#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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2009 N 161st Drive Goodyear, AZ 85395

$519,900
3 Beds
2.5 Baths
2,274 SqFt
Status Active
MLS # 6637535
Property Type Single Family Residence
Price Type --
Beautiful luxurious 3 bedroom, 2.5 bathroom home in the Palm Valley Association. Relaxing front courtyard. Well lit, open floor plan with den. Kitchen features stainless steel appliances, dual oven, breakfast bar, gorgeous granite counter tops and ample cabinet space. Master bedroom with walk in closet, and en-suite bathroom with dual sinks. Covered patio. Great for entertaining and long weekends. Must see to appreciate!! Big backyard ready for pool and children playground

102 W Cucumber Tree Avenue Queen Creek, AZ 85140

$519,900
3 Beds
2 Baths
2,198 SqFt
Status Active
MLS # 6674905
Property Type Single Family Residence
Price Type --
Very Meticulously cared for 2nd home - like new with amazing upgrades - 42'' Custom White Cabinetry, Sharp Black Appliances, In Wall Ovens, Granite Counters, Island w/ Breakfast Bar, Eat in Kitchen. Open Concept, BONUS DEN ideal for office/fitness/playroom w/ neutral whites and grays throughout including 20'' diag laid tile in dove gray. Split floorplan with HUGE Master Bedroom w/ Sitting Area, Walk In Closet, Private Toilet, Oversized walk in Shower and double raised vanities. Second bedrooms equally spacious with 2nd Full Bathroom upgraded w/ dual vanities. Front & Backyard professionally landscaped w/ Artificial Turf in back, mature trees and bushes and large covered patio. 3 Car Tandem Extended Length Garage has epoxy floors, lots of storage cabinets and is pre-plumbed for sink Lots of additional closets and storage throughout, tall ceilings, decorative lighting and ceiling fans, blinds on all windows and so much more! AND- Move in ready!! This Master Planned Community is AMAZING & Fun for all ages!! Fun year round community events such as Hot Cocoa w/ Kris Kringle & Pumpkin Harvest! Resort Style Aquatic Center with Community Pool & Spa, free wifi, PICKLE BALL COURTS, Sun Shades, Bocce Ball, Full Court Basketball, Horse Shoe Pit, Tons of Beautiful Greenbelts and trails throughout, Shaded Tot Lots, Covered Picnic Ramadas, Soccer Fields, Sand Volleyball Courts and Disc Golf Course.

7726 E Sheridan Street Scottsdale, AZ 85257

$519,900
3 Beds
2 Baths
1,565 SqFt
Status Active
MLS # 6654970
Property Type Townhouse
Price Type --
BEST BANG FOR YOUR BUCK NEAR OLD TOWN SCOTTSDALE! This community is right on the green belt and is walking distance to bars,restaraunts and shopping. This 3 bed/1.75 bath Townhome is an end unit, on a culdesac and is a 20 second walk from the huge resort like pool.The kitchen has just been fully remodeled with upgraded cabinets, granite counters /island and stainless appliances.The TRANE AC with regular service, and dual pane windows have been installed throughout.The entire upstairs is a large master retreat with no shared walls, walk in closet and full bath. The large covered back patio is great for entertaining & has a small shed to store bikes for when you want hop on the green belt and get some exercise or head into Old Town Scottsdale for dinner and drinks. Don't miss out on this on

9354 E Spiral Avenue Mesa, AZ 85212

$519,900
3 Beds
2 Baths
1,579 SqFt
Status Active
MLS # 6660552
Property Type Single Family Residence
Price Type --
Located in Inspirian IV at Eastmark, This immaculate, brand new, never lived in home offers 3 bedrooms, 2 bathrooms and 1,579 square feet of living space. Enjoy modern finishes, a gourmet kitchen, and epoxy garage floors. This home includes a brand new gas stove, front door smart lock, Ring Doorbell, fridge, washer and dryer. Beautiful community center and pool nearby. Take a tour today!

16478 W Yucatan Drive Surprise, AZ 85388

$519,900
3 Beds
2 Baths
2,348 SqFt
Status Active
MLS # 6667547
Property Type Single Family Residence
Price Type --
Sycamore Farms is a quite lovely community that is conveniently located to the 303, shops at Prasada & downtown Surprise. This home features 3 bed+ den/office, 2 bath, Remodeled Kitchen with Quartz counter top and updated appliances, wide open floor-plan that is great for entertaining. Additional upgrades include shutters, solar and a sparkling pool with safety gate! The garage has EV connection. Come by and take a look before it heats up!

