#1 Answer to the Housing Shortage: New Construction

The biggest challenge to today’s housing market is the shortage of housing inventory for sale. A normal market would see a six-month supply of homes for sale. Currently, that number is below four months. This is the major reason home prices have continued to appreciate at higher levels than historic averages.

The good news is that builders are now starting to build more homes in lower price ranges.

Builder Confidence is Up

The Housing Market Index from the National Association of Home Builders (NAHB) reveals that builder confidence increased last month. HousingWire quoted NAHB Chief Economist Robert Dietz about the reason for the increase in confidence amongst builders.

“The HMI measure of future sales conditions reached its highest level since June 2005, a sign of growing consumer confidence in the new home market. Especially as existing home inventory remains tight, we can expect increased demand for new construction moving forward.”

Builders are Meeting the Needs of Today’s Purchaser

Builders are not only jumping into the market – they are doing a better job of matching current demand. The Wall Street Journal recently reported:

“In a shift, new households are overwhelmingly choosing to buy rather than rent. Some 854,000 new-owner households were formed during the first three months of the year, more than double the 365,000 new-renter households formed during the period, according to Census Bureau data.”

The WSJ article went on to say:

“Home builders are beginning to shift their focus away from luxury homes and toward homes at lower price points to cater to this burgeoning millennial clientele.”

The graph below compares 2016 to 2017 new construction sales by price point. As we can see, builders are slowly beginning to shift to prices more favorable to the first-time and non-luxury buyer.

#1 Answer to the Housing Shortage: New Construction | Simplifying The Market

Bottom Line

There is a drastic need for a larger supply of home inventory to meet the skyrocketing demand. Builders are finally doing their part to help rectify this situation.  If you are exploring the real estate market for a new build or a resale home, give me a call for more information – J.P. Cook – 602-320-4253.

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19835 W Meadowbrook Avenue Litchfield Park, AZ 85340

$897,500
4 Beds
2.5 Baths
2,680 SqFt
Status Active
MLS # 6757946
Property Type Single Family Residence
Price Type --
Must See!! Indulge in everything this corner lot horse property has to offer! Beginning at the stained-glass double doors, you're welcomed into an open floor plan that extends into 3 bedrooms, 2 full bathrooms, and additional office w/ a ½ bathroom and private entrance. With NO HOA, owned solar panels, 2 Trane systems w/UV Filters, 2 new water heaters, commercial greywater drip system for landscaping, owned Culligan Water Softener and R/O system, and ADT Doorbells & System, this property truly offers serenity and savings. The backyard features professional landscaping, covered back patio, custom 10x10 barn w/water and electricity, and a cement slab wash rack for horses! P.S. Main Bath w/Twin Showers and Soaking Jetted Tub, Auto-Waterers for Horse Shed, Exterior painted 2022 w/5 yr warrant

63 County Road 2330 -- Alpine, AZ 85920

$897,000
3 Beds
2 Baths
1,650 SqFt
Status Active
MLS # 6764185
Property Type Single Family Residence
Price Type --
Beautiful southern view above San Francisco River. Passive solar design w/ sun on house front 9/1-4/15. Sprayed foam insulation in walls and ceiling. Drive around access to crawl space storage area below house.Standing Seam Metal Roof Design. Sloping ceiling with 14' high point in great room 360° camera system. 10' wide cement slab in crawlspace. Easy standup access to crawlspace. Crawlspace with plenty of storage. Cooks kitchen with External stove exhaust, granite counters and back splash dimable under and above counter LED lighting. Corner Pantry. Master Bath room with six foot soaking tub/shower, marble vanity with 12 drawers, two cabinets and two sinks. Mirrored cabinets on each end Guest bathroom with custom 5' shower and sliding door Second guest bedroom/office has KS bed in loft with retractable ladder access. Mirrored sliding glass closet doors in each bedroom Wrap around Trex deck with see thru cable railing. Stair access on both ends. Ceiling fans through out. Deck access door from MBR and Guest BR Sliding glass door access from both sides of great room.UTILITIES- On-demand propane hot water heater. 500 gallon propane tank. Propane emergency generator Propane stove, oven, HVAC, dryer, generator Septic system all gravity drainage All LED lighting ACCESSORIES- 12 x 18' shed Freestanding woodburning stove w/ circ. fan THREE RV pads with power and water, 2 with dump stations One RV pedestal has 240V 240 V access to spa location Large 2 car parking at property entrance Separate guest entrance parking **** Parcel # 101-23-001H to convey with purchase.

