#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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320 Buckingham Place Prescott, AZ 86303

$649,900
3 Beds
3 Baths
2,768 SqFt
Status Active
MLS # 6748189
Property Type Single Family Residence
Price Type --
City Light & Panoramic views of Thumb Butte, Granite Mountain & Courthouse Square. This is a fix up. Interior is a blank canvas (orig. 1984) ready for a complete gut and remodel to 2025. Priced below replacement cost at $235/SF. Exterior has a new roof, paint, Trex decking, new garage door and water heater. New slider added from eat in kitchen to northside. HVAC 3yrs new. Main floor (street level) has no steps and level driveway (master on main). Lower level has its own entrance with two bedrooms, full bath and flex space for office, gym, game room or study. Downstairs Ideal for multi-generational living or apartment as it has its own ingress-egress. New in box waterproof plank flooring ready for new owner. Adjoining west 0.36 acres can be bundled with sale for an extra $50k.

1246 S Sunnyvale -- Mesa, AZ 85206

$649,900
4 Beds
2 Baths
2,783 SqFt
Status Active
MLS # 6743315
Property Type Single Family Residence
Price Type --
**PRICE IMPROVEMENT** Fall in love with this large 4BR home from the minute you step inside; the immaculate and inviting interior is sure to make you smile! It's easy to picture yourself enjoying this lovely home with its inviting, open floorplan featuring vaulted ceilings and large windows that draw in the natural light, lighted niches, generous secondary bedrooms with plantation shutters, a lovely master suite with a spacious bathroom featuring dual sinks, separate shower & tub, and large walk-in closet. This home is move-in ready with a new professionally painted interior, brand new contemporary ceiling fans and updated fixtures in the main living areas. Two large living areas invite you to entertain friends or enjoy time with your family. A beautiful, upgraded kitchen with granite counters, stainless appliances and recessed lighting, direct access to the covered patio via French doors, a large laundry room and a 3-car garage with Epoxy coated floors are just a few of the things that make this home special and livable. The low-maintenance landscaping will free up your time for fun with friends and family, and the home is within walking distance to elementary and junior high schools. DON'T MISS this rare opportunity to snag a gem in Mesa's coveted STONEGATE ESTATES!

20305 W Peak View Road Wittmann, AZ 85361

$649,900
3 Beds
2 Baths
3,310 SqFt
Status Active Under Contract
MLS # 6712163
Property Type Single Family Residence
Price Type --
HIGHLY MOTIVATED SELLER!!! This NEWLY EXTERIOR PAINTED home has 3 bedrooms and 2 baths plus multiple office spaces that can be used as a 4th bedroom or whatever your imagination can come up with. SO MANY UPGRADES !!! Floors, Counter tops, Paint...just to name a few. Did I mention it has just over an acre of land zoned for horses and a whopping 6 car garages, 4 are attached to the home while the other 2 are ina seperate building

5909 E Crocus Drive Scottsdale, AZ 85254

$649,900
3 Beds
2 Baths
1,416 SqFt
Status Active Under Contract
MLS # 6702362
Property Type Single Family Residence
Price Type --
Location location location in the MAGIC 85254 zip code. This single story popular Monterey model, block constructed Crane home is located within minutes of the Kierland corridor. Features include: light/bright ceramic tile, newer roof(2023), newer AC(2020), N/S facing, low maintenance landscape, stainless steel appliances, granite countertops, partially updated baths and lighting, oversized laundry, plenty of storage, private patios and no HOA. Opportunity is knocking...welcome home!

5651 W Abraham Lane Glendale, AZ 85308

$649,900
3 Beds
2 Baths
1,968 SqFt
Status Active
MLS # 6757000
Property Type Single Family Residence
Price Type --
LAKE FRONT PROPERTY in the Highly sought after Arrowhead Lakes!! Enjoy amazing AZ sunsets from your own dock! Backyard boast peace and serenity with stunning mountain and lake views!! Low maintenance yard with Extensive hardscape, artificial turf allows you more time to enjoy those gorgeous sunsets, fishing or stargazing right off your own boat dock. Recently renovated the boat dock is also low maintenance with long lasting poly wood deck. Located on a cul-de-sac street for low traffic, this 3 bedroom 2 bath, features a 3 car garage with built in cabinets and epoxy floor. Step inside to be greeted by that stunning view through the rear windows for the home. Formal living and dinning room allow for additional living space for home office, home school or large holiday gatherings. The heart of the home situated off the back of the house to maximize the lake view is an open concept with family room and breakfast nook, featuring newer stainless steel appliances, granite counters and neutral paint scheme. Spacious Owner's suite, with cathedral ceilings, yet again taking in those picturesque lake views! Owner's baths features TWO walk in closets, double sinks, large garden tub, walk in shower and private toilet room. Both bedrooms 2 & 3 have vaulted ceilings giving them a more spacious feel. All this located minutes to the 101 Fwy for easy commutes and all the shopping and entertainment the Arrowhead area allows.

