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.
Source: Keeping Current Matters
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Latest Real Estate
- $129,700 - 2366 Merrigan Place
- $235,000 - 1919 Saddle Brook Drive
- $184,500 - 133 Oak Street
- $117,000 - 4054 Cottage Wood Trail
- $249,950 - 1568 Sweet Plum Circle
- $469,900 - 8931 WINGED FOOT
- $569,000 - 2279 Curtis Mill Road
- $239,900 - 2230 Tuscavilla Road
- $540,000 - 7827 Broomsage Lane
- $750,000 - 4608 Grove Park Drive
- $83,000 - 528 W 5th Avenue
- $370,000 - 2468 Lantana Lane
- $69,900 - 1520 Sandtrail Lane
- $125,000 - 1522 S Adams Street
- $305,000 - 121 N Monroe Street
- $292,500 - 2864 Government Farm Road
- $260,000 - 3705 Fawn Lane
- $279,900 - 4620 Killimore Drive
- $345,000 - 2160 Orleans Drive
- $270,000 - 1817 Wakulla Arran Road
- $179,900 - 755 Rustling Pines
- $149,900 - 200 Ponderosa Circle
- $255,000 - 4898 Planters Ridge Drive
- $254,900 - 7067 Shady Grove Way
- $512,000 - 5990 Colonel Scott Drive
- $279,900 - 335 Gathering Oaks Drive
- $279,900 - 361 Gathering Oaks Drive
- $90,000 - 1826 Ivan Drive
- $515,000 - 6282 Hines Hill Circle
- $269,900 - 64 Wigeon Way
- $459,900 - 3012 OBrien Drive
- $189,900 - 4064 Colleton Court
- $155,000 - 940 Rustling Pines Boulevard
- $375,000 - 10577 Valentine Road N
- $119,900 - 1307 Airport Drive
- $329,900 - 6478 Williams Road
- $27,500 - 1210 Calloway Street
- $279,900 - 331 Gathering Oaks Drive
- $395,000 - 1103 Kenilworth Road
- $279,900 - 6133 Eastfield Trail
- $120,000 - 8 Birch Street
- $147,000 - 1752 Augustine Place
- $259,900 - 6717 Donerail Trail
- $195,000 - 2410 San Pedro Avenue
- $439,900 - 2517 Harriman Circle
- $439,900 - 6129 Pickwick Road
- $449,000 - 1381 Chip Morrison
- $162,900 - 11700 Evergreen Hills Court
- $298,000 - 1501 Chowkeebin Nene
- $358,797 - 1608 Folkstone Road
2366 Merrigan Place , TALLAHASSEE
- Home size: 1,216 sq ft
- Lot size: 2,613 sqft
- Year built: 1980
- 2 beds
- 3 baths
- $129,700
1919 Saddle Brook Drive , TALLAHASSEE
- Home size: 2,069 sq ft
- Lot size: 14,374 sqft
- Year built: 1994
- 4 beds
- 2 baths
- $235,000
133 Oak Street , TALLAHASSEE
- Home size: 1,804 sq ft
- Lot size: 3,484 sqft
- Year built: 1977
- 3 beds
- 3 baths
- $184,500
4054 Cottage Wood Trail , TALLAHASSEE
- Home size: 1,228 sq ft
- Lot size: 6,098 sqft
- Year built: 1987
- 3 beds
- 2 baths
- $117,000
1568 Sweet Plum Circle , TALLAHASSEE
- Home size: 1,734 sq ft
- Lot size: 6,969 sqft
- Year built: 1999
- 4 beds
- 2 baths
- $249,950
8931 WINGED FOOT , TALLAHASSEE
- Home size: 2,736 sq ft
- Lot size: 22,651 sqft
- Year built: 2000
- 4 beds
- 3 baths
- $469,900
2279 Curtis Mill Road , SOPCHOPPY
- Home size: 2,712 sq ft
- Lot size: 46.07 ac
- Year built: 2005
- 3 beds
- 2 baths
- $569,000
2230 Tuscavilla Road , TALLAHASSEE
- Home size: 1,574 sq ft
- Lot size: 9,583 sqft
- Year built: 1986
- 3 beds
- 3 baths
- $239,900
