#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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11238 N 125th Avenue El Mirage, AZ 85335

$880,000
4 Beds
3 Baths
2,300 SqFt
Status Active
MLS # 6754380
Property Type Single Family Residence
Price Type --
Welcome home! Tastefully updated beauty is move-in ready! Featuring a 3-car garage, several RV gates, & a well-maintained front yard. Immaculately designed interior exudes elegance with its vaulted ceilings, two-tone trending palette, pre-wired surround sound, sleek-style flooring, & a family room w/backyard access. The spacious open layout is bathed in natural & recessed lighting & a striking floor-to-ceiling fireplace. The impeccable kitchen is fully equipped with granite counters, stylish tile backsplash, a handy pantry, hickory cabinets. Discover a main split floor plan suite that offers a double-door entry, a pristine private ensuite, & 2 walk-in closet. Plunge into the refreshing pool in the expansive backyard! That consist of almost 2 acres of land .

21701 E Via De Arboles -- Queen Creek, AZ 85142

$880,000
4 Beds
3.5 Baths
3,199 SqFt
Status Active
MLS # 6759308
Property Type Single Family Residence
Price Type --
Immaculate Modern Home with High-End Features and Private Oasis! Built in 2020, this luxurious 1-story home offers 3,199 sq. ft. of modern living on a 12,724 sq. ft. lot. The open layout features 4 bedrooms, a bonus room, a den, 3.5 baths, 9+ ft ceilings, and two master suites. The main master boasts a spa-like bath with a soaking tub, shower, and walk-in closet. Enjoy a private courtyard, custom iron gate, and backyard oasis with a heated saltwater pool and spa, all controlled via smartphone. Upgrades include smart home tech, a 3-car garage, pavers extended driveway, and a gourmet kitchen featuring SS appliances, an oversized island, and quartz countertops. Near top-rated schools and attractions, like the Olive Mill and Schnepf Farms! Don't miss out!

4145 S Zephyr -- Mesa, AZ 85212

$880,000
4 Beds
2.5 Baths
2,643 SqFt
Status Active
MLS # 6761520
Property Type Single Family Residence
Price Type --
Beautiful Highly Upgraded Home in Eastmark sits on a larger corner lot with extended driveway and garage. This home features over $200k in upgrades including gourmet kitchen with build in fridge and with top-of-the-line appliances. Entertaining is made easy with a generous sized island and open concept floor plan. Step through triple-pane sliding glass doors, and enjoy the Arizona sunshine with the extended covered patio, heated saltwater pool and spa. You'll feel like you're at a resort with the pool water features and gas fire pit. The split master suite offers a luxurious retreat with a soaking tub and walk in shower with dual vanities. This home boost ample storage with addition additional cabinetry in the nook and laundry room complete with cabinets, counter and sink. The home also features smart features like exterior PoE cameras, Wi-Fi extenders, a zoned climate-controlled HVAC. Eastmark also boosts community amenities, including a pool, Steadfast Farm, nearby coffee shop, multiple parks and the Clubhouse. Don't miss this opportunity to make this stunning home in Eastmark yours.

5847 E Sierra Morena Street Mesa, AZ 85215

$879,900 - 5Br/3Ba -  for Sale in The Reserve At Red Rock, Mesa
New
$879,900
5 Beds
3 Baths
2,788 SqFt
Status Active
MLS # 6784712
Property Type Single Family Residence
Price Type --
The Reserve at Red Rock, a gated resort style Community set in the Foothills of Northeast Mesa. The Reserve features approximately 48% open space, preserved desert, palm lined entries, a central clubhouse with resort pool, fireplaces, pickleball, gym, more. Excellent access to the natural desert and regional park space, shopping, and 1/2 mile to 202 Red Mtn Freeway. The home backs up to 80' of vegetated open space. Floorplan features an oversized island kitchen, with ample cabinetry, feeding into both a spacious walk in and working pantry. The split floorpan provides excellent privacy. Spacious Laundry Room, disappearing wall of glass opening up to the covered patio. Taxes estimated! Very near move in Ready.

