#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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51651 W Highway 84 -- Maricopa, AZ 85139

$449,000
4 Beds
2 Baths
2,100 SqFt
Status Active
MLS # 6656353
Property Type Single Family Residence
Price Type --
Investment Opportunity: Own a piece of the Wild West for just $449,000! This 4.9-acre ranch, steeped in John Wayne's history, is a remarkable find, priced to reflect its potential. The main home features 4 bedrooms, 2 baths, and an Arizona room with panoramic views, all awaiting your personalized touch. The property's exceptional price accounts for necessary repairs, offering a unique chance to enhance its value. It includes two private wells; however, the plumbing project is incomplete, and the electrical system needs updating, particularly in the master and northeast bedrooms. These challenges present a clear path for improvement and upside. This ranch represents more than a home— it's an opportunity to craft your legacy in the American West. With ample garage space, RV hookups, and horse facilities, it combines rustic charm with the promise of modern living. Priced to attract investors or visionaries ready to revitalize its features, this estate promises a rewarding project. Embrace the chance to infuse this historic property with your vision, transforming it into a dream home where every corner tells a story, and every sunset ushers in new possibilities. This is your invitation to invest in a lifestyle defined by adventure and potential. Welcome to your next chapter in the heart of the West, where history meets opportunity at an unbeatable price.

371 N 157th Lane Goodyear, AZ 85338

$449,000
3 Beds
2.5 Baths
1,972 SqFt
Status Active
MLS # 6656966
Property Type Single Family Residence
Price Type --
WELCOME TO THIS IMPECCABLE OPEN CONCEPT HOME. KITCHEN HAS AMPLE WHITE SHAKER CABINETS FOR STORAGE, A LARGE ISLAND WITH BREAKFAST BAR AND UPGRADED HURRICANE LAMPS , GRANITE COUNTERS, REVERSE OSMOSIS, PATIO DOOR TO BACKYARD WITH CUSTOM BLINDS AND IS OPEN TO LIVING ROOM FOR EASY ENTERTAINING. 10 FT FLAT CEILINGS ADD TO THE OPEN FEEL OF THE HOME. CEILING FANS AND RECESSED LIGHTS HAVE BEEN ADDED BY THE SELLER, UPGRADED PLANTATION SHUTTERS ON MOST WINDOWS, UPGRADED SHOWER IN PRIMARY BATHROOM, 240 VOLT CAR CHARGER IN GARAGE, WHOLE HOUSE WATER SOFTENER, BAKYARD HAS BEEN COMPLETED WITH EASY CARE LANDSCARPE, TURF AND PAVERS FOR YOUR ENJOYMENT. BELLA ROSA HAS A COMMUNITY HEATED POOL, PLAYGROUND , WALKING PATHS AND MULTIPLE PICNIC GAZEBO'S. EASY ACCESS TO INTERSTATE 10, RESTAURANTS AND SHOPPING

14961 W Alexandria Way Surprise, AZ 85379

$449,000
3 Beds
2 Baths
1,915 SqFt
Status Active
MLS # 6657463
Property Type Single Family Residence
Price Type --
NOW OFFERING 2.5% SELLER CONCESSIONS. This spacious cottage in Marley Park will not disappoint! Direct entry through the garage or through the iconic Marley Park tree-lined walk to the front gated door. You will be welcomed by a spacious entry hall with soaring ceilings and stylish tile flooring. All bedrooms at the tree-lined front side of home, split plan. Generous primary suite has with lofty 12-foot ceiling, wood floors and blinds and an upgraded ensuite bathroom boasting a large, glass walk-in shower, dual sinks, and a custom closet that you must see to believe. Main home boasts open concept living with 9-ft flat ceilings and beautiful tile flooring. WAIT, THERE'S SO MUCH MORE... Kitchen is full of upgraded cabinetry with pull-out drawers and stylish granite countertops with under cabinet lighting. There is a large pantry and a composite double sink to boot. Have a relaxing breakfast in the eat-in kitchen or entertain in the formal dining space. Home was built on a post-tension slab and has two separate patio areas. Owner added a pergola over the side patio, along with a recent new arcadia door. The back patio tile has been extended all the way to the gate. A peaceful shady space to relax under a producing lemon tree. Laundry has been moved to the garage, but could easily be converted back to the laundry room (plumbing is in the same wall location). Garage is wide with tons of storage. And, if that isn't enough, the home has a water filtration system and AC was replaced in July 2023. Solar is in place with a low monthly lease and returns huge savings on the electric bill. Just turn the key and move in tomorrow!

7452 E Keats Avenue Mesa, AZ 85209

$449,000
3 Beds
2 Baths
1,521 SqFt
Status Active
MLS # 6658703
Property Type Single Family Residence
Price Type --
Move-in ready home with POOL is situated on prime interior N/S lot across from neighborhood park. The home feels clean and fresh- new carpet and interior paint, updated lighting, fans, appliances, faucets, toilets, door hardware. The garage is pristine with fresh paint and a new epoxy floor. Home chefs will love cooking on the 5 burner gas range/convection oven and the abundant cabinets and counter space. The home has vaulted ceilings and a spacious great room floor plan. The primary bath offers dual sinks, separate tub/shower, walk-in closet & handy exit to patio. Backyard oasis with refreshing pool, covered patio, large side yard and shed ticks all the boxes. Convenient access to dining, shopping, golf and freeways. Solar panels w/grandfathered net metering. Solar lease in documents tab

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