#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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939 W Mclean Drive Wickenburg, AZ 85390

$510,000
3 Beds
2 Baths
1,540 SqFt
Status Active
MLS # 6688503
Property Type Single Family Residence
Price Type --
Beautiful custom home on a large lot. Open floor plan with custom kitchen, breakfast bar, Stainless appliances, dining area. Large living room with lots of natural light, Large main suite with walk in closet, Tile shower and large vanity. Spacious guest rooms and guest bath. Large covered patio and fully landscaped back yard. Beautiful gazebo for entertaining. Storage shed and fully fenced back yard. Custom Desert landscaping and a great view of the mountains from the back yard. Turn key home ready for you.

10869 N 81st Avenue Peoria, AZ 85345

$510,000
3 Beds
2 Baths
1,833 SqFt
Status Active
MLS # 6697739
Property Type Single Family Residence
Price Type --
BRAND NEW HOME. Excellent opportunity to own this beautiful brand new 3 bedroom 2 bath house, 2 car garage, RV Gate, Granite counter tops. Home sits on a 10,338 Square foot lot with NO HOA. Do not miss this Great Opportunity.

4339 E Wickersham Road Hereford, AZ 85615

$510,000
4 Beds
3.5 Baths
2,877 SqFt
Status Active
MLS # 6694962
Property Type Single Family Residence
Price Type --
Explore this charming Spanish custom-style home nestled by Coronado National Forest. Enjoy scenic views, tranquility, and paved road access. Features mature trees, fenced backyard, nature trails nearby. Saltillo tile, carpeted bedrooms, separate dining, living areas, large kitchen with custom cabinets. Front porch, two back patio areas, 4 bedrooms, 3.5 bathrooms, potential for 5th. The main floor has 2 bedrooms and 2 baths. Upstairs primary bedroom with mini-split AC, walk-in closet, luxurious bath. TV/games room with custom bar, upper viewing deck. Central air/heat, mini-splits in every room upstairs. 2-car garage, custom tool shed, rain harvesting tank, energy-efficient windows. Nearly an acre of land, minutes from Highway 92 and Sierra Vista. Don't miss out!

31827 N Red Rock Trail San Tan Valley, AZ 85143

$510,000
4 Beds
2.5 Baths
2,660 SqFt
Status Active
MLS # 6694500
Property Type Single Family Residence
Price Type --
Stunning 4 bdrm home on extra-large lot with sparkling pool and private backyard! This home has it all... tons of space to spread out with 3 living areas, 4 bdrms AND an office. New upgraded Samsung kitchen appliances, new flooring, hardware, and more... see below for full list of upgrades. Backyard is an oasis with beautiful vegetation, solar lighting, spacious back patio, sparkling pool, AND private yard. Plus room for all your cars and toys... Large side yard for RV/boat parking with double RV gate (yes HOA allows RVs!), and 3 car garage! UPGRADES: New LPV flooring; All new smart Samsung appliances, including stove with convection and air fryer, microwave, & dishwasher; Plantation Shutters; New door hardware and hinges; Repainted inside of house, all doors and ceilings professionally painted including back of house (stucco), repaired and painted the patio ceiling; Pull-out shelving in kitchen cabinets; Brand new toilets in all bathrooms; Solar lights in backyard

39312 N Jay Circle San Tan Valley, AZ 85140

$510,000
5 Beds
3 Baths
2,856 SqFt
Status Active
MLS # 6693266
Property Type Single Family Residence
Price Type --
This is your chance to own this lovely 5-bedroom home in Pecan Creek! The 2-car garage and manicured front yard is just the beginning. Discover an inviting interior displaying wood-look flooring, neutral palette throughout, and sliding glass doors opening to the back patio. The kitchen features SS appliances, recessed lighting, white cabinets with crown moldings, tile backsplash, granite counters, a walk-in pantry, and an island with a breakfast bar. The fully carpeted loft with built-in desks offers endless possibilities! The main suite boasts a private bathroom complete with granite dual sinks and a walk-in closet. All new windows and slider in 2020! Enjoy relaxing in the spacious backyard showcasing a full-length covered patio and endless blue skies! Act now!