10757 N 74th Street Scottsdale, AZ 85260

$519,900
2 Beds
2 Baths
1,281 SqFt
Status Active
MLS # 6673769
Property Type Apartment
Price Type --
Location, location, location! Wake up and smell the bacon from Butterfields, one of Scottsdale's most popular breakfast spots, and the coffee from Coffee Plantation! Walk to Caramba Mexican Food, Il Capo Pizzeria, Pita Jungle, and dozens of other restaurants, specialty shops, and movies at Harkins Shea 14! Discover the epitome of modern living in this fantastic ground floor unit located in the highly desirable Barolo Place Condominiums. Boasting a spacious open concept floor plan, this home features 2 bedrooms, 2 baths, and a host of upscale amenities. Nestled in the heart of Scottsdale, this residence offers easy access to renowned golfing facilities and distant mountain views. Plus, you're just minutes away from the upscale shopping, dining, and entertainment destinations of Kierland Commons and the Scottsdale Quarter. As you step inside, you'll be greeted by oversized ceramic tile flooring that exudes both elegance and durability. Say goodbye to carpet maintenance hassles! The spacious eat-in kitchen is a chef's dream, complete with stainless steel appliances, granite countertops, and an oversized center island with a breakfast bar. Whether you're preparing a gourmet meal or enjoying a casual breakfast, this kitchen is sure to impress. Retreat to the primary bedroom, where luxury awaits. Here, you'll find an ensuite bathroom with dual sinks, a glass-enclosed walk-in shower, a separate soaking tub, and a large walk-in closetyour own private sanctuary to unwind after a long day. The secondary bedroom and guest bath offer comfort and convenience for family members or guests. A dedicated laundry room and attached 2-car garage provide additional functionality and storage space. Outside, the Barolo community beckons with its resort-style pool, relaxing spa, and inviting lounging areas. Whether you're seeking a refreshing dip or a peaceful afternoon under the shade structures, you'll find everything you need to enjoy the beautiful Arizona weather right at your doorstep, perfect for an affordable lock and leave winter home. Don't miss this opportunity to experience luxurious living in one of Scottsdale's most coveted communities. Submit your offer today and make this your new home sweet home! Unit is also for lease MLS 6694338.

3749 E Emile Zola Avenue Phoenix, AZ 85032

$519,900
4 Beds
3 Baths
1,714 SqFt
Status Active
MLS # 6671627
Property Type Single Family Residence
Price Type --
PRICED BELOW APPRAISAL! The perfect single level home with 4 bedrooms and 3 full bathrooms is now available in Paradise Valley Oasis! This beautiful home features an open floor-plan, spacious kitchen with dark wood shaker style cabinets, granite counter-tops and stainless steel appliances, staggered laid tile flooring throughout, updated lighting, new exterior paint, new roof, whole house water treatment system, master bedroom split for additional privacy, large master bathroom with dual sinks, granite counter-tops and travertine tile wrapped shower, hall bathroom has granite counter-tops with tile wrapped shower, additional bedroom has ensuite bathroom with spacious walk-in shower and much much more. This one will sell fast!

17839 W Ivy Lane Surprise, AZ 85388

$519,900
4 Beds
2.5 Baths
3,220 SqFt
Status Active
MLS # 6677433
Property Type Single Family Residence
Price Type --
Welcome to this spacious and completely remodeled 4 bedroom, 2.5 bath home conveniently located off the 303 and Greenway in the heart of Surprise Farms. This one includes a completely remodeled kitchen with all new white shaker cabinets, stainless steel appliances, quartz countertops with waterfall edge, new luxury plank flooring through the entire home, new 5' square baseboards, and much more. The large open great room flows off the kitchen and dining room which includes a full wet bar! Upstairs you will find a huge master suite and large secondary bedrooms. This large backyard has a grassy area, covered patio and vegetation for a private backyard experience. This is a must see for you and your family.

