#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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5618 W Hardtack Trail Laveen, AZ 85339

$599,000
5 Beds
3 Baths
2,971 SqFt
Status Active
MLS # 6775155
Property Type Single Family Residence
Price Type --
You'll FALL IN LOVE The Moment You Step Into This Grand Entrance With 2 STORY HIGH CEILINGS*NEUTRALPalette*Lots Of TILE Flooring*CLOVER Plan Has Room For Everyone*8 FT. Interior DOORS*GREAT Room W/Sliders+Open To ISLAND KITCHEN Featuring GRANITE Counters,42'' BIRCH Cabinets, GAS Stove,WALK-IN Pantry, SS Refrigerator STAYS*Formal DINING For Fun Gatherings*1BR/BA Down*Staircase Opens To LOFT*PRIMARY Suite Has PRIVATE BATH W/Separate Tub+Shower, WALK-IN Closet*Secondary Bedrooms Have MOUNTAIN VIEWS+Walk-In Closets*FLEX Room In Lieu Of 3rd Car*Extended PATIO*Backyard Is Ready For Your DESIGN+CREATIVITY*4 FT Garage EXTENSION*Xtra Insulation*Greenbelt 3 Doors Away*PLAYGROUND Around The Corner*SCHOOL Right Down The Street*Easy FREEWAY Access*LIKE NEW Condition*THE PERFECT PLACE TO CALL HOME!!

16846 W Molly Lane Surprise, AZ 85387

$599,000
6 Beds
5 Baths
3,029 SqFt
Status Active
MLS # 6772326
Property Type Single Family Residence
Price Type --
Rare opportunity in fast growing Surprise, Arizona - 2023 built Landsea home with **ATTACHED CASITA** complete with private entrance and exit perfect for renting, out of state guests, or multi generational living. Tired of waiting on long build times for new construction? This energy efficient, move in ready house is your solution! With over $75K in upgrades including chefs kitchen, luxury cabinetry, upgraded tile flooring, tons of Smart Home features and open concept layout, this will be the perfect place for gatherings and entertaining with plenty of space for everyone. When you combine all of this with an incredible location in the Sunrise community lined with parks, trails, and plenty of open space, this one has everything you need!

10556 S 297th Avenue Palo Verde, AZ 85343

$599,000
4 Beds
3.5 Baths
2,312 SqFt
Status Active
MLS # 6666831
Property Type Single Family Residence
Price Type --
Welcome to your dream home! This stunning semi-custom residence spans over 2,300 sqft and is nestled on a generous 1-acre lot, free from HOA restrictions. Inside, you'll find a beautifully designed split floor plan featuring 4 spacious bedrooms and 3.5 baths. Each room offers direct bathroom access with premium showers, ensuring comfort and convenience for everyone. The gourmet kitchen is a chef's delight, equipped with SS appliances and elegant finishes. Step outside to enjoy the charm and privacy provided by the farm-style fencing. We warmly invite all buyers and buyer's agents to tour this remarkable property. Experience unmatched elegance and comfort!

2118 E Voltaire Avenue Phoenix, AZ 85032

$599,000 - 3Br/3Ba -  for Sale in The Agave, Phoenix
Open House
$599,000
3 Beds
2.5 Baths
1,754 SqFt
Status Active
MLS # 6772448
Property Type Townhouse
Price Type --
The Agave - A rare combination of Space, Style, Quality, and Value where Design Matters. Be inspired by the warm tones and natural textures of the desert where the Sagebrush and Adobe interior color schemes boldly echo the beauty of The Agave. Modern, Flat-Panel Kitchen Cabinetry in Matte color-ways, Solid-surface, Spa-Inspired Flat-Panel vanity cabinets in natural-wood tone finishes in Bathrooms. Standard LVT flooring installed in the entire home, Quartz Countertops and Tile shower surrounds. Standard Accent painted interior doors and jambs for a bold, effortless design touch. Ceiling fans included as well as EV prewire. The Wren showcases a generous backyard and second floor deck to bring the outside in.

