Increase in San Diego New Homes Sales - Precursor for Recovering Market?

New Homes San Diego

For the first time in five years, San Diego’s new-home industry showed increases in sales and median price, according to an industry report released last Thursday.

According to a report from the California Building Industry Association, new home sales in San Diego County rose 11.6 percent in February compared with February of last year, and the median price hit $531,945, up 11.8 percent from a year ago,

Why is this important? It may be a sign that new home sales will begin to take a turn for the better. After all, the National Homebuilders Association reported Friday that builders were feeling more confident about 2010 than they had in 2009.

As new home builders begin to see the market slowly recovering, coupled with the frustration that buyers are feeling with the foreclosure and short sale process, they are responding to the demand for new homes by providing more on the market. For example, Shea Homes San Diego opened a new development west of 4S Ranch in February.

According to Paul Barnes, president of Shea Homes San Diego, "Most of the increases have been along the North (County) coast - we saw it on the radar screen in late fall, and we continue to see it."

New home buyers in California are also being enticed by the $10,000 state tax credit. And, let’s not forget about the federal tax credit being offered as well.

If you are in the market for a home, or if you are frustrated with the foreclosure and short sale process, consider buying a brand new home. Shea Homes offers many new homes in various states. Browse their new home inventory at www.sheahomes.com.