#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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4780 S Ferric Avenue Mesa, AZ 85212

$473,245

3 Beds

2.5 Baths

1,785 SqFt

Status Active

MLS # 6694664

Property Type Single Family Residence

Price Type --

This stunning home is NOW AVAILABLE in one of Eastmark's neighborhoods, nestled within Mesa's celebrated masterplan. Situated conveniently close to The Great Park, this single-family residence, Plan 2, boasts three bedrooms, two and a half bathrooms, an upstairs laundry, and a 2-car garage. Home includes designer upgrades specifically selected for this home. Explore the amazing amenities in this dream community, boasting 77 parks, a stunning pool, clubhouse, orange monster play area, skatepark, splash pad, baseball, softball and soccer fields, disc golf, future pickle ball courts and easy access to highways and shopping.

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22660 N 122nd Avenue Sun City, AZ 85373

$473,000

3 Beds

2 Baths

1,992 SqFt

Status Active

MLS # 6699146

Property Type Single Family Residence

Price Type --

Beautiful, better than new home prime non-age restricted community in Sun City! This home features a spacious open concept main living area. The kitchen features granite counters with stylish tiled back-splash, upgraded cabinetry, and and SS appliances. The primary bedroom features a spacious closet, and en-suite bath. The home has a perfect low-maintenance back-yard with a covered patio and artificial turf. Located close to parks, schools, shopping, restaurants, and minutes from the 303!

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17787 W Blue Sky Drive Surprise, AZ 85387

$472,995

4 Beds

3 Baths

2,040 SqFt

Status Active

MLS # 6703781

Property Type Single Family Residence

Price Type --

The inviting 4 bed/3 bath with teen room ranch-style Sapphire floor plan welcomes guests with a covered entry. Off the foyer, you'll find two bedrooms, both with walk-in closets. The extended entry leads to an open layout with a kitchen with a center island, a dining area, and a great room with a center-meet door leading to the covered patio. The owner's suite is adjacent, and showcases dual walk-in closets and an attached bath. Explore this exceptional Sapphire home, ready for quick move-in by September 2024 on a homesite boasting driveway pavers and front yard landscaping. Included features such as an inviting covered entry; a bathroom in lieu of two closets; a well-appointed kitchen offering 42'' cabinets, quartz countertops, stainless-steel appliances, a roomy pantry and a center island; an elegant dining room; a spacious great room; an impressive primary suite showcasing a generous walk-in closet and a private bath with cultured marble countertops; a convenient laundry; a covered patio and a 3-car garage. This home also features 9 ft ceilings, 8'6'' paneled interior doors, additional windows, ceiling fan prewiring and stone tile flooring in select areas. Located in the fantastic community of Desert Oasis features parks, playgrounds and a community pool. Close to the new Frys marketplace with convenient access to the Loop 303 and US-60, nearby TSMC, Lake Pleasant, Surprise Stadium, Wildlife Zoo, Aquarium & Safari Park in the fast-growing NW Valley. This beautiful home is done right and has so much to offer!

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17696 W Encinas Lane Goodyear, AZ 85338

$472,990

4 Beds

3 Baths

2,309 SqFt

Status Active

MLS # 6682235

Property Type Single Family Residence

Price Type --

''Up to 3% of Base Price or total purchase price, whichever is less, is available through preferred lender.'' The Cantania floor plan showcases four bedrooms, a spacious den with double doors, a soft water loop, tankless water heater, garage service door, and an 8-foot garage door height among its notable structural elements. Additionally, this home will include granite kitchen countertops, Dark Brown Shaker Cabinetry, a tiled shower in the primary suite, Two Tone paint, a gas stub in the kitchen, a prewire package for ceiling fans, and a comprehensive lighting package. Furthermore, it comes equipped with a Washer Dryer, Refrigerator, and window blinds throughout.

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