Are you going? Over the past several years, a growing number of builders have answered, decisively, with ‘no.’

Industry reporters have lamented decreasing attendance aplenty the past handful of years, and builders are declining to attend for any number of reasons, not the least of which is budget. For smaller businesses, justifying the trip to Orlando for one or several employees can be a stretch with the market being what it is.

Today, we’ve got questions. Let’s get away from assumptions and figure why builders choose to attend or avoid IBS :

• Have you ever attended IBS? If so, why?

• Do you plan to attend this year’s IBS?

• If yes, what’s the value?
• If no, what’s holding you back?

To the comments section!

According to a study from Professional Remodeler, remodelers who have ventured into Facebook, Twitter, YouTube and other popular social networks have seen a positive impact on business. In fact, social media was identified as one of the most effective avenues for marketing.

Jonathan Sweet, editor-in-chief at Professional Remodeler, writes,

“Of those remodelers that do use social media, most estimate it is delivering only a small (but growing) portion of their business. Eighteen percent say none of their business comes from clients they reached through social media, but that’s down from 33 percent in our last survey. Seventeen percent of remodelers are getting more than 10 percent of their work from clients they’ve reached through social media, up from 4 percent last year.”

There’s still plenty of skeptics out there, though. In the study, several remodelers indicated doubt that social media reaches their target consumer and the time investment for upkeep exceeds the expected return.

Cynics aside, the study gives reason to believe an increasing number of remodelers, specifically, and home builders, in general, will include social media in their future marketing plans:

• 62 percent of remodelers have a Facebook fan page, up from 35 percent last year.
• 36 percent have a company Twitter account, up from 19 percent.
• 35 percent of remodelers have a company blog, up from 20 percent.

Remodelers also spoke highly of traditional websites, with a whopping 87 percent indicating they were at least somewhat effective.

Is social media a part of your marketing strategy? Why or why not?

But builders should take heed of Builder Magazine‘s list of 10 business trends to look for in 2012 as they gather themselves and strategize for the year ahead. After all, one shift in strategy could be all it takes to navigate the murky waters many experts and economists are forecasting.

Here’s  some of the more intriguing trends from Builder’s list:

Energy Efficiency Isn’t a Fad
And that’s a good thing for the everyday builder, because demand for energy efficient products and building materials should lower prices. More importantly, energy efficiency can sell a home. John Caulfield writes, “A high-performance house is no longer an anomaly; it’s become a requirement for selling products to customers who may not know much about HERS regulations, but can read their monthly electricity and water bills. Many of the industry’s largest production builders market their homes as energy efficient. But they are also competing against smaller builders that hopped on the high-performance bandwagon years ago and have been able to tout the quality of their houses for a while.”

Inclusionary Marketing
We know the Internet has emboldened consumers to take the reins and research every last purchase like never before. That’s no different when it comes to buying homes. Luckily, the building industry is leveraging the power of social media to create efficient, cost-effective selling tools. Caulfield writes, “The web is where more buyers begin their searches, and the online connection that builders make with prospects and homeowners has never been more critical to selling and referrals. That fact was reinforced when Zillow.com, the real-estate search engine with 22 million visitors per month, in June introduced a new function on its site that gives greater visibility to new homes that are available in markets around the country.”

Modular Momentum
Urban infill projects have created opportunity for modular manufacturers to break into the housing sector. Caulfield writes, “More contractors and developers [are] looking for ways to rein in construction costs seem willing to at least give modular a second look. And several of the industry’s leading module manufacturers believe their time has come.”

To read more of Builder Magazine’s predictions for 2012, visit BuilderOnline.com.

• The end of the closed-off, one-purpose living room is coming to an end. What people want now is a large living space, with living, kitchen and dining rooms spilling in to each other.
• Older homes used to have a grand staircase in the front of the home, with a much simpler, utilitarian one in the back. But with the coming “silver tsunami” that second staircase is making way for an elevator. When people are too ill or infirm to take the stairs, it doesn’t matter that there are two sets.
• Instead of an office or library, a new trend is for a multipurpose room that can be used for working, doing homework, reading, paying bills, etc.
• A Jacuzzi in the bathroom can be wonderful, but how often is it really used? Most people use a shower for their cleaning purposes, so there are going to be more enhancements to that, such as steam.
• As the Wall Street Journal notes, “As the kitchen has opened up into the dining room, there’s less need for a separate, small table for breakfast.” What to do with that extra space? The sky is the limit but builders are seeing a desire for more outdoor space.