226 W Lazy K Ranch Road New River, AZ 85087

$897,000
5 Beds
5.5 Baths
4,564 SqFt
Status Active
MLS # 6731710
Property Type Single Family Residence
Price Type --
Lifestyle Is Included with this In-town/Out-of-Town NO HOA, 1 Acre Family Home. Exit just 4 miles North of the Anthem Outlet Mall. Escape to the Breathtaking Panoramic views from the Wrap Around Porch. 5 Beds, 5.5 Baths provides privacy for everyone. Working at home w/AirFiber Broadband High-Speed Star-link available. Interior Upgrades: Granite Kitchen, w/Island, SS Appliances, Double Copper Sink, Pantry, Breakfast Bar, Built-in Breakfast Nook. Master Bedroom Suite features Walk-out Private View Deck, Fireplace, Sitting/Gym Room, Walk-in Closet, Jetted Soaker Tub, Double Shower, Dual Vanities. 50 Amp RV Hookup, Well Water filled Fenced Play Swimming Pool w/Baja Deck. Access to Tonto & State Trust land for Hiking/Biking Trails just out of your backyard. Location, Location, Location.

3010 E Cedar Drive Chandler, AZ 85249

$897,000
4 Beds
3.5 Baths
3,606 SqFt
Status Active Under Contract
MLS # 6754845
Property Type Single Family Residence
Price Type --
Elevate your lifestyle with this gorgeous 4 bed/3.5 bath/ home designed to give you ultimate comfort, maximum function, and provide a private retreat in the city. Not only does this home boast 3,600 sqft, it's also on an oversize corner lot with a four car garage. Enjoy the blend of ample space with a warm and cozy interior complete with neutral tones. The round entry way is captivating and sets the tone for the rest of the home upon entry. High ceilings and large windows bring light and luxury into the gathering areas. The backyard has been transformed into a private oasis complete with a large patio with shade covering, pergola, and built in BBQ. Kick back by the huge pool or relax in the hot tub. Located in the prestigious, single-level home community of Mesquite Grove Estates Grove, you'll note that the gated neighborhood is rich with green belts and walking trails. This home won't last long!

15809 E Cholla Drive Fountain Hills, AZ 85268

$896,500
4 Beds
3 Baths
2,415 SqFt
Status Active
MLS # 6756084
Property Type Single Family Residence
Price Type --
Wow-Wow-Wow NOW IS THE TIME TO MAKE AN OFFER! Check out the curated updates, the updated and upgraded feel of a loving and cared for home! Custom features are a must see! Fountain, Parks, Downtown, Luxury, Mountains, Hiking, Adventure await! Pool is ready for the days, Veranda is perfect for those night time sunsets.

4936 E Juana Court Cave Creek, AZ 85331

$895,999
4 Beds
2.5 Baths
2,942 SqFt
Status Active
MLS # 6757313
Property Type Single Family Residence
Price Type --
Stunning, Immaculate, Gorgeous just begin to describe this beautiful Tatum Ranch TW Lewis home. Nearly 3,000 sq. ft., this spacious home has it all. Huge kitchen open to a Great room with fireplace. Additional, front living room formal dining. Plantation shutters throughout, large main bedroom with remodeled bath and customized walk in closet. The soaring ceilings add to the wonderful feel of this fabulous home along with brand new carpeting. You're invited to this amazing outdoor living backyard with Pebble Tec pool, lots of grass to enjoy & play and a full length covered patio. Trees, shade $lush landscaping surround this 11,000 sq. ft. property. In front, another relaxing front patio to enjoy this peaceful gem. A three car garage ensures that you have plenty of room for everything.

10226 N 171st Drive Waddell, AZ 85355

$895,900
4 Beds
3.5 Baths
3,012 SqFt
Status Active
MLS # 6650681
Property Type Single Family Residence
Price Type --
Welcome to this beautiful 4 bedroom, 3.5 bathroom, modern style home in Waddell with exceptional design and finishes. When you enter this home, you'll notice the elegant open concept floor plan perfect for modern living with a spacious rooms, kitchen and casual dining joined by a perfectly quartz island. High ceilings allow wonderful natural light to fill this space through a large sliding door that leads to your covered patio that is perfect for indoor-outdoor living. More...

1015 N Monarch Drive Payson, AZ 85541

$895,400
3 Beds
3 Baths
2,989 SqFt
Status Active
MLS # 6675678
Property Type Single Family Residence
Price Type --
Elegance beyond measure. A Castle on the hill with panoramic views of Granite Dells (Stewart Mtns) and Mazatzal Mts. This 3 bedroom, 3 bath exquisite home has to be seen to be appreciated. Upon entry you are greeted by a spectacular 14' ceiling great room. So many upgrades to list: Light fixtures interior and exterior, Ceiling fans interior and patio, Sinks/faucets. Toilets, Pellet stove, Window treatments HVAC. new Elastomeric Stucco/paint. Refrigerator, Dishwasher, Oven/Microwave. Smoke alarms, Flooring. LED lighting added, Solar paid, backlit recessed ceilings, Interior paint, Electric outlets/switches all changed, Custom switch plate covers, Pavers around exterior, including stairs, hot water softener, water booster, Recirculating pump. Smart plug on recirculating pump, Driveway light

