#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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14344 W Alvarado Drive Goodyear, AZ 85395

$695,000
5 Beds
4 Baths
3,400 SqFt
Status Active
MLS # 6761951
Property Type Single Family Residence
Price Type --
Great home in Palm Valley awaits you. The primary bedroom is downstairs, and the detached casita is perfect for work from home. Close to Great Hearts/Trivium, Lifetime Fitness, and easy access to i-10. Spacious and well laid out, make this your home today. Loft, bedroom and bathroom upstairs, garage cabinets, pool, artificial turf in the backyard. Walking path to the west of the home so no neighbors directly to the west of you.

2210 E Everett Drive Phoenix, AZ 85022

$695,000
4 Beds
3 Baths
2,451 SqFt
Status Active
MLS # 6765491
Property Type Single Family Residence
Price Type --
Welcome home to this charming two-story home completely remodeled. As you walk into this 4-bedroom, 2.75 bathroom you immediately see the beautiful new flooring, windows, freshly painted walls, and fixtures. The first floor features a kitchen updated with new cabinets, countertops, stainless steel appliances, white backsplash and tons of natural light. There is two bedrooms, a master ensuite completely remodeled with a shower and a fully updated guest bath downstairs. Up the remolded staircase leads you to a master suite with bathroom dreams are made of. A brand-new vanity, a separate shower and soaking tub, a large walk-in closet and balcony overlooking your backyard. The backyard has a patio with fans, leading you out to your large diving pool and spa both heated for year-round use.

728 W Thunderbird Road Phoenix, AZ 85023

$695,000
3 Beds
2 Baths
1,935 SqFt
Status Active
MLS # 6767036
Property Type Single Family Residence
Price Type --
Experience the perfect blend of luxury and tranquility in this stunning 3-bedroom, 2-bathroom home backing up to a scenic golf course. Wake up to breathtaking views, enjoy vaulted ceilings that add spaciousness and light, and relax in a beautiful home with fresh paint inside and out. The brand-new roof ensures peace of mind for years to come. Whether you're a golfer or just love beautiful surroundings, this home offers the perfect escape. Don't miss the opportunity to own this slice of paradise. Hurry and make it yours!

20618 W Elliot Road Buckeye, AZ 85326

$695,000
4 Beds
3 Baths
2,368 SqFt
Status Active
MLS # 6767371
Property Type Single Family Residence
Price Type --
Be excited to see this newly built single-level residence in Buckeye with 2x6 construction! Step inside to discover the allure of the captivating open floor plan enhanced with 10ft plus ceilings and soothing paint tones complemented by wood-style flooring. The impeccable kitchen is outfitted with sleek stainless steel appliances, quartz counters, recessed and chic light fixtures, a plethora of white cabinetry with crown molding, and a sizable island with a breakfast bar. This gem provides well-appointed bedrooms, including two main retreats with plush carpeting, pristine ensuites, and walk-in closets. The home's elegance extends outdoors to the vast backyard with a covered patio, excellent for relaxation. The property is equipped with AC units that are upgraded to Trane Units. Very close to the proposed Goodyear's master planned community of Estrella, highway I-10, schools, shopping center, and the Goodyear Airport. It has lots of potential.

16037 W Orangewood Avenue Litchfield Park, AZ 85340

$695,000
5 Beds
2 Baths
2,016 SqFt
Status Active
MLS # 6774268
Property Type Manufactured Home
Price Type --
Charming Farmhouse Retreat on 1+ Acre This beautifully remodeled farmhouse features 5 spacious bedrooms and 2 baths, including a master bathroom with an upgraded walk-in shower with a rainfall showerhead, a jetted tub, and wall jets for a luxurious experience. The master bedroom also includes its own private mini-split AC and heater for optimal comfort. Enjoy brand new ceiling fans throughout the home, enhancing airflow and efficiency. The fully fenced property features a five-stall barn equipped with electricity and water, ideal for equestrian enthusiasts. Additional amenities include brand new AC and appliances, front and back porches equipped with misters, and an above-ground pool with a deck. The workshop also has electricity, along with a large chicken coop and a tack shed. The irrigated land is adorned with mature fruit trees and pines, enhancing the property's appeal. Experience country living with modern amenities!

3529 E Morelos Court Gilbert, AZ 85295

$695,000
4 Beds
2.5 Baths
2,607 SqFt
Status Active
MLS # 6775056
Property Type Single Family Residence
Price Type --
What a find! Don't miss the premium property in a premium Gilbert location on a premium cul-de-sac lot right next to community park. Rare 4 car double deep tandem garage with tons of garage cabinets! Lot of parking with deep driveway and covered parking spaces. Beautiful backyard with pool and BBQ area. Great floor plan with living and family rooms, staggered stained cabinets in kitchen with island and granite counter tops. Loft upstairs with three additional bedrooms. Oversized master suite with lots of floor space, master bath offers separate tub and shower, two sinks, and private toilet room. Big walk in closet. Fresh interior paint, new LED can lights, and two new ceiling fans.

16800 E El Lago Boulevard Unit 1019 Fountain Hills, AZ 85268

$695,000
2 Beds
2 Baths
1,898 SqFt
Status Active
MLS # 6775435
Property Type Apartment
Price Type --
Highly upgraded, GROUND FLOOR 2 b/2 bath condo with DEN (can be an office, 3rd bedroom, etc) located in the heart of scenic Fountain Hills. This idyllic home boasts a large 2 car garage, well designed gourmet kitchen with 14th level upgrade suede maple cabinets and tile backsplash, open, bright and sunny floorplan and an ideal view of the Fountain and Four Peaks from patio, primary and living room. Upgraded tile, wood floors & carpet in bedrooms only. Custom accent paint thru out. Both baths have Granitex vanity tops. All appointments are rich neutral earth tones. 2 car garage has epoxy floor and ceiling storage racks, but best of all, direct access to condo, all one level. Village at Towne Center is an upscale community with heated pool, hot tub and fitness center, GATED community.