7827 Broomsage Lane , TALLAHASSEE
- Home size: 2,866 sq ft
- Lot size: 1.47 ac
- Year built: 2008
- 4 beds
- 4 baths
- $540,000
4608 Grove Park Drive , TALLAHASSEE
- Home size: 4,213 sq ft
- Lot size: 1.21 ac
- Year built: 2007
- 5 beds
- 5 baths
- $750,000
528 W 5th Avenue , TALLAHASSEE
- Home size: 1,058 sq ft
- Lot size: 7,840 sqft
- Year built: 1989
- 3 beds
- 2 baths
- $83,000
2468 Lantana Lane , TALLAHASSEE
- Home size: 2,284 sq ft
- Lot size: 10,890 sqft
- Year built: 2008
- 4 beds
- 2 baths
- $370,000
1520 Sandtrail Lane , TALLAHASSEE
- Home size: 1,365 sq ft
- Lot size: 23,522 sqft
- Year built: 1985
- 2 beds
- 2 baths
- $69,900
1522 S Adams Street , TALLAHASSEE
- Home size: 1,560 sq ft
- Lot size: 6,098 sqft
- Year built: 1938
- 4 beds
- 2 baths
- $125,000
121 N Monroe Street , TALLAHASSEE
- Home size: 1,289 sq ft
- Lot size: 26,136 sqft
- Year built: 2006
- 2 beds
- 3 baths
- $305,000
2864 Government Farm Road , MONTICELLO
- Home size: 2,763 sq ft
- Lot size: 5.06 ac
- Year built: 1987
- 4 beds
- 3 baths
- $292,500
3705 Fawn Lane , TALLAHASSEE
- Home size: 1,560 sq ft
- Lot size: 12,632 sqft
- Year built: 2011
- 3 beds
- 2 baths
- $260,000
4620 Killimore Drive , TALLAHASSEE
- Home size: 2,379 sq ft
- Lot size: 18,295 sqft
- Year built: 1987
- 3 beds
- 2 baths
- $279,900
2160 Orleans Drive , TALLAHASSEE
- Home size: 2,524 sq ft
- Lot size: 40,075 sqft
- Year built: 1974
- 4 beds
- 2 baths
- $345,000
1817 Wakulla Arran Road , CRAWFORDVILLE
- Home size: 1,746 sq ft
- Lot size: 2.00 ac
- Year built: 2018
- 3 beds
- 2 baths
- $270,000
755 Rustling Pines , MIDWAY
- Home size: 1,538 sq ft
- Lot size: 10,890 sqft
- Year built: 2018
- 4 beds
- 2 baths
- $179,900
200 Ponderosa Circle , MIDWAY
- Home size: 1,420 sq ft
- Lot size: 10,890 sqft
- Year built: 2007
- 3 beds
- 2 baths
- $149,900
4898 Planters Ridge Drive , TALLAHASSEE
- Home size: 1,699 sq ft
- Lot size: 7,405 sqft
- Year built: 1999
- 3 beds
- 2 baths
- $255,000
7067 Shady Grove Way , TALLAHASSEE
- Home size: 1,830 sq ft
- Lot size: 6,969 sqft
- Year built: 1999
- 3 beds
- 3 baths
- $254,900
5990 Colonel Scott Drive , TALLAHASSEE
- Home size: 3,089 sq ft
- Lot size: 1.63 ac
- Year built: 2000
- 4 beds
- 4 baths
- $512,000
335 Gathering Oaks Drive , TALLAHASSEE
- Home size: 1,646 sq ft
- Lot size: 4,791 sqft
- Year built: 2018
- 3 beds
- 2 baths
- $279,900
361 Gathering Oaks Drive , TALLAHASSEE
- Home size: 1,646 sq ft
- Lot size: 4,791 sqft
- Year built: 2018
- 3 beds
- 2 baths
- $279,900
1826 Ivan Drive , TALLAHASSEE
- Home size: 1,623 sq ft
- Lot size: 11,761 sqft
- Year built: 1967
- 3 beds
- 2 baths
- $90,000
6282 Hines Hill Circle , TALLAHASSEE
- Home size: 3,357 sq ft
- Lot size: 38,768 sqft
- Year built: 1995
- 5 beds
- 4 baths
- $515,000
64 Wigeon Way , CRAWFORDVILLE
- Home size: 2,031 sq ft
- Lot size: 28,314 sqft
- Year built: 2018
- 4 beds
- 3 baths
- $269,900
3012 OBrien Drive , TALLAHASSEE