22415 S 215th Place Queen Creek, AZ 85142

$519,900
4 Beds
2 Baths
2,151 SqFt
Status Active
MLS # 6682416
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the Villages at Queen Creek community! Escape to your own private oasis in the back, complete with oversized covered patio, perfect for dining or lounging, overlooking an inviting in-ground heated & jetted SPA w/waterfall, lush putting green & built-in fire pit, ideal for cozy evenings under the stars. This stunning 4-bed, 2-bath residence offers luxurious living in a golf course setting. Spacious family room has lots of natural light & is perfect for both relaxing & entertaining. The heart of the home is a lovely kitchen featuring large family dining, island, granite, all stainless appliances, including the fridge. Huge walk-in pantry for all your culinary needs. Split floor plan for added privacy! Primary suite exudes luxury & comfort. Custom closets... dbl vanities, large walk-in shower & soaking tub, providing the ultimate retreat after a long day. Residents of the Villages enjoy access to tons of amenities, including the community pool, pickleball courts, workout room, greenbelts, playgrounds, & more! With great proximity to shopping, dining, entertainment, & excellent schools, this home offers the perfect blend of luxury, convenience, & community living. Don't miss your chance to make this your forever home!

41143 W Rio Bravo Drive Maricopa, AZ 85138

$519,900
4 Beds
2.5 Baths
2,828 SqFt
Status Active
MLS # 6691288
Property Type Single Family Residence
Price Type --
Just in time for summer! Check out this gorgeous 4 bedroom 2.5 bathroom POOL home located in the beautiful LAKE community of The Lakes Of Rancho El Dorado! Complete with additional loft and den spaces this home also features a 3 car tandem garage and RV Gate WITH concrete driveway down the side of the home! The back yard also features an extended patio, sand fire pit area, above ground spa and did we mention the POOL! This and so much more to see and love in this home.

2518 E Osborn Road Phoenix, AZ 85016

$519,900
3 Beds
3 Baths
2,157 SqFt
Status Active
MLS # 6652619
Property Type Townhouse
Price Type --
Welcome to this stunning home in Sutton Place, a collaboration between Ralph Haver AIA and developer Dell Trailor! The home has been tastefully updated from top to bottom, with modern interior updates blending perfectly with the classic midcentury exterior. This quintessential community is conveniently located near Central Phoenix, Downtown, Biltmore Fashion Park, Arcadia, and Old Town Scottsdale, with nearby freeways providing easy access to Sky Harbor and the rest of the valley. Welcome home!

27012 W Marco Polo Road Buckeye, AZ 85396

$519,900 - 2Br/2Ba -  for Sale in Sun City Festival Parcels K1 And 01, Buckeye
Open House
$519,900
2 Beds
2 Baths
2,323 SqFt
Status Active
MLS # 6604996
Property Type Single Family Residence
Price Type --
FABULOUS FIESTA Model Home w/ LARGE Lot, 33 Pre-Paid SOLAR Panels, Newer 2019 HVAC, Newer 2019 Hot Water Heater & Fenced Backyard Waits Your Enjoyment. This Home has 10 Ft Ceilings, Popular Open Concept Floor Plan, Tiled Floors on the Diagonal in All the Right Places, Newly Carpeted Bedrms, Extra Can Lights in Great Rm, Den & Owners' Suite. REVEL in the GOURMET Kitchen w/ Granite Counter Tops, Island & Back Splash, UPGRADED Staggered Cabinets, Lower Cabinet Pull-out Shelves, 5 Burner Gas Cook Top, Newer 2019 French Door Refrigerator, Wine Cooler, Under Cabinet Lights and Pendant Lights. RELAX in the Spacious Great Room. Surround Sound Speakers in the Den & Owner's Suite. RETIRE to the Spacious Owner's Suite w/ Sliding Glass Door to Patio, Large Closet & the Owner's Bathrm w/ Tiled Walls & Counters. Guest Bedrm has a Jack & Jill Bathrm and a Walk-In Closet. Guest Bathrm has Tiled Walls and Counter. Laundry Rm has a Plenty of Counters, Cabinets, Deep Sink, Dryer & 2019 Washer. The 3 Car Garage has Epoxy Floors, Built-in Cabinets & Service Door. RELAX in the Extended Kool Dec Back Patio w/ Pony Wall, Private FENCED Backyard & Mature Landscaping. Garage has Built-in Cabinets, Service Door & Epoxy Garage Floor. Festival Ranch Special Assessment CFD Bond Balance has been Paid Off. Don't Wait to see this Spectacular Home & Start Enjoying the Incredible Sun City Festival Lifestyle.

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