23851 W Tether Trail Surprise, AZ 85387

$599,000 - 4Br/3Ba -  for Sale in Metes & Bounds, Surprise
Open House
$599,000
4 Beds
3 Baths
2,432 SqFt
Status Active
MLS # 6741026
Property Type Manufactured Home
Price Type --
Over 4 Acres of Horse Property with NO HOA. This beautiful home features a spacious floor plan with 4 bedrooms + den, 3 baths, (jack n jill bed/bath), front room, living room (with built in mini bar), dining room, & large kitchen with a sky light, lots of cabinets and an island. The master bath has separate shower and jetted soaking garden tub and double sinks. The den has a dual entrance to front room and the master bedroom (great for a private office or workout room) Also a detached 3 car garage and RV gate. Bring your horses, toys & RV's. 3 sheds out back by the covered horse stalls that are staying with the property. Enjoy country living and amazing views. This sale consists of 2 lots each is aprx 2 acres. Each lot has a share in the shared well. Don't miss out on this one.

7901 W Missouri Avenue Glendale, AZ 85303

$599,000 - 4Br/3Ba -  for Sale in Pt Sw4 Daf Beg At Pt 6.2f S & 9.3f W Of Cen Sec Th S 171.25f W 163f N 168, Glendale
New
$599,000
4 Beds
2.5 Baths
2,961 SqFt
Status Active
MLS # 6771300
Property Type Single Family Residence
Price Type --

20590 W Daniel Place Buckeye, AZ 85396

$599,000
5 Beds
2 Baths
2,230 SqFt
Status Active
MLS # 6758248
Property Type Single Family Residence
Price Type --
This beautiful 5-bedroom, 2-bath home, located in the Main Street District, offers an inviting and spacious layout, perfect for those who love to entertain and enjoy outdoor living. With a soaring vaulted entry, 10-ft ceilings, and 8-ft doors, this home feels spacious and inviting at every turn. The open-concept kitchen and great room provide a seamless flow, making it ideal for gatherings. The kitchen is equipped with granite countertops, stainless steel appliances, a newer Bosch dishwasher and disposal, large pantry, and a stylish backsplash. The fridge, freezer, washer, and dryer all convey with the home, ensuring it's move-in ready. The primary suite is a peaceful retreat with beautiful mountain views, featuring double sinks, a separate tub and shower, and a generously... sized walk-in closet. The four additional bedrooms are conveniently located near the secondary bathroom, which features double sinks and a tub-shower combo. Step outside to your own personal oasis and relaxunder the extended covered patio, complete with roller shades for added privacy and comfort. Unwind in the pergola's cozy sitting area, the perfect spot to take in stunning evening sunsets. The beautifully designed paver pathways, planters, and additional sitting areas enhance this outdoor space, offering a variety of options for entertaining or simply enjoying the peaceful surroundings. With breathtaking mountain views and view fencing that creates a sense of openness while maintaining privacy, this backyard retreat is truly a gem. Paver-lined pathways lead from the backyard to the front, providing a cohesive and outdoor space. Whether you're entertaining friends or simply enjoying a quiet evening under the stars, this home offers a balance of comfort and charm. This home is filled with thoughtful upgrades, including a new saltless water softener installed in 2023, a Chamberlain garage door opener installed in 2023, side entry door and built-in cabinets with a workspace in the garage. The A/C unit features an air scrubber filtration system for cleaner air. Additional features include exterior recently painted in 2022, rain gutters installed at front entry, a screened door on the front porch, and ceiling fans throughout for added comfort. Built by Meritage, this house is highly energy-efficient, featuring tinted UV-protected windows, climate-sealed foam insulation, and 2x6 construction. Conveniently located near Main Street, Walton Park, Verrado Elementary, and Verrado Middle School, this home is perfect for those seeking vibrant community engagement or simply to meet friends and neighbors at the park for enjoyable afternoons. 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 connected lifestyle. Make this your next home today!

4068 Apache Drive Happy Jack, AZ 86024

$599,000
3 Beds
2 Baths
1,776 SqFt
Status Active
MLS # 6690523
Property Type Single Family Residence
Price Type --
Horse lovers this is the property for you. Home has been set up with horse corral, lean too, tack shed and dog or goat area. This is a beautiful piece of property with great trees, shade and peace and quiet. Great 3 bedroom/2 bath with detached 2 car garage as well as a new Tuff shed for tack shed or storage building. Comes complete with MOST furniture/furnishings ask LA for details, Pack your food and clothes and head to Heaven in the mountains. Sit on your deck and enjoy the peace or hop on your horse or in the side by side and head to the forest for a ride. Great room has a gas fireplace as well as a wood stove so never go without heat,. Home has new roof, and new mini splits air/heat. Move in ready. If buyer does not have horses seller will remove corral fencing. Bring your buyers to check it out.

