#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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1120 Sunrise Boulevard Prescott, AZ 86301

$839,900
3 Beds
3 Baths
2,247 SqFt
Status Active
MLS # 6740079
Property Type Single Family Residence
Price Type --
This stunning new construction home, situated in the highly desirable Yavapai Hills, boasts outstanding curb appeal. For all the amazing details about this home, you'll want to watch the builder video under the photos. Upon entry, the open, great room split bedroom design concept immediately impresses. The great room features a gas fireplace and floods the space with natural light from the 12-ft sliding glass door. The kitchen is a chef's dream, featuring a six-burner gas cooktop, a beautiful tile backsplash that extends from the counters to the base of the cabinets and an elegant island with pendant lighting and quartz counters serving as the centerpiece & providing a contrasting accent to the flanking countertops. The cabinetry includes soft-close doors/drawers & dovetail construction. The massive walk-in pantry includes a dedicated circuit for an additional fridge or freezer. The master suite offers dedicated access to the rear covered patio, with ceiling fans installed in all bedrooms and the great room. The spa-like master bathroom includes an elegant tile backsplash from the vanities to the ceiling, floating vanities with indirect LED lighting, a double vanity, and a 42-inch tall massive walk-in shower with floor-to-ceiling tile. The guest bathroom is a full bath with a floating vanity, quartz counter, and indirect kick lighting and is flanked by the two spacious guest bedrooms. The home includes an ERV unit for fresh air circulation, 100% spray foam insulation, and wood plank tile floors throughout except for the three bedrooms. Custom modular closet systems provide additional storage solutions. Solid core doors and custom closet systems enhance functionality throughout the house. The 3.5-car garage is fully insulated in the ceiling and exterior walls, insulated overhead doors, WiFi-enabled openers and electric car charging plug. A tankless hot water heater with a recirculating pump is installed, and there's a convenient garage door leading to the backyard. The property provides a natural buffer with dedicated open space behind the house, enhancing privacy and views. Additional highlights include a HERS rating of 42, Milgard windows, gutters, downspouts, enclosed eaves, full synthetic stucco, a post-tension slab, an electric vehicle plug in the garage, and expansive paver patios with stack stone columns. The home is enveloped in full synthetic low-maintenance stucco and includes elegant paver driveways, walkways, and patios. The front and rear landscaping are fully completed, a rare find for new construction and offers excellent long-distance views of Glassford Hill and the Mingus Mountain Range. The newly finished home is ready to make it your own.

9519 W Vista Bonito Circle Casa Grande, AZ 85194

$839,900
3 Beds
2.5 Baths
2,804 SqFt
Status Active
MLS # 6708576
Property Type Single Family Residence
Price Type --
This exquisite 3-bedroom, 2.5-bathroom custom Santa Fe home, blends Southwest charm with contemporary comfort, situated on a mountainside lot. The luxurious kitchen features knotty pine cabinets, large pantry with pullout shelves, Wolf stovetop, Miele oven, Bosch dishwasher, and a Sub-Zero refrigerator/freezer. Entertain easily with multiple seating areas. Meticulous attention to detail is evident in the spa-like primary bath, which boasts two granite vanities, Jacuzzi bathtub, large shower, and indulgences like a walk-in closet, an additional closet, and a separate exit to the back patio. The garage features a durable epoxy-coated floor, and entire home benefits from a water softener. Enjoy outdoor living on the beautifully crafted flagstone patios. Adjacent 1.3 acre lot also available available for sale. Stay comfortable year-round with two newer Trane AC units. This home is a true gem, offering a unique combination of style, luxury, and functionality.

3609 N 188th Avenue Litchfield Park, AZ 85340

$839,900
4 Beds
2.5 Baths
3,067 SqFt
Status Active
MLS # 6712128
Property Type Single Family Residence
Price Type --
***IGNORE DAYS ON MARKET***Stunning residence nestled on over 1 ACRE of land in gated Litchfield Farms, this is the one you've been waiting for! CIRCULAR DRIVEWAY, a spacious 3-car garage, & an RV gate will greet you upon arrival. Build your FUTURE DETACHED RV garage for all your toys! Home exterior just freshly painted. Discover an impressive interior showcasing tile flooring, a neutral color palette, vaulted ceilings, & a delightful FIREPLACE. The remarkable kitchen boasts staggered cabinets with CROWN MOULDING, built-in appliances, a pantry, a wall oven, recessed lighting, & an island complete with a breakfast bar. The primary bedroom features soft carpet in all the right places, private outdoor access, an immaculate ensuite with dual sinks, & a walk-in closet. You will find an oversized backyard offering TONS of potential to be transformed into your own private oasis! Don't miss out on this one!

