There were permits issued last month for over 280 dwellings, which is slightly more than an increase of 300% over those issued during January of 2009. However, it must be noted that, despite this dramatic increase, the numbers are significantly lower than those reached in previous years, i.e., at the high point of new construction in 2005, permits were issued for nearly fifteen hundred units during the month of January. This indicates that there is still an uphill climb in store for the home construction business.
The recent increase in new home construction may have been brought about by an increase in the number of sales of new, existing homes. These sales have, in part, been due to the tax credits given by the federal government to home buyers. Other recent buyers are those who have been waiting for prices to drop enough for them to be able to purchase a new home, as well as those who recognize that San Diego is still a growing area, and that the future demand for homes will ultimately increase their value.
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