#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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17227 W Middlebury Street Surprise, AZ 85388

$645,000
2 Beds
2.5 Baths
2,001 SqFt
Status Active
MLS # 6669966
Property Type Single Family Residence
Price Type --
Brand new home! The Potomac's inviting covered entry and foyer reveal a spacious office, expansive great room (with 20 ft MULTI-PANEL SLIDING STACKING DOOR) and casual dining area, and the desirable covered patio beyond. The well-designed kitchen is equipped with a large center island with waterfall edge, breakfast bar, plenty of counter and cabinet space, and huge walk-in pantry. The serene primary bedroom suite is highlighted by a sizable walk-in closet and spa-like primary bath with dual-sink vanity, large luxe glass-enclosed shower, linen storage, and private water closet. The sizable 2nd bedroom features an ample closet and private full bath. Or buy as a rental (the Sterling Grove Grove Golf & Country Club rental market is HOT right now). House is 100% virtually landscaped/staged.

13198 W Crestvale Drive Peoria, AZ 85383

$645,000
4 Beds
3 Baths
2,222 SqFt
Status Active
MLS # 6682953
Property Type Single Family Residence
Price Type --
HUGE PRICE REDUCTION! ATTACHED PRIVATE GUEST SUITE! This space could also be used as a tucked away kids space. With 4 beds, 3 baths, & a 2-car garage with storage, this gem offers comfort & convenience. A desirable open layout enhanced with tall ceilings, an accented wall, a trending palette, wood-plank tile flooring, & sliding glass doors, merging the indoor with the outdoor poolside living. The gourmet kitchen is a homemaker's dream, featuring granite counters, recessed fixtures, a walk-in pantry, ample wood cabinetry with crown molding, an island with a breakfast bar, & SS appliances, which includes a gas cooktop & a wall oven. Retreat to the carpeted main suite, highlighting a pristine private bathroom with dual sinks, a step-in glass shower, & a walk-in close The sizable guest's quarter provides a living room, a kitchenette, & a bathroom. Have fun in the large backyard, complete with a covered patio, artificial turf, pavers, an outdoor wooden swing, & a crystal blue pool. Move-in ready!

4106 E Lavender Lane Phoenix, AZ 85044

$645,000
4 Beds
2.5 Baths
2,418 SqFt
Status Active
MLS # 6697243
Property Type Single Family Residence
Price Type --
Beautiful home with new master bathroom luxury vinyl flooring just installed . New inside paint 2024. 4 bedroom, 2.5 bath plus a den. 18 inch tile. Living and family rooms with a separate formal dining area. Kitchen with raised-panel cabinetry opens up to the family room and a brick fireplace. Large laundry room with cabinets and pantry. Vaulted ceilings, upgraded light fixtures and ceiling fans throughout. Large secondary bedrooms. Wired for security system. Garage has cabinets and work bench plus pull down attic stairs with fully floored attic for more storage. Huge cul-de-sac lot with synthetic turf, pavers, ramada sitting area, big covered patio and RV gate. Great Mountain Park Ranch location with parks and 3 community pools - one within walking distance!

5317 W St Kateri Drive Laveen, AZ 85339

$645,000
5 Beds
3 Baths
4,040 SqFt
Status Active
MLS # 6704173
Property Type Single Family Residence
Price Type --
Large Fully remodeled like New !! 5 bedroom, 3 bathroom, 3 Car Garage Cul-de-Sac home in South Phoenix in well established Laveen community. New Tile floor and baseboards downstairs and New Carpet and Pad throughout home. Upgraded kitchen w/ Quartz Countertops and Exquisite Backsplash. Stainless Steel appliances and recessed lighting. Large island for plenty of counter space and entertaining. Spacious walk-in pantry. Living Room and Formal Dining area.. All bathrooms upgraded with tile surround. 1 bedroom with full walk-in shower downstairs and all bedrooms boast Walk-in Closets. Pre-wired for Surround Sound. Close to new shopping and new Loop 202 for quick commute. Backyard has full covered patio and grassy area. Close to park at end of street. MUST SEE!!

