Join us on May 23rd as Housing First kicks-off the 2014 Election Cycle with a discussion of how the industry is situated following an unprecedented 2013 legislative session and what's to come in the 2014 elections. BATC consultant and noted Minnesota political commentator Todd Rapp will provide insight and analysis.

Please join us for appetizers and cocktails in BATC’s Seminar room on Thursday, May 23 from 4 to 6 PM. Comments and Q+A begin at 5 PM. RSVP to Mary Schweich at 651-697-7572. Get more details here.

Presented by The Housing First Advisory Group:

• Bill Burgess, Chair
• Richard Berg, Contract Interiors
• Charlie Bradburn, ABC Millwork
• Keith Horkey, Keyland Homes
• Jason McCarty, Westwood Professional Services
• Shawn Nelson, New Spaces
• Kathe Ostrom, CN Ostrom & Son
• Jim Stanton, Shamrock Development
• Curt Swanson, Swanson Home

The National Association of Home Builders honored BATC staff with two Association Excellence Awards (AEA) this month. Nicole Coon (Marketing and Events Manager), Katy Ervin (Communications Coordinator), and the entire BATC staff, received awards in the following two categories:

Revenue - Best Industry Trade Show
Honored for our annual tradeshow, the Builders and Remodelers Show (BRS)

Communications - Best Publication
Honored for our BATC Pak Event Mailing & Monthly Event E-Newsletter

Award plaques will be given out at the Association Leadership Institute (ALI) in Portland, OR this August.

Fourteen consecutive months of year-over-year price gains means that the median price of a home in April 2013 is the highest we've seen in over four years.

According to the Minneapolis Association of Realtors "...with the changing mix of sales, solid demand and falling supply, the median home price for the Twin Cities metro rose 12.2 percent to $182,312" [keep reading].

Check your mailbox this week for some sunny, summer fun. Inside your bright yellow invitation is your golden ticket to the summer's brightest banquet.

We hope you'll join us at the Nicollet Island Pavillion on June 27th for the Remodeler of Merit Awards banquet (ROMA).

Please RSVP with your response card - or online at www.batc.org - by June 18th. See invitation for details.

Legislative Session Week 18: Final Week of 2013 Legislature

With under a week to go, the legislature and Governor have agreed on a global budget structure and have handed out budget targets to all of the finance committees. This much is certain, we will soon see a fundamental shift in our state’s finances where $2-3 billion in new taxes and fees will be added to individual Minnesotans and the businesses that call our state home. Expect income tax increases for top earners, cigarette tax increases, and unfortunately, a possible tax imposed on certain business-to-business services. When the dust settles and the bills are signed, look for our comprehensive legislative review that will capture the activity in the historic 2013 legislative session in your inbox. And, join us at our Housing First Recap Event on May 23rd.

Sprinkler Update
With the fiscal target in hand for the Jobs & Economic Development Finance Omnibus bill, we are entering the final hours of debate to reconcile the differences in the House and Senate versions of the bill. For BATC’s top issue, prohibiting a sprinkler mandate in single-family homes, we continue to fight for the Senate language which would keep sprinklers as a homeowner choice. Our challenge is steep, as Governor Dayton remains opposed to this effort. Stay tuned for updates on the sprinkler issue in the closing days of session.

A semi-regular column on the national economic and housing scene from Washington D.C. by Dr. Elliot Eisenberg, Ph.D., GraphsandLaughs, LLC

Interest Rates Yield No Recession

While Q1 GDP growth was 2.5%, it will probably be the best performing quarter of the year.  Add to that continued contractionary fiscal policy in the form of both the sequester and the Fiscal Cliff deal, continued weak employment growth, declining exports and a lackluster manufacturing sector and suddenly recessionary fears are palpable.  After all, a recession will inevitably come and it has been almost six years since the start of the last one.  Aren’t we kind of due?  Turns out, the answer is no, no and no!  If history is any guide - and it’s a very good one in this case - there is no recession in sight. 

Since 1970 there have been seven recessions, and interestingly enough, each one has been preceded by an inversion in the yield curve, a situation where short term interest rates are higher than long term interest rates.  Rarely is there an indicator that is seven for seven over a period of 44 very dissimilar years.  The last time the yield curve inverted and a recession did not follow was in 1966-67, and though there wasn’t a recession, the economy slowed substantially with GDP growth of less than one percent for 21 straight months.     

Normally, interest rates are higher the longer the period of time money is lent.  For example, today a one-year Treasury bill yields 0.15% per year, a 10-year Treasury note pays 2% per year and a 30-year Treasury bond pays 3.125% per year.  After all, the longer you lend someone money, in this case the government, the more interest rate risk, inflation risk and credit risk you incur, and investors must be compensated for these risks [keep reading].

Avoid late fees and enter the Fall Parade of Homes^SM and Remodelers Showcase^® by the deadline: next Wednesday, May 22, 2013.

Enter online at www.paradeofhomes.org; contact Casey Hafner at 651-697-7569 for your password. To advertise in the Fall Guidebooks, contact Kori Meewes at 612-801-9874 by the July 2nd advertising deadline.

"The Parade continues to be a lively fun event, that also brings out the buyers. Still the most important piece in my marketing plan. Thanks for another fine year."
-Rocky DiGiacomo, DiGiacomo Homes

NAHB’s May 9th Eye on the Economy quoted the latest Census data showing that nationally, remodeling expenditures have been declining for five months. The article noted this slight downturn came on the heels of strong growth from spring through fall of 2012.

The same dip is noted in the LIRA (Leading Indicator of Remodeling Activity) from the Harvard Joint Center for Housing Studies. But both sources suggest that this is a short-lived blip, with the Joint Center anticipating a nearly 20 percent increase in activity by fourth quarter of 2013.

Keep reading on the PLS Blog >>

Hot Summer for Housing

Finance and Commerce - "Call it a late spring market for home sales. The median sales prices for a home in the Twin Cities hit its highest mark in 4½ years in April. The median sales price of $182,312 for April reflected a 12.2 percent increase compared to the same period a year ago.

Home prices have now posted 14 consecutive months of year-over-year price gains. As prices are climbing, the inventory of homes for sale remains low" [keep reading].

• Star Tribune: A Shortage of House Listings is Keeping Twin Cities Builders Busy [read article].
• Pamela Belz, BATC President, Senior Housing Partners. CBS8.com: April 2013: Twin Cities' Residential Construction Surges with Two Large Multi-Family Apartment Projects [read article].
• Shawn Nelson, New Spaces; Frank Kottschade, North American Realty. Virtual Strategy Magazine: BATC Members, Shawn Nelson and Frank Kottschade, Recognized by National  Association of Home Builders [read article].

*Receive a BATC Bonus Buck, worth $100 in BATC Bucks, when you attend an event that's in our  2013 'Champion Event Series.'

May 22
Parade of Homes Fall Deadline [enter a home]
May 23
Housing First Event  [get more information]
May 31
Walleye Invitational [register]
June 18
Showroom Mixer at Mingle [get more information]
June 18
Remodeler Round Table at Mingle [get more information]
June 27
ROMA Awards Banquet [get more information]
July 2
Fall Guidebooks Ad Deadline [see ad rates]
July 18
BATC Boat Cruise [register]
July 25
Member Orientation [register]
August 6
BATC Open Golf Tournament [register]
October 15
Member Orientation [register]
October 24
Awards of Excellence Gala [register]

See Complete Calendar at WWW.BATC.ORG >>

View the 2013 Bonus Buck Events >>

Become an event sponsor: Take your membership to the next level by partnering with BATC. Contact Kori for sponsorship openings.