#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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6826 E Monterey Way Scottsdale, AZ 85251

$649,000
3 Beds
2 Baths
1,980 SqFt
Status Active
MLS # 6733512
Property Type Single Family Residence
Price Type --
LOOKING FOR INVESTMENT PROPERTY! Looking for a 3 bedroom, 2 bathroom with a den located in South Scottsdale? Look no further! Charming single level home features a spacious open floor plan, new floors in the living room area, fresh interior paint, new light fixtures with plenty of natural light! Spacious bedrooms with ample closet space, den, dining area, over-sized laundry room and flex space for office. Enjoy the private and peaceful backyard. Covered patio with mature landscaping. A perfect gathering spot for friends and family. Close to Old Town shopping, ASU and Scottsdale Fashion Square.

4402 N 9th Avenue Phoenix, AZ 85013

$649,000
3 Beds
3 Baths
1,826 SqFt
Status Active
MLS # 6696438
Property Type Single Family Residence
Price Type --
Welcome to your new sanctuary! 3 beds, 3 bath haven is the epitome of truly a move-in ready meticulously maintained oasis with 2 bedrooms ensuite, one with a private entrance. A brand-new roof & fresh paint, this home exudes charm & tranquility. The kitchen, complete with a gas stove, elegant granite countertops, underlit cabinets & pantry, perfect for culinary adventures. Outside, lush trees frame the beautiful maintained lawn, covered porch front & back creating a private oasis for relaxation or entertaining. Nestled in a vibrant neighborhood, you'll love the convenience of nearby shops, restaurants, and the community's lending tool shed & libraries. This home & neighborhood is more than just a place to live - it's a vibrant community with a welcoming spirit. Come see it

902 E Goldenrod Street Phoenix, AZ 85048

$649,000
3 Beds
2 Baths
1,927 SqFt
Status Active
MLS # 6748472
Property Type Single Family Residence
Price Type --
Don't miss your chance to own in this highly sought after community. This freshly polished gem is nestled at the base of South Mountain, offering resort-like views and a private backyard perfect for sunsets and stargazing. Recent upgrades include a refreshed pool, kitchen and bathroom updates and new flooring throughout. Located in the top-ranked Kyrene School District, this home is just steps from playgrounds and park concerts. This home checks all the boxes.

2125 W Highridge Road Wickenburg, AZ 85390

$649,000
3 Beds
2.5 Baths
3,141 SqFt
Status Active Under Contract
MLS # 6736978
Property Type Single Family Residence
Price Type --
Welcome to this delightful home that perfectly combines comfort and countryside living. Set on a spacious 2-acre lot, this property offers scenic views and a small horse setup, ideal for equestrian enthusiasts. Inside, you'll find an inviting family room, perfect for relaxing and spending quality time together. The formal living room and formal dining room provide dedicated spaces for entertaining and special occasions. The modern kitchen is well-equipped with all the essentials, making meal preparation a breeze. The bedrooms offer cozy retreats, with the primary suite featuring an en-suite for added privacy and convenience. A versatile bonus/game room adds extra living space, perfect for entertaining guests, family fun, or quiet relaxation. Step outside to enjoy the expansive views and the beauty of nature that surrounds this property. The small horse setup adds a touch of rustic charm and functionality, making this home a rare find. Experience the perfect blend of modern living and rural serenity in this wonderful home. Your dream of countryside living with all the comforts of today awaits.

16155 E Glenview Place Fountain Hills, AZ 85268

$649,000 - 2Br/3Ba -  for Sale in Glenview, Fountain Hills
Open House
$649,000
2 Beds
3 Baths
1,776 SqFt
Status Active
MLS # 6774302
Property Type Single Family Residence
Price Type --
Close to middle school and high school in Glenbrook subdivision. Nice 2 master bedrooms with 2.5 baths. Granite counter tops, stainless steel appliances. Plantation shutters throughout. All one level, no carpet. 2 car garage. Covered patio in back with some artificial turf, and beautiful landscaping.