- Home size: 3,213 sq ft
- Lot size: 28,314 sqft
- Year built: 1995
- 4 beds
- 4 baths
- $459,900
4064 Colleton Court , TALLAHASSEE
- Home size: 1,483 sq ft
- Lot size: 3,484 sqft
- Year built: 2003
- 3 beds
- 3 baths
- $189,900
940 Rustling Pines Boulevard , MIDWAY
- Home size: 1,360 sq ft
- Lot size: 10,890 sqft
- Year built: 2006
- 3 beds
- 2 baths
- $155,000
10577 Valentine Road N , TALLAHASSEE
- Home size: 2,488 sq ft
- Lot size: 2.50 ac
- Year built: 2002
- 4 beds
- 2 baths
- $375,000
1307 Airport Drive , TALLAHASSEE
- Home size: 1,083 sq ft
- Lot size: 1,742 sqft
- Year built: 1984
- 3 beds
- 4 baths
- $119,900
6478 Williams Road , TALLAHASSEE
- Home size: 2,354 sq ft
- Lot size: 21,780 sqft
- Year built: 2006
- 4 beds
- 3 baths
- $329,900
1210 Calloway Street , TALLAHASSEE
- Home size: 871 sq ft
- Lot size: 5,662 sqft
- Year built: 1960
- 3 beds
- 2 baths
- $27,500
331 Gathering Oaks Drive , TALLAHASSEE
- Home size: 1,646 sq ft
- Lot size: 4,791 sqft
- Year built: 2018
- 3 beds
- 2 baths
- $279,900
1103 Kenilworth Road , TALLAHASSEE
- Home size: 3,300 sq ft
- Lot size: 23,086 sqft
- Year built: 1967
- 4 beds
- 3 baths
- $395,000
6133 Eastfield Trail , TALLAHASSEE
- Home size: 1,893 sq ft
- Lot size: 6,969 sqft
- Year built: 2002
- 3 beds
- 2 baths
- $279,900
8 Birch Street , CRAWFORDVILLE
- Home size: 1,452 sq ft
- Lot size: 36,590 sqft
- Year built: 2001
- 3 beds
- 2 baths
- $120,000
1752 Augustine Place , TALLAHASSEE
- Home size: 1,398 sq ft
- Lot size: 5,227 sqft
- Year built: 1994
- 3 beds
- 2 baths
- $147,000
6717 Donerail Trail , TALLAHASSEE
- Home size: 1,572 sq ft
- Lot size: 27,442 sqft
- Year built: 1989
- 3 beds
- 2 baths
- $259,900
2410 San Pedro Avenue , TALLAHASSEE
- Home size: 1,740 sq ft
- Lot size: 15,681 sqft
- Year built: 1981
- 3 beds
- 2 baths
- $195,000
2517 Harriman Circle , TALLAHASSEE
- Home size: 2,644 sq ft
- Lot size: 24,393 sqft
- Year built: 1966
- 4 beds
- 3 baths
- $439,900
6129 Pickwick Road , TALLAHASSEE
- Home size: 2,036 sq ft
- Lot size: 2.20 ac
- Year built: 2016
- 3 beds
- 2 baths
- $439,900
1381 Chip Morrison , ALLIGATOR POINT
- Home size: 1,881 sq ft
- Lot size: 26,136 sqft
- Year built: 1962
- 3 beds
- 2 baths
- $449,000
11700 Evergreen Hills Court , TALLAHASSEE
- Home size: 1,423 sq ft
- Lot size: 1.40 ac
- Year built: 2007
- 4 beds
- 2 baths
- $162,900
1501 Chowkeebin Nene , TALLAHASSEE
- Home size: 2,044 sq ft
- Lot size: 24,393 sqft
- Year built: 1959
- 4 beds
- 3 baths
- $298,000
1608 Folkstone Road , TALLAHASSEE
- Home size: 2,487 sq ft
- Lot size: 11,325 sqft
- Year built: 2018
- 5 beds
- 3 baths
- $358,797
previous-
2366 Merrigan Place , TALLAHASSEE
Home size: 1,216 sq ft Lot size: 2,613 sqft Year built: 1980
2 beds 3 baths $129,700
-
1919 Saddle Brook Drive , TALLAHASSEE
Home size: 2,069 sq ft Lot size: 14,374 sqft Year built: 1994
4 beds 2 baths $235,000
-
133 Oak Street , TALLAHASSEE
