#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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17691 N 54th Avenue Glendale, AZ 85308

$699,000 - 5Br/3Ba -  for Sale in Touchstone, Glendale
New
$699,000
5 Beds
3 Baths
3,713 SqFt
Status Active
MLS # 6770211
Property Type Single Family Residence
Price Type --
Gorgeous Glendale home* great curb appeal* 2 levels* 3713 sq ft* 5 bedrooms* 3 bathrooms* huge upstairs bonus room* solar panels that seller paid $32K* granite kitchen countertops* all black kitchen appliances* gas stove* beautiful walk out balcony in front of home* all bedrooms very large* beautiful glass and tile master shower* lots of built in cabinets in bonus room* nice outdoor sink on covered patio* full length back patio* custom pavers throughout backyard* storage shed in back* RV gate on side with concrete slab walkway* lots of custom built in cabinet and workbench in garage* insulated garage* door* water filtration system in garage* close to the new Children's Hospital^ Arrowhead Mall* restaurants* schools* golf* parks* and much more* top rated Deer Valley Schools* great location* fantastic home!!

11011 E Minnesota Avenue Sun Lakes, AZ 85248

$699,000
2 Beds
2 Baths
2,023 SqFt
Status Active
MLS # 6774080
Property Type Single Family Residence
Price Type --
Premium golf course lot w/ stunning views in a guarded & gated community. Highly desirable open floor plan that features 2 bed 2 bath w/ an office. Vaulted ceilings. Extended 2.5 car garage. Kitchen is open to the family room & includes premium alder cabinets, granite counters, & stainless steel appliances. Skylights provide natural lighting throughout. Tile in all of the traffic areas. Over-sized primary suite features a sitting area w/golf course views & custom walk-in closet. The primary bathroom has dual sinks, large shower & separate water closet w/bidet. Neighborhood amenities include golf, tennis, pickle ball, pools, NEW fitness center, clubs, social activities restaurants & more.

8826 E Cortez Street Scottsdale, AZ 85260

$699,000
4 Beds
2 Baths
1,802 SqFt
Status Active
MLS # 6774187
Property Type Single Family Residence
Price Type --
Fantastic home in a great Scottsdale location! Its charm starts with a 2-car garage, stone accent details, & low maintenance landscape. Home exudes sophistication with vaulted ceilings, abundant natural light, designer paint, and tasteful flooring - carpet & wood-look. Discover a spacious living & dining room combo and a separate family room w/fireplace! The kitchen boasts built-in appliances, granite counters, recessed lighting, ample wood cabinetry, and a breakfast bar. The double-door main bedroom has a walk-in closet & a private bathroom. One bedroom can be an office as well. Moving outdoors, tranquility awaits in the large backyard! It features a covered patio, extended pavers, grassy area, fruit trees, and a fenced area that can be a dog run. Easy 101 Fwy access! GREAT HOME!

433 Perry Street Prescott, AZ 86303

$699,000
4 Beds
3 Baths
2,842 SqFt
Status Active
MLS # 6775022
Property Type Single Family Residence
Price Type --
Vintage charm with modern upgrades blend beautifully in this solid 1959 home a short 10 minute walk to shops, restaurants, bars and special events on Courthouse Square in historic downtown Prescott. Main level features open concept living and dining with cool modern lighting, fresh white kitchen with stainless appliances and loads of storage, primary suite with updated bath with on-trend black and white tile in bath, junior master suite plus two bedrooms with shared bath, private rear deck surrounded by tall shade trees. Lower level has a large family room, workshop and two car garage. Close to Dignity Health, Yavapai College, VA campus, public and charter schools, National Forest trails for hiking and biking. Enjoy the Prescott lifestyle in the heart of the Country Club neighborhood.

4092 E Appaloosa Road Gilbert, AZ 85296

$699,000
5 Beds
3 Baths
1,951 SqFt
Status Active
MLS # 6778528
Property Type Single Family Residence
Price Type --
Welcome to your new home located in the beautiful community of Warner Meadows! This home has been barely lived in and is highly upgraded! Kitchen boasts bright white cabinets, quartz countertops, stainless steel appliances and pendant lighting. Large tile plank floors throughout the entire home, no carpets! Ceiling fans and window coverings in every room! Outdoor living is abundant in your professionally designed backyard complete with fire pit surrounded by custom seating, Pergola with lighting, faux grass, plush landscape and pavers. Arguably one of the best lots in the community. This North / South CORNER lot backs to common area for extra privacy. Warner Meadows has a stunning community center with heated play pool, BBQ's, entertaining areas, bathrooms, parks and walking paths.