6944 E Gary Circle Mesa, AZ 85207

$510,000
3 Beds
2 Baths
1,484 SqFt
Status Active
MLS # 6693836
Property Type Single Family Residence
Price Type --
New Roof / Over-Sized Lot / Large Parcel / NO HOA / 2 Car Garage / 3 Bedroom / 2 Bathroom / Block Wall Backyard / Huge Covered Backyard Patio / North East area of City of Mesa / Surrounded by sensational Public Elementary, Junior High and High Schools, Public Library, Multi-Generational Recreation Facilities, Soccer Fields, Baseball Fields, Softball Fields, Public Park with an Urban Lake for Fishing or Wild-Life Observation / Restaurants / Grocery Stores / Under 30 minutes to Airport / Under 10 minutes to Freeway ... Fantastic Buying Opportunity

36754 N Alderney Court San Tan Valley, AZ 85143

$510,000
3 Beds
2.5 Baths
2,048 SqFt
Status Active
MLS # 6695359
Property Type Single Family Residence
Price Type --
Step into a realm of refined living within the gated haven of a meticulously designed community, where every corner beckons with charm and elegance. This sanctuary boasts an array of amenities tailored to elevate your lifestyle, from lush parks and expansive grassy areas to inviting playgrounds that inspire outdoor adventures. As you cross the threshold of this exquisite abode, you're greeted by a symphony of space and style. A seamless fusion of form and function awaits, with 3 bedrooms and 2.5 baths sprawled across 2,048 sqft of meticulously crafted living space. The heart of the home beckons with a chef's kitchen, replete with luxurious upgrades including cabinet hardware, quartz countertops, and an expansive island, all set against the backdrop of crown-molded elegance. click cont... Seamlessly entertain in the open-concept kitchen and family room, where warmth and sophistication intertwine with the allure of wood tile plank flooring. Discover the perfect retreat within the confines of a versatile bonus room, offering boundless possibilities as a dedicated home office or cozy den. Your convenience is assured with a 2-car garage providing ample space for vehicles and storage needs. Luxuriate in the assurance of purified water courtesy of a water softener and carbon filtration system, complemented by the convenience of reverse osmosis for pristine hydration. Delight in the subtleties of comfort and efficiency with tinted windows, a discreet touch that enhances both aesthetics and functionality. Step outside into your own private oasis, where a meticulously landscaped backyard awaits, adorned with artificial turf, an extended paver patio, and a charming putting green. Revel in the seclusion of a cul-de-sac location, offering tranquility and privacy. Retreat to the sanctuary of the primary bedroom and indulge in the spacious confines of an oversized primary bathroom, a private haven designed for rejuvenation and relaxation. With a coveted split floorplan ensuring privacy and comfort, this exceptional residence embodies the epitome of luxury living, offering a timeless blend of sophistication and serenity. Finally, yet significantly, the property boasts proximity to two iconic destinations in Queen Creek. Notably, it is conveniently situated within walking distance of The Olive Mill, a beloved landmark; Arizona's only working olive farm and mill, visitors can tour the farm, learn about olive oil production, and shop for locally made olive products. The family-owned farm also features an Italian-inspired eatery and an in-house roastery, Superstition Coffee, offering a complete agritourism experience. Additionally, the property is conveniently positioned near the renowned Schnepf Farms, adding to its allure and appeal it's a prominent destination on Arizona's Fresh Foodie Trail, offers diverse agritourism experiences including U-Pick Gardens featuring over 20 pesticide-free fruits and vegetables, a Country Store & Bakery offering fresh farm-to-table treats, seasonal events like the Pumpkin & Chili Party and Christmas at Schnepf Farms, and an Agritainment Park with over 25 rides and attractions. Visitors can enjoy historical re-enactments, car shows, craft fairs, and indulge in peach-infused items while immersing in the farm's rich heritage and celebrating agricultural traditions throughout the year.

