#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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7323 E Sunset Sky Circle Scottsdale, AZ 85266

$849,999
3 Beds
2 Baths
2,182 SqFt
Status Active
MLS # 6764112
Property Type Townhouse
Price Type --
Experience the ultimate lifestyle in this spacious 3-bedroom, 2-bath villa. Skylights illuminate the easy flow and open layout, showcasing an updated kitchen offers bar-seating as well as an eat-in kitchen. You'll love the granite countertops, stainless appliances, gas range and large double pantry. Step outside to your private patio with stunning views of Winfield Mountain, a built-in BBQ, and a soothing water feature. As a resident, you'll enjoy access to fantastic amenities: swim in the resort style pool, fitness center, play pickleball, and socialize at the clubhouse with ongoing events, among many other amenities. With scenic hiking trails right outside your door. Embrace comfort, community, and an active lifestyle with this resort style living.

563 E Krista Way Tempe, AZ 85284

$849,999 - 5Br/3Ba -  for Sale in Coventry Tempe, Tempe
Open House
$849,999
5 Beds
3 Baths
2,763 SqFt
Status Active
MLS # 6749302
Property Type Single Family Residence
Price Type --
This elegant two-story home, situated in a desirable gated community of Coventry Tempe, offers modern design and thoughtful upgrades throughout. As you enter, the high ceilings create a sense of openness and light. The main floor features a large, open-concept kitchen with upgraded appliances, stylish cabinetry, and a generous island, making it ideal for both everyday entertaining. The well-planned layout includes a true five-bedroom, ensuring ample space for everyone, including 2 bedrooms and full bathroom downstairs. The primary suite is a comfortable retreat, featuring a spacious bathroom with matching designer tiles, dual vanities, a soaking tub, and a separate walk-in shower. Let's get you here!

15951 E Thistle Drive Fountain Hills, AZ 85268

$849,999 - 3Br/2Ba -  for Sale in Fountain Hills Arizona, Fountain Hills
Open House
$849,999
3 Beds
2 Baths
2,756 SqFt
Status Active
MLS # 6775306
Property Type Single Family Residence
Price Type --
***MOTIVATED SELLER, MAJOR PRICE REDUCTION!*** Welcome to the pinnacle of Arizona living in this stunning, fully remodeled haven nestled in the tranquil community of Fountain Hills, renowned for its dark sky designation. Boasting breathtaking views of the majestic McDowell Mountains and the snow-capped peaks of Four Peaks during winter, this residence offers a perfect blend of modern elegance and natural beauty. Spanning nearly 2,800 square feet, the open floor plan is designed to showcase the spectacular desert vistas from virtually every angle. As you enter, you will be drawn into the heart of the home, where a sophisticated ambiance awaits. The remodeled kitchen is a culinary dream, featuring oversized quartz countertops, sleek stainless steel appliances, and ample cabinet space, providing everything you need to inspire your inner chef. The thoughtful design seamlessly integrates functionality and style, making cooking a joyous experience. The home includes three generously sized bedrooms, each offering magnificent views and abundant natural light. The primary bedroom is a true retreat, beautifully remodeled to enhance comfort and luxury, complete with a stunning ensuite bathroom that features upscale tile work, elegant cabinetry, and convenient laundry facilities for your daily ease. The guest bath has also been tastefully updated, maintaining the same high standards of quality and design. Enjoy added convenience with a secondary laundry area located in the garage. Step outside to discover two levels of expansive patio space, perfect for entertaining or relaxing while immersed in the stunning desert landscape. Take a refreshing dip in the crystal-clear pool, soak in the warm Arizona sun, or simply unwind while enjoying the unparalleled vistas that envelop you. This home has been meticulously maintained and updated, with a new roof installed in 2020 and upgraded AC units in 2022, ensuring years of worry-free enjoyment for its fortunate new owners. Don't miss the chance to embrace the ultimate Arizona lifestyle in this exceptional residence. Prepare to be captivated by its beauty and charm in this enchanting desert sanctuary!