632 N 72nd Place Scottsdale, AZ 85257

$645,000
4 Beds
2 Baths
1,990 SqFt
Status Active
MLS # 6727478
Property Type Single Family Residence
Price Type --
Fresh paint, new flooring, new kitchen features waterfall counter top, new restrooms. Homes has been remodeled and is ready for its new owner. Dual pane windows through the home. Shopping retail, entertainment, and restaurants very close.

10842 N 9th Place Phoenix, AZ 85020

$645,000
3 Beds
3 Baths
2,171 SqFt
Status Active
MLS # 6736524
Property Type Townhouse
Price Type --
Welcome to your dream home! This sophisticated 3-bedroom, 3-bath residence is surrounded by lush vegetation and stunning mountain views. Inside, you'll find custom cabinetry, granite countertops, stainless steel appliances, and an eat-in dining area. Enjoy high vaulted ceilings, clerestory windows, and brand new tile flooring. The primary bedroom is downstairs, featuring an ensuite with a new walk-in tile shower and walk-in closet. The upstairs loft is a versatile flex space with an ensuite and private balcony. The tranquil backyard/patio, with no neighbors behind, offers serene outdoor living with multiple seating areas. A short walk takes you to one of four community pools and clubhouse. This home is in the renowned Paradise Valley Schools district. Don't miss this exquisite property!

2809 E Hillery Drive Phoenix, AZ 85032

$645,000
3 Beds
2 Baths
2,015 SqFt
Status Active
MLS # 6738520
Property Type Single Family Residence
Price Type --
Location Location Location! This beautifully updated 3-bedroom, 2-bath home is perfect for those seeking modern comforts and a prime location on an almost 1/4 acre lot! Nestled in a great neighborhood at the base of Shadow Mountain, this property boasts several recent upgrades and desirable features to include: Freshly painted both inside and out, offering a clean and modern look; updated lighting fixtures throughout the home providing a bright and inviting atmosphere; new vanities in both bathrooms; a huge pantry provides ample storage space, making the Kitchen a dream for any home chef. Large sparkling diving pool in the private backyard. Huge pantry and updated lighting fixtures. New vanities. Enjoy your completely fenced, large sparkling diving pool in this beautiful backyard ensuring you can enjoy the outdoor space without all of the hassle! The home is ideally situated with a north/south facing orientation, maximizing energy efficiency and comfort. Don't miss the opportunity to own this move-in-ready home in a fantastic location - this one is special!

6565 E Thomas Road Unit 1126 Scottsdale, AZ 85251

$645,000
3 Beds
2 Baths
1,569 SqFt
Status Active
MLS # 6740313
Property Type Townhouse
Price Type --
Location, Lifestyle & Luxurious Living in Scottsdale AZ! This is a pristine, urban condo with rare 2 car attached garage. This 3 bedroom, 2 bath townhome offers a spacious kitchen - open concept - dining and great room. Large primary bedroom with an en suite, with dual sinks, separate shower, luxurious bath and large walk-in closet. The additional bedrooms are privately split from the primary bedroom. Enjoy Arizona sunrises from your private balcony. Diamante's gated community offers two resort style pools and plenty of gas grills; perfect for entertaining. Just minutes away from Old Town Scottsdale, Arcadia, and Phoenix Sky Harbor airport, this location can't be beat!

18936 E Amethyst Drive Rio Verde, AZ 85263

$645,000
2 Beds
2.5 Baths
2,015 SqFt
Status Active
MLS # 6745521
Property Type Townhouse
Price Type --
End unit townhome in a quiet setting. 2 Bedrooms, 2 Baths. Den/Office- currently set up as an art studio with barn doors. Primary Suite has dual vanities, walk in shower, linen storage, large closet. Guest room currently set up as an office w/ walk in closet and hardwood floor. Guest bath with single vanity and new Kohler therapeutic walk- in tub/jacuzzi/shower. Great room adjacent to kitchen with patio access. Gourmet kitchen with desirable 6 burner Gas Range with dual ovens, warming drawer, microwave, Bosch fridge, appliance garage, granite counters. Casual dining area. Laundry room w/ sink & built in desk. Covered patio with extension for plenty of outdoor seating & entertaining. Lush landscaping. 2 car plus golf cart garage. Whole house water filtration system. Come , see, buy!