5616 W Molly Lane Phoenix, AZ 85083

$879,900
5 Beds
4.5 Baths
3,944 SqFt
Status Active
MLS # 6772418
Property Type Single Family Residence
Price Type --
This stunning corner lot gem on 10,465 sq ft offers ultimate privacy with no west-facing neighbors and abundant RV parking. The spacious backyard is an entertainer's dream, featuring a saltwater Pebble-Tec pool with Baja step, popup cleaners, waterfall, and gas fire pit, shade, The spacious home includes 5 BD's (all but one with walk-in closets), 2nd Primary on Main, 4.5 BA, a loft, den, office, mud room, family room, and LR, plus an impressive 4-car GAR with epoxy floors, ample cabinets, & workbench. Outdoor extras: RV-gate, 30A outlet, fruit trees, and shaded patio. Close to playground, tennis, pickleball, hiking, next to Inspiration Mtn Elementary School, and MTN views to the N and W. This home offers the ultimate convenience with everything powered by gas. Features & Amenities: * Kitchen features a new GAS stove top, double ovens, Under cabinet lighting, and granite countertops. * Spacious RV gate driveway with parking for up to one inside fence and one on its own driveway. You can park up to 11 vehicles (7 outside, 4 inside). * A 30A RV outlet on right side of home. * Lush landscaping on an auto irrigation timer with paver walkways and extended driveway. * Newer water softener, 2-year-old dishwasher, and brand-new stovetop. * Hardwood flooring in the family room, plus a soaker tub in the primary bedroom for added luxury. * Garage Additional extras include a workbench and cabinets in the small garage, plus shelving in the large garage plus epoxy flooring, all staying with the home. * Plenty of space includes extra rooms include Mud room off of first garage, Den, Family room, living room, and loft that has a walk in closet. * Plenty of Mountain views to the West and North. The undeveloped park to the West will be developed one day but no new construction of homes to be built. * Tons of Pavers. All landscaping is on timer. *Fruit trees include Lemon, lime, orange and tangerine. * Sunshade on back patio included, along with a newer Security door, screen, and entry gate. * Salt water Pebble tec Pool has popup cleaners where you don't need a pool vaccum, with a baja step. * Cool decking for comfortable, non-slip lounging. * Inspiration School within walking distance is only 2 years old and highly rated school. Park beside it will be developed soon.

7427 E Evening Glow Drive Scottsdale, AZ 85266

$879,900
2 Beds
2.5 Baths
2,287 SqFt
Status Active
MLS # 6774066
Property Type Single Family Residence
Price Type --
Experience modern living in this beautifully updated Winfield Patio Home. Perfectly designed for indoor-outdoor enjoyment, the open floor plan offers natural light and connects to the expansive back patio. Enjoy the covered dining area, open patio, or cozying up by the outdoor fireplace. Plenty of privacy makes the patio an ideal retreat. The generous Owner's suite, complete with a sitting area, fireplace, and direct access to the patio, features a recent enhancement of stylish tile flooring and a modern stand-alone tub. The Guest ensuite, thoughtfully updated with granite countertops and a walk-in shower, offers its own privacy. The stunning kitchen boasts a neutral palette, ample granite countertops, stainless steel appliances, and a separate pantry, making it a chef's dream.

4961 E Dale Lane Cave Creek, AZ 85331

$879,900
4 Beds
2.5 Baths
2,942 SqFt
Status Active
MLS # 6779686
Property Type Single Family Residence
Price Type --
This spacious, 2,942 sq ft, single-level home offers seamless, step-free living with 4 bedrooms, 2.5 baths, and a versatile bonus room. The open layout features ample natural light and is ideal for relaxed, desert-style living. Preferred split bedroom floorplan. Primary bedroom w/separate shower/tub, double sink vanity, private toilet room, large walk-in closet, and access to yard. Spacious eat-in kitchen w/island, double wall ovens, gas cooktop, microwave, refrigerator, and incredible cabinet/countertop space. Tile and wood flooring throughout. Low-maintenance yard allows for easy upkeep, perfect for enjoying the Arizona landscape without the hassle. A rare find in this desirable Tatum Ranch area, combining comfort and convenience with minimal maintenance

