#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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22838 N De La Guerra Drive Sun City West, AZ 85375

$819,000
2 Beds
2.5 Baths
2,784 SqFt
Status Active
MLS # 6689724
Property Type Single Family Residence
Price Type --
Reduced Price! Golf Course Beauty w/3 car garage & courtyard. Upscale Figueroa Model, nestled in a desirable interior location of Corte Bella on the 13th fairway! 10 ft ceilings, 8ft interior doors, 2 ensuites, den and powder room. Casual dining with a view of the course + formal dining in the gathering room! Butler pantry including beverage cooler, walk-in pantry/torage closet & huge laundry room w/cabinets galore! Kitchen has a huge island w/ prep sink. Top of the line, stainless steel appliances, counter depth fridge, breakfast nook. Massive outdoor living space designed for daily enjoyment & entertaining. This will become your favorite place to end the day of you as you enjoy the colorful AZ sunset. Some furniture available outside of escrow. Corte Bella Country Club is 45+ is a guard-gated Del Webb community. Offering 2 restaurants & bars, a fitness center, heated pool & spa, locker and shower rooms, day spa, tennis, pickleball, bocce ball, social HOA activities and planned excursions and special interest clubs. Corte Bella Golf Club is a semi-private club. Corte Bella residents may NOT use the recreation facilities in Sun City West but may play golf on the SCW public golf courses. Corte Bella is well known for its award-winning golf course, restaurant, and amenities.

8727 E Jasmine Street Mesa, AZ 85207

$819,000
3 Beds
3 Baths
2,321 SqFt
Status Active
MLS # 6749706
Property Type Single Family Residence
Price Type --
Big Price Reduction!!! Welcome to this amazing home in the highly desirable gated community of Valencia at Mountain Bridge. Featuring 3 bedrooms, 3 baths, and 3 car extra deep tandem garage. This spacious residence includes a gourmet kitchen with granite countertops and a large island, beautiful greatroom floorplan plus a den, perfect for a home office or additional living space and so much more.. The open great room overlooks a beautifully landscaped backyard with view fencing, offering serene desert and mountain views. Located just around the corner and within walking distance of the awesome clubhouse with heated pool, spa, fitness center, pickleball and tennis courts, playground, walking trails and so much more. Don't wait because this gem will not last.

2986 E Linda Lane Gilbert, AZ 85234

$819,000
4 Beds
2.5 Baths
2,715 SqFt
Status Active
MLS # 6767355
Property Type Single Family Residence
Price Type --
If you've ever thought about owning your dream home in highly sought after Higley Groves West, then this is your chance! This home has it all. The backyard is an entertainer's paradise complete with gorgeous views and pool, built in BBQ, and a firepit. The home is spacious and laid out well. The split master has his/her closets, tub, and shower, plus a bedroom exit to enjoy morning coffee on the beautiful patio with serene views. The large family room welcomes you light and bright and perfect views of the backyard oasis. Kitchen is equipped with double ovens, large island, eat in breakfast bar into the family room with fireplace for the cozier life moments. Bedrooms are spacious. Upgrades like plantation shutters throughout and crown molding make this home even more beautiful. Brand new ice maker machine was just installed in the kitchen. This home is turn key and ready for its new owners.

22404 N 98th Avenue Peoria, AZ 85383

$819,000
4 Beds
2.5 Baths
3,200 SqFt
Status Active
MLS # 6767504
Property Type Single Family Residence
Price Type --
Welcome to this stunning home in Peoria's most desirable community - The Meadows. Located walking distance from Liberty High School and Sunset Elementary, nestled against a community greenbelt with expansive walking trails. Home is extremely well upgraded throughout with a gourmet kitchen that includes custom cabinets, upgraded appliances, and designer accents. Home is well maintained and move in ready. Backyard includes a premium pool and spa with upgraded landscaping. Close Proximity to the community park and community pool. Convenient to Loop 101, and Loop 303 for commuting. Come see for yourself! This home won't last long.

