Living in San Diego has been the dream of many people since the foundation of the city. After all, there’s a reason why it is known as America’s Finest City. So how does that affect the price of housing in the area? How much down payment is needed for a house in San Diego?
There are reasons why the price of housing in San Diego has been historically high. A combination of unbalanced offer and demand, planned growth and geography have contributed to these high prices.
However, investing in housing in the area, even through high prices, has been proven a solid investment due to the continuous growth of the region, as well as the house price.
So let’s discuss those aspects more in depth, starting by answering the question of how much down payment is needed for a house in San Diego.
Down Payment for a House in San Diego
On average, the down payment for a House in California ranges between 15% and 20%. In San Diego is no different and, taking into account the average price of houses in the area, that gives you a figure of about $85,000.
That ranks the third highest in the US. But, as we previously mentioned, that should not discourage people who are trying to invest in housing in the area.
Prices are expected to keep rising, with actually no end in sight, since the factors that contribute to the rising prices are not expected to change in the next years.
But what are those factors? How do they influence the price of houses and why they won’t change? Is it really safe to invest in housing in San Diego?
What Influences the Cost of Housing in San Diego?
Even since its foundation, way back in 1769, San Diego has been the crown jewel, as well the birthplace, of the entire California region.
The good climate as well as the development rate of the city has attracted many people to it. Proximity to the sea has made San Diego an important commercial spot for the entire country, creating many job opportunities.
However, to keep the quality of life in the city, development has been closely controlled. The infrastructure of the city has always been improving to make sure everything is running smooth.
And on another aspect, with the sea right at the doorstep, the actual geographic space that the city had available for growth was always limited.
In the long run, that has created an unbalance in the supply and demand of housing in the area. On one hand, people still wanted to move to the city. On the other hand, the offer or available houses started to dwindle.
So, naturally, the few available houses started to be fought over by buyers who were willing to pay more. That spiked the price of houses in the area, and keep spiking it to this day.
Is it Worth it to Buy a House in San Diego?
Yes. Very much so.
None of the influencing factors that we discussed is expected to change in the next years.
The development is still controlled, which keep the quality of life in the city high. Available houses are still scarce and people still want to move to the city.
In fact, when it comes to invest in housing in San Diego, a common saying in the real estate business is that “there’s no time like now“.
With prices steadily rising in recent years, and projected to keep rising for the next ones, the longer you wait, the more you’ll end up paying for it.
And with prices expected to keep rising, you’ll sure to invest in an asset that will keep growing in value for the foreseeable future.
Buying a House in San Diego
So now that you know that the down payment for a house in San Diego ranges around $85,000, you can start planning to buy one.
Again, the quicker you move, the better your chances to find a house the way you want with a price that fits your budget.
We here at The Real Estate Jedi would be happy to help you with that. We’ve been working with real estate in the region for the past 14 years, with a high satisfaction rate from our customers.
Give us a call or text us anytime at (619) 431-4133. We would be happy to hear from you and help you find the perfect home.
