Christmas in San Antonio

It has been warm, rainy, and muggy in San Antonio the last few days, but blue skies and sunshine will return soon. Winter in San Antonio is great, since bad weather never sticks around for more than a couple of days before the sun comes out again. It can be cold or rainy, but seldom both for long, and I have spent many a Christmas Day at a barbecue or picnic.

As far as investment real estate is concerned, the holidays are traditionally slow, a good time for bargain hunting. There are a lot of properties on the market. Those in good condition, or well-priced, and/or with good flip potential are still selling. The financing panic has subsided and even though there are a lot of lender-owned and HUD homes on the market, their prices haven't been slashed--in fact, they are at or only slightly below market. Sellers are willing to take lower offers, but don't seem to have reached the point of dropping their asking prices significantly.

Since San Antonio never experienced the unusual appreciation of other markets, it has not had the severe drop in price either. Homes are staying on the market longer, but the supply still puts the market slightly into the buyers side. The subprime mortgage problems has hit hard in the price ranges under $160,000, which is approximately San Antonio's median price. This translates into good news for investors, since this is the "sweet spot" for single-family homes that will attract good tenants who can afford to pay $1,000 to $1,300, but who can no longer qualify for mortgages. And rents have started to rise accordingly.

Back to the weather--today it has been quite chilly and grey, reminding me of the British weather I never got used to in England. I am beginning to get worried about the hummingbird: 

She came around to the feeder again, when she really should have left for Mexico by now. I hope she has someplace warm to spend the holidays.