San Diego’s new-home market is not exactly sleepy right now. Carlsbad-based builder CalWest says it turned in a stronger-than-expected first quarter in 2026, moving 62 new homes and logging roughly $55 million in sales while rolling out mortgage buydowns to keep monthly payments from scaring off buyers. The company is also lining up a string of new neighborhoods around the county, including a single-family community in Vista that is set to break ground this month.
Sales Beat Expectations In First Quarter
According to the San Diego Business Journal, CalWest sold 62 new homes and booked about $55 million in revenue in the first quarter of 2026. The builder told the paper it is buying down mortgage rates to roughly 4.99% for qualifying buyers, a tactic meant to blunt higher borrowing costs and help keep its pipeline of new homes moving.
Active Communities Across The County
On its website, Cal West Living lists active communities stretching from Chula Vista to Sorrento Mesa and Escondido. The lineup includes Citrus Bay, Haddington at Côta Vera, DORSEY at 3Roots and Mountain House in Escondido, with the builder spotlighting quick move-ins and a mix of townhome, age-restricted and single-family options.
Vista’s Costera Hill Gears Up For Groundbreaking
CalWest told the San Diego Business Journal it plans to break ground on the Costera Hill single-family neighborhood in Vista in June 2026, with sales expected to start in summer 2027. Model homes are slated to run roughly 2,770 to 3,316 square feet, with prices in the ballpark of $1.3 million to $1.5 million. Some homes at Costera Hill are expected to include accessory dwelling units, the company said.
Chula Vista And Sorrento Mesa Offerings
The Citrus Bay project in Chula Vista, built on the former Sears parcel near the Chula Vista Center, shows starter prices in the mid-$500,000s and floor plans of about 1,100 to 2,000 square feet, per NewHomeSource. In Sorrento Mesa’s 3Roots master plan, CalWest’s AERO single-family models carry base prices in the low-to-mid-$1.3 million range, according to NewHomeSource, while DORSEY townhomes sit at the lower end of the new-construction price spectrum.
Mortgage Backdrop
Builders across the region have leaned on incentives because mortgage costs remain stubbornly high nationwide. Data from the Federal Reserve Bank of St. Louis’s FRED series, tracking Freddie Mac’s Primary Mortgage Market Survey, shows average 30-year fixed rates in May in the low-to-mid-6 percent range. Against that backdrop, a temporary buydown to around 4.99% can be just enough to pull hesitant buyers toward new construction instead of leaving them on the sidelines.
What To Watch Next
For San Diego buyers, the near-term question is whether lower monthly payments from buydowns, combined with fresh inventory in Vista and Chula Vista, will be enough to nudge more activity in the resale market. As new models open next year, sales velocity and pricing will tell the story.
