#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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5222 W Buckskin Trail Phoenix, AZ 85083

$660,000
4 Beds
2 Baths
2,294 SqFt
Status Active
MLS # 6772837
Property Type Single Family Residence
Price Type --
Stunning 4BR/2BA home in STETSON VALLEY! You will be impressed the moment you walk through the front door. Spacious formal living /dining room, kitchen includes granite countertops, SS appliances , Maple cabinets, and large island. Kitchen is open to large family room which is perfect for entertaining. Neutral colors, plank tile flooring throughout home, including the 4 spacious bedrooms. Extended 2 -car garage w/cabineets. Covered patio, firepit with cozy seating, mountain views & mature landscaping. Excellent schools and close to everything.

27789 N 129th Lane Peoria, AZ 85383

$660,000 - 2Br/2Ba -  for Sale in Trilogy At Vistancia Parcel C22, Peoria
New
$660,000
2 Beds
2 Baths
2,111 SqFt
Status Active
MLS # 6779627
Property Type Single Family Residence
Price Type --
Trilogy at Vistancia is one of the nicest and most sought after communities in all of Arizona and then to top it off we are bringing you the best floor plan to boot. Make sure to put this one on your list to tour! The home is impeccably maintained, truly move in ready and features 2 bedrooms (plus den/3rd bedroom), 2 bathrooms, 2.5 car garage, stunning front courtyard, expansive rear patio with hot tub and TV mounts. You are buying more than a HOME...you are buying a luxury lifestyle. This home is conveniently located just off the 303 freeway, 8 minutes to TSMC, neighborhood shopping/restaurants, Target, Home Depot, Costco are all closeby. Trilogy amenities include 2 Luxurious Clubhouses (Kiva Club & Mita Club), 3 pools, championship golf course, PICKLEBALL, tennis, arts, crafts, exercise

631 S Lanus Drive Gilbert, AZ 85296

$660,000
4 Beds
2 Baths
2,310 SqFt
Status Active Under Contract
MLS # 6775963
Property Type Single Family Residence
Price Type --
Gorgeous one-story home sitting on a pie-shaped lot of a private cul-de-sac! Upon entering, you'll be greeted by a formal living/dining room, vaulted ceilings, carpet/tile floors, and a large den with double doors. Continue into the family room, boasting a dining area, clerestory windows, and sliding glass doors that merge the indoor/outdoor areas. The kitchen has a subway backsplash, white cabinets, stainless steel appliances, track lighting, quartz counters, and a breakfast bar. In the main bedroom, discover a luxurious bathroom with dual vessel sinks, a glass enclosure raindrop shower, a freestanding tub, and a walk-in closet. The oversized backyard features a covered patio with extended Ramada and pavers, grass, beautiful trees, and convenient storage. This jewel won't last!

1251 E Parkview Drive Gilbert, AZ 85295

$660,000
4 Beds
2.5 Baths
2,237 SqFt
Status Active
MLS # 6765501
Property Type Single Family Residence
Price Type --
WOWZA! Newly remodeled, fantastic home in Spectrum has everything! Offering 4 beds, 2.5 baths, 3 garage spaces including tandem, & a manicured landscape. Inviting interior showcases tons of natural light, designer paint, & wood-look flooring t/out. W/a large living/dining room & an open-concept family room, you have spaces for relaxation & gathering. The impressive kitchen boasts SS appliances, granite counters, a pantry, ample cabinetry, track lighting, & a 2-tier peninsula w/breakfast bar. The master bedroom is downstairs! It features an ensuite w/two vanities, separate tub/shower, & a walk-in closet. Secondary bedrooms & a versatile loft await upstairs. Enjoy the spacious entertainer's PRIVATE backyard with a covered patio, built-in BBQ, synthetic & natural lawns, and a sparkling pool!

2770 Chandelle Lane Overgaard, AZ 85933

$660,000
3 Beds
2 Baths
2,106 SqFt
Status Active
MLS # 6586230
Property Type Single Family Residence
Price Type --
New Construction all electric 3 BR/2 BA cabin nestled on 0.79 acres in the Mogollon Estates in the Rim Community of Overgaard. The cabin will feature a great room design, a large kitchen with an island and granite countertops, ceiling fans, central heat and air conditioning, a laundry/mud room, a generous master bedroom with an en-suite master bathroom, and generous size guest bedrooms. The exterior will boast covered decks, smart siding and a two-car garage, This lot very nicely treed and in a coveted area of Overgaard with easy access to the Forest. We have listened to our clients and upon their recommendation we are extending the cabinets in the kitchen to the end of the wall. See a depiction on photo #9.