23379 N 73rd Way Scottsdale, AZ 85255

$849,999 - 3Br/3Ba -  for Sale in Silverstone Parcel F, Scottsdale
Open House
$849,999
3 Beds
2.5 Baths
2,373 SqFt
Status Active
MLS # 6765737
Property Type Townhouse
Price Type --
Stunning newer townhome in gated Pinnacle at Silverstone features two outdoor living spaces sure to impress! Chef's kitchen boasts warm cabinetry, quartz counters, premium appliances, filtered water, and an enormous island perfect for entertaining. Open great room leads to a charming paver patio with a wall of telescoping glass doors and remote-controlled screen. Half bath and mud room just off the garage. Upstairs you'll find a spacious primary with walk-in closet and ensuite with double sinks, step-in shower, soaking tub and water closet. Two secondary bedrooms, full bath, second floor laundry and bonus space/office. Enjoy 360-degree views of remarkable Arizona sunsets, surrounding mountains, and city lights from your private rooftop terrace. Community pool, spa, BBQ, workout facility.

7088 W Redbird Road Peoria, AZ 85383

$849,995
5 Beds
4.5 Baths
3,915 SqFt
Status Active
MLS # 6754568
Property Type Single Family Residence
Price Type --
Welcome home to beautiful Aloravita situated between two mountain preserves! Over $175,000 in builder options & owner upgrades were put into this stunning 5 Bed 4.5 Bath + Office/Den & BONUS Room boasts a generous 3,915 s/f on a corner lot. BEDROOM & FULL BATH DOWNSTAIRS! Built in 2021 with a 3 Car Garage. Gourmet kitchen w/ large island, quartz counters, butler pantry + additional large pantry. Family room w/ gas fireplace & formal dining room. Custom banisters to spacious upstairs w/ huge BONUS ROOM. Wood-look tile & upgraded carpet/pad throughout. Quartz countertops in all bathrooms! Lg Master w/ beautiful mountain views open to spacious bath. Bedroom upstairs with private bath! Professionally installed LED lighting and MUCH MORE!

29122 N 146th Street Scottsdale, AZ 85262

$849,990
3 Beds
3 Baths
1,637 SqFt
Status Active
MLS # 6706800
Property Type Single Family Residence
Price Type --
THIS GORGEOUS DESERT OASIS AWAITS YOU! Over 1 Acre, split floor plan, horse property, with a guest house, sparkling pool, amazing waterfalls, built in BBQ, RV gates and so much more! Drive up to the beautifully desert landscaped front and backyard with pavers to a 2 car garage and extended double set of RV gates. Walk in the front door to a open concept living with vaulted high ceilings, a neutral contemporary palette, high end fixtures, upgraded tile flooring and a stunning electric fireplace. The designer chef kitchen features granite counters, espresso soft close cabinets and drawers, SS appliances, walk-in pantry, tile backsplash and a breakfast bar. The primary bedroom boasts panoramic doors to the backyard, large walk-in closet, double sinks and a private toilet room. The guest rooms offer stunning sunrise views and a jetted walk in tub and sit down shower for the second bath. The casita offers another bedroom with an additional 3/4 bath and a slider that opens to the awesome backyard patio, built in BBQ and beautiful backyard oasis. Don't forget the landscaped yard comes with a covered patio, travertine deck, soothing above ground spa that conveys with the home and a separate gated doggie door and pet area off to the side of the house. Inside laundry with extra storage and washer and dryer also convey with the sale. Come out today to see everything this amazing home has to offer you already as well as all of the additions you could add to give it your own personal touch!

13190 W Horsetail Trail Peoria, AZ 85383

$849,990
3 Beds
2.5 Baths
2,304 SqFt
Status Active
MLS # 6753632
Property Type Single Family Residence
Price Type --
Discover luxury living in this stunning Northpointe home! This 3-bed, 2.5 bath gem sits on an elevated lot with outstanding views. The updated gourmet kitchen features quartz and granite countertops, custom cabinetry and top-tier appliances, perfect for any chef. Soaring 12-foot ceilings elevate the spacious family and dining rooms, complemented by a striking stackstone entertainment wall.The primary bedroom boasts a custom Stackstone accent wall, adding rustic charm. Enjoy seamless indoor-outdoor living with a grand patio, and park with ease in the spacious three-car garage. The iron front door adds a touch of elegance to this incredible home!

5535 W St Moritz Lane Glendale, AZ 85306

$849,990
4 Beds
3.5 Baths
3,106 SqFt
Status Active
MLS # 6762300
Property Type Single Family Residence
Price Type --
Ready Now!! Near all the amenities and park area. 4 Bedrooms, bonus room, with with 16ft slider, Granite counter tops, 42'' Dayton Birch Flagstone Cabinets with black hardware, Subway tile backsplash, gourmet collection gas appliances, wood look tile and upgraded carpets!! Great sized backyard with covered patio to enjoy. Just steps away from all the amazing amenities Legends has to offer.

