The Real Estate Market in San Antonio, TX

The real estate market in San Antonio, Texas, is hot. Steaming hot even

The Real Estate Market in San Antonio, TX

The real estate market in San Antonio, Texas, is hot. Steaming hot even

11 May 2021 Tuesday 13:50
119 Reads
The Real Estate Market in San Antonio, TX

The real estate market in San Antonio, Texas, is hot. Steaming hot even. The reason behind our statement is the fact that in San Antonio during 2020, there were 66 newcomers daily. The factors that influence the growing population in the city of San Antonio vary from job opportunities to the city’s affordability, and the trend will only continue in the future.

As a result, the San Antonio real estate market is considered one of the most stable in the nation, especially for rental activity. Gen Z surpassed Gen X in rental activity. Regarding home sales, even if the prices are rising due to a tightened housing inventory, the average time on the market for a house has decreased by 41% since 2019.

The city of San Antonio is located in the South Central part of Texas, only an hour drive away from Austin and three hours away from Houston. A long time has passed since it was founded as a Spanish colonial outpost that housed the Alamo, one of the catholic missions in the new world, but the city’s growth over the last few decades surpassed any expectations. The urban megaregion of San Antonio, Austin, and New Braunfels worked to develop the thriving economy we see today, making it as diverse as possible for the area’s population and authentic culture.

Housing Market Overview

While the housing market in San Antonio is still well below the national average, there has been constant growth over the last decade. Despite that fact, the strengthening economy, increased confidence in the housing sector, and the limited inventory available pushed appreciation rates over the last nine years.

When you combine an exciting nightlife with a thriving economy, attractive job opportunities, and affordable living, you’ll get a high demand for housing. The logical result from this is having too much demand and a decreasing supply of homes. This transformed the housing market into a heavy seller’s market, with the median listing price increasing by 4% since 2019. Over the last year, prices increased by an additional 8% year-to-year, from $188,000 to $206,000. Homes also were on the market for an average of 51 days before they were sold compared to 2020 when they spent 74 days on the market.

Once the real estate market recovered from the Great Recession, the Alamo City ignited all its cylinders, and the results are evident. The economy is solid and diverse, giving investors plenty of opportunities. With the drop in unemployment, buyer’s and renter’s confidence increased. Low costs for businesses attract new companies that bring in new job opportunities and ultimately more homebuyers. Then there’s the low cost of living that attracts millennials, equity growth for homeowners, increased rental options, and the limited housing inventory resulted in more investors. With prices expected to increase even further and the growing economy’s impact on interest rates, there couldn’t be a better time to contact real estate agents in San Antonio TX and start searching for the best investment opportunity.

Thriving Rental Market

Despite the economy’s struggle and the impact felt by the renter’s confidence in spending money, San Antonio remains one of the most stable rental markets in the U.S. The city’s appeal for the younger generations results in a growing demand that leads to a 7% increase in rent prices over the past year. Around 40% of the occupied housing market is renter-occupied, and there is a massive potential for further growth.

Real estate investors have quite the opportunity here as the median age of the city’s population is 33.6. With the constant economic growth, this number is expected to decrease further as the newer generations will relocate to the exciting and appealing city of San Antonio.

Investing in the Region’s Real Estate Market

If the San Antonio real estate market trend doesn’t shift, it is expected for the median home price to grow further and even reach $302,000 before the end of the year. With an already limited number of homes, the continuous interest in homeownership will decrease the number of days houses spend on the market towards the high-40’s before the start of 2022.

While current homeowners will appreciate this trend, newcomers and investors should hurry up and purchase before appreciation exceeds their budget. As the San Antonio real estate market was kind to those investing so far, forecasts expect it to continue on that trend despite the turbulent economy the country faced. With employment numbers rising, housing demand won’t decrease anytime soon, and local investors will likely see the opportunity in front of them.

Real estate forecasts suggest that home values will increase in the foreseeable future, and loan rates are expected to stay low, at least for a few more years. This can only result in ideal investment opportunities both for homeowners and investors.

High Appreciating Neighborhoods

For those looking to either invest in the real estate market of San Antonio for profit, whether a potential homeowner or investor, the best way to ensure your profit is to purchase properties in up-and-coming neighborhoods. These are neighborhoods that are currently experiencing growth and restructuring that can lead to a buyer’s market even if the city is in a seller’s market. This may require a long-term investment, but rentals are also included here. The following are the top three areas with the highest potential for a return on investment.

Tobin Hill

Known for its eclectic and creative residents, the neighborhood of Tobin Hill is one of the most pedestrian-friendly neighborhoods in San Antonio, located north of downtown. This fact will only have a positive impact, not only on the levels of pollution in the area but also on the health of its residents. Cultural attractions can be found within walking distance from the residential areas, and coffee shops, bars, restaurants are close by as well. A bonus for the health factor are the extensive bike lanes that provide a great alternative to automobiles.

Prices vary from $200,000 to $400,000, while rents are between $500 to $2,000.

Alamo Heights

Located in central San Antonio, Alamo Heights is a stand-alone municipality inside the city with great restaurants, countless amenities, and top-rated public schools. You will find plenty of shopping options along this neighborhood’s streets, ranging from couture boutiques to beadwork shops, designer showrooms, and those little quirky specialty shops. The Central Market is the ideal grocery store for residents returning to their charming cottages or massive, luxurious Mediterranean mansions.

Prices vary from $250,000 to $350,000 while the average rent is $1,200.

Stone Oak

The up-and-coming Northside community of Stone Oak combines the unique Hill Country charm with San Antonio’s luxury, paying tribute to the area’s history. With over two-dozen subdivisions, there are more than enough home types available, ranging in both prices and architectural style. The combination mentioned above works wonders for the amenities as well, offering both the leisure of Hill County and the big-city perks of San Antonio. Here you can find the renowned Canyon Springs Golf Course, the acclaimed medical community, as well as some of the best entertainment and shopping opportunities in the city.

Prices vary from $255,000  to over $1 Million, while the median rent is $1,300

Conclusion

The San Antonio real estate market has grown over the last decade, just like the rest of the country. Still, while many US cities experience enormous growth, San Antonio still remains affordable. This resulted in higher profits for both real estate investors and homeowners alike. A property bought ten years ago will make quite the profit in today’s thriving San Antonio market. Forecasts predict that this trend will continue, and further investment potential can be reaped in the current market conditions. All that is left is for investors to see this growing city’s potential and invest because the housing market requires an increasing inventory.

Let us know in the comments if you think a crash can occur in the real estate market of San Antonio and why. Like & Share this article with other potential investors or homebuyers as the iron should be struck while still hot. And it’s almost burning now.

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