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. 

As San Antonio was one of only 10 major metro areas that had positive home appreciation in 2007, this recent news about San Antonio employers and San Antonio’s job growth, should give us reassurance about the local market. In the simplest terms, positive job growth coupled with low interest rates means continuing demand for homes. Therefore if you decide to buy a home today in San Antonio it appears to continue to be a safe investment, because positive home appreciation, interest rates at 2 1/2 year lows and continued demand, and you will have a home in which you can build equity.

So I say to Rackspace…thanks for being a great employer…

Is this a sign that the San Antonio market is following the path to decline of other housing markets? Probably not, as San Antonio is not the only market in which Standard Pacific is selling their home lot inventory. More likely, Standard Pacific is consonsolidating due to problems in other markets and concentrating on their core, more established markets, which San Antonio is not for them.

Indeed, one of the reasons Forest City purchased these lots is due to the attractiveness of the San Antonio real estate market. In their press release,:

“This is an example of our stated strategy of taking advantage of national market conditions to selectively acquire properties and land in key markets. The solid underlying fundamentals of the San Antonio market, including job growth, attractive cost of living and the recreational opportunities provided by the Hill Country area all provide a positive outlook for the single-family market in the long-term,” said Bob Monchein, President of Forest City Land Group.

Seeing a similar pattern of growth, Cassie Gibson of Residential Strategies, Inc., stated, “The outlook for the Greater San Antonio new home market remains positive, despite the overall national housing market and credit market woes.”

What does this all mean if you are looking to buy or sell a home in San Antonio. If you are a new homebuyer, home builders remain focused on reducing their inventory which means that they will continue to provide incentives that should be very attractive to you. If you want to know what they are offering, feel free to contact us and we will let you know.

If you are thinking of selling your home, this is positive news as well. With Forest City having confidence in the San Antonio home market, they believe that there are still buyers to buy. However, it does mean that pricing your home right, maximum marketing exposure, and proper home staging is extremely important. If you are thinking about selling your home, we would be more than happy to consult with you.

The sky may be falling elsewhere, but the San Antonio area remains a strong area for real estate investment…