#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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17348 W Cochise Drive Waddell, AZ 85355

$830,000
3 Beds
2 Baths
2,149 SqFt
Status Active
MLS # 6755511
Property Type Single Family Residence
Price Type --
Newly remodeled home on a flood irrigated lot with NO HOA! So many great upgrades!! Open concept floorplan has large kitchen w/island. Split primary suite w/walk in closet & door to patio. 2 more bdr's split w/bath. Expansive patio with mountain views. This lot is a huge feature with lush mature trees & irrigated pasture. Great horse features including a 4 stall mare motel, auto waterers, 60 ft round pen, shed + lush irrigated grass pasture. Other great features including completely fenced property w/automatic gate, recently painted interior, newer flooring and a newer coated roof.

10737 E Simone Avenue Mesa, AZ 85212

$830,000
4 Beds
3 Baths
2,800 SqFt
Status Active
MLS # 6759842
Property Type Single Family Residence
Price Type --
Gorgeous 4-bedroom, 3-bathroom home, complete with a spacious den and an open floor plan designed for seamless living and entertaining. The split-bedroom layout ensures privacy, while two sliding glass walls open up to the backyard, offering a true indoor-outdoor experience. Step outside to your personal oasis, where you'll find a newly installed pool, travertine hardscape, and a covered patio. The backyard is also equipped with a movie screen and hot tub, creating the ultimate space for outdoor entertaining. Luxury vinyl plank flooring flows throughout the home & custom shutters. Guest Bedroom 2 features a private full bathroom. Additional highlights include a spacious 3-car garage. Own a home that blends luxury and comfort, inside and out!

10913 N 153rd Lane Surprise, AZ 85379

$830,000
5 Beds
3.5 Baths
3,750 SqFt
Status Active
MLS # 6763543
Property Type Single Family Residence
Price Type --
Stunning semi custom property on a private cul-de-sac in the highly desired Rancho Gabriela! You will fall in love with this multi generational home with separate ensuite and entrance. Discover a 3-car garage with built-in cabinetry, RV gate, RV parking space, and extra long driveway for all your vehicles. Enter to be greeted by wood-style floors, vaulted ceilings, pre-wired surround sound, plantation shutters, and modern light fixtures. The formal dining, ample living room, and open den are perfect for entertaining, while the oversized family room is ideal for intimate gatherings with your loved ones. Immaculate kitchen is a chef's delight, equipped with a walk-in pantry, SS appliances, granite counters, plenty of cabinets, and an L-shaped peninsula with a breakfast bar for casual meals Large main retreat features French doors to the backyard, built-in niches, a walk-in closet, and a lavish bathroom with a tiled separate tub/shower and a dual sink vanity. Host fun gatherings in the huge backyard comprised of a blue pool, Ramada w/built-in BBQ, firepit area, green grass, palm trees galore, and covered patio. This gem is sure to sell fast!

2501 E Encinas Avenue Gilbert, AZ 85234

$830,000
5 Beds
3 Baths
3,251 SqFt
Status Active Under Contract
MLS # 6701823
Property Type Single Family Residence
Price Type --
REDUCED! REDUCED! REDUCED! Highly desirable and sought after location in a great school district! This home sits on a large lot and has 5 large bedrooms, 3 baths, huge family room with a cozy fireplace, large remodeled kitchen has skylight to bring in tons of natural light, formal living and dining rooms. The large backyard has a children's play area beautiful pool for play time and keeping cool and great hot tub chilly evening relaxing. Plenty of room to grow a large family and entertaining! Lots of shopping and restaurants and easy access to highway to make getting around the valley in a snap.

6708 W Pleasant Lane Laveen, AZ 85339

$830,000
5 Beds
4.5 Baths
4,153 SqFt
Status Active Under Contract
MLS # 6743962
Property Type Single Family Residence
Price Type --
This expansive property has all the room you're looking for inside and out! Just under an acre with 4153 SF, 5 bed/4.5 bath, 5 car garage, RV gate and pool. Guest casita with separate entrance off the gated courtyard w/fireplace. Chef's eat in kitchen boasts gas cooktop, double ovens, plenty of cabinets/storage, granite counters and walk in pantry. Two large entertaining/living areas. Master bedroom downstairs with huge loft and 3 more bedrooms and 2 more baths upstairs.Lg covered patio, above ground hot tub, pebble tec pool with waterfall and large play area in this private and spacious yard with plenty of more room to add anything you need!

