San Antonio Housing Blog » housing affordability

Dave Ramsey’s Town Hall For Hope

Rex Blackburn — Fri, 24 Apr 2009 17:20:00 +0000

My wife Barbara and I have been big Dave Ramsey fans for a long time. The response to his Town Hall meeting was phenomenal! Those of you who did not get a chance to view it should visit his site, www.townhallforhope.com . It is well worth a few minutes of your time. When asked how long this depressed economy would last, Dave stated that the economy will turn back around when the housing market rebounds. And, he empahsized that it was a great time to buy, as long as you can afford to. Interest rates are extremely attractive right now, hovering around 5% and of course, there is a large inventory of homes to choose from. He quoted numerous statistics during his talk, many focused on foreclosures. It should be noted that one half of all foreclusures are located in twelve states. The stats are available to review on the site mentioned above. The doom and gloom reported by much of the media is misleading. Not all areas are experiencing the severe real estate conditions that you keep hearing about on the news. San Antonio and Texas in general has a very strong economy. While we are affected by national economic factors, which has put our real estate market into more of a buyer’s market, it is not a “fire sale” market. Sellers’ are realizing that homes are taking slightly longer to sale than in the last few years and they have to be more aggressive in their pricing, but seller’s in most cases are not “giving their homes away”. On the other hand, buyers’ are in a position to take advantage of the aggressive pricing and usually can negotiate a very attractive price; advantage buyers’. As a Realtor, I firmly believe that as Dave stated, real estate is a sound investment and now is agreat time to buy, if you can afford to. I also believe in Dave’s message last night.

At the end of the town hall meeting, Dave said there were 3 things we can do: GET UP AND TAKE ACTION; STOP LISTENING TO LOSER TALK; and START GIVING.

I think that too often we have the mindset that we cannot change or control what happens; we simply accept the decisions of others, whether it be the government of people around us. Nothing could be further from the truth. We as individuals can control what happens to us. We can make smarter choices, take smarter actions, and produce better results in our lives. The question is whether we are willing to make the effort or accept the status quo. It is time for each of us to look “within ourselves” and ask ourselves some hard questions. Are we willing to get out of our comfort zone, start making smarter choices, and taking action to get the results we want? We can, we just have to make the commitment, have the conviction in our hearts, and the courage to make it happen. Again, take a little time and visit www.townhallforhope.com . You won’t be disappointed.

How is the San Antonio Housing Market?

Rex Blackburn — Sat, 24 Jan 2009 22:37:45 +0000

It’s interesting how everyone has a different opinion of the market. People that rely soley on the news from various media sources talk only of doom and gloom. If you talk to realtors, the answer typically depends on their individual situation. Those that are busy, working with buyers and sellers, writing offers, and having those offers accepted, of course, think the market is good and getting better. Those sitting around with nothing to do and no sales think we are in another “Great Depression.” If as a typical consumer, you are laid off, then the economy is terrible. If you’re working and nothing has changed, it seems to be okay.
A good example of that is the relocation of one of Caterpillar’s main manufacturing facilities to Seguin, Tx. (just 30 miles east of San Antonio). This will bring 1400 jobs to our area and obviouly have a major economic impact. Those people employed will believe the economy is great; those people laid off by Caterpillar in Illinois and South Carolina will not.
The reality is that San Antonio has been affected by the economic situation. Our real estate market was down over 15% from the previous year. Inventory levels are up about 20% over last year. We are now in a buyer’s market, but we are in an active market. Since the first of the year, we are seeing greater activity and more offers being made. Many sellers’ are gradually lowering their pricing to find the market value, More buyers’ are seeing the prices come down and realize that the value is now there. Interest rates are hovering around 5%, a great opportunity for buyers’.
While the San Antonio real estate market is not what we have been used to, it is still a good place to be in this business, especially when you look at other areas of the country. And it’s a great opportunity to invest in a home in San Antonio, Texas!

San Antonio Housing Market – Good or Bad?

Rex Blackburn — Mon, 27 Oct 2008 15:32:12 +0000

With the continued negative information regarding our economy nationwide, including the housing industry, the stock market, the failed banks, and whatever else you want to throw into the mix, one would get the impression that we should all go hide in a closet and hope one day that it will be safe to come out. Perception is our Reality. While there is no doubt that we are experiencing difficulties based on the above mentioned issues, the world is not coming to an end. Is it as bad as you hear and read? As a Realtor in San Antonio, Texas, I will say to you that we are not in bad shape. In fact, I would say that we are in a pretty good position for the future.