2408 W Crimson Terrace Phoenix, AZ 85085

$649,900
4 Beds
3 Baths
3,252 SqFt
Status Active
MLS # 6697417
Property Type Single Family Residence
Price Type --
4% LOAN ASSUMPTION AVAILABLE! Fabulous 4 bed (plus den & loft) 3 bath two-story home in the family friendly Carefree Crossing. Low HOA is a plus! Nice curb appeal w/ stacked stone accents, desert landscaping & large, healthy shade tree. Great floor plan w/ neutral paint, soaring ceilings & updated lighting/fixtures. Living room/dining room greet you, along w/ versatile French door entry office to your right. Perfect for home office or game/playroom if desired. Family room w/ built in buffet area makes perfect bar space. Open kitchen has plenty of cabinet space, SS appliances & island w/ raised bar top great for serving or extra seating. Breakfast area w/ bay windows looking out to backyard. Downstairs primary room has private sliders to backyard & bathroom w/ dual sinks, seated vanity, soaking tub, glass shower, private toilet, linen pantry & walk-in closet w/ built-in shelving. Second bedroom downstairs is a plus. Upstairs you will find the massive, versatile loft & the other two bedrooms, (one w/ delightful window seat) & a full bathroom w/ dual sinks. Backyard has large, covered patio w/ extended pavers, shade ramada, grassy area & raised planter perimeter, along w/ another great shade tree. Residents are very close to shopping areas to both the north & south & have quick, easy access to I-17. Come check it out today!

623 W Harvard Avenue Gilbert, AZ 85233

$649,900
4 Beds
2 Baths
2,152 SqFt
Status Active
MLS # 6773584
Property Type Single Family Residence
Price Type --
SOUGHT AFTER SILVERHAWKE ORIGINAL OWNER LOVED AND CARED FOR HOME! MANY UPDATED FEATURES INCLUDE FLOORING, GORGEOUS UPSCALE KITCHEN WITH NEW APPLIANCES, GRANITE BEVELED EDGE COUNTERS, PULL OUTS AND SOFT CLOSE DOORS/DRAWERS, ROOF HAS BEEN REPLACED WITH EXTENDED WARRANTY, HVAC UPDATED 2020, POOL RESURFACED!! NOTHING TO DO BUT PERSONALIZE, JUST MOVE IN! SO MANY EXTRAS THERE IS A LIST IN THE HOUSE WHEN YOU VISIT! SILVERHAWKE IS THE BEST NEIGHBORHOOD IN NORTHWEST GILBERT WITH FREEWAY ACCESS, DOWNTOWN GILBERT, RESTAURANTS SHOPPING ALL A VERY SHORT DISTANCE... GREENBELT & PLAY EQUIPMENT RIGHT DOWN THE STREET. OUTSIDE IS PARTY YARD WITH SELF CLEANING PEBBLE SHEEN POOL WITH NEWER FILTER, GAS GRILL, LIGHT UP BAR, CEILING FANS, MATURE CITRUS,!!! DID I MENTION THE EXTENDED LENGTH GARAGE? 3 CAR GARAGE HAS PULL DOWN STAIRS TO STORAGE, STORAGE CABINETS, CUSTOM RUBBERIZED GARAGE MATS, STORAGE CEILING RACKS, LOW MAINTENACE FRONT & REAR YARD LANDSCAPE, QUALITY BUILT POST TENSION SLAB, ... WARRANTIES TO BE PROVIDED SOON FOR ROOF AND HVAC, THIS IS A WONDERFUL HOME JUST WAITING FOR YOU IN A GREAT LOCATION

21462 E Waverly Court Queen Creek, AZ 85142

$649,900
4 Beds
3 Baths
2,803 SqFt
Status Active Under Contract
MLS # 6744316
Property Type Single Family Residence
Price Type --
This home sits on a great lot with no direct neighbors behind! You will love the beautiful plank tile flooring throughout the home. The kitchen features a rich shaker cabinetry w/brush nickel hardware, quartz counters, subway backsplash, stainless appliances and it looks into the spacious family room. Enjoy entertaining family and friends in the warm and inviting dining room! Master bedroom is spacious and features dual vanities, a coffee station area, large shower, and a great walk in closet! Great loft can be used as a second family room/media area or game room! Spacious secondary bedrooms! Awesome laundry room upstairs is a plus! Enjoy the backyard with the sparkling pool, sport court, lots of artificial grass for kids or pets to play and the covered patio! 3 Car Garage, Cul-de-sac lot with long driveway to park vehicles or play games. Awesome subdivision with greenbelts and playgrounds throughout. Excellent Schools and Shopping just a few minutes away.