13135 W Baker Drive Peoria, AZ 85383

$819,000
2 Beds
2.5 Baths
2,366 SqFt
Status Active Under Contract
MLS # 6741680
Property Type Single Family Residence
Price Type --
One-of-a-Kind SOLAR Chroma floor plan to hit the market! Situated on PRIME PROPERTY w/ a SOUTH BACKYARD - separation from neighbors and adjacent to expansive landscape tract & GREEN BELT!! Fully Fenced Back YARD creates extreme PRIVACY! 2 Bed, 2.5 Baths, Den, Smart Space & HIDDEN BONUS ROOM - IMPRESSIVE!! Step inside and you'll fall in love w/ this OPEN GREAT ROOM PLAN w/ an abundance of NATURAL LIGHT due to OVERSIZED WINDOWS & being located next to OPEN SPACE!! GORGEOUS TILE thru-out the entire home. Stunning KITCHEN features; espresso-stained cabinets w/ large CROWN MOLDING, GRANITE w/ LEATHER FINISH, SS BUILT-IN GAS APPLIANCES w/ SS HOOD VENT, BUILT-IN FRIDGE, roll-outs & soft-close drawers! Owners suite is EXTENDED & Both Baths are UPGRADED to the HILT. Shhh, HIDDEN ROOM is behind CUSTOM BUILT-IN CABINETRY - WOW!! Home features a POWDER ROOM. Step outside to paradise - enjoy an EXTENDED PATIO w/ TRAVERTINE PAVERS, Gas FIRE PIT, lounge area w/ TV & AUTOMATED SCREEN that runs the length of the patio - this home is spectacular!! Additional features: OVERSIZED Garage w/ epoxy floors, cabinets & storage, garbage enclosure, sink in the laundry room, soft water, RO, custom lighting, add'l can lighting, Central Vacuum, Custom Closet at Master and so much more!!

4220 N 32nd Street Unit 31 Phoenix, AZ 85018

$818,000
4 Beds
4 Baths
1,923 SqFt
Status Active
MLS # 6729055
Property Type Townhouse
Price Type --
Introducing the epitome of modern living in the heart of Arcadia - welcome home to the Arcadian Phoenix. Nestled in the coveted 85018 area code, these modern townhomes redefine living with their spacious floor plans and an array of amenities. Step inside to discover a haven of elegance, boasting 10-foot ceilings on the main living floor and large windows that flood the space with natural light. The gourmet kitchen seamlessly merges with the inviting family room, creating the perfect setting for both everyday living and entertaining. Revel in the exquisite finishes, featuring stunning cabinetry, sleek quartz countertops, and timeless stainless steel appliances. Experience true architectural brilliance with the inclusion of a charming Juliet balcony and private rooftop deck

3060 N Ridgecrest -- Unit 110 Mesa, AZ 85207

$818,000
5 Beds
3 Baths
2,733 SqFt
Status Active
MLS # 6781405
Property Type Single Family Residence
Price Type --
Welcome to this stunningly updated home with bright, modern flair in the heart of Las Sendas! Backing to a lush desert wash, the home features a mountain backdrop from the sparkling pool and spa. From the second-story balcony, enjoy serene vistas and a sweep of city lights. This sought-after Palo Verde model features vaulted ceilings and expansive living spaces designed for both relaxation and effortless entertaining. The main level features an inviting guest bedroom or office, along with a full bath, perfect for visiting friends or family. Upstairs, four generously-sized bedrooms provide ample room for rest and privacy. The heart of the home is bathed in natural light, thanks to a dramatic wall of windows and glass slider door, bringing the outdoors in. The home features sophisticated design with a fresh color palette and a striking stone-lined fireplace wall, creating a warm, inviting atmosphere. The main level and bathrooms showcase sleek, large-format tile in neutral tones, while the kitchen boasts white cabinetry, honed countertops, stainless steel appliances, and convenient pull-out shelving. The spacious owner's suite opens to a private balcony, ideal for enjoying morning sunrises, breathtaking sunsets, and views of Red Mountain. The ensuite bath exudes spa-like luxury, with dove gray quartz countertops, floor-to-ceiling glazed tile in the shower, upgraded fixtures, and a freestanding tub over framed mountain views. A coveted 3-car garage assures extra room for 'toys,' perfect for a community that features miles of hiking, walking and biking trails, an award-winning 18-hole award-golf course, heated Olympic and recreational pools, tennis, pickleball, splash pad, parks and a gorgeous trailhead club with a membership-optional fitness center and spa. Convenient to the 202 Red Mountain Freeway with access to top-rated schools, the community backs to the Tonto National Forest, and is just minutes from popular hiking and mountain biking trails, paddling and kayaking, nearby lakes and just one hour from the cool pines of Payson!