15163 W Cameron Drive Surprise, AZ 85379

$649,000 - 5Br/3Ba -  for Sale in Rancho Gabriela Phase 3, Surprise
Open House
$649,000
5 Beds
3 Baths
3,684 SqFt
Status Active
MLS # 6775454
Property Type Single Family Residence
Price Type --
Welcome home! Recently renovated and turn-key! 5 spacious bedrooms, 3 bathrooms and a bonus loft + 3-car garage. New luxury vinyl flooring and tile floors throughout, formal living /dining room, kitchen with island, walk-in pantry, granite counters, stainless steel appliances, open to breakfast nook and family room overlooking covered patio, grassy backyard and pool w/ shark inlay. Upstairs to spacious loft for a 2nd family room! Primary suite w/sitting area, separate shower/tub and extra large closet and sleek renovated bathrooms. Added features include modern light fixtures and ceiling fans, surround sound, garage with attached cabinets and epoxy flooring. Enjoy community features of parks, greenbelts, playgrounds, sport court and sand volleyball court.

18602 E Avenida Del Ray -- Rio Verde, AZ 85263

$649,000 - 3Br/2Ba -  for Sale in Rio Verde Unit 5-a, Rio Verde
Open House
$649,000
3 Beds
2 Baths
1,886 SqFt
Status Active
MLS # 6760968
Property Type Single Family Residence
Price Type --
Built in 1990 this well maintained Santa Fe Territorial is comfortably tucked into the active adult golf community of Rio Verde. This home is move in ready and boasts 14 foot ceilings a split 3 bed 2 bath open concept floor plan. View the beautiful Mazatzal mountain tops from the covered back patio living space, accessed by a living room slider and primary bedroom which has its own private patio access. Spacious kitchen with extra long granite bar and a dining room area. A cozy Fireplace to keep you warm on crisp desert nights. Large mature desert landscaped corner lot with a long driveway providing even more privacy. 2 car garage with a separate side entrance golf cart garage. Golf membership information available upon request. Social membership included with purchase. Rio Verde's active adult Golf Course community offers an array of activities for all. There is a private gate to access all of McDowell Regional Parks 21,000 acres of hiking and mountain biking trails. Rio Verde has a very active Tennis and Pickle Ball community. Bocce Ball parties every Wednesday and Friday afternoons, A brand new 2700 sq/.ft workout facility, lap and social pool which offers water sports and class activities, a community art room, resort style library and a separate Billiards Room - all makes for an enjoyable part of the Rio Verde lifestyle. All the above mentioned amenities are included with home ownership in Rio Verde. Golf membership information available upon request- Rio Verde has two different 18 hole courses within the community.

17621 N Eagle Crest Drive Surprise, AZ 85374

$649,000 - 2Br/2Ba -  for Sale in Sun City Grand-jasper Point, Surprise
Open House
$649,000
2 Beds
2 Baths
2,273 SqFt
Status Active
MLS # 6761486
Property Type Single Family Residence
Price Type --
Sun City Grand 2 bed 2 bath w/Den on Granite Falls South Golf Course with a great view of #16 green. Quartz counter tops and maple cabinets at the kitchen, carpet and tile throughout. A gas fireplace at the living room, double sinks at master bath and bay at master bedroom. Closet shelving system at master closet. Shutters and honeycomb blinds for window coverings, Ceiling fans, solo tubes, & water softener. Extended 3 car garage w/cabinets and a work bench. Step onto the extended e facing patio for great views and a built in gas BBQ.

1416 E Westchester Drive Tempe, AZ 85283

$649,000 - 3Br/2Ba -  for Sale in Bradley Place, Tempe
Open House
$649,000
3 Beds
2 Baths
2,050 SqFt
Status Active
MLS # 6770433
Property Type Single Family Residence
Price Type --
Fantastic 4-bedroom home in a great Tempe location! Its charm starts with a manicured landscape, 2-car garage, & a front porch. Fabulous interior features recessed lighting, plantation shutters, layered crown molding, neutral paint, and wood-look tile flooring t/out for easy maintenance. You'll LOVE the large living room w/fireplace and the separate family room that offers versatility! The spacious eat-in kitchen has SS appliances, granite counters, travertine backsplash, ample wood cabinets, & a huge island w/breakfast bar. The double doors open to the back! Main bedroom has French doors to the back, a walk-in closet, & an ensuite w/dual vessel sinks. Enjoy the entertainer's backyard with a covered patio, well-laid pavers, firepit, citrus tree, storage shed, & a sparkling pool! Just WOW!

