#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.

What’s Your Home Worth?

Search for Your New Home

9961 S Centennial Road Apache Junction, AZ 85120

$654,990
5 Beds
3.5 Baths
3,027 SqFt
Status Active
MLS # 6750831
Property Type Single Family Residence
Price Type --
Up to 3% of base price or total purchase price, whichever is less, is available through preferred lender plus additional 2% of base price or total purchase price, whichever is less, is available to be used toward closing costs, pre-paids, rate buy downs, and/or price adjustments. The Prato floor plan is an elegant two-story home featuring five bedrooms, an upstairs loft, and a spacious flex area perfect for an office, TV room, or study. Complete with front yard landscaping, this home will be ready for occupancy by October or November. It is conveniently located near community parks, grocery stores, and restaurants.

18956 W Ocotillo Road Waddell, AZ 85355

$654,990
4 Beds
3.5 Baths
2,561 SqFt
Status Active
MLS # 6739341
Property Type Single Family Residence
Price Type --
It's the very popular Cinnabar floor plan with 4 bedrooms + study, 3.5 baths and a 3 car tandem garage. Located in Windrose in Waddell. Multi slide door off the great room. Pavers at drive, walk and entry. 8' gate on garage side of home. Kitchen upgrades includes - stainless steel gas appliance package with 30'' cooktop and canopy hood. Sonoma Linen-off white cabinets with 42'' kitchen uppers. DT White Ice G238 granite countertop with enhanced kitchen island, undermount single bowl kitchen sink. Flooring includes 7x 24 plank tile in all areas of the home except beds/baths. 5'' baseboards throughout and 3 1/4'' door casings. Dual sink at bath 2, soft water loop, garage service door that leads out to the backyard and so much more.

18938 W Ocotillo Road Waddell, AZ 85355

$654,990
4 Beds
2.5 Baths
2,561 SqFt
Status Active
MLS # 6739870
Property Type Single Family Residence
Price Type --
September completion -Cinnabar floor plan with 4 bedrooms + study, formal dining, 2.5 baths. This home is stunning with the multi slide door off the great room and leads out to the covered patio. Pavers at drive, walk and entry. Stainless steel gas appliance package with 30'' cooktop, wall oven, microwave and hood. Barnett maple Boulder-gray cabinets with 42 kitchen uppers. Pull out trash drawer with two bins. Stainless steel undermount single bowl sink. AZT Hana Sky quartz countertops in kitchen and owner's bath. Upgrade flooring includes DT Broxburn Gray 6x24 plank tile in all areas of the home except bedrooms and closets. 5'' baseboards and 3 1/4'' baseboards. Dual sinks at bath 2. 8' tall garage door with two controls, garage service door and so much more.

7718 W Crabapple Drive Peoria, AZ 85383

$654,990
3 Beds
2 Baths
1,982 SqFt
Status Active
MLS # 6741362
Property Type Single Family Residence
Price Type --
MLS#6741362 December Completion! The Iris is a 1-story floor plan that comes standard with 1,982 sq. ft., 3 bedrooms, 2 bathrooms, 2-car garage, and a flex room. The only single-story floor plan at Aloravita South Discovery, this home is sure to please. The foyer brings you to a hallway with the secondary bedrooms and a full bathroom. As you continue through the home, you are taken to the open kitchen, casual dining, great room area and the flex room. Enjoy the beautiful Arizona weather from your private covered patio. The primary suite has a private bathroom with double sinks and an expansive walk-in closet and will be the perfect retreat.

37510 W Nina Street Maricopa, AZ 85138

$654,990
4 Beds
3.5 Baths
3,240 SqFt
Status Active
MLS # 6762871
Property Type Single Family Residence
Price Type --
Don't miss your chance to own this amazing home! This Sedona plan home features a flexible activity room AND home office! Your expansive gourmet kitchen is designed with stacked cabinetry, buffet-style lowers, gas cook top, and double ovens! The bright great room with multi-slide glass door is ideal for gathering with family and friends. The Primary Suite is expertly designed with a resort like bath with freestanding soaking tub. Take out the toys from your THREE CAR GARAGE! Say hello to luxury, Maricopa and see why K. Hovnanian is the First Name in Lasting Value!! ^^Up to 6% of Base Price can be applied towards closing cost and/or short-long term interest rate buydowns when choosing our preferred Lender. Additional eligibility and limited time restrictions apply.