1542 Southview Drive Prescott, AZ 86305

$830,000 - 3Br/2Ba -  for Sale in Southview, Prescott
Open House
$830,000
3 Beds
2 Baths
2,328 SqFt
Status Active
MLS # 6717427
Property Type Single Family Residence
Price Type --
Quality Crystal Creek Builders custom home. True single level (no steps). Panoramic views from kitchen, dining and Bedroom while enjoying privacy off the living & Owners Suite. New HVAC (Aug 2023 Rheem 5 ton); many new windows. Energy efficient natural gas: Furnace, water heater (50gal w/circ pump), gas dryer & cooktop. Concrete Tile Roof, Stacked Stone Gas Fireplace. Kitchen features a large double door pantry, breakfast area w/distant views, generous cabinet space, island w/gas cooktop, wall oven, newer black stainless refrigerator, granite counters, island & peninsula seating. Separate dining area & large living space covered patio access.Master has patio access slider, dual vanity sinks, vanity sitting area, garden tub, separate shower & walk-in closet. Spacious Laundry w/utility sink

13227 W Palo Verde Drive Litchfield Park, AZ 85340

$830,000 - 4Br/4Ba -  for Sale in Dreaming Summit Unit 3a, Litchfield Park
Open House
$830,000
4 Beds
3.5 Baths
3,897 SqFt
Status Active
MLS # 6770497
Property Type Single Family Residence
Price Type --
Prepare to be amazed! Check out this fantastic 4 bed, 3.5 bath residence now on the market! Nestled on a premium corner lot and featuring a beautiful facade w/stone accents, manicured desert landscape, 3 garage spaces, an RV gated, and well-laid pavers. Inside you will find a spacious dining & living area plus a family room, boasting soft carpet in all the right places, crown moulding, and warm palette throughout. Prepare delicious meals in this gourmet kitchen, comprised of wood cabinetry w/crown moulding, granite tile counters & backsplash, recessed lighting, stainless steel appliances, and an island complete w/a breakfast bar. End your busy day in the primary bedroom, boasting private outdoor access, a walk-in closet, and a lavish ensuite w/dual vanities. You'll also find an open den and a large bonus room w/plantation shutters, ideal for an entertainment center. Lastly, the wonderful backyard includes a covered patio, attached pergola, artificial turf, built-in BBQ, and a refreshing pool/spa combo w/fun water features! Don't miss out!

1643 S Ponderosa Drive Gilbert, AZ 85295

$829,999 - 4Br/4Ba -  for Sale in Lyons Gate Phase 6, Gilbert
Open House
$829,999
4 Beds
3.5 Baths
3,722 SqFt
Status Active
MLS # 6737576
Property Type Single Family Residence
Price Type --
Welcome to the Lyons Gate community located in Gilbert! This stunning, freshly painted residence offers an abundance of space, perfect for comfortable living and entertaining. The home is a spacious 2-story, split layout with the master bedroom conveniently located downstairs along with an office in the front room. The upstairs serves as its own private getaway with additional bedrooms, a large loft, and a cozy extra space perfect for an office or craft area. Enjoy the luxury of expansive rooms, elegant finishes, and a prime location in one of the most sought-after neighborhoods. Take advantage of all that Gilbert has to offer, including parks, shopping, restaurants, entertainment, and much more!

11013 N Hershey Street Surprise, AZ 85388

$829,995 - 4Br/3Ba -  for Sale in Toll At Prasada Phase 2 Unit F & Unit C Amd, Surprise
New
$829,995
4 Beds
3 Baths
2,563 SqFt
Status Active
MLS # 6784074
Property Type Single Family Residence
Price Type --
Come experience this beautiful Skybrook floorplan located in our all-ages gated master planned community featuring an active lifestyle with golf, clubhouse activities, pools, sport courts, professional spa, and an on-site restaurant and bars. The gourmet kitchen makes a statement with its premium finishes, upgraded cabinets, and stainless steel Kitchen Aide appliances. The open-concept great room is the perfect atmosphere with 90 degree sliding doors to connect the dining area and expanded covered patio that is ideal for entertaining. The primary bedroom suite is the perfect retreat that includes large windows providing tons of natural light and offering a spa-like bathroom that features a stunning shower with a sitting area, dual sink vanity, and walk-in closet.