14217 N 11th Way Phoenix, AZ 85022

$648,790
3 Beds
2 Baths
1,991 SqFt
Status Active Under Contract
MLS # 6765992
Property Type Single Family Residence
Price Type --
You'll be enchanted by this exquisite Moon Valley gem. Located in a quiet cul-de-sac, this breathtaking home has undergone recent updates, featuring new flooring, updated baths, double-pane windows, air conditioning, ductwork, fresh interior and exterior paint and more. This gorgeous kitchen is right off your Pinterest page. Two tone cabinetry, huge center island with quarts counters and new stainless appliances. However, your favorite retreat will undoubtedly be the backyard. Step through your 15-foot sliding doors into your private sanctuary, complete with a fenced pebble-tec pool, gazebo, firepit, and stunning landscaping. Whether you're entertaining guests or simply relaxing by the pool, you'll enjoy a beautiful and tranquil atmosphere. with plenty of privacy and mountain views.

18410 N 70th Drive Glendale, AZ 85308

$648,000
3 Beds
2 Baths
1,942 SqFt
Status Active Under Contract
MLS # 6766686
Property Type Single Family Residence
Price Type --
Are you looking for a 1/2+ Acre Lot, with a 3 Bedroom/2 Bathroom/2 Car Garage Home with a separate Workshop/Garage/Man Cave Office that has room for 4 more Cars? Oh, there is also a Pool and Spa with a huge, covered Patio and plenty of grass areas to enjoy this Property. No, no, H.O.A.!!! The exterior of this Home and Workshop were just painted in September 2024 and a new Roof on the main Home was completed in May 2024. Check out the extensive Home Improvement List in the Document Section.

3533 N Nathan Court Buckeye, AZ 85396

$648,000
3 Beds
2.5 Baths
2,536 SqFt
Status Active
MLS # 6751010
Property Type Townhouse
Price Type --
This stunning home in the private, gated community of Vallarta offers everything Verrado is known for and more. Perfectly situated on the acclaimed Founders Course, this meticulously maintained, model-style home boasts a prime location on a secluded cul-de-sac, with open grassy common areas and breathtaking golf course views. Featuring 3 bedrooms, 2.5 baths, with 3rd bedroom available for bedroom or office and owned solar panels with transferrable warranty (recent solar system inspection, inverter firmware upgrade) for minimal electric bills, this home has it all! Enter the gourmet kitchen, a chef's dream, complete with 42'' white cabinets adorned with champagne brass knobs, a stylish backsplash, quartz countertops, stainless steel appliances, a huge kitchen island with ample storage, pendant lighting, a gas stovetop, reverse osmosis drinking water system, pull out shelving, and soft close drawers. The stainless steel refrigerator is included making this space ready for your culinary adventures. Wake up to stunning views from the primary bedroom, which features tray ceilings, updated pendant lighting, and access to a private balcony offering panoramic views of the golf course, mountains, and cityscape. The luxurious primary bathroom boasts a spacious tile and glass shower, perfect for a refreshing start to your day. An additional bedroom, bathroom, and loft area complete the upper level, providing flexible living options. The open and airy great room concept floor plan includes a multi-glass sliding door that seamlessly integrates indoor and outdoor living, making it an entertainer's dream. The serene backyard, with extended pavers and a watering system for plants, is an ideal retreat with breathtaking mountain and golf course views. Enjoy cozy evenings by the outdoor fireplace or fire pit, perfect for relaxing and entertaining. Additional home upgrades include a custom wrought iron front door, commercial grade berber carpet and LVP wood-like flooring installed upstairs in 2022, plantation shutters, designer built-ins by Classy Closets, a high-end water softener, ceiling fans with dimmer remotes, and a fully painted exterior add to the home's appeal. Updated lighting in the powder bath, included washer and dryer, Comfort Cooling AC zone differential, owned security system with cameras through ADT, Google Nest door camera, animal deterrent fencing around exterior open fence areas and backyard rain gutters enhance the home's functionality and style. The garage features a heated/cooled air conditioner, garage cabinets, a workshop, and storage racks with a 700+ lb and added insulation in the ceiling for efficiency. Residents of Vallarta enjoy exclusive access to a private pool, set among charming tree-lined streets and lush green landscapes. Verrado offers an array of amenities, including shopping, local restaurants, hiking and biking trails, two additional outdoor pool locations, a fitness center, top-rated A+ schools, and over 78 parks. Community events are hosted throughout the year, creating a vibrant and connected lifestyle. With future developments, including outdoor shopping and a medical center just down the road, Verrado's convenience continues to grow. The HOA covers exterior paint, road maintenance, pool, and all front yard landscape maintenance including irrigation, and water, offering truly Lock and Leave, maintenance-free living. Come experience the best of the Verrado lifestyle in the luxury community of Vallarta. This home is PRICED TO SELL - don't miss out on this exceptional opportunity!

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