#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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2411 E Caldwell Street Phoenix, AZ 85042

$850,000
5 Beds
3 Baths
3,374 SqFt
Status Active
MLS # 6778230
Property Type Single Family Residence
Price Type --
Custom 5 bedroom, 3 bathroom home thoughtfully crafted to enjoy the mountain and city views that surround the estate. Wrought iron door leads to a foyer with soaring ceilings and flex rooms on either side. Chefs kitchen with SOLLiD soft close cabinetry, black stainless Cafe' series appliances, granite counters and backsplash, and breakfast bar with beverage cooler. Kitchen opens to dining room and large living room with a lattice covered patio. Three of four bedrooms upstairs offer private patios with dramatic views of downtown Phoenix. Hard surfaces throughout with tumbled travertine or engineered hickory hardwood. Enjoy the privacy and flexibility of no HOA with the convenience to walk or bike to South Mountain trails. Owned solar panels. Epoxy garage with ample storage.

45020 N 18th Street New River, AZ 85087

$850,000
3 Beds
2.5 Baths
2,508 SqFt
Status Active
MLS # 6777492
Property Type Single Family Residence
Price Type --
HILLTOP RETREAT!! This very private 3-acre hilltop property has panoramic views of Tonto National Forest and surrounding mountains. Natural desert landscape and cacti. Home has new flooring throughout, Steel roof. Whole house GENERAC generator. Private well. Over 4000 gallons of freshwater storage. Newer dual AC units. Mechanical sunshields. Stone fireplace in primary bedroom and family room. Workshop, extra storage in laundry room and much more. Energy efficient 12'' block walls. Existing pen for animals. Full length covered patio. Above ground pool. Still room on property to build another home, shop or barn. Ride your ATVs or horses out in Tonto National Forest which is only a few blocks away. Less than 30 minutes from TSMC Semiconductor plant, shopping and freeways.

9003 E Windrose Drive Scottsdale, AZ 85260

$850,000
3 Beds
2 Baths
1,579 SqFt
Status Active
MLS # 6777460
Property Type Single Family Residence
Price Type --
THERE IS NOT ANOTHER PROPERTY IN 85260 OR 85259 IN THIS SQUARE FOOTAGE RANGE THAT HAS BEEN REMODELED THIS EXTENSIVELY OR THIS TASTEFULLY. NEW AS OF SEPTEMBER 2024: ROOF WITH 20 YEAR WARRANTY, CABINETRY THROUGHOUT HOME, HIGH END STAINLESS APPLIANCES, GRANITE/QUARTZ COUNTERTOPS, MARBLE BACKSPLASH, LVP FLOORING THROUGHOUT, CEILING FANS/LIGHT FIXTURES, REIMAGINED FIREPLACE, LARGE FORMAT TILES, DELTA BATH FIXTURES, SWISS MADISON TOILETS, NEW HARDWARE, INTERIOR/EXTERIOR PAINT & LANDSCAPING. ALSO FEATURES A SPARKLING HEATED POOL/SPA, A GREAT ROOM FLOORPLAN THAT FLOWS SEAMLESSLY & A GOURMET KITCHEN THAT HAS A LARGE ISLAND WITH STORAGE ON BOTH SIDES IN ADDITION TO A PANTRY CLOSET. THIS SPECIAL HOME IS IN A FABULOUS LOCATION SITUATED ON A PRIVATE LOT WITH EASY MAINTENANCE LANDSCAPING & A MUST HAVE OPEN CONCEPT FLOORPLAN WITH SOARING VAULTED CEILINGS WHERE FUNCTIONALITY MEETS BEAUTIFUL TIMELESS DESIGN !!!!

4237 N Cactus Road Apache Junction, AZ 85119

$850,000
4 Beds
2 Baths
2,329 SqFt
Status Active
MLS # 6780590
Property Type Single Family Residence
Price Type --
GOT HORSES? Saddle up & hit the trails out your backdoor. This 4BR/2BA, 2,329 sq.ft. Santa Fe offers a quality horse setup on 1.25acres complete w/3 (16x16) covered stalls, a large detach garage, 2 large turnouts & tack sheds. Interior features wood look tile & solid pine doors T/O. Great room features fireplace, dining nook, open kitchen w/island & VIEWS. Spacious master suite w/ large walk in closet. 3 additional BRs plus bonus room provides ample space for all. Enjoy captivating views of the Superstition Mountains while relaxing in your private swimming pool on your flagstone back patio or take pleasure in watching the sunsets from your front courtyard! The 3 car garage plus Rv covered storage garage gives you room for all your toys!!

