#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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2415 E Cochise Road Phoenix, AZ 85028

$800,000
4 Beds
2 Baths
2,284 SqFt
Status Active
MLS # 6719966
Property Type Single Family Residence
Price Type --
Welcome to this beautifully maintained & updated 4-bedroom, 2-bathroom home nestled in a serene neighborhood near the base of the Phoenix Mountain Preserve. This cherished home, built in 1970 and impeccably cared for by the original owners for 54 years, exudes a timeless charm and showcases meticulous upkeep. Key Features: Prime Location: Situated just south of Shea Boulevard and steps away from Trail 101, one of the area's most popular hiking trails, this home offers unparalleled access to outdoor adventure and stunning mountain views. Modern Upgrades: dual-pane windows throughout. Both bathrooms and the kitchen have been tastefully remodeled, featuring modern fixtures and finishes. Solar energy and natural gas keep expenses low. All the 70's dated issues have been improved - no sunken rooms, no popcorn ceilings, electricity is in all the ceilings plus pocket lights were added, all aluminum single pane windows were replaced with quality dual pane energy efficient windows. Interior Excellence: The home boasts a fantastic layout with a blend of new tile flooring and carpet in the right places. Curb Appeal: Nestled in a quiet, mature and beautifully maintained neighborhood with no HOA, this property features great curb appeal and a large .25-acre lot, perfect for gardening, entertaining, or simply enjoying the beautiful Arizona weather. Don't miss your chance to own this gem at the heart of one of Phoenix's most desirable neighborhoods.

4910 W Mountain Hollow Loop Show Low, AZ 85901

$800,000
5 Beds
3 Baths
2,757 SqFt
Status Active
MLS # 6743878
Property Type Single Family Residence
Price Type --
Introducing your dream home! Nestled in a serene and welcoming neighborhood, this brand new build boasts five spacious bedrooms and 3 luxurious baths. Designed with modern living in mind, this home offers ample space for both relaxation and entertainment, making it perfect for growing families or those who love to host guests. One of the standout features of this stunning property is the primary room located conveniently on the ground floor. This provides easy access and a retreatesque atmosphere for the homeowners, ensuring privacy and comfort. The ensuite bathroom in the primary room is equipped with high-end fixtures and finishes, creating a spa-like experience right in your own home. Step outside to discover the beautifully landscaped yard, which offers a peaceful.. outdoor activities or simple relaxation. The meticulously designed garden area is perfect for those who enjoy nature and outdoor living. Whether you're hosting a summer barbecue or enjoying a quiet morning coffee, this landscaped paradise will be your sanctuary. Don't miss the opportunity to make this impeccable, move-in-ready home yours!

343 W Canyon Street Apache Junction, AZ 85120

$800,000
3 Beds
2.5 Baths
2,512 SqFt
Status Active
MLS # 6745971
Property Type Single Family Residence
Price Type --
Tucked away in the breathtaking Superstition Mountains, this stunning custom home offers sweeping views of city lights and mountain landscapes. Enter through the courtyard to a mosaic-tiled foyer, where handcrafted wood floors and travertine exude elegance. Expansive windows flood the interior with natural light and frame a picturesque backyard dotted with Saguaros. The cozy den and spacious family room are ideal for both relaxation and entertaining. The chef's kitchen boasts granite countertops, walnut cabinets, and stylish pendant lighting. The luxurious master suite features a custom therapeutic jet tub. This property also accommodates horses with 32x16 horse stalls and nearby riding trails, enhancing its appeal. With new carpet, a 2022 roof, solar panels, 1.25 acres, and no HOA!

7720 N 181st Avenue Waddell, AZ 85355

$800,000
3 Beds
2 Baths
2,024 SqFt
Status Active
MLS # 6753868
Property Type Single Family Residence
Price Type --
Rare find! 2 acre horse property only minutes from Hwy 303!You'll know it's special as you drive up to the expansive front lawn and then see the welcoming front porch! The 3 bed 2 bath home w/split floor plan, living room, vaulted ceilings,ceiling fans,family room with dining area, eat in kitchen w/corian counters. Primary en suite bedroom w/step in shower and walk in closet-slider to back patio! Huge 2nd bedroom! Nicely sized 3rd bedroom-great for home office. 2 garages! Everything you'll want outside too- covered patio, separate pergola covered BBQ area,fenced yard, fully fenced pasture, lighted arena, covered stall/tack area w/water and power, flood irrigation.

