Local Home Loans in San Diego - Your Mortgage Broker in CA

FAQ San Diego County 

Geography and Climate

San Diego County encompasses a wide variety of terrains, including 70 miles of Pacific coastline, a mountain range that reaches over 6,000 feet, and a portion of the vast Anza-Borrego Desert. This diverse landscape offers a range of climates. The coastal areas enjoy a mild, Mediterranean climate with comfortable, sunny weather year-round. Inland and mountain regions experience more seasonal temperature variations, including occasional snowfall in the winter, while the desert to the east can see extreme heat in the summer.

Population and Communities

With a population of over 3.3 million, San Diego County is a vibrant blend of urban centers, suburban communities, and rural towns. The county seat is the city of San Diego, which is the second-most populous city in California. Other major cities include Chula Vista, Oceanside, Escondido, and Carlsbad. The county is also home to 18 Indian reservations, the most of any county in the United States.

Economy: Orange County boasts a strong and diverse economy. 

• Tourism and Hospitality: Driven by Disneyland, Knott's Berry Farm, beaches, and numerous attractions.

• Technology and Innovation: Particularly in Irvine, often referred to as "Tech Coast" or "Silicon Beach South," with many software, biotech, and electronics companies.

• Healthcare and Social Assistance: A large and growing sector with numerous hospitals and healthcare providers.

• Manufacturing: Including advanced manufacturing, aerospace, and medical devices.

• Professional, Scientific, and Technical Services: A significant cluster of businesses.

• Retail Trade: Boosted by major shopping centers like South Coast Plaza.

Orange County remains a highly sought-after place to live, work, and visit, offering a blend of Californian sunshine, economic opportunity, and a distinct quality of life.

San Diego Economy and Industries

San Diego's economy is robust and diverse, with several key sectors driving its growth.

• Military and Defense: The county is home to the largest concentration of military assets in the world, including major U.S. Navy and Marine Corps bases, making defense a cornerstone of the economy.

• Tourism: San Diego's pleasant climate, beaches, and attractions make it a top global tourist destination. Major attractions like the San Diego Zoo, Balboa Park, and SeaWorld support a massive tourism industry.

• Technology and Life Sciences: San Diego is a major hub for technology, particularly in biotechnology, wireless technology, and software. Companies like Qualcomm and Illumina are headquartered here, and the presence of world-renowned research institutions like UC San Diego and the Salk Institute fuels innovation.

• International Trade: As a border county with Mexico and home to a deepwater port, San Diego is a significant center for international trade.

San Diego Culture and Attractions

San Diego's culture is a unique blend of Southern California's laid-back vibe with a rich history and strong ties to Mexico.

• Balboa Park: This urban cultural park is home to 17 museums, multiple theaters, beautiful gardens, and the famous San Diego Zoo.

• Beaches: The coastline is a central part of San Diegan life, with popular beaches like Mission Beach, Pacific Beach, and La Jolla Cove offering opportunities for surfing, sunbathing, and whale watching.

• Historic Sites: The city is known as the "Birthplace of California," and Old Town San Diego State Historic Park preserves a part of the city's early history as a Spanish settlement.

• Food and Arts: San Diego has a thriving culinary scene, especially known for its Mexican food and its craft beer industry. Its arts and music scene is also growing, with venues like the Old Globe Theatre and the San Diego Symphony.

FAQ for buying a home in San Diego

1. Financial Preparation Beyond the Down Payment

• Get Pre-Approved: A pre-approval letter from your local lender Marcel Garcia AKA 818 Mortgage is crucial. It is a firm commitment from a lender to give you a loan up to a specific amount, which shows sellers you are a serious and qualified buyer. In a competitive market, a strong pre-approval can be the difference between your offer being considered or overlooked.

• Factor in All Costs: Beyond the down payment and mortgage principal, budget for closing costs (typically 2-5% of the purchase price), property taxes, homeowners insurance, and potential Homeowners Association (HOA) fees. In some areas, you may also have to pay Mello-Roos taxes for community improvements, which can add a significant amount to your monthly payment.

• Optimize Your Credit: Even a small improvement in your credit score can lead to a lower interest rate, saving you thousands of dollars over the life of the loan. Pay off credit card balances and avoid taking on new debt before and during the homebuying process.

2. Master the Offer Strategy

• Be Prepared to Act Fast: The best homes in San Diego often receive multiple offers within a few days of being listed. Have your documents and pre-approval ready so you can submit a clean offer quickly.

• Make Your Offer Stand Out: Price is a major factor, but it's not the only one. Consider making your offer more competitive by:

  • Increasing the Earnest Money Deposit: A higher deposit signals to the seller that you are a committed and serious buyer.

  • Being Flexible with Closing Dates: Tailoring your offer to the seller's timeline can be a significant advantage.

• Consider an Escalation Clause: 

  • In a bidding war, an escalation clause can be a useful tool. This clause states that your offer will automatically increase by a set amount above any competing offers, up to a pre-determined maximum.

3. Leverage Local Experts

• Hire a Dedicated Buyer's Agent: Do not use the seller's listing agent. A buyer's agent works exclusively for you and has a fiduciary duty to protect your best interests, help you with negotiations, and provide valuable market insights that may not be available to the general public.

• Find a Local Lender: Your local lender Marcel Garcia aka 818 Mortgage is familiar with the San Diego market can provide a more tailored service and may be able to close the transaction more quickly and efficiently.

4. Conduct Thorough Due Diligence

• Do Not Skip the Home Inspection: While waiving a home inspection contingency can make an offer more attractive, it is a significant risk. Even in a competitive market, it is vital to understand the condition of the home and any potential major repairs you may face down the road.

• Pay Attention to Pest Inspections: Termites are a common issue in San Diego's climate. A termite inspection is a crucial step to avoid costly future repairs.

• Research the Neighborhood: Visit the neighborhood at different times of the day to get a sense of traffic, noise levels, and the overall vibe. Look into school ratings, crime statistics, and proximity to amenities that matter to you.

FAQ Current Home Prices in San Diego County

• Median Sold Price: The median sold price for a home in San Diego County is approximately $935,000.

• Median List Price: The median listing price is around $950,000.

• Price Appreciation: While prices remain high, the market has seen a slight softening, with some sources reporting a year-over-year decrease in median prices. Other data shows a more stable trend with modest price increases. The market is not experiencing the rapid appreciation seen in previous years.

FAQ Market Trends in San Diego County

• A Shift Towards a Balanced Market: San Diego is moving from an extreme seller's market to a more balanced one. While sellers still have an advantage, the market is no longer as frenzied as it was a few years ago.

• Days on Market: Homes are taking longer to sell. The median time on the market has increased to approximately 32 days, compared to 18 days a year ago.

• Inventory is Increasing: The number of homes for sale has increased significantly, providing buyers with more options and less competition. This is a key factor contributing to the market's re-balancing.

• Negotiation Opportunities: The percentage of homes selling above the list price has decreased. This indicates that buyers have more leverage for negotiation and are more likely to purchase a home at or slightly below the asking price.

• Luxury Market: The luxury market (homes over $2 million) remains strong, showing unique resilience with continued price appreciation and faster sales compared to the broader market.