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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4195 N 198th Avenue Litchfield Park, AZ 85340
$515,000
3
Beds
2
Baths
1,740
SqFt
Status
Active
MLS #
6698053
Property Type
Single Family Residence
Price Type
--
Experience this fabulous 3-bedroom home on a prime corner lot in the Verrado Community. The open floor plan is filled with natural light, with wide sliding glass doors leading to the back patio. The kitchen boasts wood-look tile flooring, stainless steel appliances, a pantry, and recessed and pendant lighting. It also features a subway tile backsplash, cabinets with crown molding, granite countertops, and a large island with a breakfast bar. The bonus room offers a perfect space for work or study. The primary suite includes plush carpeting, an ensuite with dual sinks, a glass-enclosed shower, and a walk-in closet. Enjoy the large backyard with its covered patio, providing a peaceful setting for relaxing afternoons.
3079 N Princeton Drive Florence, AZ 85132
$515,000
5
Beds
4
Baths
2,883
SqFt
Status
Active
MLS #
6697837
Property Type
Single Family Residence
Price Type
--
Embrace the grandeur of this incredible 5-bedroom home nestled on a sprawling lot within a picturesque subdivision, boasting breathtaking mountain views and an array of outstanding features! This two-story residence features a spacious interior, separate den, generously sized bedrooms, and great room, provide ample room for everyone. One of the the standout features is the expansive lot, which backs to a common area, ensuring privacy and tranquility with no neighbors behind. The backyard is a true oasis, complete with a sparkling pool, a charming pergola, and citrus trees. Inside and out, this home offers exceptional entertainment options, with surround sound that extends to the patio, allowing you to create the perfect atmosphere for gatherings. The convenience of keyless front door
1572 Mission Viejo Drive Sierra Vista, AZ 85635
$515,000
5
Beds
3
Baths
2,779
SqFt
Status
Active
MLS #
6698059
Property Type
Single Family Residence
Price Type
--
This gorgeous 5 bedroom & 3 bathroom home on over a quarter of an acre in the desirable Coronado Crossing neighborhood feels like a model home! The exterior of the home has fresh paint (2023), mature trees & flowers, shutters, a beautiful custom security screen door, & an additional driveway that leads to oversized covered parking for your RV or boat! When entering you will appreciate the vaulted ceilings, premium wood look tile in all the right places, an open layout & a gorgeous custom stone fireplace as the center of the home. The kitchen is bright & airy with an eat-in area, large windows, granite countertops, newer stainless appliances (double oven included), and a wall full of cabinets. This home has a large formal dining room, separate family room/den... granite countertops in all the bathrooms, spacious bedrooms, 2 AC units, newer hot water heater, smart thermostats, & so much storage! In the backyard you will find a covered patio, large grass area, a garden, beautiful native plant by design border the common areas, fruit trees, a custom chicken coop, raised garden beds, & storage shed!
445 Starlight Lane Wickenburg, AZ 85390
$515,000
2
Beds
2.5
Baths
2,052
SqFt
Status
Active
MLS #
6699153
Property Type
Single Family Residence
Price Type
--
Well kept home on a large lot. Quiet cul-de-sac location. Two master bedrooms along with a 1/2 bathroom for guests. Large Kitchen with double ovens, and a cook top in the island. Plenty of cabinets and counter top space. Pella windows. Oversized two car garage. Well landscaped with large back yard.
8174 W Tonto Lane Peoria, AZ 85382
$515,000
4
Beds
2
Baths
1,701
SqFt
Status
Active
MLS #
6701039
Property Type
Single Family Residence
Price Type
--
Welcome home to your new 4 bedroom, 2 bathroom fully updated home in the desirable community of Fletcher Heights. Step inside to your open floor plan living, dining and bonus room all complete with wood plank tiles in all the right places. The kitchen has been updated with quartz countertops, tile backsplash and matching stainless steel Samsung appliances. Down the hall you will find 4 bedrooms with new carpet, a guest bath with all the trendy finishes one could desire. The primary bedroom is complete with walk in closet, separate toilet room and updated vanity and finishes. As you step out back you are greeted by a covered patio that leads you to ample concrete space, with a pergola to sit under and enjoy the commercial grade turf yard. You wont want to miss this one!