1954 W Sienna Bouquet Place Phoenix, AZ 85085

$849,990 - 5Br/5Ba -  for Sale in Copperleaf Parcel 3a, Phoenix
Open House
$849,990
5 Beds
4.5 Baths
3,018 SqFt
Status Active
MLS # 6752480
Property Type Single Family Residence
Price Type --
Up to 3% of base price or total purchase price, whichever is less, is available through preferred lender plus additional 2% of base price or total purchase price, whichever is less, is available to be used toward closing costs, pre-paids, rate buy downs, &/or price adjustments. Move-in October. Two-story Prato floorplan with first-floor owner's suite featuring a glass walk-in shower, plus an additional first-floor suite. Chef kitchen with Whirlpool gas cooktop, white cabinets, and quartz countertops. Upgraded tile and carpet, center slider for indoor-outdoor flow, upstairs suite with added bathroom, Smart Home technology, soft water loop, and front yard desert landscaping with main line to the backyard.

1946 W Sienna Bouquet Place Phoenix, AZ 85085

$849,990 - 4Br/4Ba -  for Sale in Copperleaf Parcel 3a, Phoenix
Open House
$849,990
4 Beds
3.5 Baths
2,938 SqFt
Status Active
MLS # 6752490
Property Type Single Family Residence
Price Type --
Up to 3% of base price or total purchase price, whichever is less, is available through preferred lender plus additional 2% of base price or total purchase price, whichever is less, is available to be used toward closing costs, pre-paids, rate buy downs, &/or price adjustments. Move-in October. Popular two-story Prato floorplan with 2.5 car garage. First-floor owner's suite with glass walk-in shower, chef kitchen with Whirlpool gas cooktop, 42'' white cabinets, and quartz countertops. Features include French doors at the den, laundry sink and cabinets, upgraded tile and carpet, center slider for outdoor living, an upstairs suite with added bathroom, and Smart Home technology. Desert landscaping in the front yard.

8250 E Rancho Vista Drive Scottsdale, AZ 85251

$849,950 - 3Br/2Ba -  for Sale in Scottsdale Country Acres 2, Scottsdale
Open House
$849,950
3 Beds
2 Baths
1,872 SqFt
Status Active
MLS # 6766314
Property Type Single Family Residence
Price Type --
Price Improvement on this beautifully updated home in Scottsdale Country Acres- Thoughfully appointed bright and modern kitchen and bathrooms. Solid bamboo flooring and ceramic tile, no carpet! This home is unique in that it also features 2 detached garages that are designed to look like cottages....maybe a future mother-in-law quarters! Two entrances to the turfed-in back courtyard with two new RV gates -Trane A/C: 2014 Added 16'' blown fiberglass insulation in attic (cellulose over dining)-Roofing and plywood 2010 . No HOA!

783 Trout Springs Road Forest Lakes, AZ 85931

$849,900
9 Beds
5 Baths
3,342 SqFt
Status Active
MLS # 6725158
Property Type Single Family Residence
Price Type --
Don't miss this beautiful property with 4 cabins on the lot. The main cabin features a family room, kitchen, wood stove, mud room, laundry room with storage and spacious bedroom. the other 3 units were remodeled in 2021 with new appliances and fixtures throughout. Cabins 2,3, and 4 come fully furnished with sofas, kitchen tables, dinnerware, queen sized beds, and linens. Cabins have lots of Pine surfaces, giving them that cozy cabin feel. Nestled in the Ponderosa Pines, this property borders the National Forest with tons of hiking, biking, ATV trails, and 6 trout stocked lakes for fishing, kayaking, canoeing or swimming. COOL PINES!!! ELEVATION OVER 7800! CURRENT VRBRO RENTS ADVERTISED: $350 PER NIGHT UNIT 1 & $150 PER NIGHT ON UNITS 2,3,4 Conveniently located right next to Sitgreaves National Forest, with numerous hiking & biking trails as well as fishing spots! The 3 other cabins have been recently remodeled and all showcase 2 bedrooms & 1 bath, plus their own kitchens and fireplaces! Whether you decide to use them as guest houses or rent them out for the summer, the possibilities are endless! What are you waiting for? This amazing deal won't last long!

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