March to an 8.4 month supply (up 2.7 percent from a year ago.) And with the impending crash in sales in wake of the credit's expiration, it could get ugly this summer.

We'll get our first official look when new home sales come out for May. Existing home sales will take longer to reflect the decline, because they are reported at closing, while new sales are reported at contract signing. That means home sales should remain inflated through June, although we're already hearing anecdotally about the immediate impact this is having on sales, with builders cutting prices to try to bring people in the door.

It's the reason I was against renewing the tax credit last time -- it's a temporary fix that simply moves demand forward and we're all going to pay for it now. (I'd link to one of my many rants against it, but HousingZone has been wiped from the face of the earth.)

Energy efficient remodeling PACE program may be dead on arrival

The White House's effort to encourage energy efficient remodeling through the Property Assessed Clean Energy (PACE) program may not be getting far, with Fannie Mae and Freddie Mac expressing their opposition.

PACE would help homeowners make the improvements by allowing them to borrow money from local municipalities, then repay the cities, which would fund the program through the sale of municipal bonds. The problem mortgage lenders have with the deal is that those liens would become senior.

The Wall Street Journal's Development Blog has more details:

In somewhat-cryptic letters that Fannie and Freddie sent to lenders earlier this month, the companies reminded banks that their agreements don’t allow them to purchase loans that have a senior lien. “An energy-related lien may not be senior to any Mortgage delivered to Freddie Mac,” the company said. Both firms said they would provide “additional guidance” if the PACE programs move beyond the “experimental stage.”

The letters suggest that Fannie and Freddie won’t allow borrowers with a PACE lien to refinance or sell their properties unless the liens are paid off. Proponents say the liens need to be senior or they won’t attract sufficient interest from bond investors. The Department of Energy, meanwhile, issued revised guidelines for municipalities that use the program.

This makes perfect sense. With all the foreclosures these days, why would any lender want to accept this deal? Unfortunately, this will probably end up shooting any chance of a large-scale program of energy-efficient loans.

It's official - Professional Remodeler to relaunch

Still a few details to be worked out, but we're set to restart the magazines under the ownership of MB Media.

The plan right now calls for a July relaunch of the websites, followed by Aug/Sept print issues.

Former publishers buy Professional Remodeler, other construction titles

Two of our former publishers at Reed, Tony Mancini and Rick Blesi, have purchased 13 construction brands that RBI had shut down, including Professional Remodeler, with the intention of restarting them.

I don't know all the details yet, but will share as soon as I do. Folio has a little more information.

Good news for the industry and good news for us former employees!

A social media sherpa for remodelers

Diving into the social media pool can be a daunting task for remodelers. Most are scared by what it takes to get the company's up to speed on Facebook, LinkedIn, Twitter, etc., not to mention crafting a regular blog.


We did some research on social media that was going to appear in the never-published May issue of Professional Remodeler. In that survey only 12 percent of remodelers said they have a company blog (only 67 percent said they had a website for that matter) and just over half of remodelers use social media sites for business or personal purposes.


Unfortunately, social media and networking is an increasingly important part of getting your marketing message out, so you can't just ignore it.


If you're looking for help, there's a great resource available: Deep Brook Media. (Full disclosure: The company is run by Paul Deffenbaugh, my former boss at Reed.) Paul has years of experience in residential construction both in the field and as an editor at Professional Builder and Remodeling magazines.


If you're serious about social media, check out what Paul can offer. He's also got a good blog on his site where he writes about social media and the industry in general.

Good news as more RBI pubs find new life, Professional Remodeler next?

Still no official word on Professional Remodeler, but things are moving along. Nine of the 23 discontinued brands have been bought up in management buyouts, and more are expected to close this week, according to an article at Folio.com.

I still have a lot of hope we're going to see something happen with Professional Remodeler. I know of three groups (one internal, two external) interested in buying the Reed Construction Media group, which includes PR. I'm not going to say anymore than that right now because I've been asked not to by people involved, but suffice it to say there are good reasons to be optimistic. Keep your fingers crossed!

Book Review: Caught by Harlan Coben

I warned you when I started this blog that it wasn't going to be all about remodeling.

So if you're not interested in my opinion on books ... move along, nothing to see here.

One benefit of finding myself suddenly jobless is that I've got time to burn through that pile of unread books. A rather, uh, large pile to be certain. And that means, book reviews!


Caught is Harlan Coben's latest "trouble in suburbia" thriller novel, and that's really the problem. It's not that the book isn't good, there's just a been there, done that feel to it. Caught focuses on the disappearance of 17-year-old Haley McWaid, and sexual predators uncovered by Wendy Tynes, host of "Caught in the Act," and how the two become intertwined.

Coben is still a great writer, and you'll burn through the book quickly, but in the end I was left with a kind of "meh" feeling. I finished it just two days ago and the plot is fading away in my memory.