5660 E Heavenly Hilltop Trail Chino Valley, AZ 86323

$895,000
3 Beds
2 Baths
2,068 SqFt
Status Active
MLS # 6771533
Property Type Single Family Residence
Price Type --
Rare opportunity to own a like new 7-acre home in desirable Haystack Ranch in the Perkinsville area of Chino Valley. Enjoy stunning panoramic views, sunsets & sunrises from your large deck. High efficiency home, low E windows, double attic insulation. Custom Granite kitchen, bathrooms, laundry room w/ soft close. High end stainless appliances w/ upgraded features. Wood burning fireplace w/ blower. 16 seer 2 stage heat pump w/ AC. Great well. 3 stage whole house water filtration system w/ softener. Large soaker tub in primary. Extra deep 27 ft 2 car garage. Chicken coop w/ runs. 9 fruit trees, berries, grapes & raised vegetable beds all on drip. Perimeter & cross fenced solar electric with cattle gates. Ride directly from your Ranch to State Land then onto the Prescott National Forest

2522 E Pleasant Lane Phoenix, AZ 85042

$895,000
4 Beds
3.5 Baths
2,782 SqFt
Status Active
MLS # 6706622
Property Type Single Family Residence
Price Type --
### Luxurious Corporate House in Gated Community - 15 Minutes from Sky Harbor International Airport Welcome to the epitome of luxury and comfort in the heart of Phoenix! This magnificent corporate house, ideally located just 15 minutes from Sky Harbor International Airport, offers the perfect retreat for executives #### Key Features: - **4 Bedrooms 3.5 Baths** - **Two Master Suites:** Both exquisitely furnished with high-end decor and top-of-the-line Amerisleep mattresses, ensuring unparalleled comfort. - **Office:** A well-equipped office space to cater to all your professional needs. - **High-End Furnishings:** Every corner of the house boasts quality furniture designed for comfort and style. The living areas are inviting, while the bedrooms promise restful nights with sumptuous bedding and mattresses. - **Fully Furnished:** The entire home is perfectly furnished with modern amenities and stylish decor, so you can move in without any hassle. - **Climate-Controlled Swimming Pool:** Enjoy the luxury of a climate-controlled swimming pool, providing a serene oasis to relax and unwind even during the hot Arizona summers. Perfect for evening swims or a refreshing dip after a long day. - **Spacious Kitchen:** A gourmet kitchen fully equipped with top-grade appliances, granite countertops, and everything you need to prepare a quick snack or a gourmet meal. - **Quiet and Secure:** The property is located in a serene, gated community ensuring maximum security and privacy. Perfect for executives needing a quiet and secure environment for extended stays. This home is a perfect blend of elegance and practicality, tailored to meet the highest standards of corporate living. Whether you are in Phoenix for a short business trip or an extended stay, this property promises to be more than just a houseit's a home. #### Additional Amenities: - High-speed internet and smart home features. - Laundry room with modern washer and dryer. - Two-car garage. - Landscaped gardens with outdoor seating areas. Welcome to your new home in Phoenixwhere luxury meets convenience.

1704 E Snapdragon Court Payson, AZ 85541

$895,000
4 Beds
4 Baths
3,410 SqFt
Status Active
MLS # 6734399
Property Type Single Family Residence
Price Type --
Wonderful Mountain Retreat located in prestigious gated golf community of Chaparral Pines awaits you. Beautiful wood flooring guides you through the spacious foyer into the great room featuring stone floor-to-ceiling gas fireplace. Open floor plan brings living room, dining area, and kitchen all together for many festive occasions with family and friends. Kitchen boasts Cambria Quartz countertops and cherry cabinets, breakfast island, walk-in pantry and stainless-steel appliances. Large patio doors lead to wonderful, covered porch that wraps around to the front of the home for many enjoyable outdoor evenings. Large patio captures spectacular mountain and pond views and provides plenty of outdoor living and entertaining space. Main floor has master bedroom with large walk-in closet and private bathroom with soaking tub and separate shower. Second bedroom on main floor has attached full bath. Also located on the main floor are climate-controlled wine cellar, powder room, and laundry room with ample storage. One-of-a-kind upper level has two bedrooms with walk-in closets, full bath, separate office, and large living room/game room area. Wonderful for entertaining with room for friends and extended family. Oversize garage with storage cabinets, room for two vehicles and side-by-side or golf cart.

16648 E Lone Mountain Road Scottsdale, AZ 85262

$895,000
4 Beds
3.5 Baths
3,398 SqFt
Status Active
MLS # 6767538
Property Type Single Family Residence
Price Type --
BEAUTIFUL MOUNTAIN VIEWS!!! This exquisite 4-bedroom,3.5 bath residence features a 3-car garage, extended paver driveway, a charming porch, a barn style storage shed and elegant stone accents. The living room offers high ceilings, shutters and a neutral palette. The great room includes a stone-clad fireplace and the chef's kitchen comes with granite counters, custom wood cabinetry with crown molding, sleek stainless steel appliances, subtle recessed lighting, a center island and a two-tier peninsula with a breakfast bar. The cozy main bedroom boasts backyard access, ensuite with dual vanities and a walk-in closet. This is an EPCOR WATER APPROVED PROPERTY. ADDITIONAL 1 ACRE ADJACANT LOT AVAILABLE FOR PURCHASE

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