14541 E Golden Eagle Boulevard Fountain Hills, AZ 85268

$850,000 - 3Br/3Ba -  for Sale in Fountain Hills Az Fp 515 Amd, Fountain Hills
New
$850,000
3 Beds
2.5 Baths
2,711 SqFt
Status Active
MLS # 6782829
Property Type Single Family Residence
Price Type --
Find serenity among mountain views, in this spacious and well lit three bedroom, two and a half bathroom home, in the prestigious community of North Heights! Enjoy a split floorplan that flows with ease, with plenty of entertaining space and large bedrooms. While this home needs some upgrading and TLC, it is truly a blank slate to create your dream home! Featuring high ceilings, breathtaking views from every room, and a three car garage, the possibilities are endless! Home is plumbed for pool.

2525 W Live Oak Drive Prescott, AZ 86305

$850,000
3 Beds
2 Baths
2,929 SqFt
Status Active Under Contract
MLS # 6778070
Property Type Single Family Residence
Price Type --
Discover the allure of this charming 3-bedroom, 2-bathroom home nestled on a picturesque 1.81-acre lot adorned with light woods. The residence boasts a warm and inviting ambiance, complemented by a cozy fireplace, creating the perfect setting for relaxation and gatherings. Step outside onto the beautiful covered patio, where you can unwind and enjoy the serene surroundings. With its harmonious blend of nature and comfort, this property invites you to embrace a tranquil lifestyle in a truly enchanting setting.

1 Easy Street Unit 8 Carefree, AZ 85377

$850,000
3 Beds
3.5 Baths
2,191 SqFt
Status Active Under Contract
MLS # 6673085
Property Type Townhouse
Price Type --
This unique location offers the epitome of luxury and convenience, where every amenity is just steps from your doorstep in this upscale community. This 2 bedroom, 2.5 bath townhome has a Den, that could be an office or an optional 3rd bedroom. From the moment you enter, you'll be captivated by the open concept design, gourmet kitchen, and opulent primary suites. The amazing mountain views that surround this community only enhance the tranquil, luxurious atmosphere. Community features Pool, Spa, Putting Green, Bocce

20911 E Excelsior Avenue Queen Creek, AZ 85142

$850,000
3 Beds
2 Baths
2,205 SqFt
Status Active Under Contract
MLS # 6697543
Property Type Single Family Residence
Price Type --
Gorgeous stacked stone exterior in Orchard Ranch! RV Garage 30x40 with epoxy floor, fenced pool, outdoor living areas with covered and uncovered patio areas, plenty of room for horses, great room open to the fabulous kitchen. Vaulted ceilings welcome you into a great room with a stacked stone gas fireplace. The huge kitchen has stunning dual color cabinetry with quartz and granite countertops. Huge master suite has attached bath with custom vanity-dual sinks, huge jetted tub, separate shower and TWO walk-in closets, plus door to patio. Secondary bedrooms at the other end of the house share a hall bathroom with custom vanity. Huge laundry room with washer and dryer and tons of cabinets. 3 car garage PLUS RV Garage. IRRIGATED!! Corner lot is very private. 2 new AC units

12911 W Missouri Avenue Litchfield Park, AZ 85340

$850,000
4 Beds
3 Baths
2,803 SqFt
Status Active Under Contract
MLS # 6766710
Property Type Single Family Residence
Price Type --
STUNNING HOME!! Priced to sell! In the highly desirable community of LitchField Vista Views. From the time you drive up, you'll be impressed with this corner lot that is .79 acre. The curb appeal is striking with a circular drive to welcome you home. This home features a gourmet dream kitchen with a granite island featuring a 2nd sink & disposal, breakfast bar, double wall oven & 6 burner gas cooktop plus a huge walkin pantry. The backyard boost an enormous covered patio including 2 built in Evap Coolers & has an outdoor kitchen with a built in BBQ. But don't worry there is plenty of room to add your dream pool. You also have a 2 car detached garage/shop with Evap cooler & half bath. PLUS RV gate & oversized 4 car garage. Amazing location! This home has it all and will not last