9010 W Redbird Road Peoria, AZ 85383

$645,000
5 Beds
5 Baths
3,455 SqFt
Status Active Under Contract
MLS # 6745640
Property Type Single Family Residence
Price Type --
Welcome to your dream home! This stunning 5-bedroom, 5-bathroom residence offers the perfect blend of luxury and functionality. The spacious floor plan is ideal for multigenerational living, featuring the primary bedroom and an additional bedroom and bathroom on the main floor. Upstairs, you'll find three more generously sized bedrooms, 3 full bathrooms, along with a versatile game room perfect for entertaining. Step outside to your private oasis, complete with a sparkling pool, ideal for those warm summer days. The 3-car garage provides ample space for vehicles and storage. This home truly has it all—don't miss the chance to make it yours!

10744 W Briles Road Peoria, AZ 85383

$645,000 - 3Br/3Ba -  for Sale in Tierra Del Rio Parcel12 Replat, Peoria
Open House
$645,000
3 Beds
2.5 Baths
2,512 SqFt
Status Active
MLS # 6747063
Property Type Single Family Residence
Price Type --
This gorgeous home with a sparkling POOL is move in ready & fully upgraded! Gourmet kitchen w/ white cabinets, stainless steel appliances, 5 burner gas range w/ hood, wine fridge, large pantry & granite counters. Tandem garage 48' long to fit your SUV, boat, etc. Great floor plan w/ den (or bedroom) or could change to a formal living in front, large great room, soaring vaulted ceilings bringing natural light throughout the whole home. The powder room downstairs can easily have a shower added. Plumbing already installed. Upstairs is open loft, two large bedrooms and the primary suite. Backyard features sparkling pool and covered patio w/ low maintenance turf that has sprinkler system to keep it cool for your kids/pets. Across the street from the park.

15999 W Montana De Oro Drive Surprise, AZ 85387

$645,000
4 Beds
3 Baths
2,515 SqFt
Status Active
MLS # 6747387
Property Type Single Family Residence
Price Type --
Gorgeous Home in Escalante For Sale that's better than new! The home has over $100,000 in upgrades all the way throughout, starting with the exterior that has charming curb appeal, front yard landscaping with lighting and irrigation, extra wide driveway pavers for additional parking, and additional pavers to the gate and beyond perfect for RV's, boats, toys, you name it! The interior has been completely upgraded as well, featuring soaring 10ft ceilings, 8ft doors, and a split floor plan that feels airy and bright! Notice the neutral wood look tile flooring and paint that go with any color! The kitchen is a chef's kitchen with massive island, 4-inch granite countertops, Upgraded GE Café Stainless Steel Appliances, custom drawers throughout, under cabinet lighting, and more! For gas cooking enthusiasts, it's stubbed and ready, too! The kitchen opens to the spacious family room, perfect for family time or entertaining, and features the 16 foot atrium sliding doors, giving that indoor-outdoor feel! The master bedroom is large, and boasts a resort style ensuite with raised countertops, double sinks, and a super-shower with two shower heads and granite bench, plus a massive walk-in closet! The additional bedrooms are spacious as well, and the secondary bathrooms have been equally upgraded. If that's not all, you'll love the flex space that could make for a perfect office, workout room, or craft space, the 3 car tandem garage with epoxy flooring, tankless water heater, spacious laundry room with stainless steel sink, and all the upgraded lighting and fans throughout! The backyard is your blank canvas, with plenty of space for a pool. Builder incentives are nice, but this house has it all, plus builder warranties, and with no build time! Escalante is a vibrant and family-friendly neighborhood renowned for its exceptional amenities and outdoor lifestyle. Nestled within this community are charming tree-lined streets that provide a serene backdrop to everyday living. Residents enjoy easy access to scenic hiking trails that invite exploration and adventure right at their doorstep. The neighborhood boasts a state-of-the-art aquatic center, perfect for relaxation and recreation. With eight select parks featuring ramadas, basketball courts, pickleball courts, and bocce ball courts, there's no shortage of recreational options. For disc golf enthusiasts, an 18-hole course offers a fun challenge, while a thrilling zip line provides endless enjoyment for kids. Escalante seamlessly blends active living with relaxation, making it an ideal place to call home. Welcome home!

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