#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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20802 N Grayhawk Drive Unit 1026 Scottsdale, AZ 85255

$749,900
3 Beds
2.5 Baths
2,305 SqFt
Status Active
MLS # 6758858
Property Type Townhouse
Price Type --
Imagine yourself living in the prestigious and highly desirable Guard Gated community of Avian at Grayhawk in the heart of North Scottsdale. This beautiful townhome boasts the best location next to the community pool and spa and situated on the end of a private cul-de-sac. You don't want to miss this spacious 3 bd, 2.5ba, 2 car gar property with a private patio and cozy front courtyard. Open layout with Large eat-in-kitchen and extensive Great room with vaulted ceilings and an abundance of natural light. Huge laundry room with sink and tons of storage. When not spending time at the pool, you'll be minutes from world class dining, shopping, championship golf courses, hiking, biking,and everything that North Scottsdale and luxury desert living has to offer.

20712 N 56th Avenue Glendale, AZ 85308

$749,900
3 Beds
2 Baths
2,210 SqFt
Status Active
MLS # 6766007
Property Type Single Family Residence
Price Type --
Gorgeous SINGLE LEVEL home with updated kitchen and baths, neutral tile and colors throughout. NO INTERIOR STEPS AND GAS COOKING TOO! 3 bedrooms PLUS a nice office/den! Amazing resort style backyard with lush tropical landscaping, refreshing pool to relax in and a beautiful palapa and putting green complete this home created to maximize the outdoor enjoyment we so appreciate in sunny Arizona, where we salt our Margaritas and not our sidewalks! Fully insulated and air conditioned 3-car garage for multi-purpose usage. Owner may consider selling most furniture on a separate bill of sale. Perfect for a second or full time home!

17900 N 80th Place Scottsdale, AZ 85255

$749,900
3 Beds
2 Baths
1,879 SqFt
Status Active
MLS # 6778118
Property Type Single Family Residence
Price Type --
BEAUTIFUL home with a perfect location in Scottsdale! Enjoy the bright open floorpan with a greatroom, 3 bedrooms and a den. The home is move in ready with custom paint, custom lighting, stainless steel appliances and gas cooktop! Enjoy the spacious & private backyard for relaxing. This lovely neighborhood is a prime location and close to all the great amenities Scottsdale has to offer. Minutes from Kierland Commons and Scottsdale Quarter shopping/restaurants/movies and the 101. Don't miss this home!

721 Crosscreek Drive Prescott, AZ 86303

$749,900
4 Beds
4.5 Baths
3,512 SqFt
Status Active
MLS # 6769155
Property Type Townhouse
Price Type --
Located overlooking the 5th Green of Capital Canyon Golf course in Prescott. So serene and peaceful! Open floor plan with plenty of natural light and views. This spacious 4-bedroom, 4.5 bath home also offers a living room and a family room, great for gatherings with family and friends. Relax on the oversized back deck--enjoy the peaceful and serene surroundings and the occasional deer and other wildlife! Gas fireplace, plenty of kitchen cabinets and counter space plus a pantry. This beautiful turnkey townhome is a great second home, investment property or year-round home. Close to downtown Prescott, in the Hassayampa Village Community/Aspen Creek Meadows neighborhood. Capital Canyon Club is a private golf course/exercise facility and restaurant. Membership optional.

15706 E Sterling Spur Road Dewey, AZ 86327

$749,900
5 Beds
3 Baths
3,894 SqFt
Status Active
MLS # 6774449
Property Type Single Family Residence
Price Type --
NEW ROOF with warranty! Nestled in the Estates at Cherry Ridge, this charming home is surrounded by breathtaking mountain views. Natural light floods through expansive windows into the open floor plan. The kitchen boasts granite countertops and hickory cabinets, perfect for creating home-cooked meals. The primary suite is a tranquil retreat, featuring a walk-in closet and luxurious en-suite bath with a soaking tub. On the main level, two additional bedrooms welcome guests, while downstairs offers two more bedrooms, a full bath, and a spacious family/theater room and additional room for a gym, craft room or playroom. The backyard is perfect for gatherings, complete with a gas firepit for cozy evenings. Items that do not convey: Flag pool and Planted Iris's. Community Lending Program Available - Free 2/1 Buydown- (temporary interest rate reduction of 2%) for this property only. Ask for details.