1921 E Yale Street Phoenix, AZ 85006

$829,990
4 Beds
3 Baths
1,792 SqFt
Status Active
MLS # 6781597
Property Type Single Family Residence
Price Type --
Historic Charm Meets Modern Comfort. Discover this stunning 1925 historic home in the coveted Gibbons Place neighborhood of central Phoenix. Meticulously remodeled, this 3-bedroom, 2-bathroom main house with guest house offers the perfect blend of classic elegance and contemporary convenience. Main House Features: Original hardwood floors,Custom kitchen with tile backsplash, quartz countertops, waterfall island, stainless steel appliances, and gas range, New fixtures, fans, baseboards, doors, and trim, Dual-pane windows, Cozy fireplace, Master bathroom with a tiled walk-in shower and walk-in closet, Upstairs loft leading to a large walk-out deck, Spacious covered patio Detached 2-car garage, New block wall and artificial turf landscaping, and a Huge lot. The fully remodeled one-bedroom, one-bathroom guest house is perfect for a mother-in-law suite or as an income property with a potential rental income of $1,500 per month. Full kitchen with stainless steel appliances, custom cabinets, and quartz countertops, Large living room, Private driveway and yard, 1-car carport, Don't miss this incredible opportunity to own a piece of Phoenix history.

5719 E Sayan Street Mesa, AZ 85215

$829,900
3 Beds
3 Baths
2,311 SqFt
Status Active
MLS # 6771981
Property Type Single Family Residence
Price Type --
Step into Luxury w/ this MOVE-IN-READY meticulously UPGRADED home, where timeless elegance meets modern sophistication! Multitude of Features include: Premium Lot neighboring Wash & Park Views, Gorgeous 8' Iron Entry Door w/ Elegant Glass Paneling, Breathtaking 20' Wall-of-Glass Sliding/Stacking Glass Patio Door, Gourmet Kitchen w/ Expansive 11' Island, 3cm Granite Countertops, Maple Cabinetry w/ 3'' Crown Molding, Premium Whirlpool SS Appliances - 36'' Cooktop, Built-In Oven&Microwave, Range Hood, Expanded Great Room w/ Added 4', Upscale Portofino Master Ensuite w/ Walk-In Super Shower, Double Vanity w/ added Drawers, Fabulously Spacious ~11'x8' Walk-In Closet, Roomy Office or Extra Bedroom w/ Closet to be used as preferred. Additional Upgrades include: Modern Wood-Like Tile Flooring & Modern Wood-Like Tile Flooring T/O, 16'x8' Charleston Garage Door, Upper&Lower Cabinetry in Laundry Room, Soft Water Loop, Pre-wiring for Pendant Lights and Ceiling Fans, Extra Can Lights with dimmers, Rough-Ins for Reverse Osmosis, & MUCH MORE (See Complete List in Photos)!!! This lovely Abode offers a perfect blend of elegance and functionality - Tour today and experience exceptional living! This Gated Resort-Style Community is in the esteemed Red Mountain area of NE Mesa featuring 2 covered gated entrances, expansive open spaces, interconnected trails, 3 parks, a clubhouse with a huge pool, fitness facilities, sports courts, Pickleball courts, an Event Lawn, Pavilions, and Children's Play Areas! These amenities create a perfect environment for walking, relaxing, sports, or family gatherings. Also, Reserves at Red Rock is Conveniently LOCATED w/ easy access to the 202 Red Mountain Freeway, surrounded by top-rated AA++ Mesa Public Schools like the New K-12 American Leadership Academy, Shopping, and Fine Dining. In addition, close to Usery Mountain Regional Park, Salt River Recreation, and Saguaro Lake, offering opportunities for hiking, boating, paddleboarding, and enjoying the stunning mountain scenery. Just a 25min drive to Sky Harbor & Scottsdale/Old Town, as well as to the Lake & River!!! PERFECT LOCATION for easy access to limitless activities!!!

9210 S Watson Road Buckeye, AZ 85326

$829,900
4 Beds
2 Baths
2,171 SqFt
Status Active
MLS # 6772683
Property Type Single Family Residence
Price Type --
Welcome to your new beautiful corner lot property sitting on 3.5+ acres ! This unique single story home offers beautiful mountain views & sunsets, huge pool with enclosed backyard perfect for your privacy & entertainment, car garage. Inside you will find tile throughout high traffic areas, kitchen with huge island open to the family room, pantry, granite counters in kitchen and bathrooms, formal dining room, eat in kitchen, split floor plan with dual vanities and separate tub and shower in the master suite, outside you will have a round exercise pen, covered horse stalls with automatic waters, a 270x160 lightened roping arena, power and water all throughout the property & NO HOA

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