7709 W Boca Raton Road Peoria, AZ 85381

$599,000
4 Beds
2 Baths
1,642 SqFt
Status Active
MLS # 6698687
Property Type Single Family Residence
Price Type --
Welcome to your fully renovated, modern oasis! This stunning four-bedroom, two-bathroom home has been thoughtfully updated from top to bottom. Step inside to discover a light, bright, and open floor plan with all-new flooring that flows seamlessly throughout the space. The heart of the home is the gorgeously remodeled kitchen, featuring sleek cabinetry, high-end countertops, and brand-new appliances. Prepare to be amazed by the stunning limestone backsplash and the focal point of the kitchen, a breathtaking waterfall island that offers both beauty and functionality. The kitchen also boasts an eat-in area with tons of seating, making it the perfect spot for casual meals or entertaining guests. The vaulted ceilings add to the sense of space and grandeur, creating a truly luxurious feel. Both bathrooms have also been meticulously updated to provide a spa-like experience, with modern fixtures and finishes. Gather around the new fireplace in the spacious living area, perfect for cozy evenings with loved ones. Outside, a brand-new RV gate provides convenient access to the oversized corner lot, offering ample parking, including space for an RV. Enjoy the outdoors in the newly landscaped front and back yards, providing the perfect backdrop for entertaining or simply relaxing in the Arizona sun. NO HOA!!! For those interested, all the furniture is available for purchase on a separate bill of sale. Please see the list of updates in the documents tab. Don't miss the opportunity to make this beautifully renovated home your own!

915 E Cobble Stone Drive Queen Creek, AZ 85140

$599,000
3 Beds
3 Baths
2,186 SqFt
Status Active
MLS # 6716595
Property Type Townhouse
Price Type --
Start enjoying Encanterra today! This spacious resort home is situated on a premium homesite overlooking a walking trail and stunning mountain views. This home offers a bright and open floorplan with 3 bedrooms, 3 bath, den and spacious loft. Step inside and you'll find upgraded tile plank flooring. The kitchen has beautiful maple cabinets and gorgeous quartz countertops and custom backsplash. All the bathrooms are upgraded with tile surrounds and upgraded fixtures. The garage is spotless with an epoxy finish, R/O and soft water system. The home is situated on a premium homesite and steps away from La Casa as well as the new Algarve, adult pool and restaurant. The Resort collection at Encanterra is perfect for the seasonal resident or year-round homeowner!

4380 W Eagle Street Show Low, AZ 85901

$599,000
3 Beds
2 Baths
1,632 SqFt
Status Active
MLS # 6730924
Property Type Single Family Residence
Price Type --
Experience the beauty of White Mountain living in this furnished cabin located in the exclusive Eagle Mountain Estates. Built in 2020, this home showcases exceptional craftsmanship throughout its 3-bedroom, 2-bath layout. Set on a naturally landscaped lot with engineered drainage for peace of mind, this cabin offers oversized covered porches both in the front and back—ideal for taking in the serene surroundings and outdoor living year round. Inside, you'll find splendid features including granite countertops, custom cabinets, and elegant tile work. The vaulted ceilings add a sense of spaciousness to the home. Located in a peaceful, gated community, this cabin provides a perfect blend of tranquility and stylish amenities. Welcome home!

23086 E Thornton Road Queen Creek, AZ 85142

$599,000
5 Beds
3 Baths
2,116 SqFt
Status Active
MLS # 6744050
Property Type Single Family Residence
Price Type --
Rare 5-bedroom home in Barney Farms is like brand new, built in 2021. Enjoy this premier community in a resort setting, with a deep-water lake at the heart of it all. The community center inspires a healthy active lifestyle with an aquatic center, pickle ball courts, sand volleyball, and numerous parks, playgrounds, and trails to enjoy. This home has a fun putting green in the backyard for more laid-back leisure and a cozy back patio. The front room comes complete with a built-in Murphy bed and shelves to make a perfect office / guest bedroom. A ''collar-controlled'' smart doggie door provides security and convenience for the little loved ones. The best part is a split floorplan perfect for multi-generational living or working at home. You'll love this new home!

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