23028 E Excelsior Avenue Queen Creek, AZ 85142

$749,900
5 Beds
4.5 Baths
3,183 SqFt
Status Active
MLS # 6776493
Property Type Single Family Residence
Price Type --
Beautiful two-story home in the desirable HARVEST community in Queen Creek! Nearly new FIVE beds, 4.5 baths, 3 car tandem garage & a backyard to LOVE! Large sparkling private pool with water feature, built-in firepit, turf for year-round green & low maintenance. Over $100k invested in this backyard paradise! Large downstairs bed & full bath. Gorgeous kitchen with white shaker cabinets, quartz counters, island, stainless appliances including gas cooktop & hood vent. Breakfast room plus formal dining. Very open layout. Upstairs you'll find a spacious loft, 4 more bedrooms including the primary suite & another bedroom with private ensuite. Primary suite is huge & the primary bath is spa-like with a massive walk-in shower, dual vanities & a closet large enough for it all! Walk-in closets in all rooms. Upstairs laundry room. All appliances can stay. The Harvest community in Queen Creek, Arizona, is a master-planned development covering more than 400 acres, designed with family-friendly amenities, blending suburban living with local agricultural heritage. The central gathering area, known as The Grange, includes both a resort-style pool & a junior Olympic-sized lap pool, a community lake, event spaces & outdoor pavilion. An interconnected trail system & multiple parks make it easy to explore on foot or by bike. The community is also close to San Tan Mountain Regional Park & convenient shopping options in Queen Creek, making it an attractive choice for residents looking for both relaxation & accessibility. The design of Harvest honors Queen Creek's agricultural roots, incorporating themed landscaping & spaces for residents to connect with nature. This includes features like an agriculturally-themed playground & lush, open green spaces that make the area feel welcoming & connected to the local heritage. For those interested in schools, Harvest is served by the Queen Creek Unified School District, with schools such as Queen Creek Elementary & Queen Creek High nearby. The blend of diverse home styles, robust amenities, & family-centered design has contributed to Harvest's appeal as one of Queen Creek's newer & sought-after communities.

1001 N 11th Street Phoenix, AZ 85006

$749,900
5 Beds
4 Baths
2,305 SqFt
Status Active
MLS # 6778081
Property Type Single Family Residence
Price Type --
Investor Opportunity. Quaint home in the historic Garfield District. The property includes a 2Br unit with an additional 1bd units and 2 studio units on the property. 2 br could easily be turned into 3 br. 4 total units for rent. Plus outdoor space. Excellent income opportunity. The property has a new roof and has a large amount of plumbing and electrical work completed. The main stuff has been completed. Just needs someone to come and finish it. A stones throw to Banner Hospital. No Wholesalers.

26715 N 72nd Lane Peoria, AZ 85383

$749,900
4 Beds
3 Baths
2,779 SqFt
Status Active Under Contract
MLS # 6759853
Property Type Single Family Residence
Price Type --
Welcome home to this gorgeous, upgraded home exuding charm & elegance! This one-story gem features sweet curb appeal, tandem 3-car garage w/an extended driveway, & a welcoming courtyard for relaxing mornings. Enter to find an open layout with formal dining, wood look flooring, modern light fixtures, & neutral palette. The gourmet kitchen has an oversized island w/breakfast bar, SS appliances, quartz counters, espresso cabinets w/crown moulding, & modern backsplash. The main suite has an oversized lavish bathroom w/ dual sink vanity, large tub, & a huge walk-in closet. The cozy bonus room is perfect for family or play time! The serene backyard offers a covered patio & artificial turf. All found in the highly coveted and pristine neighborhood of Aloravita in North Peoria. This is the one!