6838 E Almeria Road Scottsdale, AZ 85257

$818,000
3 Beds
2.5 Baths
2,121 SqFt
Status Active
MLS # 6764207
Property Type Single Family Residence
Price Type --
Great Scottsdale location. Plantation shutters throughout. Large kitchen with Jenn-air gas cook top, wine fridge and double oven.Master bedroom suite has a sitting area. Master bath has a walk in double shower with rain shower head, double sinks and a jetted tub. Wood flooring in living room and formal dining. Plantation shutters throughout. Tankless hot water, Private pool and spa. Close to shopping and Downtown Scottsdale, Phoenix Botanical Garden, Phoenix zoo and Papago Park.

7381 W Bent Tree Drive Peoria, AZ 85383

$816,990
4 Beds
3.5 Baths
3,167 SqFt
Status Active
MLS # 6763842
Property Type Single Family Residence
Price Type --
Welcome to the Aloravita lifestyle! This beautiful designer home will have you from hello! The beautifully landscaped front yard will be your invitation to the desert contemporary designed iron entry door. The main level boasts a great room floor plan with gourmet kitchen layout, including waterfall island, decorative backsplash,s/s appliances, separate beverage refrigerator, gas cooktop, quartz counter tops, and a walk-in pantry. The main level is also home to a spacious office/den, covered patio, and en suite guest bedroom. Ascend the stairs to the second level to enjoy the spa-like primary suite including upgraded tile and glass shower with rain shower head, dual sinks, and large walk-in closet. Level two is also home to the loft, laundry room (with cabinets), two bedrooms, and a full hall bath. This stunning home also features a car tandem garage with exterior keyless entry pad. Enjoy spectacular mountain views, biking, hiking and walking trails, as well as nearby golf, shopping, and dining opportunities.

14049 E Burnside Trail Scottsdale, AZ 85262

$815,000
4 Beds
3 Baths
2,738 SqFt
Status Active Under Contract
MLS # 6724081
Property Type Single Family Residence
Price Type --
JUST COMPLETED New Construction contemporary desert home on 1.7 ACRES with direct backyard views of Granite Mountain & 4 Peaks!! This new build with NO HOA includes a gorgeous custom iron front door, a MASSIVE open Kitchen & living room with high-end Cabinets, White Quartz Countertops, 36'' Cooktop, Built-in Stainless Steel Microwave and double ovens, & upgraded flooring. The upgrades continue with a stunning Master Bathroom with a Freestanding Soaking Tub, Modern Shower and Beautiful Double Vanities, an oversized four car garage, exceptional energy efficiency with spray foam insulated walls & ceilings, upgrading A/C system, Premium Stucco, & last but not least an upgraded full 12' patio to watch the sunset on Granite Mountain from.

3106 N 70th Street Unit 2008 Scottsdale, AZ 85251

$815,000
3 Beds
2.5 Baths
1,820 SqFt
Status Active
MLS # 6747088
Property Type Townhouse
Price Type --
Experience luxury living in this exquisite townhouse, where meticulous attention to detail is evident. One of the rare units featuring a private oversized yard, this contemporary masterpiece is perfectly positioned in a highly sought-after neighborhood, just a short stroll from the vibrant heart of Old Town Scottsdale. Step inside to discover a spacious, light-filled open floor plan adorned with expansive windows boasting Hunter Douglas Window Treatments, European Oak Engineered Hardwood flooring, and a stunning glass panel staircase. The home is accentuated by sophisticated light fixtures that add a touch of elegance to every room. The gourmet kitchen, a true chef's delight, boasts pristine white cabinetry, quartz countertops, and high-end stainless steel appliances, offering ample space for culinary creations. The living room opens to a private balcony, providing views of Camelback Mountain, perfect for enjoying serene mornings or sunset evenings. Retreat to the opulent owner's suite, where soaring ceilings enhance the airy ambiance. The ensuite bathroom is a sanctuary of indulgence, featuring a freestanding soaking tub, an oversized step-in shower, and a walk-in closet outfitted with custom built-ins, offering abundant storage and style. This is not just a homeit's a statement of sophisticated living in one of Scottsdale's most desirable locations.

4706 S Primrose Drive Gold Canyon, AZ 85118

$815,000
4 Beds
3 Baths
3,064 SqFt
Status Active
MLS # 6765667
Property Type Single Family Residence
Price Type --
Fully furnished single level home with private pool. Backs to state land with gorgeous mountain views and 100% privacy. Currently operating as a short term rental, this home is a perfect income generating property or personal vacation home. Home has been well maintained, including new roof in 2020, new A/C unit in 2023, and numerous major appliance replacements. Full home speaker system plus 9 TVs throughout the home, including 3 TV wall in entertainment room. Both interior and exterior of home painted in 2020. Financials of rental income available upon request.

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