#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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16015 W Cocopah Street Goodyear, AZ 85338

$520,000
4 Beds
2.5 Baths
2,913 SqFt
Status Active
MLS # 6677879
Property Type Single Family Residence
Price Type --
This home is beautiful in the well sought out city of Goodyear! The large open kitchen has granite countertops. Formal Living room and dining room, fireplace, and an office. Seller needs a leaseback or extended closing while waiting on new construction build.

2112 W Harwell Road Phoenix, AZ 85041

$520,000
4 Beds
2.5 Baths
2,574 SqFt
Status Active
MLS # 6678576
Property Type Single Family Residence
Price Type --
Don't miss out on this great home in a gated community. Interior and exterior of the home was recently painted!!! Great floor plan with a huge backyard that is ready to make it your own!! Beautiful curved staircase, large grand vaulted entry way, and an RV Gate will not disappoint!!

5611 W Chicago Street Chandler, AZ 85226

$520,000
3 Beds
3 Baths
1,686 SqFt
Status Active
MLS # 6694243
Property Type Single Family Residence
Price Type --
No HOA w/ near quarter-acre! Dream life home w/ 11' RV gate & RV parking w/ electric; even a tree house & swing to play. Huge grass backyard for camping, movie projectors, private coffee moments, & late night firepits. Allowed up to 5 chickens on lot! Orange & lemon trees line the back fence for seasonal fruit & privacy. White kitchen cabinets w/ sparkle backsplash & glass pulls to brighten your day as you overlook the grass yard. Flooring was updated w/ cherry engineered hardwood & diagonal porcelain tile & sealed grout to last & compliment all your furniture. Bump-out bay window with view of tree house to keep an eye on everything or enjoy a book w/ the view. Third-car-garage separately fenced so you can run a business, park a boat, or store cars w/o ruining the view. Loft for extra rm. Balcony on master to have a private outdoor living area or easy to enclose for add-on master space. Big enough to build on to make more rooms, as neighbors have done, without changing the floorplan but enough unrestricted space to do so for decades of growth. Kitchen sink overlooks backyard so you can view the greenery or sunset as you're using the kitchen. Minutes to Chandler Mall, movie theatre, and restaurants for a convenient and entertaining lifestyle. Quick access to highways so you don't waste time getting across the valley so you can spend more time on work or friends. Upper bedroom has low e window and wooden plantation shutter to keep the room cool, quiet, and dark for anyone that sleeps during the day. Ceiling fans or pre-mounted boxes for fans in bedrooms so you can sleep individually in comfort. All bedrooms have direct access to a bathroom so any guests can have their own bathroom. City has public green-belts one street over that connect schools & large park so you can walk/ride/jog in safety and comfort. Down the street from city pool and dog park make relaxing an easy decision. Windows have separate 90%-blocking sunscreens to keep the heated summers to a minimum inside; currently removed for better view. Front door has separate security door that can be used as a screen door to let cool spring/fall air in without, well, leaving the door open; currently removed for easier entry. Olive tree in the front and Honey-bell orange tree in the back is the best producer of sweet seasonal harvest.

12041 N 30th Street Phoenix, AZ 85028

$520,000
4 Beds
2 Baths
1,280 SqFt
Status Active
MLS # 6694510
Property Type Single Family Residence
Price Type --
Great investment property /or Owner occupied that will live in the Main house and can rent the separated bed room with private kitchen & Bath and entrance Horse property With no HOA 1/3 Acre Corner Lot House, 4 Bedrooms, 2 Baths + 1 Car Port & R.V. Gate, Remodeled house with newer kitchen, HVAC & painted inside/out. New quartz counter tops & SS appliances, Great Suburban life style in the heart of the city, Lots of room to accommodate your pets & animals as well. Great location with access to SR-51 that will take you south to airport/ downtown or north to Loop-101... close to the PV Mall and Desert Ridge shopping. Newer roof 5 years old and AC is 5 years old, the whole house has been remodeled within three years, water heater is 2 months old, appliances about 3 years old.

10185 W Puget Avenue Peoria, AZ 85345

$520,000
4 Beds
2 Baths
2,730 SqFt
Status Active
MLS # 6696697
Property Type Single Family Residence
Price Type --
Welcome to this energy-efficient 4-bedroom home in Olive Park! Inside, you'll discover an inviting hallway leading to the harmonious great room paired with tile flooring and sliding glass doors to the back patio. The impeccable kitchen is fully equipped with stainless steel appliances such as wall ovens & cooktop electric, a handy pantry, recessed lighting, ample espresso cabinets with crown moulding, and a center island with a breakfast bar. A flexible den and sizable loft are ideal for an office or entertainment area! Take a look at the large primary retreat boasting plush carpet, a bathroom with dual sinks, and a walk-in closet. Generous sized backyard includes a covered patio and paver seating area. What's not to like? Come and experience this gem's convenience and style for yourself!

4019 W Campo Bello Drive Glendale, AZ 85308

$520,000
4 Beds
2 Baths
2,069 SqFt
Status Active
MLS # 6700320
Property Type Single Family Residence
Price Type --
When a home checks this many boxes, you must act! Citrus trees, a low-maintenance front yard and a private courtyard make a welcoming entrance. The sparkling pool, lush lawn, and broad entertaining backyard space make it a great home for both social gatherings and private relaxation. The built-in pet door, home security/automation system, and smart thermostat keep things running efficiently so you can focus on the important things. Stay organized with the bonus space in the garage and storage sheds on the west side of the home. You are conveniently close to Arrowhead Mall and the P83 District, among other shopping centers. You have quick access to major roadways without backing them and dealing with noise - the best of both worlds! Skip the to-do list with this updated gem - you don't have time for that! The Desert Pines Neighborhood welcomes you home!

