While home buying confidence has been high over the past several years, there’s a certain sentiment of wariness about what’s to come that resounds from the real estate industry. From warnings about a looming housing bubble pop to the fear of mortgage rates rising, it seems as if everyone has a prediction to make- and they are all seemingly skeptical.
Well skeptics, take note; in 2017 San Antonio outpaced 2016’s real estate sales figures with over 30,000 homes were sold… a 4% increase from the previous year and the first time sales have been above 30k! And if you think 2018 will see this come screeching to a halt, consider that all the housing experts are expecting to carry the momentum of 2017 into 2018.
That prediction certainly makes sense considering San Antonio continues to crush it in the economic space as well as in the growth space, finding itself on many a list. For example, Forbes listed San Antonio as No. 3 on their list of the 10 Big U.S. Cities With the Fastest-Growing Economies, USNews.com named San Antonio #3 on their “Best Places to Retire” list, and recently released data from the Bureau of Economic Analysis portrays San Antonio as one of the 3 large metros with the fastest growing Gross Regional Product (GRP).
Based on these shining accolades, it’s no wonder the experts predict the housing market in San Antonio will continue to hold strong. And while no one has a crystal ball, there are some super amazing housing experts out there that might as well. These folks, equipped with PhDs and loads of experience at predicting the housing market, are quite optimistic about the coming year.
Here’s what they think
Job Growth in San Antonio
Aside from the fact that Texas is leading the way in job growth for the century (nearly 2.75 million since 2000), San Antonio’s job growth has been incredible over the last several years, seeing the local economy and job market thrive.
The city’s unemployment rate has remained far below the national average (even during the recession), and new jobs seem to be cropping up all the time. San Antonio is the proud home of companies like Rackspace, NuStar Energy, and USAA, among others. San Antonio’s large military presence also expands the city’s workforce by a whopping 100,000 jobs. This thriving job market allows more renters to become homeowners, further fueling growth in the San Antonio real estate market,
Affordable Housing Prices in San Antonio
If you’ve kept up at all with San Antonio real estate news in the last several years, you know that prices have been on the rise. As more renters have become buyers; out of towners, locals; and homeowners, home sellers (and move-uppers), fewer homes have been available for purchase. This demand has caused a shortage of available housing, thus causing each home to increase in value.
In 2015, the average sales price of a home in the area was $231,976, and the median price was only $192,800. In 2017, the average price of a home in San Antonio has risen to $250,251 and the median price to $214,300. It’s worth noting that even with rising prices, average and median prices are still lower than comparable Texas cities like Houston, Austin, and Dallas.
And though 2017 saw growth in the price of both homes for sale in San Antonio as well as homes for rent in the city, it was very predictable. Knowing this, experts predict prices will continue to rise.
But affordability of a city isn’t only determined by housing prices. Cost of living is another long-term factor to consider, and even as the 7th largest city in the country, San Antonio’s cost of living is still 9.2% below the national average
This San Antonio home in Stone Oak is, believe it or not, on the market for less than the price of an average home in the city. See more homes for sale in Stone Oak and take a neighborhood tour, here!
Population Growth in San Antonio
San Antonio’s has shown no sign of slowing in the area of population growth in the past few years, and due to several reasons, including low office rents (allowing for business start ups and expansion) and strong job growth, 2018 will not be the year that experts expect a slowdown.
This population growth means one thing for homeowners: a seller’s market. As the population continues to increase, property values continue to rise...meaning your investment is continually worth more.
Additionally, as the next generation (we’re talking to you, Millennials) begins taking more ownership (literally) of the housing market, homes will grow increasingly valuable.
Healthy Mortgage Financing in San Antonio
Tax rates, mortgage prices, etc. can have a huge impact on the overall picture of what your mortgage will look like. Yes, it is true that mortgage rates were a bit up and down in 2017. At the beginning of the year, rates began to spike, however, they quickly stabilized, and then fell. At the end of 2017, 30-year fixed rates sat around 4.08%.
Though experts have predicted that the rates will rise, it won’t be a huge hike, and we should expect to see rates in the high four to mid five percent range by the end of 2018. And while these rates are definitely higher than what we have become accustomed to, keep in mind that the last few years have been shockingly low when compared to the last 50 years (remember when the rates were at nearly 20% in 1981? Yikes.).
It may be hard to believe, but this home in San Pedro Hills (you can read more about that neighborhood here) comes in at a little over $10k below the above the average San Antonio home price of $250,251!
Buying a Home: A Profitable Investment in San Antonio
As a whole, housing prices within the state of Texas are increasing and San Antonio is no exception. These rising home values are great news for homeowners, especially considering that all the above factors (affordable prices, job and population growth, healthy financing, and rising prices) formulate one overwhelming conclusion: owning a San Antonio home is a profitable decision.
Lorena Pena (San Antonio Board of Realtors’ 2018 Chairman of the Board) explained, "2017 was the biggest year yet in real estate. In 2017 we outpaced 2015’s sales figures, and we expect to carry this momentum into the New Year.”
These are exciting times for San Antonio homeowners! And while we deal with home transactions and loans and move-in dates all the time, we understand that each buyer is trusting us with an incredibly personal and important decision. Contact a REALTOR® today to find out more about what it looks like for you to invest in San Antonio real estate!
This home actually comes in below the city's median home price. At $194,000 we'd say this home in Judson's Meadow Park neighborhood is quite the sound investment. Surprising? Maybe. Exciting? You bet!
Feel a little better about the San Antonio housing market? Us too. Ready to get started on your San Antonio home buying journey? We have some excellent resources for you. If you are a first-time buyer, download our exclusive buyers' guide - you'll get excellent insight into the entire process of buying a home in San Antonio! Already know what you are doing, but need to know how much you can afford? Contact a lender to get pre-qualified. Need an agent? We've got 1,700+ - take your pick!