According to NewUrbanism.org, new urbanism ”promotes the creation and restoration of diverse, walkable, compact, vibrant, mixed-use communities composed of the same components as conventional development, but assembled in a more integrated fashion, in the form of complete communities.”

Perhaps no one has championed the benefits of New Urbanist construction like architect Sarah Susanka, author of the best-selling Not So Big book series that celebrates the smaller, more practical home without compromising quality.

This week marks the grand opening of Susanka’s Not So Big Showhouse in Libertyville, Ill., a northern suburb of Chicago. The 2,500-square-foot house emphasizes functionality and multipurpose spaces. For instance, there’s no formal dining room. (Who actually uses them anyway?) There’s a large front porch before floor-to-ceiling windows that overlook the neighborhood. There are no cathedral ceilings to be found and energy efficiency is a top consideration. There is no excess to be found — every room has its role.

Susanka’s Not So Big Showhouse is a part of the SchoolStreet housing development in downtown Libertyville, a new urbanist neighborhood that promotes a strong sense of community. So much so that most of the homes feature kitchens positioned toward the front of the house, inviting homeowners to eat and socialize on the front porch rather than be secluded in the back.

On Thursday, Susanka will appear at Libertyville High School to present her home, answer questions and sign books.

On Saturday, Susanka’s Not So Big Showhouse will be open from 9 a.m. to 4 p.m. The house is located at 138 School Street in Libertyville.

For more information, visit the SchoolStreet website.

Among respondents currently renting, 51 percent said saving enough money for a down payment was the biggest barrier, while another 35 percent indicated difficult qualifying for a mortgage.

So, if the desire to own is there, what’s holding consumers back from buying?

The survey is chock full of interesting results that indicate optimism and will amid difficult lending and saving conditions. Some of the highlights include:

• “Among Americans who said homeownership is part of their American Dream, only 6 percent said their ideal home size is more than 3,200 square feet – a 36.5 percent percent decrease from 9 percent in 2010.”
• “In addition to shunning super-sized homes, future demand may turn away from traditional suburban neighborhoods as Baby Boomers retire and trade down while Millennials move closer to employment hubs and accessible transit.”
• “When asked what would be the most important neighborhood amenities if they were in the market for a new home, 56 percent of Americans aged 55 years or older – more than any other age group – say would be being near more restaurants and shops while shorter commutes would be a higher priority for 57 percent of young adults (18-34 year olds.)”

Intentions to someday buy haven’t yet resulted in a boost in home sales, but the recession hasn’t removed homeownership from the American Dream, either. Trulia’s survey demonstrates a growing number of consumers are moving toward more modest living, placing practicality and convenience over luxury and excess.

How can these findings inform the way you do business?

For those in the lending or building industry, the political drama was a spark plug for market activity, according to the Wall Street Journal. The Mortgage Bankers Association reports mortgage applications were up 7.1 percent last week from the week before, while refinance activity rose 7.8 percent and purchasing jumped 5.1 percent.

According to the MBA, rates on 30-year fixed-rate mortgages averaged 4.45 percent, decreased from 4.57 percent, while the average for 15-year fixed-rate mortgages dropped from 3.67 percent to 3.52 percent.

Of course, relying on Capitol Hill to flirt with economic disaster is no way to run a business, but the MBA report offers a little light on what’s otherwise been a cruel summer.

Polyana de Costa of bankrate.com points out five trends to look for during the summer 2011 home-buying season. Some of them might surprise you.

Mortgage rates are unlikely to go lower: “Mortgage rates are near record lows, but some mortgage experts say the party won’t last long as they expect rates to climb in the next few months. They don’t foresee a major spike, but rather an adjustment to bring them back to ‘normal’ levels.”

In many markets, owning is cheaper than renting: “Falling home prices and near record-low mortgage interest rates are making it more affordable to own rather than to rent in many areas … Yet, homeownership levels are lower than they were more than a decade ago as more homeowners become renters.”

Foreclosures will continue: ”Homebuyers in search of bargains who are willing to do some remodeling have plenty to choose from as lenders try to unload a vast inventory of foreclosed homes. In the first three months of the year, bank-owned properties (and properties that are in some stage of foreclosure) sold for about 27% below the average sales prices of properties not in foreclosure, according to RealtyTrac.”

The return of adjustable-rate mortgages: “In 2005, ARMs accounted for more than a third (34.9%) of mortgages originated. That share dropped to less than 1 percent in late 2008 when the mortgage market collapsed, according to the Mortgage Bankers Association. It’s now back to about 6%.”