341 S Tucson Boulevard Tucson, AZ 85716

$660,000
5 Beds
2 Baths
2,252 SqFt
Status Active
MLS # 6650576
Property Type Single Family Residence
Price Type --
In desirable subdivision near the University of Arizona, restaurants, shopping centers, golf course and the Reid Park Zoo, you will fall in love with this stunning mid-century modern full remodel with Split Floor Plan. Approaching the home, you'll notice the Amazing Curb Appeal, Low-maintenance desert landscaping. Perfect for entertaining with an open floor plan which includes: Luxurious Stainless Steel Appliances Kitchen & Large Quartz Island; Antique Glass Mosaic Backsplash with Undermount sink; dining area; Two Seating areas; and two access to the Backyard. Backyard access is also available through the Oversized Master Bedroom with a Large master Bathroom (separate tub/shower), Dual sinks & a Roomy Walk-In Closet.

11239 N 11th Place Phoenix, AZ 85020

$660,000
3 Beds
2 Baths
2,175 SqFt
Status Active
MLS # 6674322
Property Type Single Family Residence
Price Type --
Welcome to your future oasis nestled in the heart of tranquility, perfectly situated on a quiet semi cul-de-sac with breathtaking mountain views. Prepare to be captivated by the allure of this meticulously designed residence, where every corner exudes warmth and comfort. Immerse yourself in the natural beauty surrounding this residence. Wake up to the majestic sight of mountains greeting you every morning, offering a serene backdrop to your daily life. Enjoy the well cared for home that includes a new roof and newer HVAC system. Convenience meets charm with this centrally located gem. Enjoy easy access to nearby amenities, schools, shopping centers, and recreational facilities, ensuring that everything you need is just a stone's throw away. Spread across two inviting stories, this home boasts ample space for comfortable living. With three bedrooms and two bathrooms, there's plenty of room for gatherings, entertaining guests, or simply enjoying quiet moments of solitude. The majority of the furniture is available for a full price offer.

16308 E Links Drive Fountain Hills, AZ 85268

$660,000
2 Beds
2 Baths
1,878 SqFt
Status Active
MLS # 6680908
Property Type Townhouse
Price Type --
Furnished! Well Cared For Single Level Condo at Balera at Firerock Featuring 2 Bedrooms + Den/Office with Full Size Business Desk That Converts To Queen Sized Murphy Bed, 2 Bathrooms, Gourmet Kitchen with Granite Counters, Island, Newer Appliances and Separate Dining Area. Kitchen Open To Cozy Living Room with Gas Fireplace, Faux Wood Plank & Tile Flooring & Vaulted Ceilings. Spacious Primary Bedroom with Vaulted Ceilings - Main Bath Featuring Soaking Tub, Walk-In Shower, Dual Sinks & Walk-In Closet. Split Floor Plan Guest Bedroom With Access To Guest Bathroom with Walk-In Shower. Upgrades: AC (2020) - Water Heater (2017) - Water Softener (2020) - Washer/Dryer (2021) - Kitchen Appliances (2022) - Patio Drop Shade (2022). Enjoy The Community Pool, Fitness Center & Spa With Amazing Mountain Views Overlooking Firerock Country Club.

14121 W St Moritz Lane Surprise, AZ 85379

$660,000
5 Beds
3.5 Baths
3,675 SqFt
Status Active
MLS # 6700187
Property Type Single Family Residence
Price Type --
This gorgeous home was completely remodeled! 5-bedroom, 3.5-bath home boasts a 3-car garage, RV gate, and elegant stone accents.The living/dining room showcases high ceilings, recessed lighting, a soothing palette, and stylish wood-look flooring. The great room is a warm space for intimate moments with loved ones. Cook delicious meals in the kitchen, equipped with quartz counters, chic shaker cabinetry, trendy pendant lighting, a tile backsplash, SS appliances, a pantry, and an island with a breakfast bar. The den is perfect for an office. You'll also find a quaint loft that adds versatility. The large main bedroom offers plush carpeting, an ensuite with dual sinks, and a large walk-in shower. The vast backyard displays a covered patio & vast space to create your dream oasis. See it today

