#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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7027 N Scottsdale Road Unit 225 Scottsdale, AZ 85253

$745,000
2 Beds
2 Baths
1,233 SqFt
Status Active
MLS # 6764146
Property Type Townhouse
Price Type --
Welcome to Paradise Valley and this BRAND NEW, custom, 1230 sqft, 2bed/2bath split floor plan condo with gated entrance and private garage! Nestled in the quiet and hidden community of Traviata, this property is within steps of dozens of attractions. With custom closets, luxury kitchen appliances, custom lighting, a new A/C unit, flatscreen wall-mounted TVs, and high end furnishings, it's like living in a magazine! Every detail exudes sophistication, from the custom cabinetry to the striking countertops and spacious closets. Enjoy access to the community's fitness center, heated pool, and nearby shopping, golf, parks and restaurants. Embrace the luxury lifestyle you deserve!

9645 N 32nd Street Phoenix, AZ 85028

$745,000
3 Beds
2 Baths
2,334 SqFt
Status Active
MLS # 6765373
Property Type Single Family Residence
Price Type --
Seller may consider buyer concessions if made in an offer. Welcome to your future home! This property boasts a fresh interior with a neutral color paint scheme, providing an inviting atmosphere as soon as you walk in. The living room features a cozy fireplace, perfect for relaxing evenings. The primary bathroom is a haven with a separate tub and shower, complemented by double sinks for added convenience. The kitchen is a chef's dream, equipped with all stainless steel appliances and a stylish accent backsplash. Outside, you'll find a private in-ground pool, a covered patio, and a fenced-in backyard, ideal for entertaining. This home ticks all the boxes for a comfortable and modern lifestyle. Don't miss out on this gem!

5420 E Verde Lane Phoenix, AZ 85018

$745,000
3 Beds
2 Baths
1,750 SqFt
Status Active
MLS # 6772826
Property Type Single Family Residence
Price Type --
Welcome to your dream home with endless possibilities in the heart of Arcadia lite! This charming 3-bedroom, 2-bathroom plus den home offers a perfect blend of comfort and style. Step inside to find an inviting floor plan with abundant natural light, showcasing stunning mountain views from the spacious living area and backyard. With a prime location close to top-rated schools, parks, and vibrant local shops and restaurants this home is perfect for families and anyone seeking the best of Arcadia living. Don't miss the opportunity to make this enchanting property your own!

16349 E Links Drive Fountain Hills, AZ 85268

$745,000
2 Beds
2.5 Baths
2,173 SqFt
Status Active
MLS # 6775692
Property Type Townhouse
Price Type --
Experience luxurious living in this stunning home in the exclusive gated community of Balera at Firerock. Enjoy breathtaking views over the 12th green of Firerock Golf Course in a serene setting. The inviting interior features soaring ceilings and an open floor plan, with a spacious great room and sleek kitchen that flow seamlessly into the dining area. Outdoor dining on the expansive deck offers spectacular golf course vistas. Retreat to the luxurious primary suite, complete with a spa-like ensuite and a generous walk-in closet. A private guest area provides a quiet retreat with its own sitting area, full bathroom, and bedroom. This exceptional property embodies the tranquil lifestyle of Firerock.

3571 S Adobe Drive Chandler, AZ 85286

$745,000
3 Beds
3 Baths
2,198 SqFt
Status Active
MLS # 6776279
Property Type Single Family Residence
Price Type --
Welcome to Your Desert Oasis in sought-after Layton Lakes! Step into a life of luxury & relaxation! Meticulously maintained home. Enjoy unparalleled canal views ensuring peace & privacy. Outdoor Bliss: Lounge year-round & enjoy your heated pool which also cools the pool during those hot summer days. Pool functions—lights, heater, water feature, cleaner—controllable via phone! Modern Elegance Inside: Be greeted by a sleek modern kitchen that flows seamlessly into the spacious open living area, ideal for entertaining, family gatherings, or unwinding. Ample rooms, sunscreens, a water softener, an RO system, & ceiling fans, LED lighting throughout. Stay secure w/4K 8-camera system, w/remote phone visibility & control. Epoxy floors & built-in shelving in garage. This stunning home awaits you!

