San Diego sees increase in single home construction
Posted on Tuesday, February 7, 2012 at 10:10:15 AM
The San Diego housing market saw drastic improvement in the fourth quarter of 2011, according to the Metrostudy National Housing Market Year-End Review - Detached Single Family Homes. Construction began on 440 detached single family homes in the fourth quarter - up 46.7 percent from the previous quarter.
The Wall Street Journal attributes this improvement to a 72.8 percent increase in absorption of new homes as more houses are selling and supplies decrease. Those variables make the San Diego area a good market for builders. The increase in market confidence and absorption rates may result in a rise in available lending money for consumers looking to purchase new homes.
New home vacancies fell to 4.3 percent during the quarter - the lowest in two years. However, this should not be a deterrent to consumers shopping for a new home. An abundance of vacancies drives property market value down, which often make houses less valuable as an investment opportunity. Homes are a long-term investment and the stronger the market, the higher the property value.