#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

3710 N Hopi Lane Pine, AZ 85544

$448,900
2 Beds
2 Baths
1,200 SqFt
Status Active
MLS # 6680811
Property Type Single Family Residence
Price Type --
WELCOME TO YOUR NEW HOME IN THE PINES! THIS BEAUTIFUL NEWER WELL CONSTRUCTED SINGLE LEVEL HOME IS ALL READY FOR YOUR WEEKEND GET AWAY OR YOUR NEXT PARADISE HOME IN THE PINES, OUT OF THE BIG CITY. ENJOY THE LARGE FAMILY ROOM WITH SOARING VAULTED CEILINGS & COZY FIREPLACE, TONS OF KITCHEN CABINETS, HUGE MASTER BDRM WITH. EN-SUITE BATH ALONG WITH DUAL SINKS & WALK-IN CLOSET. RETRACTABLE BLINDS, CENTRAL AIR CONDITIONING, DUAL PANE WINDOWS, LARGE GUEST BEDROOM & GUEST BATH, LOTS OF STORAGE. YOU'LL REALLY ENJOY YOUR TREE HOUSE DECK AS YOU HEAR THE WIND WHISTLING THRU THE TOWERING PINE FOREST & GAZE UP AT THE ENDLESS STARS. OR CATCH A GLIMPSE OF THE ROAMING ELK AND DEER. THIS HOME SITS ONE STREET AWAY FROM THE NATIONAL FOREST AND AN AWESOME HIKING TRAIL. PINE, IS AZ'S BEST KEPT SECRET. HURRY! AT THE BASE OF THE BREATHTAKING RIM IN THE QUAINT TOWN OF PINE, FILLED WITH GREAT RESTAURANTS, ANTIQUE SHOPS, LIBRARY, POST OFFICE AND MILES AND MILES OF FOREST AND TRAILS, LAKES AND CREEKS NEARBY. (A BEAUTIFUL SHORT 90 MIN. DRIVE FROM THE VALLEY AND ALMOST 20 DEGREES COOLER AND NO 1-17 TRAFFIC JAMS. (SHOW IT AND YOU SELL IT!

1924 E Osborn Road Phoenix, AZ 85016

$448,900
2 Beds
1 Bath
977 SqFt
Status Active
MLS # 6625790
Property Type Single Family Residence
Price Type --
*SELLER FINANCING AVAILABLE* Remodeled from top to bottom in Loma Linda neighborhood right down the street from Phoenix Children's Hospital. All updates permitted w/ City of Phoenix. Home features new shaker kitchen cabinets w/ stainless steel appliances, tons of storage & island w/ breakfast bar. All new bathroom w/ tile tub surround. Real hard wood throughout including new baseboards. Energy efficient w/ new AC unit, new dual-pane windows & doors, tankless gas water heater & new insulation. Inside laundry room w/ extra storage & folding table. All new recessed lighting & ceiling fans throughout. Home has also been re-plumbed w/ new water & sewer lines. 2-car tandem garage that you can pull through into the backyard if you like. Large lot, block construction, no HOA & move in ready!

15829 W Boca Raton Road Surprise, AZ 85379

$448,900
3 Beds
2 Baths
2,071 SqFt
Status Active
MLS # 6647483
Property Type Single Family Residence
Price Type --
Home sweet home! This immaculate 1-story home has no rear neighbors giving you privacy! Come home to cozy yet elegant living, highlighted by a neutral palette throughout & boasts a well-designed split-floor plan w/ 2,071 sq ft of living space, 3 bedrooms plus a double door entry den, & 2 bath, a formal living/dining combo & the kitchen at the heart of the home overlooking the family room & breakfast nook. The well-equipped kitchen features S/S appliances, gorgeous granite countertop, tons of cabinet storage, pantry & kitchen island w/ a breakfast bar. Primary bedroom has a walk-in closet & ensuite bathroom. Step outside & enjoy your low maintenance backyard & relax in the sparkling pool- an ideal setting for true Arizona living. Close to Downtown Surprise, the Performing Arts Center, shopping, dining & great school

10829 W Melvin Street Avondale, AZ 85323

$448,900 - 3Br/3Ba -  for Sale in Roosevelt Park Phase 1, Avondale
Open House
$448,900
3 Beds
2.5 Baths
2,024 SqFt
Status Active
MLS # 6677982
Property Type Single Family Residence
Price Type --
This is it! Featuring an open floor plan where kitchen, dining and living spaces integrate into one large space. This home is ideal for entertaining! Luxurious finishes throughout, upgrades galore! Nestled in a gated community, this pristine home has it all! Gourmet kitchen is a modern chef's delight, complete with oversized island and breakfast bar, granite countertops, stainless steel appliances, GAS range, and walk-in pantry! OWNED Solar Panels! Whole house water softener plus R/O system for kitchen & refrigerator ice maker! Grand master suite offers a spa-like retreat featuring dual vanities and an oversized walk-in shower with teak wood flooring and bench. Step outside to a feeling of being in a secluded tropical island with a beautiful backyard oasis! Large putting green, new hot tub, lighted Pergola, surrounded by a ''tropical island privacy wall''! 2.25% VA mortgage assumable for qualified buyers! Features: *SOLAR power (OWNED) *Soft water and R/O systems *Refrigerator, Gas stove, microwave and washer/dryer included *Tankless water heater *New Hot Tub *Lighted Pergola *Tropical Island privacy wall *Pre-wired for surround sound in living room, flex room and patio

Leave a Reply

Your email address will not be published.