12610 E Nandina Place Gold Canyon, AZ 85118

$749,900
3 Beds
3 Baths
2,154 SqFt
Status Active Under Contract
MLS # 6765316
Property Type Single Family Residence
Price Type --
TRULY SPECTACULAR SUPERSTITION MOUNTAIN VIEWS FROM MOST DESIRABLE LOCATION IN PERALTA CANYON! 2019 HIGHLY UPGRADED SINGLE LEVEL HOME OFFERS 3 BEDROOMS + DEN, 3 BATHS & 3 CAR GARAGE. UPSCALE INTERIOR FEATURES DESIGNER COLOR PALETTE, SOARING CEILINGS, RECESSED LIGHTING & WOOD-LOOK PLANK TILE FLOORING. LIGHT & BRIGHT GREATROOM OPENS TO GOURMET KITCHEN BOASTING BEAUTIFUL BRIGHT QUARTZ COUNTERS, ELEGANT WHITE CABINETS W/CROWN MOLDING, HIGH-END STAINLESS APPLIANCES, WALK-IN PANTRY & ISLAND W/PENDANT LIGHTING. SPACIOUS PRIMARY SUITE SPORTS LARGE ENSUITE BATH W/DOUBLE VANITIES, WALK-IN SHOWER, HIS & HERS CLOSETS & FABULOUS MOUNTAIN VIEWS. UNSURPASSED SUPERSTITION MOUNTAIN VIEWS FROM COVERED PATIO & TRAVERTINE SEATING AREAS AMID LOVELY EASY CARE DESERT SCAPE. CLOSE TO 5 GOLD CANYON GOLF COURSES, WORLD CLASS HIKING, RESTAURANTS & SHOPPING. 35 MIN. TO PHX SKY HARBOR. HOA ONLY $100/MO.

23575 N 73rd Place Scottsdale, AZ 85255

$749,900
3 Beds
2 Baths
1,629 SqFt
Status Active Under Contract
MLS # 6776949
Property Type Single Family Residence
Price Type --
This beautifully remodeled 3-bedroom, 2-bathroom home is a coastal-inspired gem located in the desirable gated community of Los Portones, North Scottsdale. With its inviting open floorplan, the home features modern updates and coastal charm throughout. Situated on a spacious lot, it provides ample outdoor space for entertaining or relaxation. Residents enjoy access to scenic walking paths, and the location is conveniently close to shopping, dining, schools, and parks, offering a perfect balance of tranquility and urban convenience in a secure, picturesque setting.

14632 W Columbus Avenue Goodyear, AZ 85395

$749,900
5 Beds
2.5 Baths
2,813 SqFt
Status Active Under Contract
MLS # 6778396
Property Type Single Family Residence
Price Type --
REMODELED! OWNED SOLAR! HARD TO FIND 5 BEDROOM HOME WITH HEATED POOL/SPA IN SOUGHT-AFTER PALM VALLEY! PRIVATE, PREMIUM LOT ON ALMOST 1/4 ACRE BACKING TO THE COMMON AREA! 3 CAR GARAGE AND RV GATE! This spacious home boasts high ceilings throughout, open concept Kitchen/Great Room, large 5th Bedroom or Game Room, Den with double doors (or Formal Dining or Living Room), gas option at cooktop & dryer, Guest Bath with access to pool, new luxury laminate floors, quartz countertops at Kitchen & Primary Bath, tiled shower with glass surround, automatic shades at Primary Bedroom, new appliances (fridge, dishwasher, washer, dryer), new roof in 2021, & the list goes on. Relax & entertain in your backyard oasis with pool/spa, covered patio, gas BBQ, & gas firepit. Excellent location near schools!

1520 N San Gabriel Avenue Sierra Vista, AZ 85635

$749,900
5 Beds
4 Baths
4,084 SqFt
Status Active
MLS # 6736098
Property Type Single Family Residence
Price Type --
Spacious custom-built home with 6 bedrooms, 4 bathrooms, oversized 3 car garage with a private pool, sauna, outdoor kitchen and producing fruit trees sitting on a private lot. Built using ''RASTRA'' Insulating Concrete Form blocks provide for excellent insulation, noise suppression, and strength upwards of 700 times stronger than wood framing. On one side are 3 bedrooms, 2 bathrooms, a great room open into the kitchen and dining area/breakfast bar, and laundry room. The center has the formal dining room and the entrance leading into living room. The remaining first floor contains a bedroom/office and the primary suite with a large bath, walk-in closet, and sauna. The second floor above the 3 car garage functions as exercise room, home school or bedroom. You'll love the pebble-tec pool!

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