The San Antonio Real Estate Market

1. San Antonio Real Estate Market The San Antonio real estate market is hot. In fact, San Antonio is right in the middle of a housing junction. As more people move to Alamo City, there’s more competition for homes. And, that puts pressure on developers, along with impacting affordability. However, this doesn’t mean San Antonio is heading into a crisis. Far from it. All it means is that market dynamics show some growing pains. But, in the long-term, it’s very healthy. So, let’s take a quick look at the San Antonio residential real estate market. San Antonio Real Estate Market First and foremost, the San Antonio real estate market is really active. That’s a good thing, although it does mean there are some small challenges. Whether you’re a buyer or a seller in early to mid-2018, the San Antonio is one that presents key opportunities. Here’s what both buyers and sellers need to know about the San Antonio residential real estate market: ●Inventory is tight (at the time). Through the fourth quarter of last year and into the first couple of months of 2018, inventory remained short. This is especially true in entry-level houses but extends to other resales. Fortunately, because a sizeable percentage of available inventory was at the top of the price range, that should change. ●Home prices will continue to grow. Good news for sellers -- home prices are going up and that trend looks like it won’t change. However, it’s slightly down from its current pace. Don’t panic, this only represents a correction to bring it in-line with what’s normal. So, now is the time to sell to reap the biggest return on investment. ●Interest rates incrementally on the rise. A bit of good news for buyers entering the housing market -- interest rates are really, really low. But, they are also on an incremental rise. While interest rates aren’t near the near- historical lows of just a couple of years ago, they still represent very good deals. With changing Federal Reserve policy, it’s only sensible to see an increase over the course of this year into next. ●Entry-level homes are a big priority. Another bit of good news for buyers is that entry-level homes are in short supply. Okay, so that might not sound good at first but it is because it means developers must go where demand takes them. And, that’s into starter homes. Since there’s already a good supply of larger homes, there’s just no reason for builders to venture further. Developers will fill the demand over the next several months. ●Suburban sprawl is really sprawling out. Here’s another nugget for would-be homebuyers -- suburban sprawl is getting larger and larger. Because land

2. costs less outside the white-hot urban areas, the suburbs are increasing in size. Which bodes well for homebuyers who will enjoy a cost-savings that’s passed onto them. In summary, rising home prices will eventually plateau as more homes in lower prices ranges are built. Interest rates will encourage homebuyers to jump in and current prices incentivize home sellers to take action now rather than later.