#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.

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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11556 W Sand Trout Court Surprise, AZ 85378

$465,000

3 Beds

2 Baths

1,803 SqFt

Status Active

MLS # 6688211

Property Type Single Family Residence

Price Type --

Home, sweet home! This gorgeous 3 bed, 2 bath residence now on the market is the one for you! Nestled on a premium cul-de-sac lot right next to the Community's lush golf course, this beauty features great curb appeal, artificial turf, a 2 car garage, and a welcoming porch! Inside you'll find a cozy living area and formal dining room boasting elegant wood-look flooring, high ceilings, and trending palette throughout. The spacious family room boasts a fireplace to keep you warm during the winter months! Prepare delicious meals in this beautiful kitchen, comprised of white cabinetry w/gleaming counters, a pantry, recessed lighting, high-end appliances, an island complete w/a breakfast bar, and a breakfast nook w/a lovely bay window. Discover a large primary bedroom showcasing direct outdoor access, a walk-in closet, and a private ensuite for added convenience. Also including an expansive backyard w/a covered patio, extended seating area w/a gazebo, and a view fence, this home has it all! Act now before it's gone!

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14163 W Georgia Drive Surprise, AZ 85379

$465,000

4 Beds

2.5 Baths

2,337 SqFt

Status Active

MLS # 6693397

Property Type Single Family Residence

Price Type --

Absolutely Beautiful 4 Bedroom + Loft, 2.5 Bathroom, Two Story Home Located On Premium Lot Bordering Common Area, Built in 2020, Upgraded Kitchen w/Custom Cabinets, Granite Countertops, Gas Range, Stainless Steel Appliances, Kitchen Island w/Breakfast Bar, Dining Room, Spacious Greatroom, Upstairs Master Bathroom w/Walk-In Closet, Master Bathroom w/Dual Sinks & Separate Tub & Shower, Extra Large Loft Upstairs, Covered Backyard Patio, 2 Car Garage, Come Check It Out!

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8410 E Chaparral Road Scottsdale, AZ 85250

$465,000

4 Beds

2 Baths

1,676 SqFt

Status Active

MLS # 6651453

Property Type Townhouse

Price Type --

Spacious four bedroom townhouse in Scottsdale just minutes to the Scottsdale Greenbelt multi-use path, Chaparral Dog Park, multiple City parks, restaurants, shopping, nightlife, and entertainment. Quick, easy access to the 101 freeway. This is a unique tri-level split floor plan. Two bedrooms upstairs with a full bath and two bedrooms downstairs with 3/4 bath. Main floor has an open kitchen, dining room, and sunken living room. Kitchen has granite countertop installed in 2023 and stainless steel appliances purchased in January 2024. Private back patio with storage space/laundry area. Covered carport parking for two along with guest parking throughout the community. Property features a pool and clubhouse. HOA maintains all public areas and landscaping. Listing agent is related to seller.

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7640 E Globemallow Lane Gold Canyon, AZ 85118

$465,000

3 Beds

2 Baths

1,719 SqFt

Status Active

MLS # 6685645

Property Type Single Family Residence

Price Type --

Discover your dream retreat in Gold Canyon! This one-story, well laid out home offers generous 9 ft ceilings, an expansive open floor plan of living areas. Spacious gourmet kitchen w/ stainless steel Kenmore appliances, 42'' upgraded cabinets & granite counters w/ barstool seating plus pantry storage! Admire the custom, desert design painted in 2023 perfect for primary home or vacation home. 5-piece primary suite boasts a walk in closet, plenty of counter space, dual sink vanity, soaking tub, walk in shower & enclosed toilet room. Step outside & enjoy low maintenance landscape w/ lush turf, custom pavers, quaint water feature & covered patio complete w/ ceiling fan perfect for bbq's & entertaining. Furniture can stay. quaint water feature & covered patio complete w/ ceiling fan perfect for bbq's & entertaining.

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