1406 E Ellis Drive Tempe, AZ 85282

$695,000
4 Beds
3 Baths
2,301 SqFt
Status Active Under Contract
MLS # 6754437
Property Type Single Family Residence
Price Type --
The property features a versatile mother-in-law suite or attached rental unit, ideal for extended family or generating rental income. This separate kitchenette living space includes a zero entry shower, w/d hookups. Indulge in relaxation with a luxurious private outdoor soaking tub and dual shower area, offering a serene escape right in your own backyard, The outdoor kitchen and bar provides an ideal setting for entertaining. Year round gatherings are comfortable under the covered patio outfitted with a high pressure misting system. Enjoy the Big Game from 3 large screen TVs, or have quiet conversations in front of the fireplace.

5357 W Tonopah Drive Glendale, AZ 85308

$695,000
3 Beds
2 Baths
1,925 SqFt
Status Active Under Contract
MLS # 6768380
Property Type Single Family Residence
Price Type --
Welcome to Arrowhead Lakes Luxury! This gorgeous 3-bedroom property Boasts a huge lake view. Vaulted ceilings and elegant luxury floors that create a warm and inviting atmosphere. The sizable great room is perfect for relaxation and gatherings, enhanced by recessed lighting. Unleash your culinary creativity in the delightful kitchen, featuring a skylight, crisp white cabinets, a charming bay window, a stone-accented backsplash, granite countertops, and a spacious center island, perfect for entertaining. The main suite is a true retreat, offering a walk-in closet, direct access to the backyard, and a private bathroom with dual sinks. Step outside to entertain on the covered patio, take a dip in the sparkling pool, and enjoy the scenic lake view. This home has it all. Don't miss out

8216 E Del Cuarzo Drive Scottsdale, AZ 85258

$695,000
2 Beds
2 Baths
1,737 SqFt
Status Active
MLS # 6776952
Property Type Single Family Residence
Price Type --
OPPORTUNITY KNOCKS!! Your chance to remodel this 1 level home w/ a 2 car garage in the heart of highly desired McCormick Ranch. Enjoy the signature green lush grass/mature tree look that defines the very essence of beautiful McCormick Ranch! This 2 bedroom/2 bath 1 level patio home features a spacious great room that opens to lovely dining room & bright, light & airy kitchen w/ nook. Additionally, the great room opens to a lovely private back patio for incredible AZ outdoor living! Spacious primary bedroom also opens to the private back patio for additional access to your lovely private outdoor living space! There is a 2nd bedroom w/ a bathroom (that serves as the powder room too). Heritage Village 3 enclave features tennis courts, 2 swimming pools & lots of green grassy common areas!

1275 Pebble Springs Prescott, AZ 86301

$695,000
3 Beds
3 Baths
2,213 SqFt
Status Active
MLS # 6759048
Property Type Single Family Residence
Price Type --
Welcome to this stunning single-level home located in the gated Creekside neighborhood of Prescott Lakes. Boasting exceptional curb appeal, the property features a paver driveway and beautifully landscaped front yard, complementing the stucco exterior with elegant stacked stone accents. As you enter, you'll be greeted by rich, dark engineered wood floors that flow throughout the main living areas, setting the tone for the inviting open floor plan. The great room exudes comfort and sophistication, seamlessly connecting the living room, dining area, and kitchen, while offering a versatile bonus space. At the heart of the great room is a cozy gas fireplace with a rock surround and wood mantel, flanked by a wall of windows that fill the space with natural light. The kitchen is a chef's dream, equipped with stainless steel appliances, including a 4-burner gas range, granite countertops, glass tile backsplash, and a walk-in pantry. The large kitchen island, with a breakfast bar and undermount sink, serves as a central gathering spot, perfect for casual meals or entertaining. The dining area, open to both the kitchen and great room, provides a seamless flow for hosting guests. The den offers additional flexibility, easily transformed into a breakfast nook, library, or office, with sliding glass doors that allow you to customize the space to your preferences. Escape to the luxurious primary bedroom suite, where you'll find granite counters with double sinks, a dressing table, a walk-in closet, and a spa-like glass-enclosed walk-in shower. Two additional bedroomsone carpeted and one with wood flooringshare a Jack and Jill bathroom with granite countertops, dual sinks, and a walk-in tub/shower combination. Additional features include a convenient powder room and laundry room, both located off the foyer. The spacious 3-car tandem garage provides ample storage, workshop space, or room for an extra vehicle. Outdoors, the expansive covered paver patio, open side patio, and fully landscaped backyard offer plenty of space to relax and enjoy the crisp mountain air of Prescott.

310 S 4th Street Unit 1905 Phoenix, AZ 85004

$695,000
2 Beds
2.5 Baths
1,435 SqFt
Status Active
MLS # 6706728
Property Type Apartment
Price Type --
Location is everything and this unit has perfect city views as well as amazing sun set views. Great location in the city as it's nestled between the Phoenix Suns and AZ Diamondbacks venues. Restaurants, easy light rail access, theatre's and symphony's are all around. Popular Open Floor plan. This unit was recently completely remodeled with high end finishes. Murphy bed at Guest/Office room. Lift parking space allows for two vehicles. This unit also has an extra large balcony. Located on the 19th floor of this 23 floor building, it's really one of a kind. 24 Hour Lobby Security/Attendant. Fitness Center, Outdoor pool and hot tub overlooks Diamondback stadium. Don't let this one get away.

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