#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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7640 E Golden Eagle Circle Gold Canyon, AZ 85118

$825,000
3 Beds
3 Baths
2,382 SqFt
Status Active Under Contract
MLS # 6644783
Property Type Single Family Residence
Price Type --
2ND PRICE REDUCTION! MOTIVATED SELLER! Superstition Mountain villa with MOUNTAIN VIEWS!. OFFERED FURNISHED! Very PRIVATE lot with views of the 9th hole of the Prospector Golf Course. WALKING DISTANCE TO THE CLUBHOUSE! Three bedrooms, one being a separate guest Casita, and 3 baths. OPEN KITCHEN, DINING, GREAT ROOM LAYOUT. Granite counter tops in the kitchen, wood beams in the great room, wood shutters and pleated shades throughout the home. Carpet in the bedrooms have been replace with wood floors. EXTENDED PATIO WITH FIRE PIT AND PLENTY OF ROOM FOR OUT DOOR SEATING. TWO JACK NICKLAUS GOLF COURSES! Not a golfer? Enjoy pickle ball, tennis, bocce, hiking and many other activities. You will love it here! Cub amenities under a separate agreement. 24 HOUR GUARD GATED COMMUNITY!. 35 minutes to Sky Harbor and 20 minutes to Mesa Gateway airports. Buyer and buyer's agent to verify all pertinent information including square footage.

28917 N 66th Avenue Phoenix, AZ 85083

$825,000
4 Beds
3 Baths
2,967 SqFt
Status Active
MLS # 6710471
Property Type Single Family Residence
Price Type --
Stunning next-generation home in the Pyramid Peak subdivision with endless mountain views. The Next gen Suite has 1 bedroom/1bath, dedicated AC unit, vinyl plank flooring, kitchenette, living area,separate entry, hookup for stackable washer/dryer and dedicated 1 car garage. Perfect for multi-generational living or having guests or an extra office. The Main home is split floor plan with 4 spacious bedrooms one bedroom is set up as a dedicated office and 2 full bathrooms. Kitchen is a chefs dream with white cabinetry, stunning quartz countertops, huge island for entertaining, stainless steel Monogram appliances with 6-burner gas stove, perfect for culinary enthusiasts. Enjoy seamless indoor-outdoor living with a stunning wall of patio doors that open to the backyard.... step outside to enjoy your private paradise featuring a heated pool and spa with a stunning stone backdrop and tranquil waterfall featureideal for relaxation and entertainment. Covered patio with an extended paver patio, dog run on the side yard with easy care artificial turf. This home combines luxury and practicality, offering a unique and versatile living space. Don't miss the opportunity to make this stunning property your own.

5327 W Paradise Lane Glendale, AZ 85306

$825,000
4 Beds
3.5 Baths
2,360 SqFt
Status Active
MLS # 6775268
Property Type Single Family Residence
Price Type --
**HIGHLY MOTIVATED SELLERS, SIGNIFICANT PRICE REDUCTION** Perfect for horse lovers on nearly an acre with NO HOA. Sunburst Farms Gem. This fully updated, move-in ready 4-bed, 3.5-bath home is a rare find in the desirable Sunburst Farms Subdivision. Inside, the home features a bright kitchen with granite counter tops, large island, and stainless steel appliances. The tri-level design offers ample living space, Master bedroom on upper level. Outdoors, enjoy a sparkling pool with a custom rock slide. Also featuring a large covered patio with a great grill area making it the perfect outdoor gathering spot. The sparkling pool with custom rock slide features another large ramada providing perfect shade protection all summer long. Updated features include new flooring (2015), heating/cooling (2015), fully renovated kitchen and baths (2015), heating/cooling (2015), fully renovated kitchen and baths (2015), and complete remodeled pool with custom rock slide (2020). This irrigated, expansive property boasts horse corral with stalls backing onto a bridle trail with direct access to an equestrian park. Chicken coop. Plenty of room for all your toys, RVs, and boats. This is a must-see home that won't last long! There are many more details, too many to list.

879 E Loma Vista Street Gilbert, AZ 85295

$825,000
5 Beds
3 Baths
2,773 SqFt
Status Active
MLS # 6772047
Property Type Single Family Residence
Price Type --
What an incredible 5-bed, 3-bath home on over 1/3 acre exuding charm! New AC's, Extra long driveway, RV gate, & RV parking. Bring all your toys! A welcoming living room with a high ceiling and panoramic windows is perfect for entertaining guests, while the family room w/gas fireplace & cozy loft are ideal for intimate gatherings. The kitchen has an island w/breakfast bar, granite counters, SS appliances, a walk-in pantry, & plenty of cabinets. Double doors open to the main retreat to find an ensuite boasting a dual sink vanity, roll-in shower, & walk-in closet. A bedroom & full bathroom await downstairs for added comfort! Oversized backyard offers covered patio w/Ramada extended, artificial lawn, playground, & a blue pool w/boulder waterfall, slide, & grotto as the heart of the backyard.

