If you plan to move out of state in 5 years, it’s not a safe bet, since So Cal real estate cycle are typically 10 years or more from peak to peak. I think you need a longer commitment to this area before it makes sense to purchase.
Why not buy a house in Denver today, rent it out at a loss (you’ll get the tax break you would get on the SD house) and rent your residence here for the few years.
You’ll lock in today’s prices in Denver for a place you can be committed to live in 10 years from now. This seems to me a safer bet.
If the national RE bubble crowd is wrong you win. If they are right, you win because you plan to be in that house 10 years from now, long enough to ride out the 7-10 year RE cycle.