11117 W Sunflower Place Avondale, AZ 85392
$515,000
4
Beds
2
Baths
2,223
SqFt
Status
Active
MLS #
6700938
Property Type
Single Family Residence
Price Type
--
THIS IS THE ONE! * Private Pool + 4 Bedrooms + 2,233 sq.ft. in the sought after GARDEN LAKES Neighborhood! * Gorgeously REMODELED and Shows like a MODEL Home * Designer Touches T/O * Quartz Kitchen Counters. Stainless Steel Appliances * All NEW Flooring & Tall Baseboards * Fresh Interior & Exterior Paint. NEW Fixtures t/o. LARGE Master Bedroom w/ Two Closets * Separate Family, Living, and Dining Rooms ** NEW ROOF ** NEW A/C in 2023 * GREAT SCHOOLS * Dual Pane Windows * Large Patio for Entertaining * POOL just Acid Washed & Serviced, Ready for the Summer! * Near the LAKES/Greenbelt/Playground/Sport Court/Walking Paths * MOVE-IN READY! ** Ask About Our Current BUYER INCENTIVES **
3919 W Buckskin Trail Phoenix, AZ 85083
$515,000
3
Beds
2.5
Baths
1,656
SqFt
Status
Active
MLS #
6703305
Property Type
Single Family Residence
Price Type
--
Magnificent 3-bedroom, 3-bathroom abode featuring vaulted ceilings and expansive windows in the spacious great room and formal dining area. The kitchen boasts a convenient breakfast bar for casual dining. The master bedroom includes a generous walk-in closet. Step outside to enjoy the covered patio and refreshing pool. The property offers a charming mix of lush front lawn and low-maintenance desert landscaping in the backyard. Conveniently located within walking distance to a strip mall and close to golfing and hiking trails, offering a perfect blend of comfort and convenience. You need to see this today!
5613 W Carson Road Laveen, AZ 85339
$515,000
4
Beds
2
Baths
2,354
SqFt
Status
Active
MLS #
6701982
Property Type
Single Family Residence
Price Type
--
Spacious 4 bedroom single story home in the gated community of Cottonfields. The interior has been newly painted and new flooring has been installed in 2024. Brand new water heater has been installed in 2023. The home is conveniently located in a growing neighborhood with many retail businesses near by. Close to Loop 202, shopping, and restaurants. The low maintenance backyard makes it easy to enjoy Arizona's beautiful weather.
10442 W Cordes Road Tolleson, AZ 85353
$515,000
5
Beds
3
Baths
3,021
SqFt
Status
Active
MLS #
6703269
Property Type
Single Family Residence
Price Type
--
Discover this stunning 5br 3 bathroom home in the desirable Park Forest neighborhood of Tolleson, AZ. Constructed in 2020, this property offers over 3,000 square feet of meticulously designed open-plan living space, perfect for modern lifestyles. Features include a spacious 3 car garage, a securely fenced backyard and a covered patio ideal for outdoor enjoyment. Inside, you'll find luxurious granite countertops and ample storage options. The layout includes a convenient main floor bedroom and office, perfect for work from home arrangements. The upstairs area boasts a versatile bonus room suitable for a gym, media center or craft area. Additional comforts include tiled flooring, ceiling fans in each bedroom and air conditioning to ensure year round comfort. Ideal luxury & practical home.
3745 W Kings Avenue Phoenix, AZ 85053
$515,000
4
Beds
2
Baths
1,968
SqFt
Status
Active
MLS #
6703892
Property Type
Single Family Residence
Price Type
--
Welcome to this newly remodeled single-story home, boasting 4 bedrooms & 2 bathrooms. Located near ASU West & Much More. Step into the spacious Living room- perfect for gatherings. The adjacent kitchen features stainless steel appliances, quartz countertops, breakfast bar & over looks adjacent family room. Throughout the home, modern fixtures adorn every corner, with new tile flooring & carpeting. The primary suite is complete with a 3/4 ensuite bathroom and a spacious closet. Step outside to a covered patio, grass & plenty of space to entertain. Don't miss this opportunity.
4040 W Coneflower Lane San Tan Valley, AZ 85144
$515,000
4
Beds
3
Baths
2,027
SqFt
Status
Active
MLS #
6703042
Property Type
Single Family Residence
Price Type
--
This rare find will surely impress you! Discover this incredible 4-bedroom property in the popular San Tan Ridge awaiting its new owners! The inviting interior features an immaculate open layout filled w/abundant natural & lovely light fixtures, tall ceilings, & wood-style vinyl flooring. Cozy family room is ideal for intimate gatherings. Kitchen is equipped with a gas cooktop, granite counters, recessed lighting, staggered wood cabinetry w/crown molding, tile backsplash, a walk-in pantry, & an island w/a breakfast bar. Retreat to the carpeted main suite that boasts a private bathroom with dual sinks & a walk-in closet. The backyard invites you to relax & have fun! Providing a covered patio overlooking a fantastic mountain view & a refreshing pool w/a built-in basketball hoop. Act now!
7009 E Acoma Drive Scottsdale, AZ 85254
New
$515,000
2
Beds
2
Baths
972
SqFt
Status
Active
MLS #
6705858
Property Type
Apartment
Price Type
--
WELCOME HOME! This stunning unit at the Plaza has been updated in every way, shape, & form with luxury vinyl plank floors, quartz countertops, & brand new updates in bathrooms. Featuring two primary suites and a great, open-floor plan, this beautiful home can be available fully-furnished, making it conveniently move-in ready or the perfect investment opportunity!