2362 S Buttercup -- Mesa, AZ 85209

$654,900 - 2Br/2Ba -  for Sale in Sunland Village East 4 Lot 848-959 & Tr A, Mesa
New
$654,900
2 Beds
2 Baths
2,128 SqFt
Status Active
MLS # 6779452
Property Type Single Family Residence
Price Type --
Absolutely wonderful golf course home in active 55+ community of Sunland Village East. 2 bedrooms plus den/office, 2 bathrooms, 2 car garage. Vaulted living/dining area, open kitchen family room. Quartz counters, newer upgraded cabinets, pull-out drawers, newer appliances, refrigerator conveys. Master bathroom has snail shower, new 36'' vanities, double sinks, walk-in shower. Guest bathroom updated as well. Tile flooring, marble window sills, plantation shutters, exterior security roller shields, front & back security doors. Screen patio as well as covered pergola sitting area. Additional electrical outlets in garage and patio, A/C 2018. Many more detailed upgrades, walking distance to proshop/restaurant. Don't miss out!

4444 E Bethena Street Gilbert, AZ 85295

$654,900
4 Beds
3 Baths
2,420 SqFt
Status Active
MLS # 6751104
Property Type Single Family Residence
Price Type --
Welcome to this charming 2-story home in the popular community of Cooley Station. It features a lush, well-manicured front yard with an inviting front porch with flowers all around. Step into a spacious living room with lots of light. The kitchen is light and bright and includes white cabinetry, recessed lighting, granite counters, stainless appliances, wall ovens and center island with breakfast bar. There are expansive sliding doors and an adjacent dining area that look out onto the sunny courtyard. The travertine patio has been extended and the artificial turf is low maintenance and aesthetically vibrant. The spacious primary bedroom is on the main floor and has a view of the courtyard. The primary ensuite bathroom boasts a large tub, separate shower, dual vanities and walk in closet. Off the living area, and down the hall, there are two bedrooms and a full bathroom on the main floor. There are also two large closets in the hallway for added storage. The laundry room has upper and lower white cabinets and windows and is located off the kitchen across from the generous pantry. Up the stairway, you will find a huge loft area that can be used as an additional living space or as a separate living space for mother-in-law, teen, etc. There is an additional bedroom, closet, and full bathroom upstairs. The 2-car garage and 2 car driveway are in the back of the house and provide space for storage as well as two large vehicles. The location can't be beat with walking distance to the basketball courts, kids playground, bbq area and fields. The community pools, Fry's Marketplace, Crust, and multiple other eateries are a short bike ride away. Come see this fabulous neighborhood!

38218 W Camelback Road Tonopah, AZ 85354

$654,000
5 Beds
4 Baths
3,270 SqFt
Status Active
MLS # 6721936
Property Type Single Family Residence
Price Type --
Gorgeous custom home on 5 acres with magnificent mountain views and tons of privacy! This home features 5 bedrooms and 4 baths...yes you read that right! 19 foot ceilings with wood beams, and 2 stone fireplaces. The kitchen boasts beautiful granite counters, and raised panel cherry cabinets as well as SS appliances. Split floorplan with spacious master bedroom down stairs and 4 bedrooms upstairs. This home is a dream for entertaining your family and friends! 4 car garage. 2 large corrals with shade and 5 stall barn with tack room. There is also a 200 amp service for RV Hook up and water. The property has a private well and backyard fencing and an amazing back porch to enjoy your morning cup of coffee with no city noise, just your dogs running around the property enjoying life!

345 E Palomino Court Gilbert, AZ 85296

$654,000
5 Beds
2.5 Baths
2,376 SqFt
Status Active
MLS # 6727415
Property Type Single Family Residence
Price Type --
Move-in-ready Home in prime location, Gym & pool amenities across the street & walking distance to downtown Gilbert for dining & entertainment. Extensively remodeled with $150,000 in recent upgrades, featuring a luxurious master bathroom with large walk-in shower and freestanding 70'' soaking tub. All 2.5 bathrooms showcase quality tiled floors and walls. Elegant plantation shutters throughout, custom wood floors, crown molding, stairway, and fireplace enhance the home's appeal. The 5 bedroom and 3 car garage provide ample space for all. The kitchen boasts contemporary features: oversized sink, granite countertops, peninsula with a breakfast bar, high quality soft-close cabinets with lazy susan corners, new pantry with frosted glass doors and under-cabinet lighting. Recessed lighting and new fixtures illuminate the home beautifully.Outside find new sunscreens and an energy efficient A/C replaced in 2018. Enjoy the quiet cul-de-sac setting with easy access to the community park, basketball/pickleball court, and playground. This rare 5 bedroom find combines comfort, style, and location! A MUST SEE!

