#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

8246 E Sweet Acacia Drive Gold Canyon, AZ 85118

$539,000
3 Beds
2 Baths
1,582 SqFt
Status Active Under Contract
MLS # 6774755
Property Type Single Family Residence
Price Type --
WELCOME TO THIS BEAUTIFUL TOTALLY UPDATED HOME LOCATED ON A MOUNTAIN-VIEW LOT! This hillside retreat features lovely views and is an entertainer's delight ~ the backyard boasts a new outdoor kitchen built in 2024, a putting green, a lighted patio cover, water feature and special desert landscaping. The home has updated floors, new windows in 2018, granite counter-top and backsplash in the kitchen, along with updated appliances. The master bathroom has been remodeled including a designer walk-in shower and is gorgeous! The garage is air-conditioned with an insulated garage door. This home is move-in ready and has too many updates to list. Mountainbrook boasts two community pools, pickleball courts, exercise facilities & an 18-hole golf course with Superstition Views.

4332 W Charleston Avenue Glendale, AZ 85306

$539,000
4 Beds
2 Baths
2,487 SqFt
Status Active
MLS # 6670439
Property Type Single Family Residence
Price Type --
BACK ON MARKET AND WORTH THE WAIT! Brand new A/C, no popcorn ceilings, freshly painted inside and ready for its new owner. Create a gourmet meal in the open kitchen, complete with stainless appliances, granite counters and a huge island w/cabinet space. Or step out back for a dip in the crystal blue diving pool or a relaxing evening by the fire pit with bench seating. Easy care tile floors throughout, and fully upgraded bathroom counters and fixtures. Stash the toys in your 3-car garage, or take advantage of RV parking available for rent in the Bellair community. Around the corner from local schools and the Bellair Golf Course and close, but not too close, to the 101 and Arrowhead Towne Center.

20007 N Siesta Rock Drive Surprise, AZ 85374

$539,000
2 Beds
2 Baths
1,712 SqFt
Status Active
MLS # 6725881
Property Type Single Family Residence
Price Type --
Recently refreshed 2 bed/2 bath, with den area & CASITA (additional 1 bed, 1 bath) is now available in the beautiful Desert Oasis community of Sun City Grand! 1712 square feet in the main house and 247 in the casita makes this property 1959 TOTAL square feet! Kitchen updates include granite counter-tops and crisp white painted cabinets with new hardware. Additional upgrades include ceiling fans, light fixtures, carpeting, built in wood desk in the den along with a built in bar and fresh new interior paint throughout! All appliances convey making this home truly turn key. With the extended covered patio and great back yard space, this home is an entertainers dream. The generously sized, completely detached casita, offers a tranquil place for your guests to stay!

4610 E Valley View Drive Phoenix, AZ 85044

$539,000
2 Beds
2 Baths
1,596 SqFt
Status Active
MLS # 6736998
Property Type Townhouse
Price Type --
Welcome to your dream ranch-style home nestled in a tranquil Pointe South Mountain neighborhood! This beautifully remodeled home boasts interior updates including new flooring throughout, renovated kitchen, and modernized bathrooms. Enjoy the spacious layout featuring tons of natural light. Outside, you'll discover your own private oasis - a large backyard featuring a flagstone patio, cozy fire pit, and mountain views, perfect for entertaining or simply unwinding after a long day. Don't miss this incredible opportunity to experience all the charm and modern conveniences this property has to offer!

33575 N Dove Lakes Drive Unit 2028 Cave Creek, AZ 85331

$539,000
3 Beds
2 Baths
1,855 SqFt
Status Active
MLS # 6750727
Property Type Apartment
Price Type --
This beautiful condo offers 3 spacious bedrooms & 2 bathrooms, including a stunning custom tile shower & a large private balcony to enjoy the AZ weather. As a truly turn-key corner unit, overlooking 1 of 2 serene community pools w/ the 2 fitness centers nearby, a 2-car garage & private driveway, this could be ideal for seasonal residents to enjoy & potentially rent out (30-day minimum) when not in town. The open-concept living space includes a nook for a desk & an elegant modern gas fireplace as the focal point. Newer stainless-steel appliances, granite counters, newer washer & dryer, and fresh interior paint. Quick access to Dove Valley Ranch Golf Course, grocery stores, and the town of Cave Creek. Perfect for those seeking an updated, low-maintenance lifestyle in a prime location!

9153 W Salter Drive Peoria, AZ 85382

$539,000
5 Beds
3 Baths
2,691 SqFt
Status Active
MLS # 6746243
Property Type Single Family Residence
Price Type --
Perfect for a large family. This beautiful two story 3 car garage In North Peoria. Front has a great court yard with pavers. Eat in kitchen is complete with center island, granite counter tops, tile back splash, custom cabinets, and stainless steel appliances and Water Softener. Large family room off eat in kitchen. Wood stair case to loft that overlooks living and formal dining room. Master bathroom with His & her vanities Backyard features an extended covered patio with lush green grass.

