San Diego ranks fourth worst for first-time homebuyers

Posted at 3:10 PM, May 12, 2017
and last updated 2017-05-12 20:46:19-04

SAN DIEGO (KGTV)--San Diego is the fourth worst housing market in the nation for first-time homebuyers, according to online real estate company Zillow.

Zillow released its nationwide rankings this week based on median home value, household-to-inventory ratio, forecasted home value appreciation, breakeven horizon, and the share of listings with a price cut.

California cities topped the list of the nation's most challenging markets, with San Francisco, San Jose and Los Angeles leading the group. Cities in the Southeast and Midwest were among the best.

Not all zip codes are created equal. If you have a particular area in mind, you can check out the median prices here.

I Don't Have a Down Payment!

While first-time buyers make up nearly half of recent buyers, having enough saved for a down payment could be holding back new buyers in certain markets.

If you're strapped for cash, the San Diego Housing Commission has programs to help you buy your first home.

What Will This Cost Me?

Don't let your monthly costs catch you by surprise!  Real estate site Trulia has a mortgage calculator that factors in your down payment in your mortgage.

Should I Just Keep Renting?

Anyone who's on the fence about making a first home purchase can use this Rent vs. Buy tool to see if it's a better decision to maintain their lease.

The tool will show you the "breakeven horizon": the number of years it will take before the cost of buying equals the cost of renting.  According to Zillow, if you'll stay in your home past the breakeven horizon, consider buying; if you move sooner, renting might be a better option.