If you're already a Coben fan, it's probably worth picking up, but if you're new to Coben, I'd recommend starting with his far superior Myron Bolitar books (Deal Breaker is the first).

Remodeling still bigger than new construction

For the sixth quarter in a row, investment in home improvement has topped that of new construction. (h/t to Calculated Risk for crunching the numbers from GDP residential investment.)

This is where the longterm growth is in the housing industry. Once the recession ends and unemployment goes down, we're poised for a big comeback in the remodeling industry. New construction? I've got my doubts. But remodeling is in great shape for the longterm. An aging housing stock, desire to be in closer suburbs and the city core, the green movement -- all factors that have us set for a nice rebound.

(You know, sure would be a great time to restart a remodeling trade pub -- just saying)

Fight back against casino developers in Gettysburg

The group of developers that tried four years ago to build a casino next to the Gettysburg battlefield are back.

This time, they've applied for a gaming permit to build the casino only half a mile from one of the most important historic sites in the country. For years, the battlefield and surrounding area have been marred by some horrible commercial sites, but the government and preservation groups, such as the Civil War Preservation Trust, which I'm a proud member of, have done a great job over the last few years restoring the area.

I've got nothing against casinos or development, I just don't see the point of putting something like this in the shadow of this hallowed piece of American history.

You can visit www.civilwar.org/nocasino for the latest information on the fight to stop what would be a terrible mistake. We did it four years ago, and we can do it again.

Lead paint rules finally getting some consumer attention

Now that the new lead paint rules have been in place for a little over a week, it seems like it's finally getting some attention from the consumer-oriented media.

The Chicago tribune had an article today on the new rules (even quoting the research we did at Professional Remodeler earlier this year). It's good to see the information finally getting out there, especially as remodelers have been trying to get the media to cover this for months.

Other outlets, including the Pittsburgh Tribune-Review, Baltimore Sun and Atlanta Journal-Constitution have covered it in recent days as well. Still, most remodelers I've talked to say that the average homeowners has no idea this is going on. Hopefully, some more media coverage will help to change that.

Foreclosed homes out the wazoo

It still amazes me that we don't actually know how many foreclosed homes there are out there. The latest estimate came out today from Barclays, which puts the number at 480,000 (h/t to the WSJ Developments blog). RealtyTrac puts the number at 758,000. Others go somewhere in between.

So I'm thinking only half of those are in my neighborhood ...

But seriously, that's when it really hits home when you see it in your own area. With all this extra time I found myself with, courtesy of my former employer, I took a long walk (the first in quite a while) around my entire 900-home neighborhood. (It's a relatively new development -- all the homes were built between 1999 and 2008.) I was stunned to see just how many homes appear to be empty and presumably foreclosed upon. And there's a whole other bunch on the market.

Sure makes me worry about the future salability of my home. After all, I did literally buy it at the height of the market. Case Shiller says home prices in Chicago peaked in Nov. 2006 -- the exact month we signed our contract. I have nothing if not good timing.

Memorial info for Don Novak

Most of you who would want to know this probably already do, but there is an endowment fund set up in Don Novak's name. Donations in his memory can be sent to:

HBA Endowment Fund

Kirkwood Foundation

PO Box 2068

Cedar Rapids IA 52406

Checks can be made payable to HBA Endowment Fund and will, among other things, endow a Don Novak scholarship

Thoughts on Don Novak

Just got some bad news. Don Novak, one of the great guys in the remodeling industry, passed away this morning. Don had been battling cancer for years, but stayed positive throughout.

Don was a past chairman of the NAHB Remodelers, 2002 NAHB Remodeler of the Year, a member of Remodeling magazine's Big 50 and recipient of a number of other awards over the years.

He was always willing to share information and his experience. The industry will certainly miss him.

Why I love the remodeling industry

Remodeling is a great industry filled with great people.

That's all I can say after the flood of support and well wishes I've gotten since Reed shut down Professional Remodeler on Friday -- calls, e-mails, comments through the various social media sites. It's great to hear what an impact we had on the industry at PR, and the offers of people to help me find what comes next for me.

I just got back from the NAHB Spring Boards in DC, where I was out trying to network and just generally keep up on the industry, and it was more of the same out there. Hopefully, I'll figure out a way to stay involved, whether or not we get Professional Remodeler restarted.

Here we go again

Welcome, everyone.
As one of the hundreds of former Reed employees terminated last week, I find myself with some more freetime, and a writer's gotta write, right?

My blog on HousingZone.com will disappear at the end of the month, so I'm moving over here to write on my own. For reasons beyond my comprehension, it was the most widely read blog on the site, so somebody must want to read what I have to write about.

Because I have an irrational love for the remodeling industry, I'll write about that here, but you'll also see me go a little further afield -- after all, nobody's paying me to do this anymore!