Home size: 1,804 sq ft Lot size: 3,484 sqft Year built: 1977
3 beds 3 baths $184,500
-
4054 Cottage Wood Trail , TALLAHASSEE
Home size: 1,228 sq ft Lot size: 6,098 sqft Year built: 1987
3 beds 2 baths $117,000
-
1568 Sweet Plum Circle , TALLAHASSEE
Home size: 1,734 sq ft Lot size: 6,969 sqft Year built: 1999
4 beds 2 baths $249,950
-
8931 WINGED FOOT , TALLAHASSEE
Home size: 2,736 sq ft Lot size: 22,651 sqft Year built: 2000
4 beds 3 baths $469,900
-
2279 Curtis Mill Road , SOPCHOPPY
Home size: 2,712 sq ft Lot size: 46.07 ac Year built: 2005
3 beds 2 baths $569,000
-
2230 Tuscavilla Road , TALLAHASSEE
Home size: 1,574 sq ft Lot size: 9,583 sqft Year built: 1986
3 beds 3 baths $239,900
-
7827 Broomsage Lane , TALLAHASSEE
Home size: 2,866 sq ft Lot size: 1.47 ac Year built: 2008
4 beds 4 baths $540,000
-
4608 Grove Park Drive , TALLAHASSEE
Home size: 4,213 sq ft Lot size: 1.21 ac Year built: 2007
5 beds 5 baths $750,000
-
528 W 5th Avenue , TALLAHASSEE
Home size: 1,058 sq ft Lot size: 7,840 sqft Year built: 1989
3 beds 2 baths $83,000
-
2468 Lantana Lane , TALLAHASSEE
Home size: 2,284 sq ft Lot size: 10,890 sqft Year built: 2008
4 beds 2 baths $370,000
-
1520 Sandtrail Lane , TALLAHASSEE
Home size: 1,365 sq ft Lot size: 23,522 sqft Year built: 1985
2 beds 2 baths $69,900
-
1522 S Adams Street , TALLAHASSEE
Home size: 1,560 sq ft Lot size: 6,098 sqft Year built: 1938
4 beds 2 baths $125,000
-
121 N Monroe Street , TALLAHASSEE
Home size: 1,289 sq ft Lot size: 26,136 sqft Year built: 2006
2 beds 3 baths $305,000
-
2864 Government Farm Road , MONTICELLO
Home size: 2,763 sq ft Lot size: 5.06 ac Year built: 1987
4 beds 3 baths $292,500
-
3705 Fawn Lane , TALLAHASSEE
Home size: 1,560 sq ft Lot size: 12,632 sqft Year built: 2011
3 beds 2 baths $260,000
-
4620 Killimore Drive , TALLAHASSEE
Home size: 2,379 sq ft Lot size: 18,295 sqft Year built: 1987
3 beds 2 baths $279,900
-
2160 Orleans Drive , TALLAHASSEE
Home size: 2,524 sq ft Lot size: 40,075 sqft Year built: 1974
4 beds 2 baths $345,000
-
1817 Wakulla Arran Road , CRAWFORDVILLE
Home size: 1,746 sq ft Lot size: 2.00 ac Year built: 2018
3 beds 2 baths $270,000
-
755 Rustling Pines , MIDWAY
Home size: 1,538 sq ft Lot size: 10,890 sqft Year built: 2018
4 beds 2 baths $179,900
-
200 Ponderosa Circle , MIDWAY
Home size: 1,420 sq ft Lot size: 10,890 sqft Year built: 2007
3 beds 2 baths $149,900
-
4898 Planters Ridge Drive , TALLAHASSEE
Home size: 1,699 sq ft Lot size: 7,405 sqft Year built: 1999
3 beds 2 baths $255,000
-
7067 Shady Grove Way , TALLAHASSEE
Home size: 1,830 sq ft Lot size: 6,969 sqft Year built: 1999
3 beds 3 baths $254,900
-
5990 Colonel Scott Drive , TALLAHASSEE
Home size: 3,089 sq ft Lot size: 1.63 ac Year built: 2000
4 beds 4 baths $512,000
-
335 Gathering Oaks Drive , TALLAHASSEE
Home size: 1,646 sq ft Lot size: 4,791 sqft Year built: 2018
3 beds 2 baths $279,900
-
361 Gathering Oaks Drive , TALLAHASSEE