Jumbo loans are coming back, too: “Those who live in pricey housing markets or are thinking of upgrading to fancier homes are finding it “less difficult” to get jumbo mortgages these days, says David Adamo of Luxury Mortgage in Stamford, Conn.”

• Outdoor living areas: Are you paying more attention to things like porches and patios? An outdoor kitchen (from simple to grand) and a fireplace can add a whole new dimension for homeowners. Who doesn’t love an extra room in the great outdoors?
• Green features: Green is hot right now, but homeowners are demanding practical things like energy efficient windows and water and electricity-saving appliances. Showing that products meet federal ENERGY STAR standards will be important in attracting and informing consumers.
• Open kitchens: If the hearth is the heart of the home, it makes sense people want to be in it. Open kitchens allow that cozy feeling while allowing the cook some additional space to maneuver.
• Smaller homes: To go along with the green theme, smaller homes are easier to heat and cool, easier to clean and discourage the mindless filling of rooms.

Do you see these trends when you are building and remodeling?

If the Parade of Homes serves as a barometer for the local housing market, what can you glean from this year’s event?
The feedback from builders on this year’s Parade of Homes was very positive. Consumers were positive and enthusiastic about buying or building new homes. We have heard of several homes sold off of the Parade traffic.

How has the Parade of Homes changed over the past five years?
The event has remained strong with 40-60 homes in the spring showing.

Four years ago, the HBA began producing a high-quality magazine/guide to go along with the event. It features a detailed map and full color, 3-D renderings of all homes entered on the Parade. Builders can also choose to include floor plans, their logos, and upgrade their half-page listing to a larger size if they desire. A website was also developed that showcases homes on the Parade. The Parade is also now on Facebook promoting the event to the public and creating more traffic to our Parade website.

The event remains free with “featured” homes valued at over $500,000 that require a $5 admission to view all. (This year there were three.) That money is donated to the Home Builders Care Foundation, the HBA’s charity that gives back to our community in the form of scholarships, skill training and housing-related projects. This year, the featured homes raised nearly $10,000, one of the highest amounts gathered (by this fundraiser) for Home Builders Care.

The Parade of Homes generally gives builders the opportunity to experiment and demonstrate unique features. What were some of the more talked about features seen from this year’s show?
Energy efficiency is a hot topic: In fact, 13 out of the 48 homes on this year’s Parade were Energy Star rated, meaning they include a variety of energy efficient features like: high performance windows, tight construction and ducts, efficient heating and cooling equipment, efficient products.

We are seeing a focus on kitchens: gourmet kitchens with specialty appliances — professional-grade. People are taking entertaining and cooking seriously.

There is also a focus on the outdoors and interacting with neighbors. For instance, our local paper did a story on the resurgence of front porches. People are also interested in developments with ponds, access to bike trails and parks.

Many builders are including features for homebodies or people who work from home: pre-wiring for sound systems, Internet, cable, theater rooms with no windows for maximum darkness and home offices.

Garages are becoming an extension of the home, with heat, A/C, special flooring, extra storage and extra large size.

There is also a growing trend in having a locker/cubby type set up for everyone to keep coats, shoes, backpacks, purses, etc. stored in an entry way from a garage (rather than the front door) or in a mud room area.

How does recent Parade of Homes builder participation compare with local remodeling shows?
While we do not produce a remodeling show, our Fall Home show provides a venue for the remodeling industry to market its products and services. The Parades are an excellent promotional avenue for the new construction market and the Fall Home Show remains a great avenue for the remodeling industry, which is very strong as a whole. The HBA is planning for a remodeling component of the Parade that would provide a way for renovation-focused contractors to market their past projects and allow consumers to see what can be done in existing homes.

Over the past few years, how have the Parade homes changed?
We are seeing more homes in the affordable price ranges with smaller square footage due to the economy. Some builders are catering to the senior-citizen population, as well as some focusing on smart design for homes that function well for families. Many homes are catering to new, young families with unfinished basements; this adds to the house’s affordability and lends flexibility to the owners when the time comes to finish off. The general size of the homes also remains consistent or even more compact (in some cases) as people downsize and have a concern for the home’s effect on the environment. We are also seeing condo-style homes built in downtown areas.

The Parade of Homes provides consumers a chance to see what’s on the market and meet contractors. But when can trade professionals learn from those who attend the show?
We see a number of vendors working in the homes with the builders to pick up leads and to continue building relationships with their customers. Any savvy vendor would look at what is going into the Parade and consider that as a valuable reason to participate. By being in the homes, they can see the consumer’s reaction to their products and observe trends of what people want to buy.