Like the rest of the country, San Antonio has certainly been affected by the tough economic conditions that exist today. We are experiencing a correction in our market as a result. Here are some numbers to consider. Overall, sold homes for the last 12 months are down approximately 28% over the previous 12 month period. These numbers come directly from the San Antonio Board of Realtors. That is a serious downturn in sales. However, keep in mind that 2006 was a record year, 2007 was almost as good. Business cycles. The upside to these numbers is that homes are currently selling for 96 to 98% of list price, the same as in the previous 12 months. In addition, homes are maintaining their value or slightly increasing in value, NOT DECREASING! Homes are staying on the market for 30 to 60 days longer than in the past, but that simply makes for a good buyer’s market at this time. Sellers need to be patient; buyers should look seriously at the opportunities right now as the leverage is on their side. But, what is our future?

In San Antonio, the future is very strong. We anticipate the housing market coming back in 2009. Forbes.com just rated San Antonio as the number TWO BEST-VALUE CITY in the country, right behind Austin. The military is bringing in additional personnel to handle the medical training for all of the services, which will infuse millions of dollars into our local economy. Microsoft just opened a data center that also will have a major economic impact on San Antonio. It is projected to become the single largest user of power in the area. We have 2 PGA golf couses being built as well as a 1000+ room J.W. MARRIOTT Hotel. This will attract golfers from around the world. All in all, I cannot think of a better place to buy or invest in real estate than San Antonio, Texas.

Is San Antonio a Buyer’s market?

Rex Blackburn — Wed, 11 Jun 2008 03:00:06 +0000

Several of my clients lately have told me that “It’s a buyer’s market so we should be able to get instant equity” when we buy, or “It’s a buyer’s market so we can really low-ball the asking price”. Why do they think this? Simply, NATIONAL NEWS is of course reporting the real estate market as being in severe distress. There is no doubt that real estate is down nationally. However, while some areas are hurting, other areas are doing well. The real estate market is specific to the geographic region.

San Antonio is still one of the strongest markets in the country. As a matter of fact, Forbes Magazine ranked San Antonio as one of the nation’s strongest housing markets, behind only Seattle and Oklahoma City. The reason, a 11.2% increase in home prices.

With that said, San Antonio has not totally escaped the economic times. The sub prime issues have certainly affected us. Mortgage companies have tightened their parameters, thus taking a percentage of potential buyers out of the market. Many investors have virtually disappeared from our market because of their exposure in other markets. This has changed the dynamics of our market. Builders have stopped buiding spec homes. They placed large incentives on their inventory to move existing product. That inventory has for the most part been sold off, which now drives buyers back to pre-existing homes.

So really, how is the San Antonio real estate market? Just as it is nationally, some areas are stronger than others. Another factor is price. There are certain price points that are stronger than others. The lower price points are more active than the more expensive properties. So, is it a buyer’s market? It depends on the area, the price point, and the individual seller’s position. Every transaction stands alone. The bottom line for a buyer: Find an experienced agent that knows the market that can convey good, current information to you so that you can make an educated buying decision. Please feel free to contact us if you have any questions.

Buying a Home Today is Still a Good Idea

Barbara Blackburn — Sat, 12 Jan 2008 18:57:33 +0000

Some buyers are hesitating to buy their first home now.

We have all seen the headlines, “HOUSING CRISIS…”, “MORTGAGE MELTDOWN…” . And you are worried about the real estate market, or about your ability to qualify for a loan with a good interest rate. Maybe you don’t want to make a move yet, because you’d like to wait until you think the market is going to hit bottom.

But did you know that RIGHT NOW is the best time to buy? Buying an owner-occupied house is based on the local market, and it’s based on YOUR family’s needs and capabilities.

The San Antonio real estate market remains strong, despite what is happening elsewhere. If you can afford the monthly mortgage payments, then seize this opportunity to provide your family with the security of owning their own home. In fact, right now IS the best time to buy your first home. Why?

Long-term appreciation. Although real estate values operate on a cyclical market (increasing, then decreasing, then increasing), over the long term, appreciation is over 7% in San Antonio. So if you’re buying a long-term family home that you plan to leave for your children, the short-term market fluctuation shouldn’t affect your plans.
High inventory level. Right now, there are over 11,000 homes for sale in San Antonio, according to the MLS. New homes offered by builders are coming with huge incentives. In this buyers’ market, you’re in the driver’s seat!
Sellers are more willing to negotiate. Quite simply: more houses for sale = more choices for buyers = more leverage to negotiate better price and terms! Of the 11,000 homes for sale in San Antonio, 1,000 of those have already been reduced in price.
Great quality loans available. Yes, despite some things you may hear, borrowers can find terrific mortgage loans. FHA loans are still available, and you can use down-payment assistance. And now they’re at all-time low, competitive interest rates.
Tax break! Don’t forget that you can receive a mortgage interest deduction on your annual tax filing. It can be substantial enough to offset any additional expense of owning (versus renting). So now there’s no excuse!