8313 E Redwing Road Scottsdale, AZ 85250

$839,900
5 Beds
2 Baths
2,069 SqFt
Status Active
MLS # 6728882
Property Type Single Family Residence
Price Type --
SINGLE LEVEL+ HUGE LOT + 5 Bedrooms + Pool in Fabulous Park Scottsdale ~ PRIME location on CUL-DE-SAC steps to the CANAL ~ Rare Hallcraft floor plan w/SPACIOUS & PRIVATE FRONT COURTYARD ~ Bonus OFFICE/FLEX SPACE ~ 2069 SQFT ~ Spacious Kitchen ~ S/S appliances ~ Appliance garage built into kitchen cabinets ~ Updated faucet + sink ~ Great countertop space ~ Flat top cooktop ~ Large Primary Bedroom w/direct access to backyard ~ Walk-In Closet ~ Primary Bathroom features dual sink vanity & step-in shower ~ Split floor plan w/Primary Bedroom + a Guest Bedroom on one side & 3 Bedrooms on opposite side of home ~ Guest Bathroom features a tub/shower combo & dual sink vanity ~ Spacious Bedrooms ~ DUAL PANE Windows ~ Ceiling Fans t/o ~ Wood-like tile floor t/o ~ Plantation Shutters ~ HVAC 4 years old ~ Direct access to house from GARAGE through LAUNDRY ROOM ~ Huge lot w/lots of FRUIT TREES & open space to create your DREAM BACKYARD ~ Large pool & great COVERED PATIO to entertain ~ It's not easy to find a single level 5 bedroom house on such an AMAZING LOT ~ UNBELIEVABLE LOCATION walking distance to the Canal, Saguaro High School & A+ Rated Spanish Dual Language Immersion Pueblo Elementary School ~ Short walk or bike ride to the Scottsdale Greenbelt, Chaparral Park, Chaparral Dog Park, Baseball Fields, Soccer Fields, Xeriscape Garden, the 101 Freeway, Scottsdale Community College, Talking Stick Fields ~ 3 Miles to Old Town Scottsdale, 15 Minutes to PHX Airport ~ You don't want to miss this one!

6105 W Kimberly Way Glendale, AZ 85308

$839,900
6 Beds
4 Baths
4,128 SqFt
Status Active
MLS # 6731137
Property Type Single Family Residence
Price Type --
**PRICE DROP* Executive style home! New paint & carpet. Walk in through the massive double doors to a formal living room and dining room. Follow the travertine stone flooring to the great room and chef's kitchen with overwhelming amounts of cabinets, some with pull-outs. Built in ovens and gas cooking. Breakfast nook with view of serene grass backyard and pool area. Master bedroom ensuite and 2 other bedrooms on the 1st floor. Check out the exquisite lighting throughout. Laundry is on 1st floor next to the walk-in pantry. Upstairs are the other 3 bedrooms and 2 baths. Game room could be another bedroom if needed. Outside is a gorgeous pool with waterfall and changing light colors along with the built in heated spa. Fruit trees too!

2755 E Palmer Street Gilbert, AZ 85298

$839,900
4 Beds
4 Baths
4,553 SqFt
Status Active
MLS # 6739334
Property Type Single Family Residence
Price Type --
You will fall in love with this beautiful 4,553sf home in the highly sought after Shamrock Estates! Features 4 large upstairs bedrooms, 3.5ba. Loft, Game Room, and home office space with its own PRIVATE staircase. The main level has large living area plus formal dining with an open design, Great for both everyday living or entertaining. Gourmet kitchen showcases Granite Countertops matching appliances, Walk-in Pantry is a Chef's dream with a convenient hi top breakfast bar. Community has three parks, and a Biking/Walking Path to enjoy the beautiful Arizona sunsets. Chandler Traditional Academy-Freedom was ranked 10 out of 10 on great schools.org.

8731 E Minnezona Avenue Scottsdale, AZ 85251

$839,900
3 Beds
2 Baths
2,250 SqFt
Status Active
MLS # 6752363
Property Type Single Family Residence
Price Type --
Priced to Sell!! Beautiful house located in Scottsdale close to Entertainment district, Fashion Square and 101! The kitchen offers wood cabinetry, SS appliances, granite counters, recessed lighting, and an island w/ breakfast bar. Each bedroom has newer plush carpet and a walk in closet! Keyless entry, Ring Doorbell, Smart thermostat, ADT and Directv ready! Backyard with modern pool was finished in 2019 with travertine tile, Large Baja shelf, barstools in the pool and large gazebo! The backyard is very private and quiet with only one neighbor directly bordering. Steel roof has LIFETIME warranty! AC was replaced in 2022. Pipes have been epoxy lined!!