1232 Pebble Springs Prescott, AZ 86301

$745,000
3 Beds
3 Baths
1,929 SqFt
Status Active
MLS # 6778866
Property Type Single Family Residence
Price Type --
Discover this beautifully renovated home in the gated Creekside neighborhood of Prescott Lakes, perfectly designed for comfort and style. This single-level, split floor plan residence boasts 9+ foot ceilings and includes a secondary master ensuite bedroom, making it ideal for either a primary residence or an easy lock-and-leave second home. The kitchen is fully updated with a reconfigured oversized island, sleek soft-close cabinetry, quartz countertops, and a modern tile backsplash, combining functionality with a fresh, contemporary aesthetic. The open great room is perfect for entertaining, with a spacious dining area and a cozy stacked stone corner fireplace to enjoy during cool winter evenings. Expansive views from the living space and large back deck reveal a scenic backdrop. The primary suite is a serene retreat, featuring a textured wallpaper accent wall for a refined touch, a charming bay window that creates an ideal seating area, and a private door leading directly to the outdoor deck space. The master bathroom is complete with dual vanities, a generous soaking tub, and a walk-in shower, while the walk-in closet includes a custom organizer system, ensuring no detail was overlooked. The secondary master bedroom provides guests with a private ensuite bath with a walk-in shower, while a spacious third guest bedroom at the front of the home is perfect for a home office, den, or study. Practicality meets style in the well-appointed laundry room, featuring a utility sink, quartz countertop, cabinetry, and a storage closet, conveniently located as you enter from the garage. The two-car garage offers built-in overhead storage, maximizing functionality. Positioned along a lightly traveled local road with exclusive gated access to the neighboring Prescott Lakes Estates, the rear of this home feels like a private sanctuary, surrounded by mature landscaping and lush greenery. Just a short walk to the Prescott Lakes clubhouse, restaurant, and athletic center, this home offers easy access to all the premier amenities this community has to offer, making it a perfect blend of luxury and convenience in an exceptional setting.

3922 E Canyon Place Chandler, AZ 85249

$745,000
5 Beds
4.5 Baths
3,340 SqFt
Status Active
MLS # 6780338
Property Type Single Family Residence
Price Type --
This exquisite home features 5 bedrooms and 4.5 bathrooms, providing ample space for comfortable living. A great room that is perfect for hosting gatherings with family and friends. An elegant kitchen with granite countertops, upgraded cabinets, a walk-in pantry, and a combination microwave/wall oven. Ceiling fans and tile flooring throughout. And an extended covered patio perfect for outdoor entertaining. Also downstairs is a fifth bedroom with its own bathroom and a half bath conveniently located for guests. Upstairs highlights: a master suite with luxurious rain glass shower, a second bedroom with its own bathroom, third and forth bedrooms that share a Jack and Jill bathroom, and a loft area featuring a covered balcony. Buyers to verify all information to ensure accuracy.

2926 S Presidio De Calabasas -- Flagstaff, AZ 86001

$745,000
4 Beds
3.5 Baths
2,162 SqFt
Status Active Under Contract
MLS # 6770563
Property Type Townhouse
Price Type --
Welcome to this stunning Miramonte townhome with an attached casita on a premium lot! This property is ideal for a primary residence, second home, or an investor—live in the main house and rent the casita. The open and airy floor plan includes a primary bedroom conveniently located on the main level. This home is loaded with Miramonte's signature upgrades, including upgraded flooring, elegant cabinetry, a cozy fireplace, premium fixtures, custom LUTRON lighting, granite countertops, and stainless-steel appliances. Ask your advisor for the full list. Enjoy the added benefit of ample parking is next to the home. Situated close to downtown, you'll have easy access to restaurants, shopping, and trails.

