While much of the country has spent the last few years gradually recovering from the housing collapse and recession, Texas as a whole has experienced record home prices, high demand for housing, and a strong jobs market. Despite rising prices, Texas is one of the few states in which homes remain affordable for most buyers, and San Antonio, in particular, is attracting people who come in search of affordable housing and jobs.
Here are some of the most important San Antonio housing trends of the last few years and what’s expected in the city in the year ahead.
San Antonio Rated a Best Buy City for Investors
Forbes recently compiled its 2016 list of Best Buy Cities, or the top 20 housing markets in which to invest. All cities on the list have strong population growth, excellent job growth, and anticipated home price appreciation. Three Texas cities made the list, but San Antonio rated 3rd overall with an average home price of $201,000.
According to Forbes, San Antonio’s diverse job market with data centers and financial firms helped it experience 3.7% year-over-year job growth with a three-year population growth rate of 6.1%, bringing a large pool of renters and potential buyers into the area. While housing prices are on the rise, they are still affordable compared to most of the country. The shortage of inventory means prices are expected to rise 26% in San Antonio over the next three years.
Inventory Remains Low
San Antonio’s strong job market and rising population have contributed to a low supply of homes for sale. Since 2015, San Antonio’s housing inventory has remained below 4 months, far below the 6.5-month supply economists say is a healthy and balanced market. This is the lowest inventory San Antonio has experienced in decades.
According to the San Antonio Board of Realtors, most sales are for homes priced at $200,000 and below, which account for around 56% of existing home sales. While inventory is low, it’s still better than the statewide average of 3 months and it’s better than Dallas’ average 2015 housing inventory of fewer than 2 months. Buyers in San Antonio can expect to face competition on homes.
Home Prices Expected to Rise in 2016
During the annual San Antonio Board of Realtors Housing Forecast meeting this year, realtors were advised that the hot housing market will likely continue in San Antonio through 2016. According to economist Dr. Mark Dotzour, rising home prices will likely be attributed to low mortgage rates and increasing jobs in the area. Dotzour downplayed concerns that declining oil prices will impact the housing market as San Antonio has a diverse job market.
2015 was a record year for the city with an all-time high 27,154 homes sold, according to the MLS report from the San Antonio Board of Realtors. The previous record year was 2006 with 26,169 homes sold. In 2016, the average sales price $231,976 with a 12% decrease for days on the market. More than 12,200 single-family homes were sold in San Antonio in 2015, a 7% increase over the previous year.