3935 E Rough Rider Road Phoenix, AZ 85050

$520,000
2 Beds
2 Baths
1,696 SqFt
Status Active
MLS # 6702219
Property Type Townhouse
Price Type --
Welcome to a wonderful home located in the gated community. Two bedroom plus a bonus room or den off the primary bedroom. This luxurious residence offers a cozy ambiance with a traditional fireplace in the living room. The neutral color paint scheme adds elegance to the rooms, complemented by fresh interior paint for a polished look. The kitchen is a gourmand's delight with stainless steel appliances and sleek cabinetry. The primary bedroom features a spacious walk-in closet for seamless organization, and the primary bathroom features double sinks a separate tub and a shower for a spa-like experience. The Aviano community is fully equipped with a fitness center, multiple pools, basketball/volleyball courts. Close to Desert Ridge dining & Shopping & easy access to major freeways, 101 & 51.

2946 N 71st Place Mesa, AZ 85207

$520,000
3 Beds
3.5 Baths
2,087 SqFt
Status Active
MLS # 6704137
Property Type Single Family Residence
Price Type --
Welcome to your new home in Mesa, Arizona. Nestled in the heart of Red Mountain Las Sendas, this stunning 3+3.5 two-story home offers affordable luxury in one of the valley's most sought-after areas. The great room concept provides a spacious feel, opening onto a private patio ideal for relaxation or entertaining. The kitchen features stainless steel appliances, granite countertops, and custom cabinetry. Upstairs, a loft area offers additional living space, while the master suite includes a sitting area and private balcony. The master bath features a walk-in shower and private commode. The home is located in the gated community of Desert Creek, offering residents access to top-rated schools, breathtaking mountain views, and a community pool. Conveniently situated near the 202 freeway, residents enjoy easy access to shopping, dining, and entertainment options, including Usery Mountain Regional Park, Red Mountain Baseball & Softball complex, and a variety of 4-star restaurants, all within a mile. Don't miss this opportunity to live in Mesa's Desert Uplands area, where luxury and convenience meet.

914 W Crooked Stick Drive Casa Grande, AZ 85122

$520,000
3 Beds
2 Baths
2,343 SqFt
Status Active
MLS # 6671419
Property Type Single Family Residence
Price Type --
Welcome to this beautiful 2x6 constructed 2,342 square foot 3-car extended garages with OWNED Solar nestled perfectly on the 2nd fairway of Dave White Regional Golf Course. Discover tile flooring throughout, accompanied by vaulted ceilings that create an airy and inviting atmosphere. The home is pre-wired for surround sound, perfect for movie nights or immersive music experiences. The spacious living room, with a cozy gas fireplace and unique wall niches, is ideal for relaxation and entertainment. Entertain guests in the formal dining area or enjoy casual meals in the family room. The kitchen is a chef's dream, showcasing rich wood cabinets with double pull out shelves, lazy susan, high-quality built-in appliances, WilsonArt earthstone counter tops, and a center island with a breakfast bar for quick meals. Retreat to the expansive main bedroom, offering a tranquil sitting area bay window and an ensuite with dual vanities and a large walk-in closet. All bedrooms have walk-in closets, tech center desk, full wall of cupboard in hallway and so much more. Step outside and fall in with the extended patio, lush green grass, hot tub and take in the incredible golf course and mountain view.

17652 W Fetlock Trail Surprise, AZ 85387

$520,000 - 4Br/3Ba -  for Sale in Desert Oasis Phase 1 Parcel L-4b, Surprise
New
$520,000
4 Beds
3 Baths
2,342 SqFt
Status Active
MLS # 6705984
Property Type Single Family Residence
Price Type --

3131 N Central Avenue Phoenix, AZ 85012

$520,000
2 Beds
2 Baths
1,125 SqFt
Status Active
MLS # 6579404
Property Type Apartment
Price Type --
*Construction completed* RATE BUYDOWN INCENTIVE! Introducing Edison Midtown Phase 2 with 60 new construction condominiums. This spacious two bedroom condo offers ten ft. ceilings, an open floor plan, and large master bedroom with ensuite bathroom. Chefs kitchen offers expansive cabinetry, quartz countertops and stainless steel appliances including a gas range. Edison Midtown features incredible amenities for that perfect Urbanite lifestyle. A beautiful pool and lap pool, 2000 sq. ft. fitness center and lounge, and gated parking garage.

4086 Prairie Schooner Road Wickenburg, AZ 85390

$520,000
2 Beds
2 Baths
1,542 SqFt
Status Active
MLS # 6625215
Property Type Twin Home
Price Type --
PRICE REDUCED to $520,000 plus an additional $8,000 towards closing costs!! Don't miss this opportunity!! Exquisite upgraded Duet residence on a premier view lot! Key features include: * VIEWS VIEWS VIEWS * 4' garage extension * Privacy screen for the rear patio * Surround sound system in the family room and speakers installed on the rear patio. * Water Softener * Reverse Osmosis * Hunter Douglas window coverings * Extended patio Whether you seek year-round living or a convenient lock-and-leave lifestyle, this home presents an excellent alternative to standalone residences. The Wickenburg Ranch Community Association (HOA) oversees landscaping, irrigation, and exterior painting decisions determined by the board. Listed by the owner/agent

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