726 E Citrus Hollow Way Queen Creek, AZ 85140

$745,000
2 Beds
2 Baths
2,043 SqFt
Status Active
MLS # 6772806
Property Type Single Family Residence
Price Type --
3 CAR GARAGE? YES PLEASE! AND IT'S A CHROMA PLAN? YES PLEASE! Step inside to find a beautifully upgraded interior featuring sleek white cabinets, premium flooring throughout, and a custom wine bar perfect for entertaining guests. The spotless 3-car garage, complete with an epoxy floor, provides ample space for vehicles and storage, catering to those who value quality and function. Outdoors, enjoy a meticulously designed backyard with lush turf grass, ideal for low-maintenance beauty, and a built-in BBQ area that elevates your outdoor entertaining experience. This home truly combines style, comfort, and function for today's lifestyle. This home is also steps away from the Algarve pool and restaurant for the best social life you can ask for! Start living the GOOD LIFE today!

719 W Kings Avenue Phoenix, AZ 85023

$745,000
4 Beds
2.5 Baths
3,173 SqFt
Status Active
MLS # 6726154
Property Type Single Family Residence
Price Type --
This 4-bedroom, 2.5-bathroom home, meticulously maintained by the original owners, combines luxury and comfort on a desirable corner lot. The bright, open floorplan features vaulted ceilings and new luxury vinyl plank flooring. The spacious living areas flow effortlessly, perfect for relaxation and entertaining. The kitchen offers ample counter space and an eat-in dining area. Upstairs, enjoy a versatile loft space ideal for an office, playroom, or extra lounge area. The master suite is a private retreat with an en-suite bathroom. Outside, a diving pool, travertine patio, and safety pool cover complete this beautiful backyard. Don't miss this opportunity!

100 Bell Wash Court Sedona, AZ 86351

$745,000
3 Beds
2 Baths
1,782 SqFt
Status Active
MLS # 6725742
Property Type Single Family Residence
Price Type --
This Sedona home in Firecliff offers STUNNING RED ROCK VIEWS from the back patio & Bell Rock views from the front yard! Inside, discover elegant Travertine Stone flooring, granite counter tops, 10' ceilings & alder wood cabinets. Great Room boasts a gas fireplace that will heat the entire room. Step outside to enjoy patios surrounded by wonderful landscaping including colorful rose bushes and an Apricot tree! HOA fees covers landscaping making this a perfect low maintenance home. Enjoy resort style living with a gated, heated community pool complete with hot tub, cabana, BBQ and bathhouse. 3 golf courses, a yoga studio, tennis and pickleball courts are all within a mere 2 miles, along with the Bell Rock trailhead which is the gateway to the extensive Red Rock hiking/biking system.

1116 W Courtney Lane Tempe, AZ 85284

$745,000
4 Beds
3 Baths
2,578 SqFt
Status Active
MLS # 6735488
Property Type Single Family Residence
Price Type --
$10,000 Buyer Concessions! Beautifully maintained North/South 4 BEDROOM 3 BATH 3 CAR GARAGE with RV GATE with 39 foot driveway on LARGE LOT in desirable SIERRA TEMPE! Split 4th Bedroom/Bath*Gas Heating/Hot Water(SWG)*Big Ticket Items-Roof & Multi-Zone A/C-have been replaced * INCLUDED with home: 2024 Upgraded Whirlpool Refrigerator, Upgraded Samsung W/D , ASG Security System and Clear Concepts soft water system (exterior spigots also plumbed with soft water) ** Quick access to I-10 & 202 Freeways, Sky Harbor Airport, Chandler Fashion Mall, 2 Outlet Malls & shopping of every kind! Variety of Restaurants too! A few minute drive to 8th Largest Park in US-South Mountain Park(16,000 acres)which offers 58 miles of hiking/biking! Kyrene School District. Campbell Community Park a short walk.

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