Home size: 1,646 sq ft Lot size: 4,791 sqft Year built: 2018
3 beds 2 baths $279,900
-
1826 Ivan Drive , TALLAHASSEE
Home size: 1,623 sq ft Lot size: 11,761 sqft Year built: 1967
3 beds 2 baths $90,000
-
6282 Hines Hill Circle , TALLAHASSEE
Home size: 3,357 sq ft Lot size: 38,768 sqft Year built: 1995
5 beds 4 baths $515,000
-
64 Wigeon Way , CRAWFORDVILLE
Home size: 2,031 sq ft Lot size: 28,314 sqft Year built: 2018
4 beds 3 baths $269,900
-
3012 OBrien Drive , TALLAHASSEE
Home size: 3,213 sq ft Lot size: 28,314 sqft Year built: 1995
4 beds 4 baths $459,900
-
4064 Colleton Court , TALLAHASSEE
Home size: 1,483 sq ft Lot size: 3,484 sqft Year built: 2003
3 beds 3 baths $189,900
-
940 Rustling Pines Boulevard , MIDWAY
Home size: 1,360 sq ft Lot size: 10,890 sqft Year built: 2006
3 beds 2 baths $155,000
-
10577 Valentine Road N , TALLAHASSEE
Home size: 2,488 sq ft Lot size: 2.50 ac Year built: 2002
4 beds 2 baths $375,000
-
1307 Airport Drive , TALLAHASSEE
Home size: 1,083 sq ft Lot size: 1,742 sqft Year built: 1984
3 beds 4 baths $119,900
-
6478 Williams Road , TALLAHASSEE
Home size: 2,354 sq ft Lot size: 21,780 sqft Year built: 2006
4 beds 3 baths $329,900
-
1210 Calloway Street , TALLAHASSEE
Home size: 871 sq ft Lot size: 5,662 sqft Year built: 1960
3 beds 2 baths $27,500
-
331 Gathering Oaks Drive , TALLAHASSEE
Home size: 1,646 sq ft Lot size: 4,791 sqft Year built: 2018
3 beds 2 baths $279,900
-
1103 Kenilworth Road , TALLAHASSEE
Home size: 3,300 sq ft Lot size: 23,086 sqft Year built: 1967
4 beds 3 baths $395,000
-
6133 Eastfield Trail , TALLAHASSEE
Home size: 1,893 sq ft Lot size: 6,969 sqft Year built: 2002
3 beds 2 baths $279,900
-
8 Birch Street , CRAWFORDVILLE
Home size: 1,452 sq ft Lot size: 36,590 sqft Year built: 2001
3 beds 2 baths $120,000
-
1752 Augustine Place , TALLAHASSEE
Home size: 1,398 sq ft Lot size: 5,227 sqft Year built: 1994
3 beds 2 baths $147,000
-
6717 Donerail Trail , TALLAHASSEE
Home size: 1,572 sq ft Lot size: 27,442 sqft Year built: 1989
3 beds 2 baths $259,900
-
2410 San Pedro Avenue , TALLAHASSEE
Home size: 1,740 sq ft Lot size: 15,681 sqft Year built: 1981
3 beds 2 baths $195,000
-
2517 Harriman Circle , TALLAHASSEE
Home size: 2,644 sq ft Lot size: 24,393 sqft Year built: 1966
4 beds 3 baths $439,900
-
6129 Pickwick Road , TALLAHASSEE
Home size: 2,036 sq ft Lot size: 2.20 ac Year built: 2016
3 beds 2 baths $439,900
-
1381 Chip Morrison , ALLIGATOR POINT
Home size: 1,881 sq ft Lot size: 26,136 sqft Year built: 1962
3 beds 2 baths $449,000
-
11700 Evergreen Hills Court , TALLAHASSEE
Home size: 1,423 sq ft Lot size: 1.40 ac Year built: 2007
4 beds 2 baths $162,900
-
1501 Chowkeebin Nene , TALLAHASSEE
Home size: 2,044 sq ft Lot size: 24,393 sqft Year built: 1959
4 beds 3 baths $298,000
-
1608 Folkstone Road , TALLAHASSEE
Home size: 2,487 sq ft Lot size: 11,325 sqft Year built: 2018
5 beds 3 baths $358,797
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