6810 N 11th Avenue Phoenix, AZ 85013

$879,900
3 Beds
2 Baths
2,112 SqFt
Status Active
MLS # 6781877
Property Type Single Family Residence
Price Type --
Look no further, this beautifully designed contemporary ranch bungalow is located in desirable North Central Phoenix and is a must see! This home is ideal for a family or entertainer featuring impressive amenities and custom touches. Stunning foyer with carved wood door and custom tile entry. Open living area with high-end designer finishes. Dreamy master bedroom with sitting area and enviable his/hers walk-in closet; the luxurious master bathroom has dual sinks with Brizo fixtures, large shower, Kohler Veil bidet toilet, marble counters and gray limestone flooring. Highly upgraded chef's kitchen equipped with Jenn-Air Pro side-by-side fridge, gas range, convection microwave. Beverage bar with built in espresso/coffee maker and wine fridge. Gorgeous white shaker cabinets, eat-in kitchen island, under cabinet lighting, and a walk-in pantry. Expansive Indoor/outdoor living with gorgeous patio spaces to enjoy! Home boasts a quarter-acre irrigated lot with a lush yard and fruit trees (lemon and tangelo), garden shed, and workshop. Casita offers custom wood ceiling and recessed lighting. A great space for fitness, guest quarters, home office, or children's playroom. 3 plus car garage with the car enthusiast in mind. Custom cabinets, overhead storage, work bench, and custom modular garage flooring. Expansive laundry space featuring bonus lighted custom cabinets with butcher block counter, and ample storage.... This home is a must see!!

1620 N 36th Circle Show Low, AZ 85901

$879,900
5 Beds
3.5 Baths
3,796 SqFt
Status Active
MLS # 6684294
Property Type Single Family Residence
Price Type --
Owner financing!!! Seller will accept an amount to be determined down and carry remaining balance of the sales price at 5.25% interest rate, amortized over 30 years with a balloon amount at the end of the 5th year. YOUR HOME FOR ALL SEASONS...A place for family and friends to gather, enjoy, unwind, & remember. Located on a quiet cul-de-sac, with 2 driveways & 2 entries, surrounded by beautiful Ponderosa Pines, and dozens of other mature trees, bushes & seasonal flora. Front & rear porches include inviting patio furniture. Lots of upgrades: New metal roof with 50-yr lifetime guarantee-Gutter guards-high efficiency furnace & A/C units-Gorgeous granite (not lab created)-Veranda & decks refinished-lawn sprinklers-hi-end flooring-two separate driveways serving two separate garages-front lawn & completely graveled other areas-Golf course view.

4919 E Fernwood Court Cave Creek, AZ 85331

$879,500
4 Beds
2 Baths
2,574 SqFt
Status Active
MLS # 6714747
Property Type Single Family Residence
Price Type --
IGNORE DAYS ON MARKET. FELL OUT OF ESCROW, BUYER COULD NOT PERFORM. Gorgeous fully remodeled home in beautiful Tatum Ranch. From the custom entry door to the spectacular wood tile flooring thru-out and a stunning fully updated Kitchen w/ all the Bells & whistles ,all Bathrooms renovated and modernized for your comfort, as well as the travertine tile on the patio and surrounding the pool area that gives a classic look. Many more upgrades as stone fireplace and bar included. Don't miss this opportunity to make this home yours.

35468 N Sunset Trail San Tan Valley, AZ 85140

$879,000
3 Beds
3.5 Baths
2,658 SqFt
Status Active
MLS # 6771737
Property Type Single Family Residence
Price Type --
Step inside and immediately fall in love with the much-desired Cordoba model. This home features three comfortable sized bedrooms - including two guest en-suites - an office/den, generous sized laundry room with tons of storage, and an expansive indoor living space that's sure to impress. The kitchen boasts an oversized island, adorned by pendant lighting and a waterfall countertop, soft-close mocha cabinets, a wine fridge and stainless appliances. The primary suite is equipped with a roomy walk-in shower, soaking tub, and a barn door for privacy. Step out the four panel sliding doors to the backyard and prepare to be wowed by the sunset views, a splash-pad to keep cool, and putting green to work on your short game. Great for entertaining guests, or simply unwinding on your own. Come see what you're missing at Encanterra!

18529 E Poco Rio Drive Rio Verde, AZ 85263

$879,000
4 Beds
3 Baths
3,274 SqFt
Status Active
MLS # 6767620
Property Type Single Family Residence
Price Type --
BEST BUY IN RIO! Golf and mountain views with 3000 + square ft. Plenty of room to expand in second lot with pool, extra garages or casita (Must be accepted by HOA) Great room with fireplace and wet bar, vaulted ceilings, large kitchen with breakfast bar and walk in pantry. Dining area off of kitchen and great room. 4 bedroom with 2 split primary bedrooms/ ensuites , plus two bedrooms and an additional 1 bathrooms. Laundry room/ spacious cupboards. Oversized 2.5 car garage. Fully furnished. New irrigation and totally updated yard.55 and older adult community with 2 (18) hole golf courses, tennis, pickleball, bocce, hiking, biking, swimming, hot tub. Renovated community center with art, cards, library ,dance, state of art work out facilities.+more. Convenience store,church &post office

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