18419 W Elwood Street Goodyear, AZ 85338

$654,000
5 Beds
3.5 Baths
3,660 SqFt
Status Active
MLS # 6736532
Property Type Single Family Residence
Price Type --
Welcome to your dream home! Stunning 5-Bedroom Smart Home with Resort-Style Backyard Oasis. This 5-bedroom, 3.5-bathroom residence offers the perfect blend of luxury, comfort, and modern convenience. With a spacious layout of 3660 Sq Ft and top-of-the-line features, this home is designed to cater to all your needs. Enjoy year-round swimming with a heated AND cooled Pebble Tec custom saltwater pool, complete with a cascading water feature for a resort-like feel. The home is the perfect setup if you work from home~ With cat 5 wiring throughout. Take a break during lunch and dip the refreshing pool! The roomy backyard that features an added extended patio for ample shade and a grassy astro turf play area for children or pets. Perfect for entertaining family and friends year-round This modern home offers Energy Efficiency with Solar panels that keep your home cool during the hot Arizona summers while greatly reducing energy costs. With Smart Home Technology that includes convenience to control solar panels, thermostat, pool, lights, oven, refrigerator, and security system with cameras with ease using integrated apps. A special feature includes a convenient central vacuum system on both levels. The gourmet style kitchen is upgraded with rich maple/alder cabinets with soft-close drawers, roll outs, light rail, crown molding, granite countertops, a large kitchen island, and stainless-steel appliances including a café French door refrigerator and gas stove for the chef in the family. Spacious living areas include a formal living room, formal dining and family room. A large upstairs loft, perfect for a children's play area, hobby space, work out area or office. The oversized master suite features French doors leading to a private patio with mountain views and beautiful Arizona sunsets. Relax in the master ensuite with a walk-in shower, soaking tub, dual sinks, private toilet room, and an expansive master closet. Additional features include paved cobblestone driveway and front porch, double RV gate, 4-car garage, complete R/O system, soft water system, upgraded maple/alder stair rails with dramatic entry, faux wood window treatments, utility sink & cabinets in the laundry room and additional half bath near family room. Community perks in Las Brisas include open grassy parks, ramadas, basketball courts, volleyball courts, and many play structures and grassy open areas. Conveniently located near schools including La Brisas Academy. I10 Freeway and Goodyear Ballpark plus eateries close by! Nearby Estrella Mountain Regional Park, with 20,000 acres of pristine desert, is nearby with mountains and a large wetland. Many amenities are available to visitors, including baseball fields, the only grass picnic area (65-acres) in the Maricopa County Park System, a golf course, fishing from the Gila River, and over 33 miles of trails for hiking, mountain biking, and horseback riding. Don't let this one slip by! Move in ready with all the bells & whistles included!

10585 E Cinnabar Avenue Scottsdale, AZ 85258

$654,000
3 Beds
2 Baths
1,902 SqFt
Status Active
MLS # 6752033
Property Type Townhouse
Price Type --
Fully Furnished - Turn-key Luxury in Scottsdale Ranch's Heritage IV adult 55 + community. Just bring your suitcase! Discover the ease of Luxury Living in the prestigious Heritage 4 enclave within Scottsdale Ranch. This true 3 bedroom home offers a refined, turn-key experience with everything ready for you. Fully furnished and featuring newer appliances, fresh exterior paint (2023) , new W/D(2024), water heater ( 2020) a beautifully updated paver patio (2022) and A/C unit (2022), you'll enjoy a seamless and easy move in. A vibrant lake community , the lifestyle here includes serene walking paths, private streets, tennis courts and access to two sparkling pools and over 60 + clubs. Forget about yard work and focus on relaxation and play- the HOA cares for the front yard. Live the carefree, Luxurious lifestyle you've been waiting for in Scottsdale Ranch's Heritage 4. Act now -this is a special home

3794 E Terrel Street San Tan Valley, AZ 85143

$652,990
4 Beds
3 Baths
2,604 SqFt
Status Active
MLS # 6763777
Property Type Single Family Residence
Price Type --
This home has it all with room for your guests and all of your toys! Popular Explorer plan features a full guest suite with its own private entrance as well as it's own RV garage. This home is situated in the amenity rich community of Bella Vista Farms. Residents enjoy an amenity-rich lifestyle with exclusive access to an onsite swimming pool, picnic area, splash park, playground, basketball court, volleyball court and greenbelt. The local area is host to the San Tan Regional Park, where locals enjoy biking, hiking, horseback riding and more.

Leave a Reply

Your email address will not be published.