As you may have heard, San Antonio’s real estate market looked good in 2014. Really good. We ended the year with home prices up, overall sales up, rental occupancy rates up, and rents up. Since these are all signs of a flourishing housing market, among other things, we chalk 2014 up to a great year. Plus, these are all good signs that San Antonio is experiencing a growing housing market.
To kick off 2015, San Antonio Realtors® and Brokers attended the San Antonio Board of Realtors’ annual housing forecast, where the mood was reflective of the stellar year many of them had just reaped the benefits of. In fact, the panelists and speakers at the forecast reported that the San Antonio real estate scene had experienced one of its best years yet. Backing up their claim, was the fact that many San Antonio Realtors® saw houses flying off the market- many times with multiple offers on the homes. Additionally, the days homes sat on the market dropped, and San Antonio homes continued to appreciate. A testament to the demand for homes over $200,000, several San Antonio neighborhoods saw the benefits of the overall increase as the price per square foot grew more expensive. Alamo Heights, Deerfield, Hollywood Park, Olmos Park and Rogers Ranch, among others, saw more demand in 2015 than in previous years. Even luxury homes saw the benefits of a growing market. Typically sitting on the market for longer, luxury home sales increased 26 percent over the last two years.
Looking back, we know that 2014 was great, but what about 2015? According to the experts, San Antonio is one of the nation's most impressive markets right now. With low interest rates and the possibility of the government loosening loan requirements, 2015 looks at least comparable to its predecessor. And based on research models, the San Antonio real estate market is looking at another year of home price appreciation, with a predicted 7% increase in 2015.
However, experts admit there may be a few hurdles and uncertainties in the coming year. One of the biggest unknowns at the moment is that of falling oil prices. Though San Antonio's economy doesn't rely as heavily on oil as, say, Houston, it does contribute to the growth of the city. While oil companies don't lay off employees, they won’t hire any more workers until oil prices go back up. The other hurdle? Inventory. For the past year there have been fewer homes on the market than demanded, creating a sellers market. In order to have a healthy market, we need more homes on the market, whether they are new builds or re-sales.
Overall, San Antonio continues to be attractive because of both the low cost of living and job growth. With an attractive city comes relocation, and with relocation comes a healthy housing market. And with experts agreeing that the housing market is a great indicator of the economy, 2015 should be a very remarkable year all around.