1414 N Palmsprings Drive Gilbert, AZ 85234

$839,900
5 Beds
3 Baths
2,738 SqFt
Status Active
MLS # 6774803
Property Type Single Family Residence
Price Type --
Seller offering 1% Buyer closing costs! Gorgeous waterfront home sitting on a private cul de sac lot located Val Vista Lakes. Spacious floor plan with vaulted ceilings and unbelievable water views! Updated kitchen features granite counters, custom staggered cabinets and high end stainless steel appliances. Master bedroom showcases double door entry, separate tub/shower, dual vanity, huge walk-in closet and sitting room. Private balcony located off master bedroom with breathtaking views. The clubhouse at Val Vista lakes features workout facility, multiple swimming pools/spa, tennis courts and much, much more. Located near easy freeway access, restaurants, shopping and entertainment. Feb 2022 new side gates and waterline fencing were installed. Exterior was painted in October 2021.

7601 N Citrus Road Waddell, AZ 85355

$839,900
6 Beds
3 Baths
2,172 SqFt
Status Active
MLS # 6758058
Property Type Single Family Residence
Price Type --
Discover this charming and unique slump block home in the prestigious neighborhood of Waddell. Nestled in 2 acres of irrigation lot with an assortment of citrus, pomegranate & pine trees, a range of flowers, and a green lawn complete the front acre in the grand entrance. This unique property offers 2,172sq ft of living area with an open concept living and kitchen plus a 2-car garage, and a private pool. The detached guest home that has 3 rooms, kitchen, and laundry area, connected to a 6-car garage that can be accessed through the back alley and has a private entrance. Don't miss out! Priced to sell fast! Comps in the area are selling for upwards of 1 million dollars!

518 E Balao Drive Phoenix, AZ 85085

$839,900 - 4Br/3Ba -  for Sale in Gateway At Sonoran Preserve, Phoenix
Open House
$839,900
4 Beds
2.5 Baths
3,029 SqFt
Status Active
MLS # 6773476
Property Type Single Family Residence
Price Type --
EXCELLENT LOCATION!! MOUNTAIN VIEWS! This nearly new home is MOVE-IN READY! N/S facing, heated pool, GATED community, GE Cafe appliances, plus all of the excellent upgrades you are looking for!! This home is close to all of the growth that is North Phoenix yet tucked away from the hustle and bustle. Two living areas make it great for the kiddos or guests. 3-piece accordion-style sliding door leading to the back yard makes the main living area feel like part of the outdoors. Lock and leave is easy with low maintenance landscaping. Plus... SONORAN PRESERVE is walkable from the community providing miles of hiking and biking trails right out your front door! This one is a MUST SEE!

7550 W Gelding Drive Peoria, AZ 85381

$839,900 - 3Br/3Ba -  for Sale in Bella Pasa, Peoria
Open House
$839,900
3 Beds
2.5 Baths
2,500 SqFt
Status Active
MLS # 6646337
Property Type Single Family Residence
Price Type --
*QUICK MOVE IN * at Bella Pasa! On an 8,048 sq/ft lot, with approximately 2400 sq ft on a single level, with 10' ceilings and 8' doors, this home has unique roof lines, far different than the common SW style. A HUGE extended 3rd bedroom measuring 14.5X15!! A spacious 3 car split garage with upgraded electrical package including 220V/50 AMP outlet that should please the whole family! The gourmet kitchen is stunning with LG appliances including wall ovens just across the way from the gorgeous extended atrium sliding glass doors in the great room leading into the backyard. For the last act... a beautiful custom designed front yard landscaping package with a paver driveway.

542 W Vernon Avenue Phoenix, AZ 85003

$839,850 - 3Br/2Ba -  for Sale in Broadmoor Park, Phoenix
Open House
$839,850
3 Beds
2 Baths
1,495 SqFt
Status Active
MLS # 6764878
Property Type Single Family Residence
Price Type --
Absolutely stunning remodeled historic bungalow in the central Phoenix Willo District now offers 3 bedrooms & 2 baths in just under 1500 SqFt with an open floor plan, vaulted ceilings, and wood floors. The remodeled kitchen features all-new shaker soft-close cabinets, Quartz countertops, tiled backsplash in a modern herringbone pattern, stainless appliances including a Forno gas range, ultra-quiet Bosch dishwasher, and drawer microwave; farmhouse sink, and large island with breakfast bar and additional storage. The primary bedroom has a walk-in closet, and a barn door provides privacy for the en-suite bath complete with dual vessel sink vanity, soaking tub, and oversized walk-in shower. Two secondary bedrooms share the hall bath which has a tiled tub/shower combo. The park-like backyard was designed for entertaining with an extensive patio, built-in BBQ island, gas firepit, Koi pond, grass for kids and pets to play on, mature shade trees, block fencing, an electric gate and a detached 1.5 car garage. Great location close to downtown Phoenix for fine dining, shopping, sports events, and much more! Don't miss this great opportunity to own in the high-demand Willo District!

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