4404 E Glacier Place Chandler, AZ 85249

$850,000
3 Beds
3.5 Baths
3,036 SqFt
Status Active Under Contract
MLS # 6773689
Property Type Single Family Residence
Price Type --
Welcome to your ultimate entertainer's dream! This stunning South Chandler home boasts an expansive outdoor kitchen complete with a BBQ grill, griddle, smoker, and built-in pizza oven, making it the perfect setting for hosting unforgettable gatherings. Step outside through either of the 2 multi-slider patio doors and enjoy seamless indoor-outdoor living as you relax by the heated pool and raised spa. Situated on a spacious corner lot next to a greenbelt, this home offers a peaceful retreat while still being close to everything. Inside, vaulted ceilings add to the open and airy feel of the home. The floor plan features 3 spacious bedrooms, all conveniently located downstairs. Upstairs, the versatile loft comes with its own full bathroom and can easily be transformed into a 4th bedroom, home office, or private guest suite. The primary suite offers a quiet sanctuary perfect for relaxation. The location is unbeatable, nestled along Ocotillo Rd in the heart of South Chandler. You'll be within walking distance to Veterans Oasis Park and community center, which is perfect for outdoor activities. This home is also just a quick 6-minute drive to freeway access. Plus, shopping, dining, coffee shops, and essential services are all within 2 miles, offering convenience at your fingertips. The 3-car split garage is designed for maximum storage and functionality, complete with storage racks, cabinets, with plenty of space for your vehicles, gear, and tools. Whether you're a hobbyist or simply need room for storage, this garage has you covered. Neighborhood is in an A+ Schools area which includes Weinberg Gifted Academy. Within short driving distance is also BASIS, American Leadership Academy, Legacy Traditional and Great Hearts Charter schools. This home is the perfect blend of luxury, convenience, and lifestyle. Don't miss the opportunity to own this one-of-a-kind property in a highly sought-after South Chandler community!

1757 E Saltsage Drive Phoenix, AZ 85048

$850,000
3 Beds
2.5 Baths
2,581 SqFt
Status Active Under Contract
MLS # 6776283
Property Type Single Family Residence
Price Type --
Welcome to this stunning home on the Foothills Golf Course in the desirable Palmia community! This meticulously maintained residence features three bedrooms, a den, and 2.5 bathrooms. As you step inside, you'll be welcomed by an elegant foyer that flows into the great room and formal dining area, showcasing vaulted ceilings, skylights, oversized windows, and classic white plantation shutters. The updated gourmet kitchen is a chef's dream, seamlessly connecting to the spacious kitchen nook. It boasts an oversized island with ample seating, quartz countertops, stainless steel appliances, a stylish tile backsplash, and a well-appointed pantry for plenty of storage. The primary suite is a true retreat, enhanced by plantation shutters and a luxurious ensuite bathroom featuring granite countertops, dual sinks, a soaking tub, a custom tiled shower, and a large walk-in closet. Two additional spacious bedrooms offer generous closet space, and the spacious flex room can be used to suit your needs. The secondary bathroom has also been updated with modern touches. Step outside to your backyard oasis, where you'll enjoy a breathtaking golf course and mountain views. The covered patio invites relaxation, while the sparkling heated pool and spa with newly resurfaced decking and pebble Tec finish are surrounded by low-maintenance landscaping and fruit trees. The pool features new jets and an in-floor cleaning system, all controlled remotely via the Pentair System. This smart home also comes with a Nest thermostat, B-hyve sprinkler system, and a myQ Smart Garage, all manageable from your cell phone. Don't miss your chance to embrace the Ahwatukee Foothills lifestyle with the Troon-managed Foothills Golf Club at your doorstep. Explore the endless hiking and cycling trails throughout the 16,000-acre South Mountain Preserve and nearby parks, playgrounds, and sports courts. Enjoy the benefits of top-rated A+ Schools of Excellence in the Kyrene and Tempe Union School Districts, with convenient access to shopping, dining, major employment centers, and Sky Harbor Airport. Easy access to the Loop 202 freeway makes commuting a breeze!

10202 N 101st Street Scottsdale, AZ 85258

$850,000
2 Beds
2 Baths
1,797 SqFt
Status Active Under Contract
MLS # 6780536
Property Type Townhouse
Price Type --
RARE OPPORTUNITY, single story home on the water in the guard-gated community of Las Brisas! 2-bedroom, 2 bath + den home offers waterfront living. The kitchen is open to the spacious living area which leads to a large patio, perfect for entertaining or simply relaxing while enjoying tranquility of being lakeside. Eat in kitchen, breakfast bar, formal dining area make for a great floorplan. Improvements to the home include new roof 2019, HVAC 2019, water heater 2021, pathway & back patio pavers 2020, decorative security front door and side window allow security & fresh air, water filtration system for courtyard water fountain 2021. Community amenities consist of multiple pools, tennis courts, clubhouse. Located near the 101, shopping, restaurants, great schools & medical facilities.

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