Masonry Magazine November 2003 Page. 46
MCAA News
Regional News continued from page 43
Several building-related costs, ranging from lumber and masonry materials to drywall and fuel prices, have increased substantially in recent months, builders say, due to a series of local and international events.
And on top of all that, local lumber companies now are assessing the impact Hurricane Isabel will have on forests as well as demand for wood products, which could increase lumber prices even further.
As a result, many home builders say they might increase home prices by two percent or more in coming weeks to offset mounting expenses.
Builders also saw a summer of rising interest rates-up nationally from 5.16% in mid-June to more than 6% by late September, according to Freddie Mac-even though rates are still at historically low levels.
All of this adds up to an increasingly tough market for home builders. And real estate experts say that, by increasing prices, builders are guaranteed to lose additional sales as prospective buyers are priced out of the housing market.
Builders concede that they will take a short-term hit on their bottom lines due to existing contracts signed with home buyers. But they say future contracts likely will be impacted by rising materials costs.
Suppliers, meanwhile, say they believe lumber costs will drop substantially once demand slows down, either from a decline in spec building or from the typical construction slowdown during winter months.
Tennessee
Reported by GoMemphis.com. "Building codes on shaky ground, scientists say," August 28. 2003:
Memphis-area builders and politicians asked Tennessee officials Wednesday to put off adopting tougher seismic building codes, but scientists said the standards are needed to address an earthquake hazard in a debate one scientist likened to playing Russian Roulette.
Memphis Mayor Willie Herenton and Shelby County Mayor A. C. Wharton were among the leaders calling for further study of seismic provisions in the proposed International Building Code of 2003. They said its added costs could dampen development, sap the tax base, and divert revenues needed elsewhere.
Earthquake specialists, however, described the standards as appropriate and relatively low in cost. They pointed to estimates saying there's a 7-10% chance that during the next half-century, the New Madrid fault zone will produce a repeat of the type of devastating earthquakes that convulsed the area in late 1811 and early 1812.
The comments came during a meeting held by State Fire Marshal and Department of Commerce and Insurance commissioner Paula Flowers, as state officials consider replacing the Southern Standard Building Code of 1999 with the IBC standards.
The proposed code draws upon new national seismic hazard maps showing the New Madrid region-which extends from the Memphis area to southern Illinois-as facing roughly the same risk as coastal California.
Tony Bologna, an architect and development consultant who chairs the city-county building code advisory board, called for a six- to 12-month delay to study the seismic provisions.
Reported by WATE-TV 6, Knoxville, Tenn, "State Changing Reinforcement after Retaining Wall Collapse," September 17, 2003:
The state will start requiring coated rebar in retaining walls as the result of a wall collapse in Nashville.
The wall held earth in place on an exit ramp to Interstate 40 in Nashville. It collapsed last week, causing authorities to shut it down until repairs were made. The paving sagged, but didn't cause any crashes.
Transportation Commissioner Gerald Nicely said Wednesday an inspection revealed a gap was left between the wall and a concrete footing when it was built in 1968.
Regional News continued on page 46
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