TL;DR - San Diego has several high-risk flood areas, especially around rivers and creeks
Flood insurance costs can be steep but crucial for homes in Zone A or AE.
Recent local floods highlight the real danger and financial risk.
FEMA maps help-but don’t tell the whole story.
Work with a local expert.
Where Do I Begin If I Want to Buy a Home in San Diego?
Starting your homebuying journey in San Diego can feel overwhelming. But don’t worry - even in this high-demand market, you can make smart, informed steps with the right team and game plan.
Start by choosing a real estate broker in San Diego who knows the local terrain. Look for agents who not only have great reviews but also know how to navigate first-time homebuyer needs, financing hurdles, and tough negotiation environments.
In 2025, with increased inventory and modest price gains, buyers now have slightly more leverage. Redfin and Rocket Homes report that active listings across San Diego County rose to 4,277 in June, with median days on market hovering around 17-20. This gives buyers a bit more breathing room to explore options without immediate pressure.
Additionally, digital home tours and virtual consultations have grown in popularity, especially among out-of-state buyers relocating for tech or military careers. These tools allow for faster decision-making and scheduling efficiency.
What Can I Actually Afford in San Diego’s Housing Market?
The San Diego housing market is competitive and pricey. As of mid-2025: - Median listing price: ~$950,000 (May 2025) - Median sale price: ~$875,000-$1,000,000 depending on property and area
A typical 20% down payment could mean $175,000-200,000 upfront. That’s why many buyers explore FHA loans or local down payment assistance programs.
One Reddit user shared that they felt priced out because even a $5,000/mo rental was stretching their budget, and owning would bump that up by $1,200+. This type of insight highlights why realistic budgeting is essential.
Experts suggest keeping your mortgage to no more than 35% of your gross income. For a $900K-$1M home, that means a household income around $240,000-275,000 is often needed.
Cost-Saving Tips:
Compare lenders for rate quotes
Look into San Diego-specific grants
Consider starting with a condo or townhouse
Explore foreclosed properties in San Diego for potential discounts
Investigate accessory dwelling units (ADUs) for income generation
How Do I Get Pre-Approved for a Mortgage?
Getting pre-approved is step one to becoming a serious buyer. Lenders will check your credit score, income, debt-to-income ratio, and employment history. For the San Diego market, a credit score of at least 700 is a solid target, though FHA programs may accept lower.
Pro tip: Don’t just use an online calculator. Sit down with a mortgage advisor who understands San Diego real estate trends in 2025.
Ask your broker about preferred lender relationships, appraisal turnaround times, and options for rate buydowns to reduce monthly costs.
Also inquire about rate locks, especially if interest rates are fluctuating. Some lenders offer extended locks that protect you from future rate increases during a long escrow.
What Are the Best Neighborhoods in San Diego for First-Time Buyers?
If you’re new to town or a first-time buyer, here’s a breakdown:
Use tools like Redfin, Zillow, or your broker’s MLS portal to track price drops and new listings in these areas.
Also consider proximity to schools, walk scores, public transit, and whether properties include energy upgrades like solar panels-a growing trend among 2025 buyers.
Should I Worry About Timing the Market?
Trying to time the San Diego real estate market is risky. Prices may dip seasonally, but the long-term trend is upward due to demand, limited inventory, and desirable climate. Instead, focus on whether you are financially and emotionally ready to buy.
According to a June 2025 market update, median listing prices are stable while sale prices range between $875K-$1M. Inventory is up slightly, offering more choices, but demand remains strong.
Homes are spending about 17 days on the market, and bidding wars are becoming less aggressive than in previous years-a shift that benefits well-prepared buyers.
Additionally, seasonal slowdowns in late summer or early winter may offer negotiating advantages. Your broker can advise you on ideal timing based on your profile.
Should I Worry About Timing the Market?
Trying to time the San Diego real estate market is risky. Prices may dip seasonally, but the long-term trend is upward due to demand, limited inventory, and desirable climate. Instead, focus on whether you are financially and emotionally ready to buy.
According to a June 2025 market update, median listing prices are stable while sale prices range between $875K-$1M. Inventory is up slightly, offering more choices, but demand remains strong.
Homes are spending about 17 days on the market, and bidding wars are becoming less aggressive than in previous years-a shift that benefits well-prepared buyers.
Additionally, seasonal slowdowns in late summer or early winter may offer negotiating advantages. Your broker can advise you on ideal timing based on your profile.
Real Story: Reddit User’s Path to Homeownership
One Redditor detailed their journey from renting to owning in Mission Valley. They started with a 5% down FHA loan and bought a $610K condo after six months of searching. They emphasized the value of working with a top San Diego real estate agent who explained every step and knew how to get offers accepted in a bidding war.
Their biggest tip? “Don’t waste time with agents who don’t educate you.”
Another buyer on a forum shared how they secured an off-market duplex in University Heights through a personal letter and direct contact. Their advice: “Don’t underestimate networking with local agents and homeowners.”
A young family shared how they used a VA loan to purchase a $725K home in Chula Vista, taking advantage of their military benefits and avoiding private mortgage insurance (PMI). They credited a knowledgeable VA lender and a responsive agent as key to their success.
Pros and Cons of Buying a Home in San Diego
Pros: - Strong long-term appreciation - High quality of life and weather - Excellent school districts in select areas - More listings available as of summer 2025 - Flexible lending products for diverse income levels - Strong job market in biotech, defense, and tourism sectors
Cons: - High entry price and property taxes - Intense competition in coastal areas - Possible HOA fees for condos/townhomes - Down payment and closing costs still steep for many buyers - Earthquake retrofitting may be required in older homes
FAQs About Starting the Homebuying Process in San Diego
What credit score is needed to buy in San Diego? Most buyers will want at least 700, though FHA options can start at 580.
How much income do I need to qualify? To afford a home priced between $875K-1M, a household income around $240K-275K/year is usually needed.
Are there programs for first-time buyers? Yes! California and San Diego County offer down payment assistance, especially for teachers, veterans, and low-to-moderate-income households.
Should I start with a condo or house? If budget is tight, a condo can be a smart entry into the market-just factor in HOA fees.
Is it worth buying a home in San Diego right now? With inventory improving and prices leveling off, many buyers find this a more favorable time to enter the market.
What are typical closing costs in San Diego? Expect 2-5% of the purchase price, covering escrow, title insurance, inspections, and loan fees.
Can I use gift money for my down payment? Yes, but most lenders will require a gift letter confirming no repayment is expected.
Ready to Buy in San Diego?
Don’t go it alone. Let the Scott Cheng Team connect you with the best San Diego broker for your needs. Whether you’re upsizing, downsizing, or buying for the first time, we’ll help you make smart moves.
Call or text (858) 408-0002 • scott@scottchengteam.com