The main reason to buy a house is because you and your family would like to have a safe, secure, stable home. Another reason is that you can begin owning real estate with an owner-occupied investment, and later on you can buy a larger “move-up” house. So if your property appreciates, that is great, it’s “icing on the cake”, but not the main reason to buy your home.

Now it’s time to get out there and find your dream home.

San Antonio Ranked Most Affordable City

Barbara Blackburn — Sat, 05 Jan 2008 07:18:57 +0000

San Antonio does it again. According to a poll by Travel and Leisure, San Antonio was deemed as the most affordable city among the country’s largest metro areas in 2007. San Antonio was also ranked last as far as stylish city goes, but what the heck does that mean?

What else did San Antonio rank high in? Well, we ranked in the top ten for barbecue, historical sites, cheap eats, ethnic food, relaxing and romantic atmosphere, and of course, friendly people.

So when someone asks why move to San Antonio, the answer is simple. Housing is affordable and the market is not crashing, the cost of living is lower than most, we have great food, the world’s best basketball team, and of course, the friendliest people.

What $1 Million Buys In Homes In San Antonio

Barbara Blackburn — Wed, 02 Jan 2008 21:29:04 +0000

Forbes has a new feature article in their online Real Estate section comparing million dollar properties worlwide, so I thought it would be neat to compare those homes to a million dollar property in the San Antonio market. As you will see a million dollars buys you much more in San Antonio than elsewhere. I found all these homes using Google search by the way…

Million Dollar in San Francisco…

Million Dollar Home in Chicago…

Million Dollars in San Antonio…

WOW! What a difference…As you can see your housing dollars go a lot further in San Antonio than in other parts of the country. If this is the difference in a million dollar home, imagine the difference in a $100,000 home. Go ahead, kill some of your day and do a Google comparision of homes you can afford and compare other cities to San Antonio.

S.A. Homebuilders Have 3rd Best Year on Record

Rex Blackburn — Mon, 31 Dec 2007 15:56:18 +0000

As the housing market continues to contract, the builders seem to be taking the worst of it. KB Home, one of the country’s largest homebuilders, announced last week that it was shutting down operations in the Rio Grande Valley. According to an article in the Valley’s The Monitor, “Builders and real estate experts blame the decline on the nationwide foreclosure crisis sparked by subprime lending. Amid the subprime problems, lenders are tightening mortgage requirements and loans have gotten more expensive, resulting in lower demand for new homes. ”

So how is the new home market in San Antonio. The answer: still good, just not great anymore. Read this article in the San Antonio Express News, and you will learn that while new home sales were down over 25% in 2007 from 2006, that 2007 was still the 3rd best year for San Antonio homebuilders.

And what did that mean for new home buyers: BIG INCENTIVES. Builders offered to pay buyer’s closing cost’s, free upgrades, and huge discounts. So the question is what is in store for 2008? We have no crystal ball, but all indications are a little more of the same until the market corrects itself. Builders still have excess inventory, which they should be able to bring down by summer.

So if you have been thinking about purchasing a new home in San Antonio, you still have a few months where the builders want to really earn your business with still historically low interest rates.

S.A. keeps head above ‘ugly’ home-sale slump

sanantoniorealtor — Sat, 29 Dec 2007 15:05:09 +0000

That was this mornings headline in the San Antonio Express News. It seems that San Antonio will avoid the housing downturn that the rest of the country is experiencing for now…but it will be interesting to see how 2008 plays out for us.

According to the Express News:

“San Antonio, however, seems to be escaping the brunt of the housing downturn because a strong job market and affordable prices have kept the city, as well as the rest of Texas, relatively insulated from the most distressing problems facing other parts of the country.In September, the annual new-home sales rate was 16,371 in the San Antonio area, down just 1.8 percent from the annual rate for September 2006, according to the most recent data available from the housing research firm Metrostudy. Builders this year, however, have increased incentives to buyers to unload their excess inventory.

While there were fewer new home sales and housing starts, 2007 is likely to be the third-best year on record for new-home construction in San Antonio, with builders starting 14,328 homes between September 2006 and September 2007, according to Metrostudy.

That’s a 27 percent drop from the record set between the same period in 2005 and 2006, when there were 19,600 home-starts.”