15856 N 76th Avenue Peoria, AZ 85382

$699,000
4 Beds
2.5 Baths
3,201 SqFt
Status Active
MLS # 6779240
Property Type Single Family Residence
Price Type --
Gorgeous home w/a tandem 3-car garage in highly desirable Tierra Buena Community close to freeways, shopping and great Peoria schools! Thoughtfully designed this rare gem is packed w/features you will love. Inviting living/dining room & open great room for entertaining. Spacious kitchen boasts abundant espresso cabinetry, SS appliances, butler's service area w/ walkin pantry, an island w/a breakfast bar, gas cooking, granite counters. Huge loft ideal for a TV/Game room. Main retreat is truly impressive, plush carpet, sitting room/bed 5, an ensuite w/dual sinks, & a walk-in closet., and stunning super shower! Completely remodeled backyard over $20k update has travertine and turf w/a covered patio great for alfresco dining enjoying peaceful moments outside. Newer Carpet, appliances&fans!

10063 E Calle De Cielo Circle Scottsdale, AZ 85258

$699,000
2 Beds
2 Baths
1,603 SqFt
Status Active Under Contract
MLS # 6767477
Property Type Single Family Residence
Price Type --
This delightful home boasts an open floorlplan that's bright & cheerful! As you step inside you will be greated by vaulted ceilings creating an airy spacious feel. 2 bedrooms + a den, a versatile space that could be an office or cozy retreat. A generous formal dining rm.. spacious living rm w/ FP & wet bar, sliding glass doors that open to to the back yd. patio area, allowing for expanded indoor/outdoor living entertaining. The kitchen is both functional & inviting complete w/a breakfast area for casual meals or morning coffee. and picture window to view the backyd. Step outside to the patio(s) Low maintainenance landscape, fruit trees and pavers, its a serene escape. This home is steps away from the community pool, offering a cool dip during the warm AZ. days. (Please click more) If quality of life is what you have been searching for, then this is it! Scottsdale Ranch has so much to offer! Restaurants, community events, 42 acre lake, 40 different neighborhoods, walking paths, bike trails, holiday boat parade, many groups and clubs, convenient to the 101. And SO much more!!!!

17313 E Woolsey Way Rio Verde, AZ 85263

$699,000
2 Beds
2 Baths
1,543 SqFt
Status Active Under Contract
MLS # 6771624
Property Type Single Family Residence
Price Type --
SPECTACULAR HOME at VERDE RIVER GOLF AND SOCIAL CLUB. New condition and ready for you to enjoy the Arizona lifestyle! Beat cold winters in the warm desert sun near Tonto NF. This open floorplan is designed for entertaining; Gourmet kitchen, upgraded cabinets, leather finished granite counters, gas range, spacious island, pantry, workspace with desk; Well-designed great room with 15' multi-sliding doors that opens to a beautiful backyard with spacious patio, firepit and BBQ; Master suite with luxurious bathroom, large walk-in closet and Guest bedroom; Plus, upgraded 8 ft doors, upgraded tile flooring, central vac, spacious laundry; beautiful front porch, 2 car garage with epoxy flooring, great room shades, water softener, reverse osmosis system, circulating hot water, 250 gal propane tank. Experience Trilogy at Verde River, a stunning resort style community nestled against the beautiful Tonto National Forest. The amenities at Verde River are spectacular. The Community boasts an 18-hole Championship Golf Course with a picturesque driving range, putting green, and separate chipping/pitching practice areas. One visit and you will understand why the PGA Southwest Section selected Verde River Golf & Social Club to host the AZ Senior Open and AZ Match Play Championships in 2020, 2021 and 2022. The active lifestyle amenities continue with pickle ball and tennis courts, with Clubs designed for social or competitive play. Adjacent to the sport courts for your convenience are bocce ball courts and an open grass area for social gatherings. The Community Clubhouse is all encompassing including a critically acclaimed restaurant, Needle Rock Kitchen and Tap, with a hugely popular wine and beverage program, Helen's Kitchen, a chef's inspired kitchen designed for cooking classes, and The Market Place, a favorite of member's for grabbing a morning coffee or picking up a forgotten grocery item. Love the Arts? Spend time at the Art Loft, where classes are offered in a variety of disciplines. The Clubhouse has an Events Center, designed to manage the needs on any member event. Attached to the Community Clubhouse is Alvea Spa, complete with Spa and Salon services, and Afterburn Fitness, a state-of-the-art workout facility that offers a variety of group fitness classes. Following your workout, enjoy convenient locker room facilities, and steam rooms. Just steps away from the Clubhouse in the Resort Pool, Lap Pool, and Sauna, all of which are heated. Enjoy the view, with food and beverages at Eddy's Poolside. Have a dog? Experience a dog-friendly community with a 7.5-acre dog park, with canopy shading coming soon for those warm AZ days. Trilogy at Verde River's location provides residents with the tranquility of the Tonto National Forest and the convenience of a short drive to the heart of North Scottsdale. Get the best of both worlds and see why you could be calling the Community, Home!

