San Tight

The Top Five Reasons Why San Antonio Real Estate Market Is Looking Up

For everyone still reeling from the tough San Antonio real estate market in 2010, it’s now time to get up, dust yourself off, and look forward to a more promising 2010.

Don’t expect the market to surge ahead quickly, though, as regrouping from the last year’s national recession is going to take time. However, many real estate professionals are quite optimistic that 2010 will be a better year for anyone involved in the San Antonio real estate industry.

The San Antonio Board of Realtors, in fact, has projected not only an increase in the number of home sales, but also price appreciation for San Antonio real estate. In other words, for everyone who has managed to survive last year’s hit, it’s going to be a much better year ahead.

There are some sticking points in the San Antonio real estate market, make no doubt. For example, home builders are still finding it difficult to get financing to complete projects. And on the other side of the loan process, many would-be homeowners are still being turned down by banks for home loans. Short sales and foreclosures have no doubt had a negative impact on the lending industry over the past year, so it only makes sense that lending will continue to remain fairly tight during the upcoming year.

1. However, the San Antonio real estate market for homes priced under $200,000 are sure to experience the biggest jump, both in sales and real estate appreciation. There is currently a 5.9-Month Supply of homes priced under $200,000 on the market; a six-month inventory is generally considered to a balanced market.

2. Combine that with low interest rates and the extension of the federal homebuyer tax credit, and there appears to be plenty of interested buyers entering the real estate market in 2010.

Homes priced over $1 million are still struggling, though, and will likely to continue to struggle throughout the upcoming year. In fact, this market is now inundated with a 61 month inventory of homes.

3. Many analysts see the upswing in the San Antonio real estate market to continue, as demand for homes usually coincides with consumer confidence, which has continued to improve over the last few months.

4. San Antonio is also expected to see an increase in its real estate market because job losses continue to decline. As San Antonio starts creating new jobs in the upcoming year, San Antonio real estate demand will certainly follow suit. San Antonio recently announced the addition of thousands of new jobs in the military and private sector, which means that there will be an influx of workers looking for homes.

5. A recent study conducted by Metrostudy found that builders in San Antonio are expected to build about 8,000 homes this year, a nearly 12 percent increase from 2008. The sales incentives and discounts being offered by builders are sure to spur the growth of new homes sales throughout San Antonio, and are sure to help rebuild San Antonio’s bruised housing market.

About the Author

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