San Diego down payments are rising
Add Axios as your preferred source to
see more of our stories on Google.
San Diego's median down payment reached $152,000 in February, up nearly 50% from just a year earlier, according to a new report from Redfin.
Why it matters: Homebuyers are having to reach deep into their pockets on the front end to soften the impact of steep mortgage rates on monthly payments, Redfin researchers say.
Zoom in: San Diego had the second-largest year-over-year increase of the 40 most populous metro areas.
- The region's $152,000 median down payment works out to 20% of the typical purchase price in San Diego, tied for fourth-highest percentage increase among the metro areas studied.
Between the lines: Cash purchases, which are common among investors, made up just 21.7% of purchases in San Diego, third lowest among metro areas.
- High-cost California markets made up the four markets where cash purchases were least common, with San Jose, Oakland and Los Angeles joining San Diego.
Yes, but: San Diego was among the markets last year with the largest increases in the share of homes bought by investors.
The big picture: The median U.S. down payment in February was 15% of the purchase price, up from 10% a year earlier, per the report.
- Las Vegas was the only market in which down payments rose more in the past year than San Diego.
Reality check: First-time buyers are still struggling to get a foot in the door.
- First-timers don't have equity from selling a home to boost their down payment, and they're often competing against cash buyers, according to Redfin.
Between the lines: Those who put at least 20% down can avoid the added cost of private mortgage insurance.