2524 Old Rim Road Forest Lakes, AZ 85931

$660,000
3 Beds
2 Baths
1,939 SqFt
Status Active
MLS # 6727059
Property Type Single Family Residence
Price Type --
Charming Cabin in Forest Lakes - A Mountain Paradise! Welcome to your dream cabin nestled in the heart of Forest Lakes! This enchanting 3-bedroom, 2-bathroom retreat boasts a large great room with dramatic vaulted ceilings, seamlessly adjoined by a formal dining space featuring a cozy pellet stove. The spacious kitchen is complemented by a large interior laundry room with pantry shelves, providing ample storage and convenience. The cabin's sturdy metal roof and large detached toy garage with a roll-up door and side service door are perfect for housing your side-by-side or boat. Relax and unwind on the expansive covered front patio, surrounded by apple trees laden with fruit, and towering mature blue spruce and Ponderosa pine trees, creating your own private enclave. see more... Equipped with a backup generator and featuring numerous seller-made improvements((see a complete list of seller's improvements below) including foam insulation, new doors to the back patio, and a new 200-amp electric service panel, this cabin is ready for all seasons. Enjoy the proximity to the Sitgreaves National Forest, just a few steps down the trail from your backyard! Forest Lakes, an island in the middle of the forest, is home to the world's largest stand of Ponderosa Pine trees. Residents enjoy a 4-season climate with the best summertime weather, just a scenic 2-hour drive from the Phoenix Valley. Escape the heat and discover the serene beauty of this coveted cabin getaway location. Experience the perfect blend of nature, tranquility, and modern amenities in this exceptional Forest Lakes cabin. Don't miss this rare opportunity to own a piece of mountain paradise! List of Seller's improvements: 2 water heaters replaced 2 years ago New footer around non-concrete foundation with new insulation and sealing done underneath floor All new flooring & carpets New stairs & handrails Foam insulation, drywall and can lighting upstairs New front entry & 2nd bathroom doors Replaced all single pane windows with dual pane Generator purchased 7 years ago (automatic switch) Sealed and foamed connection point between original cabin and add-on Installed linen closet in front bathroom Installed can lighting in dining room/living room area Installed ridge beam & supports Framed out for skylight in 3rd bedroom Replaced window with sliding arcadia door & spray foam leading to backyard Installed pellet stove Grated & pea gravel on driveway 14x20 ATV garage/shed Removed 25 over-crowded trees Removed French doors in Owner's suite & replaced with window & spray foamed wall Ecobee Wi-Fi enabled thermostat & front door monitor

22761 E Poco Calle Street Queen Creek, AZ 85142

$660,000
3 Beds
2 Baths
1,868 SqFt
Status Active
MLS # 6726064
Property Type Single Family Residence
Price Type --
Welcome to your dream home! This stunning, turn-key ready residence is nestled in the heart of the sought-after Meridian neighborhood in Queen Creek known for its serene atmosphere and picturesque surroundings. Meridian offers a perfect blend of suburban tranquility and modern amenities such as a community pool, a splash pad, as well as beautifully landscaped parks and walking trails! Step inside to discover an open-concept floor plan adorned with high-end finishes. The gourmet kitchen features stainless steel appliances, a beautiful stone wall backsplash, quartz countertops, custom cabinetry, updated light fixtures and a spacious island perfect for entertaining. The living area is bright and inviting with multi-slide pocket door allowing you to bring the inside out with a seamless transition to your incredible backyard featuring a custom heated pool with negative edge spa, marble decking, and basalt water feature wall! Retreat to the luxurious master suite, complete with a spa-like en-suite bathroom featuring a tiled glass-enclosed shower, a dual vanity sink and a large walk in closet. Additional bedrooms are generously sized, offering ample space for family and guests. Additional highlights include a home office and a two-car garage with extra built in storage space. Conveniently located near top-rated schools, shopping, and dining, this home truly has it all.Don't miss the opportunity to make this exceptional property your own!

2890 E Fandango Drive Gilbert, AZ 85298

$660,000
4 Beds
3 Baths
2,573 SqFt
Status Active
MLS # 6729334
Property Type Single Family Residence
Price Type --
Charming 4 bed, 3 bath, with a Den Home with a Low-Maintenance Backyard and Modern Upgrades. Welcome to this delightful residence that combines comfort, style, and convenience. Nestled in the prestigious neighborhood of Seville, this home offers the perfect blend of functionality and aesthetics. Step inside to discover an open-concept layout flooded with natural light. The living room seamlessly flows into the dining area and kitchen, creating an inviting space for entertaining. Retreat to your private sanctuary. Recently updated master bath boasts a spa-like feel with a walk-in shower, dual sinks, soaking tub and a huge walk in closet big enough for everyone's clothes. Spend more time enjoying your backyard and less time on yard work with drought-tolerant landscaping, a cozy patio, and space for outdoor gatherings. Close to parks, shopping centers, and major highways, this property offers easy access to everything you need. This home will not last long!

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