7966 E Three Canyons Road Hereford, AZ 85615

$539,000
4 Beds
3 Baths
2,438 SqFt
Status Active
MLS # 6745495
Property Type Single Family Residence
Price Type --
Welcome to this fantastic well kept home on over 7 acres! This home features four bedrooms and three baths that include a 1 bath studio or en-suite on the opposite side of the home that include wheel chair accessible amenities. Hot tub/sauna are perfect for relaxation. Yard pavers and covered porches create a nice accent to the expansive yard. Plenty of parking with the three car garage. Got a fifth wheel? Plenty of room! This home has 7.24 fully fenced acres and has views for miles!

8653 E Royal Palm Road Road Unit 2014 Scottsdale, AZ 85258

$539,000
3 Beds
2 Baths
1,490 SqFt
Status Active
MLS # 6750963
Property Type Single Family Residence
Price Type --
Newly painted and updated 3 bedroom/ 2 bath condo in Scottsdale situated in beautiful McCormick Ranch. Condo complex has acres of lawn, mature trees and tranquility. Minutes from a state of the art health care campus/hospital, golf, restaurants and shopping.I am willing to help reduce the interest rate with an interest rate buy down.The monthly payment can nicely be reduced with this type of help with financing. This property is also available as a lease with an option to purchase. Sales price will be $539,000, $2800/month plus monthly association fee. First and last month's rent due at time of lease. Must qualify with 2.5 times income per month based on monthly rent and have at minimum of a 650 credit score. 12 month rental agreement ,which can be discussed based on the needs of the buye

11165 E Segura Avenue Mesa, AZ 85212

$539,000
5 Beds
3 Baths
2,566 SqFt
Status Active
MLS # 6753677
Property Type Single Family Residence
Price Type --
Beautiful 2 story home in the desirable community of Bella Via in Mesa with 2566 Square Feet of living space. Huge backyard to entertain family and friends. Stylish granite counter tops in kitchen with massive pantry, tile flooring, new paint in the interior of the home and new carpet upstairs in all the rooms. This amazing floor plan features 5 bedrooms and 3 baths. Located in Southeast Mesa Tech Corridor with major growth development. Community has multiple parks and nearby amphitheater! Close to shopping, restaurants and freeways.

6830 S Crystal Way Chandler, AZ 85249

$539,000
3 Beds
2.5 Baths
2,127 SqFt
Status Active
MLS # 6756812
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the highly sought-after Sun Groves Community of Chandler! This stunning 3-bedroom, 2.5-bath property features a private wing including a bedroom, full bathroom, and a separate living area ideal for guests, in-laws, or teenagers . AIso includes a spacious office and countless upgrades. Enjoy energy savings with prepaid solar and a brand new High Efficiency HVAC Unit installed in 2023. Step into luxury with a newly remodeled bathroom that includes a walk-in shower. The home also boasts a tankless hot water heater, filtered water softening system, and sleek new Energy Efficient Samsung Appliances. Outdoors, relax on the screened-in back patio overlooking a large corner lot with beautifully maintained artificial turf. Custom exterior holiday lighting in the front to set the perfect ambiance year-round. Don't miss this gem!

934 E 8th Street Mesa, AZ 85203

$539,000
4 Beds
3 Baths
1,992 SqFt
Status Active
MLS # 6762171
Property Type Single Family Residence
Price Type --
This beautiful fully remodeled home is a must see and features 4 bedrooms, 3 baths, updated kitchen with white shake cabinets, quartz counters, stainless steel appliances, gas range, stainless steel hood vent, upgraded baseboards, luxury laminate flooring through out, upgraded bathrooms with ceramic surrounds, granite countertops, under-mount sinks, double pane windows, barn door closet doors thru out. 4th bedroom has separate entrance for a perfect guest quarters. House is situated on oversized N/S lot, with sparking play pool, gazebo with built in smoker, garden area, and plenty of room for entertainment. Great location to schools, shopping, and highways.

4578 W Linda Lane Chandler, AZ 85226

$539,000
3 Beds
3 Baths
1,723 SqFt
Status Active
MLS # 6766503
Property Type Single Family Residence
Price Type --
It's finally here! Come find your perfect family home in the PERFECT neigborhood! This lovely, light-filled home is located in the desirable Kyrene Elementary School District within walking distance of Kyrene de las Brisas Elementary school, and just a sort distance to Chandler's Desert Breeze park. This beautiful 3 bed, 3 bath home, located in the Dawn community, is just 2 doors down from the community park, and from the newly remodeled community pool and jacuzzi. This home features soaring ceilings in the entry and living room, a stunning fireplace, and a spacious family room off the kitchen. French doors lead from the kitchen/family room area to an oversized, covered patio, and a stunning, professionally landscaped backyard. The master suite is large and comfortable, and the two additional bedrooms have large windows and are larger than you would find in many other 3 bedroom homes. Your HOA will take care of your front yard maintenance and will paint all the neighborhood homes on a regular basis. Enjoy fabulous holiday meals with friends and family, cherish evenings in your back yard gathered around a game table or a fire pit, and enjoy the abundance of shopping and restaurants that are easily accessible. You will love your new life in your beautiful community, next to excellent schools, freeways, shopping and abundant dining opportunities! It's time to come home!

Leave a Reply

Your email address will not be published.