3294 E Blue Ridge Way Gilbert, AZ 85298

$800,000
5 Beds
2.5 Baths
3,567 SqFt
Status Active
MLS # 6759907
Property Type Single Family Residence
Price Type --
PRICE IMPROVEMENT ~ Dream home, open floor plan, top school district! This stunning Marbella Vineyards home has over $115,000 in updates! Featuring paid-off solar panels and a backyard oasis with a heated pool for year-round enjoyment, this gem is located in one of Gilbert's best areas within the top-rated Chandler school district. The home offers 5 bedrooms, including two on the first floor: a master suite and an extra room perfect as a bedroom, office, or gym. Enjoy an open floor plan, custom entertainment built-ins, hardwood and tile flooring, and a chef's kitchen with cherry cabinets, granite countertops, and modern finishes. Don't miss this rare find!

951 N Forest Court Chandler, AZ 85226

$800,000
4 Beds
2.5 Baths
2,948 SqFt
Status Active
MLS # 6762929
Property Type Single Family Residence
Price Type --
Oversized private lot on a unique corner cul-de-sac within another cul-de-sac w/only one neighboring home. Down the street from a park, elementary school, Intel, shopping, dining, the gym, freeways & more! Spacious, open, high ceilings & tons of natural light in this RECENTLY UPDATED home. Freshly painted inside 2024 & exterior '22. The kitchen has tons of cabinets, gorgeous quartz counters & sparkling stainless appliances. DOWNSTAIRS, the private, spacious owner's suite has a newly remodeled shower! Upstairs is a bonus/game/media room (or 2nd master) & 3 large bedrooms sharing the newly remodeled bath. NEWER ROOF, wired for surround sound, security system & central vac+energy efficient features. The spacious back yard has an extended covered patio, sports court & lush, green play area.

1119 E Paseo Way Phoenix, AZ 85042

$800,000
4 Beds
3.5 Baths
3,594 SqFt
Status Active
MLS # 6771963
Property Type Single Family Residence
Price Type --
The seller is highly motivated, and time is of the essence! Pre-lisitng inspection completed and available to any buy that requests. This property presents an exceptional opportunity in the area, creating a win-win situation for all parties involved. Don't miss your chance to be the fortunate buyer of this beautifully pre-inspected home, which is ready for immediate sale.Experience elevated living within the South Mountain Preserve! Nestled in the prestigious gated community of Avance, this never-before-listed, newer construction home backs onto 16,000 acres of parkland with hiking, biking, and horseback trails. Just minutes from downtown Phoenix's urban restaurants, sporting events, and convenient proximity to the airport without airport noise make this home desirable. This tranquil retreat offers four spacious bedrooms, a flex space, and the perfect open floor plan to enjoy friends and family. The modern kitchen, on trend finishes, and a chef's outdoor kitchen and backyard oasis with extensive landscaping blends luxury with nature's beauty in a prime location. So many attributes to share, but must see! Come for a private tour today!

7199 E Ridgeview Place Unit 210 Carefree, AZ 85377

$800,000
3 Beds
3 Baths
2,544 SqFt
Status Active Under Contract
MLS # 6750698
Property Type Apartment
Price Type --
Incredible opportunity to own this larger upper unit in Montacino. Complete with private elevator, sweeping views, three bedrooms plus a den, two fireplaces, and two balconies. You will love the chef's kitchen with a gas cooktop and beautiful honed granite. There is a community pool and spa that are heated. Very friendly community walking distance to the shopping district in Carefree where you can enjoy several restaurants and shops. This is the Carefree lifestyle! Gated. Two single garages. The large primary also enjoys a fireplace. Although the pool has a heater, they don't heat it any longer. They do heat the spa.

9727 E Palm Ridge Drive Scottsdale, AZ 85260

$800,000
4 Beds
2.5 Baths
2,240 SqFt
Status Active Under Contract
MLS # 6768358
Property Type Single Family Residence
Price Type --
Great location. Close to schools, parks, shopping & restaurants. This ready to move in home features a private pool 4 bedrooms and 2.5 Bath. Vaulted ceilings Enjoy the natural gas fire pit after a dip in your recently redone pebble teched pool. The primary bedroom split from the 3 other bedrooms offers privacy. This well designed 2240 sq ft. features private formal dining and eat in kitchen with great room and living room. Newer double paned windows, new roof in 2022, new air conditioner 2019. Inside painted and new carpet in the primary bedroom & walk in closet. Special corner lot with side gate rear yard access. Lots of storage, laundry room with walk in pantry.

