As expected, single-family home sales in San Antonio declined during the month of July. This drop in home sales comes as no surprise as July represents the first month where no real estate closings were a result of the recent homebuyers tax credit. It is safe to say, now that the data is available, that the homebuyer tax credit did stimulate the real estate markets, both locally and nationally.
It is important to note that although July sales were down, year-to-date homes sales are up almost 6% compared to this same time period during 2009. Overall, the health of the San Antonio real estate market remains good. During the remaining months of 2010, we should also expect lower monthly home sales when comparing them to these same months during 2009. This decline will be a result of comparing months when there was no tax credit with those from a year earlier, when the tax credit was artificially increasing sales. Anytime home sales are stimulated through incentives, sales will be lower after the incentives end.
But don’t think all home buying incentives have disappeared. The San Antonio real estate market has a large inventory of homes for sale giving buyers more choices. An even bigger incentive is the record low mortgage rates available to today’s homebuyers. The 30 year fixed mortgage rate just finished a four-week streak of record-low rates. During July, the 30-year fixed rate hit 4.57%. Rates had last reached those depths a couple of generations ago, in the mid-1950s. By historical standards, mortgage rates are extremely low right now. A large selection of choices coupled with modern day record low mortgage rates provides a great incentive to purchase a home.
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