5209 N 145th Drive Litchfield Park, AZ 85340

$825,000
5 Beds
4.5 Baths
4,473 SqFt
Status Active
MLS # 6736383
Property Type Single Family Residence
Price Type --
Amazing move in ready Gem in the heart of Litchfield park and REDUCED PRICE 10/3. This one has 5 large Bedrooms, full Casita with separate entrance downstairs, 4.5 baths, huge loft, master down, and a 3 Car Tandem Garage nestled in the enclave of exquisite estates & Amenities. Gourmet Kitchen features gas cooking and stainless appliances with no homes in backyard for maximum privacy. Kitchen featuring a large Granite Island, In wall Oven and microwave, Gas Cooktop, walk-in Pantry & Butlers Pantry. The expansive upstairs loft welcomes oversized bedrooms with seperate walk in closets including jack and Jill bath between two of the bedrooms and another bedroom with a private bath! Indulge in the Outdoor Pool, upgraded landscape including synthetic turf and putting green!

26446 N Avenida Del Ray -- Rio Verde, AZ 85263

$825,000 - 3Br/3Ba -  for Sale in Rio Verde, Rio Verde
Open House
$825,000
3 Beds
2.5 Baths
2,716 SqFt
Status Active
MLS # 6778623
Property Type Single Family Residence
Price Type --
Fantastic Old World style home with cast iron & glass front door, all the best upgrades, travertine floors, Granite counters, center island, walk in pantry with frosted glass door, smooth cooktop, & upgraded stainless steel appliances & free standing range hood in the gourmet kitchen. 3 Bedrooms and 2.5 baths Large open Greatroom plan with lighted Niche wall. Deluxe tile and light fixtures in all the baths. Walk in closets in all bedrooms. Large 3 Car garage with extra storage room. Real wood plantation shutters through out the house, 8 ft. solid wood doors & 10 ft. ceilings. Front courtyard, back patio and driveway have pavers. Laundry room with washer & dryer, closet and abundant cabinets. Located near the entrance to McDowell Mountain Regional Park for hiking & biking. HURRY! Furniture is available for purchase on a separate bill of sale.

31020 N 5th Street Phoenix, AZ 85085

$825,000 - 4Br/3Ba -  for Sale in Gateway At Sonoran Preserve, Phoenix
Open House
$825,000
4 Beds
2.5 Baths
3,028 SqFt
Status Active
MLS # 6779678
Property Type Single Family Residence
Price Type --
** FREE 1% RATE BUYDOWN FOR THE FIRST 12 MTHS** A message from the sellers: ''We love the location of this home! The community is gated and is very family friendly which was important to us. The park is amazing and has a splash pad, two playgrounds and BBQ pits. The community holds several events throughout the year it makes it a super fun place to live. The home itself lent well to the fact that we love to entertain and the layout was perfect for that!'' Located in the serene Sonoran Gate gated community surrounded with stunning desert views, this spacious home is ideal for those who love to entertain. Its generous floor plan flows seamlessly from room to room, making gatherings a breeze. Every detail reflects custom craftsmanship, with upgrades throughout that bring both style and comfort. Outside, a sparkling pool awaits complimented by an outdoor kitchen area and gas firepit, making this the perfect outdoor space. The solar lease helps keep energy costs low with APS savings with summer bills at just $200.00 Embrace the peace and beauty of the surrounding desert landscape in a home designed for both relaxation and celebration.

13118 W Santa Ynez Court Sun City West, AZ 85375

$825,000 - 2Br/3Ba -  for Sale in Corte Bella Country Club Phase 1 Unit 1, Sun City West
Open House
$825,000
2 Beds
2.5 Baths
2,784 SqFt
Status Active
MLS # 6763359
Property Type Single Family Residence
Price Type --
Nestled in the majestic Active Adult Gated Community of Corte Bella, this luxurious Figueroa model home is now available for sale, inviting you to embrace a lifestyle marked by elegance and comfort. The home sweeps across 2,784 sq. ft. featuring 2 spacious bedroom suites with 2 well-appointed bathrooms, and separate guest powder room each reflecting a commitment to quality and design. As you approach the home, you're greeted by a stunning brick-paved driveway leading to a duo of custom entryways, one of which boasts a charming fountain, setting the stage for the grandeur within. The 3-car epoxy garage offers ample space for vehicles and storage. Step inside to discover a haven where every detail is meticulously designed for ultimate comfort and leisure. The great room's cozy fireplace invites you to relax, while the chef's kitchen is a culinary delight with granite countertops, upgraded cabinetry, a garbage compactor, recently updated appliances including a Microwave and Dishwasher in 2022, a large island, and high-end amenities including a gas range. Additional luxury features include a built-in fridge wine fridge, butler's pantry, and a generous walk-in pantry. The circular nook seating and updated fixtures enhance the home's allure, providing a perfect space for dining and gatherings. The primary suite is a retreat of its own, offering direct access to the patio and pool area, ensuring privacy and tranquility. The primary bathroom features a tiled snail shower with large soaking tub, crafted for a spa-like experience. The second suite impresses with a walk-in closet and updated bathroom fixtures. Outside, the resort-style pool with a waterfall, resurfaced bottom in 2022 and new rock wall, along with the spa, multiple patios, built-in BBQ, and lush landscaping create an outdoor oasis perfect for relaxation or entertaining. This home is not only a standout residence within Corte Bella but a remarkable opportunity to acquire a property where luxury meets lifestyle, ready to offer its new owners a sophisticated, comfortable living experience.