29655 S State Route 89 -- Congress, AZ 85332

$699,000
2 Beds
2 Baths
1,912 SqFt
Status Active Under Contract
MLS # 6775959
Property Type Single Family Residence
Price Type --
Views like this don't come around very often! This charming, meticulously maintained 2 bed, 2 bath home has only had one owner and is for sale for the first time in 28 years. This home is custom built and features an inviting open layout ideal for entertaining and day to day living. With a dedicated office space, it's perfectly suited for working from home or just enjoying a quiet workspace. Start your mornings on the back deck savoring your coffee as the sun rises over the breathtaking views of the Bradshaw Mountains. With a 4 stall mare motel, a round pen, a riding arena and 2 large turnouts, this property has everything you want. It's close to state land and easy to ride out from. Don't wait to see this one! This is more than a home, it's a way of life.

6228 E Blanche Drive Scottsdale, AZ 85254

$699,000
4 Beds
2 Baths
2,181 SqFt
Status Active Under Contract
MLS # 6776518
Property Type Single Family Residence
Price Type --
Nestled in the highly sought-after 85254 zip code, this charming 4-bedroom, 2-bathroom home is a fantastic opportunity for families or investors alike. With no HOA, enjoy the freedom and flexibility that this property offers. The spacious layout with kitchen open to the family room, dining room, and additional living area perfect for a game room or living room. Perfectly positioned near top-notch dining, shopping, and entertainment at Kierland Commons and Scottsdale Quarter, this home combines convenience with the vibrancy of Scottsdale living.

12687 W Caraveo Place Peoria, AZ 85383

$699,000
4 Beds
3.5 Baths
2,990 SqFt
Status Active
MLS # 6754653
Property Type Single Family Residence
Price Type --
Discover the epitome of comfort & style in this stunning 2-story home w/ gorgeous mountain views nestled w/in the coveted Vistancia community. The main level boasts an expansive open layout, perfect for entertaining or relaxing w/ family. The modern kitchen is a chef's dream, featuring a large island, 5-burner gas cooktop, hood & sleek staggered cabinets. The adjacent living room offers a cozy retreat for movie nights or simply unwinding. Open concept den is great for working from home. A versatile bonus room w/ a barn door provides flexibility for a playroom or additional bedroom. The upper level offers a spacious loft ideal for a game room or living area. 3 generously sized guest bedrooms share 2 full bathrooms, including a convenient Jack-and-Jill bathroom. The owner's suite is a true sanctuary, complete w/ dual sinks, a luxurious walk-in shower & a spacious walk-in closet. Step outside to your private backyard oasis, featuring a refreshing 2-year-old pool, artificial turf for easy maintenance & a covered patio perfect for outdoor dining & relaxation. 3-car garage includes a tandem space, EV outlet & convenient backyard access. The community of Vistancia is a master-planned development that includes beautiful homes, parks & hiking trails, award winning community centers & golf courses, commercial & retail shops, along with incredible rolling hills & desert landscape all around! The future 320-acre 5 North at Vistancia commercial core is coming soon. Vistancia has ranked as the #1 Master Planned Community in AZ for 10 years in a row (2014-2023)! Resort-style living at its best. Come & see why!

2858 E Shannon Street Gilbert, AZ 85295

$699,000
4 Beds
3.5 Baths
3,308 SqFt
Status Active
MLS # 6777166
Property Type Single Family Residence
Price Type --
This immaculate 4-bedroom home is impressive! The welcoming porch is perfect for enjoying your morning coffee. A stunning interior offers plantation shutters, tile and carpet flooring, custom paint, and gorgeous light fixtures. Enjoy entertaining in the formal dining room, spacious den, or cozy family room with a stone-accent wall & fireplace! The chef's kitchen offers stainless appliances, granite counters & backsplash, walk-in pantry, an island w/breakfast bar, and oak cabinets. Upstairs, you will find two primary bedrooms and a huge loft. The owner's suite features a bathroom with a separate tub/shower, dual sinks, & a spacious walk-in closet with two entries. The second main bedroom has a walk-in closet & a private bath. The serene backyard offers a covered patio, grilling station & tranquil pool. The massive 4-car tandem garage features built-in cabinets for extra storage! This move-in-ready gem is for you!

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