San Antonio Real Estate Market

The “buzz word” for real estate remains “real estate is local”. In fact, Texas and San Antonio, in particular, remain one of the most active and stable real estate markets in the country.

We started 2008 with a feeling that our market would be quiet for the first half of the year and would heat up by late Summer and into the Fall. Little did we know of the impending issues of our financial institutions and the auto industry. So rather than heating up, areas like Texas were impacted by difficult situations in other regions. The more often we heard about all of the awful things that were bound to be around the corner, the more cautious we got.
Now that 2009 is upon us, interest rates are lower than they have been in decades. Bailouts are occurring in many industries and talk of additional stimulus packages has everyone wondering where the money will come from.
San Antonio real estate has been affected, but not that much. For example, annual sales for 2008 (17,359) in relation to 2005 (17,909) doesn’t seem that bad.   But since 2006 (22,261) and 2007 (21,178) were so good, we were spoiled. A more detailed look at the numbers shows that homes under $200,000 represent 74% of sales; homes $200,000 to $500,000 represent 24%.
The number of active / available listings in 2008 was up a very little bit from 2007. The months of inventory has increased from 6 months in 2007 to 8 months in 2008. That change is a result of fewer sales, not necessarily more listings. The months of inventory by price range is 7 months for under $200,000, 14 months for $200,000 to $500,000, and 23 months from $500,000 up. The average days on the market is up about 12% (78 days to 87). The more you move north of Loop 1604, the higher the number goes.
In summary, San Antonio is well positioned for the future. It is expected that prices will remain stable for 2009. Homeowners will continue to sell and buyers will continue to buy. If our market continues that way through the early months of the year, the pent up demand should cause more buyers and sellers to enter the market as the year progresses.