What first time home buyers can expect in San Diego

Posted at 7:25 PM, Feb 15, 2018
and last updated 2018-02-15 22:26:56-05

SAN DIEGO (KGTV) -- Navigating the housing market can be a daunting task for first time home buyers. Zillow recently released some statistics on what new home buyers can expect to see when getting into the San Diego market. 

Zillow found that, over the last five years, starter homes are actually increasing in value faster than other homes.

The site says the quick appreciation is due to the demand for entry-level homes growing faster than supply.

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Home value appreciation among affordable homes is beneficial for people who own homes, but makes it tough for buyers trying to get into the market, according to Zillow.

In the San Diego metro, there are 26 percent fewer starter homes to choose from than in 2017, where the typical entry-level home is worth $416,300.

But there's good news for those lucky enough to land a home. Entry level homes in the San Diego metro have gained more than seven percent in value over the last year and nearly 65 percent over the last five years.

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The most expensive homes have gained just shy of seven percent in value.

“When the housing market crashed, owners of the least valuable homes were especially hard hit, and lost more home value than homeowners at the upper end of the market,” said Zillow senior economist Aaron Terrazas. “Since then, though, demand for less expensive, entry-level homes has built steadily, causing prices to grow rapidly. As a result, these homeowners have been able to build wealth at a faster pace than owners of more expensive homes.”