10641 E Relativity Avenue Mesa, AZ 85212

$800,000 - 4Br/3Ba -  for Sale in Eastmark Development Unit 6 South Parcels 6-1 And, Mesa
Open House
$800,000
4 Beds
2.5 Baths
2,475 SqFt
Status Active
MLS # 6774760
Property Type Single Family Residence
Price Type --
Are you in search of a semi-custom luxury residence in a masterfully designed community? This exquisite corner lot property, with no neighboring homes to the east and a serene park in the front yard, is your ideal sanctuary. As you approach, you are welcomed by an elegant extended porch adorned with pavers and a grand entryway. Upon entering, the ambiance of opulence envelops you, featuring real hardwood plank flooring, 7-inch baseboards, and meticulously curated designer light fixtures. To the left, a sophisticated powder room awaits, showcasing an upscale vanity and chic lighting. The hallway leads to a versatile den or bedroom, complemented by two additional bedrooms and a luxurious full bathroom, each equipped with walk-in closets. Venture further into the heart of the homea breathtaking open-concept living, dining, and kitchen area filled with natural light. The impressive 18-foot sliding doors enhance the space, seamlessly connecting indoor and outdoor living. The kitchen is a chef's dream, featuring a sprawling quartz island, elegant gold cabinet knobs, and top-of-the-line Bosch appliances, including an induction cooktop and oven. Don't miss the professionally designed pantry, optimized for convenience and style. Throughout the home, Pottery Barn rods and elegant drapes provide a sophisticated touch. The living room is equipped with surround sound speakers, making it perfect for entertaining guests. Step into the primary suite, a true oasis of tranquility. Bathed in light and featuring soft, neutral-toned carpeting, this retreat includes luxurious countertops, exquisite light fixtures, and a frameless shower with dual showerheads, including a rain shower. The professionally designed primary closet maximizes space with thoughtful storage solutions, seamlessly connecting to the laundry room, which boasts quartz countertops and ample cabinetry. Every detail has been carefully considered, from the recently elevated 8-foot doors adorned with Emtek doorknobs to the Hallmark Hardwood Flooring. The entire home is equipped with a state-of-the-art water filtration system. As you step into the backyard through the stunning sliding doors, you'll find an expansive turf area and a beautiful paver patio, complete with a stylish gas fireplaceperfect for relaxation and gatherings. The three-car garage features premium epoxy flooring, ample cabinetry, and hanging storage, ensuring both functionality and elegance. Embrace the luxury lifestyle you deserve in this remarkable home

114 W Adams Street Unit 808 Phoenix, AZ 85003

$800,000 - 3Br/2Ba -  for Sale in Orpheum Lofts Condominium 2nd Amd, Phoenix
Open House
$800,000
3 Beds
2 Baths
2,301 SqFt
Status Active
MLS # 6760802
Property Type Apartment
Price Type --
Welcome to the second-largest home at historic Orpheum Lofts, the only full-service, pre-war condominium in Phoenix! 808 boasts an open kitchen/living/dining space, illuminated by 8 windows that allow for captivating views of Downtown Phoenix and South Mountain. 10'8'' ceilings with concrete beams and exposed brick walls. Viking oven, LG smart appliances, Empava induction stove, and Lutron smart home enabled. Three split bedrooms, two dens/offices, and two full bathrooms. Orpheum Lofts was originally built in 1931 as the Title and Trust building. Today, it's a full-service residential building with key-locked elevators, attended lobby, outdoor terrace, gym, and pool. Two storage units available. Walking distance to the light rail, Wren & Wolf, Footprint Center, & more!

7401 N Scottsdale Road Unit 24 Paradise Valley, AZ 85253

$800,000 - 3Br/3Ba -  for Sale in Shores, Paradise Valley
Open House
$800,000
3 Beds
2.5 Baths
2,401 SqFt
Status Active
MLS # 6777654
Property Type Townhouse
Price Type --
Updated LUXURY! Location, views, open floor plan! $100k+ in upgrades, optional $80k in luxury Restoration Hardware furnishings on separate bill of sale. Great forever home or investment! Mountains, golf course and water views. Access to adjoining hotel pickleball/tennis courts, pool with food and towel service, workout room, plus kayak and paddle boats for fun on the lake (avail for a daily fee) HOA fees cover Cable TV, internet, water, sewer, trash, roof/landscaping and more! Luxury upgrades include new tile throughout, glass walls and railings, spacious eat-in kitchen with big island, tankless water heater, new skylights, and all windows are tinted. 3 outdoor areas including private Master balcony, private BBQ patio, and open lawn patio.

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