17410 N Country Club Drive Sun City, AZ 85373

$649,900 - 2Br/2Ba -  for Sale in Sun City 53, Sun City
Open House
New
$649,900
2 Beds
2 Baths
2,527 SqFt
Status Active
MLS # 6776222
Property Type Single Family Residence
Price Type --
Absolutely stunning home located on Union Hills Golf Course! Private front courtyard leads to double entry doors with views of the course and best of all: a water view! Enjoy your new carefree Sun City lifestyle in this home packed with updates! Newer kitchen, windows, master bath and owned solar! Commanding views of the golf course will inspire you to relax and entertain on your custom patio with outdoor kitchen. Enjoy the chill of the evening while chatting with your guest around the custom firepit patio table. The expansive living space indoors features a unique open concept design yet caters to those that are desiring smaller more intimate spaces. Updated custom kitchen with beautiful finishing detail! Master suite will wow with immense walk in closet & doors to patio! Don't miss this List of improvements: Outdoor Kokomo Kitchen, Island and Patio cover $24,000 Complete remodel of Master Bath & Closet $26,000 Ceiling Fans throughout home $2,000 New Dining Room lighting $2,000 Added Temperature control (AC) in Garage $800 Extended Patio Pavers $4,000 Expanded concrete driveway $4,500 Kitchen Remodel, New Countertops & backsplash $8,400 New Vinyl Flooring throughout $15,000 Expanded openings & doorways $2,500 Interior painted in 2024 $3,200 Fenced in backyard (metal) $4,200 New pavers in front courtyard $8,000 _________ Total $104,600 Features: Fully owned and paid up Solar (39 Solar Panels) -Banking Credits during Fall, Winter, Spring. Avg APS bill $10.00 Golf Course lot between 12th Green & 13th Tee on Union Hills Golf Course Updated windows, Stucco, New Roof (2021) Private Patio in front and privacy on Back Patio with Golf Course Views and Plenty of mature trees. Spa on front patio negotiable Back Yard Xeriscaping - does not require water Updated front watering system

16036 W Sandia Park Drive Surprise, AZ 85374

$649,900 - 2Br/2Ba -  for Sale in Sun City Grand-mountain View 1, Surprise
Open House
$649,900
2 Beds
2 Baths
2,273 SqFt
Status Active
MLS # 6733325
Property Type Single Family Residence
Price Type --
Beautifully remodeled Windrose model with too many updates to list here. Triple garage and large fenced yard. Very modern colors with floating custom media wall. Vinyl flooring, granite counter tops, newer Stainless appliances, under cabinet kitchen lighting, inside laundry, pavers and cool decking on the back patio and fenced front courtyard. HVAC system replaced in 2018. Outside painted recently; newer PVC irrigation with drip system and new control box. Newer sinks, lighting and painted cabinets throughout - plus so much more.

10011 E Lakeview Circle Mesa, AZ 85209

$649,900 - 3Br/3Ba -  for Sale in Villages Of Eastridge, Mesa
Open House
$649,900
3 Beds
2.5 Baths
2,960 SqFt
Status Active
MLS # 6754002
Property Type Single Family Residence
Price Type --
*NEED MORE SPACE? Potential 4/5 Bedroom Home Awaits you in Villages of Eastridge ! *Flex-Floor Plan Looks New! *Original Owner on Culdesac Corner Home Site! *3+4 Bedrooms* Upper Loft & Lower Level Den/Office or Potential 4th-5th Bedroom Guest Suite & Master Retreat Sitting Room! *SPARKLING PLAY POOL & LARGE YARD! *3 Car Extended Garage + Double RV Gate! *Open Country Kitchen Island Bar & Walk in Pantry Overlooks Family Rm* Wood-Like Floors Lower Level *Dual A/C Units 2 Years New* Interior Freshly Painted & Exterior Recently Painted *Large Covered Patio *Backyard Fire Pit *2 Storage Sheds Garage Cabinetry with Work Bench & Storage Shelving *EXTRA WIDE & LONG Culdesac Drive for Additional Parking! Basketball Sports Court, Parks & Playgrounds! Quick Access Fwy's 202 & I60 & Schools!

2614 N 15th Street Phoenix, AZ 85006

$649,900 - 3Br/3Ba -  for Sale in Maxwelton Tract Lots 8 Thru 22, Phoenix
Open House
$649,900
3 Beds
2.5 Baths
1,972 SqFt
Status Active
MLS # 6735434
Property Type Single Family Residence
Price Type --
This exceptional home offers quality and low-maintenance living in the heart of Coronado. Completely rebuilt in 2016, the home was taken down to the studs and updated with all-new electrical, plumbing, insulation, and premium finishes throughout. The thoughtfully designed floor plan includes an inviting library with raised ceilings and floor-to-ceiling bookshelves, a spacious primary suite with vaulted ceilings and a luxurious en suite bath, and a gourmet kitchen equipped with a breakfast bar, pantry, and high-end AGA range. Modern upgrades include dual HVAC systems with WiFi thermostats, energy-efficient dual-pane windows, hardwood flooring, a tankless water heater, and a robust whole-house water filtration system. Additional features include a dedicated laundry room, an upgraded garage with a 220V line for EV charging, hanging storage, and extra outlets. Enjoy entertaining on the wraparound porch amidst lush landscaping, including fruit-bearing trees and large shade trees, or retreat to the custom-designed great room with a hardwood bar and ample amenities. With paid-off solar panels, an average electric bill of only $120, and a prime location near parks, restaurants, and the Oak Street Alley Murals, this home offers the perfect blend of charm, convenience, and efficiency. Don't miss out on this standout property, recently featured in the 2024 Coronado Home Tour!

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