San Antonio is still in great shape, stabilizing after two banner years. It is turning into a "normal" market, with fewer buyers and more homes for sale; resale sales were 17% less in June 2007 than a year earlier. The inventory is up by 72% in the same time period. Many local real estate professionals blame the relentless rain, and now that the rain has moved on (for now), there should be an increase in showings and sales, especially as the beginning of the school year approaches.
Another reason for the decrease in buyers is that fewer investors and second-home buyers are buying than in 2005 and 2006.
But these possibly unexciting statistics are in contrast to the market in other states, and to the past two years in which San Antonio has seen unprecedented growth and appreciation. That puts things into perspective.
And even though the market seems to be in balance, appreciation still accounts for a 6.5% increase in the median sales price over a year ago. The median sales price is $149,300 in San Antonio, the seventh-largest city in America in terms of population.
New-home sales have dipped from their record in 2006, and housing starts dropped 25% in the first quarter of this year. An expected 16,000 new homes are to come on line in 2007, however, which would make it the third-best year for new homes sales in a row. Builders are dropping prices and offering even more incentives to attract buyers; there is an average 7 months' inventory on the market.
The mortgage industry woes are being blamed for the slowdown in the sales of new homes under $150,000. These are the homes first-time buyers are most likely to be looking at; resale homes in this price range are not selling as well as last year either. The subprime loans have dried up for many first-time buyers and those with poor credit.
It's also tough for some qualified investors to get financing if they are trying to use stated income, in any price range.
Following are the market numbers for all single-family detached home listings this summer, from May to August 4, 2007:
Active Listings: 12,489 (rising)
Average List Price For Sold (49% of listings): $194,104 (rising)
Average Sold Price: $189,006 (rising)
Average Days on the Market For Sold: 64 (decreasing slightly)
Average list price unsold: $224,672 with 26% expired
Actual sales price/listing price ratio 97%
From recent articles from the RECON database, compiled from various sources, I extracted the following highlights:
The San Antonio economy continues to grow; as of May there was a 1,200-job increase in payroll employment and 300 jobs in the professional and business-service sector, mostly in high-tech service jobs. Financing services and education/health services gained 300 and 400 jobs, respectively, while manufacturing added 100 jobs. These were offset by the loss of 100 construction jobs.
Forbes magazine ranks San Antonio fourth in its list of best markets for home sellers, and lists it sixth as the best for flipping houses. Reasons include a lower-than-average vacancy rate.
The South Texas Medical Center keeps on growing. Approximately $640 million worth of capital improvement projects are projected or currently being constructed over the next 5 years, mostly in the University of Texas Health Science Center. Reportedly, 27,000 people are employed in the Medical Center area in medical-related jobs, and 29,000 are working in non-medical jobs in the area.
Even though I've moved far, far away from the Medical Center and northwest part of town (I'm now living in fast-growing Schertz--more to come), I still believe in the area and am buying my third single-family rental property there now.
Anybody want to rent a nice little three-bedroom home?
Robin Rogers, Realtor, Broker-owner, ABR, TRC, CRS
Also Cat Owner, Photographer, Smartass, Aspiring World-Class Drummer
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