13244 N 19th Street Phoenix, AZ 85022

$510,000
3 Beds
2.5 Baths
1,795 SqFt
Status Active
MLS # 6697868
Property Type Single Family Residence
Price Type --
Seller will contribute $10K towards Buyers Closing Costs with full purchase price offer! Pre-appraisal came in at $510K. Come look at this beautifully designed and well maintained property nestled along the backside of the Pointe Golf Club on Lookout Mountain, giving you spectacular views of the city lights and the mountains! Located close to the highly acclaimed Lookout Mountain Park and Preserve. AC tune up and a detailed inspection was recently performed (2024), report will be available for buyer; Roofing was also professionally inspected and approved (2024); Extra large private balcony off the master bedroom with amazing views. The loft upstairs has several windows with the same beautiful city and mountain views, great for an office, workout, or reading space. Plantation shutters thro throughout; Painted inside and out with premium grade paints (2021); Premium carpeting- 53.6 OZ face weight Anso nylon with factory stain treatment and 9 pound pet protect padding (2021); Extra large closet under the stairs for storage; Epoxy sealed garage and patio floors; Beautiful covered patio with a private yard fully enclosed with elegantly stuccoed block wall and an RV gate. New LG refrigerator- never used. Nearby attractions include the very large Lookout Mountain park, with well serviced restrooms, tennis and volleyball courts, 2 children's playgrounds with shade and a large circuit of exercise equipment along with numerous covered picnic tables surrounding the expansive lawns. Next to this wonderful park is the Lookout Mountain Preserve with hiking trails that connect to the extended Phoenix Mountain Preserve with many miles of hiking trails and various peaks. The trail from Lookout Mountain Preserve connects through to the Pointe Golf Club on Lookout Mountain, and continues on to Piestewa Peak (formally named Squaw Peak), Dreamy Draw recreation area, North Mountain and Shaw Butte.

7215 E Orion Street Mesa, AZ 85207

$510,000
3 Beds
2.5 Baths
1,700 SqFt
Status Active
MLS # 6698461
Property Type Single Family Residence
Price Type --
Welcome to your dream oasis nestled within a prestigious gated community boasting breathtaking mountain vistas! This impeccable 3-bedroom, 2.5-bathroom home offers an inviting ambiance with neutral paint tones, airy spaces, and tall ceilings accentuating the expansive great room and large living area. The generously sized bedrooms provide ample comfort, while the well-appointed kitchen delights with abundant cabinets and countertops for effortless organization. Situated near the esteemed Las Sendas community, residents enjoy convenient access to a plethora of amenities including a refreshing pool and the added security of a gated environment. Experience unparalleled serenity and sophistication in this prime location, where every detail promises the epitome of luxury living.

21987 W Lasso Lane Buckeye, AZ 85326

$510,000
5 Beds
3 Baths
2,762 SqFt
Status Active
MLS # 6698920
Property Type Single Family Residence
Price Type --
MOVE-IN READY, flawless & spacious home in prestigious WINDMILL Subdivision reflecting owners pride. 5-BED, 3-BATHS, LOFT, 2-Car garage, RV GATE, POOL, and CFD-free! Desirable N/S Exposure, open Floorplan, lots of natural light, neutral paint, soaring ceiling to 2nd floor, Travertine tile in baths & kitchen, Custom Window coverings, Ceiling Fans, recessed Lighting & refined Parquet flooring throughout. Generous Family room & Kitchen w/ Pantry, Granite countertops & center Island, Bedroom on 1st floor. Primary Suite & 3 large Bedrooms upstairs. French doors lead to sizeable irrigated Backyard, Patio, DIVING POOL & quality Safety Fence. NEW appliances, A/C equipment, Water Heater. Convenient LOCATION!! near Plethora of Amenities & Freeway. QUALIFIED BUYER MAY ASSUME LOAN AT 3.25.

2258 S Agnes Lane Gilbert, AZ 85295

$510,000
3 Beds
2 Baths
1,618 SqFt
Status Active
MLS # 6698109
Property Type Single Family Residence
Price Type --
More information to come soon!! Don't miss out on this gorgeous property! The neighborhood offers 2 parks, a playground and a heated pool!

4525 N 22nd Street Phoenix, AZ 85016

$510,000
3 Beds
2.5 Baths
1,596 SqFt
Status Active
MLS # 6700210
Property Type Apartment
Price Type --
RARE FIND! Spacious corner unit outfitted with 3 bedrooms, 3 balconies, and 2 garage parking spaces! High ceilings, plentiful windows, exposed ducts, and a modern aesthetic give this place an industrial, edgy vibe. Luxuries of spacious rooms, en suite baths, and open concept make everyday living super comfortable. Located near the Valley's best pizza, coffee, dining, shopping, mountain trails, and the beloved Trader Joe's. La Brezza is one of the Biltmore area's best-kept secrets. It's quaint, with only 24 units, yet all the amenities of larger communities: pool, jacuzzi, gym, outdoor dining, grills, gated parking, and a charming courtyard.

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