2701 N Black Rock Road Buckeye, AZ 85396

$825,000 - 4Br/4Ba -  for Sale in Verrado Phase 3 South Phase C, Buckeye
Open House
$825,000
4 Beds
3.5 Baths
3,194 SqFt
Status Active
MLS # 6777357
Property Type Single Family Residence
Price Type --
Welcome to luxury living in the master-planned community of Verrado, where this single-story, OWNED SOLAR, pool home awaits. This residence offers a perfect blend of elegance and functionality. Enjoy an open view fence with stunning mountain and city views. Step inside to discover an open and floor plan with a flex living space, perfect for versatile living arrangements. The second living room features three separate bedrooms and two baths, while additional highlights include an office and a dining room with a slider leading to a side patio. Updates include new paint both inside and out, brand new carpet, new water heater, misting system, custom sliders, dog door/dog run, new pool salt cell and a professionally designed master closet. This unique opportunity doesn't come around often!

1926 W Chisum Trail Phoenix, AZ 85085

$825,000 - 3Br/3Ba -  for Sale in Union Park At Norterra, Phoenix
Open House
$825,000
3 Beds
2.5 Baths
2,567 SqFt
Status Active
MLS # 6779639
Property Type Single Family Residence
Price Type --
Welcome to the charm of a historic neighborhood w/the vibrancy of modern living! This corner lot home boasts nearly 2,600sf of open living space in a vibrant, neighborly community. The keenly designed floor plan features an elegantly appointed owner's en-suite, open loft, and chef's kitchen w/an expanded island, granite countertops, high-end upgrades & wine cooler. Enjoy tile plank flooring & high-end carpet throughout. The landscaped front yard boasts lush plants & turf, while the custom backyard oasis includes travertine pavers and heated play pool w/LED lighting & serene water features. Community amenities enhance the lifestyle with a clubhouse, biking & walking paths, sports (pickleball) courts, an enclosed dog park, and a community pool & splash pad. Includes unique private driveway!

8728 E Via De Viva -- Scottsdale, AZ 85258

$825,000 - 3Br/2Ba -  for Sale in Sands Scottsdale Townhouses 1, Scottsdale
Open House
New
$825,000
3 Beds
2 Baths
1,702 SqFt
Status Active
MLS # 6782496
Property Type Townhouse
Price Type --
Welcome to a Rare Find in Historic Sands North. This remarkable property is on the market! Discover classic Arizona-Modern architecture in this beautifully preserved single-level 1972 townhome, part of Scottsdale's famous E.T. Wright development. Architectural details shine throughout, from the welcoming front courtyard to the optimized floor plan with spacious rooms, gorgeous hardwood flooring, a refreshed kitchen with soft gray cabinetry, and 2 fully remodeled bathrooms. Home Highlights: Classic Mid-Century Design, Generous Living Spaces with oversized owner's retreat. Large backyard complete with private pool. New mid-century lighting fixtures and fresh paint throughout. The community has a heated pool, private RV storage lot, and gated access to Salt River Fields. Superb Location: Minutes to high-end Scottsdale shopping, dining, McCormick-Stillman Railroad Park, Ritz-Carlton PV Resort, and Palmeraie Shops. Don't miss the chance to own paradise in Scottsdale Sands North.

8638 E Paraiso Drive Scottsdale, AZ 85255

$825,000 - 2Br/2Ba -  for Sale in La Vida, Scottsdale
Open House
$825,000
2 Beds
2 Baths
1,642 SqFt
Status Active
MLS # 6755844
Property Type Single Family Residence
Price Type --
Charming, one of a kind free standing home in highly sought after LaVida. Fabulous location! Beautiful front courtyard, small park, community pool, tennis courts and ramada. Recent updates throughout completed the past two months. New carpet, paint, renovated Saltillo tile, new epoxy garage floor, etc. Move in Ready. Refrigerator, washer, dryer are negotiable. Main plumbing line replaced February, 2024 One Gated entrance at Pima Road for residents only.

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