SAN ANTONIO'S HOUSING MARKET LOOKS BRIGHT!
The nation looks to San Antonio because we are one of the strongest markets in the country. We seem to be buffered because we don't have bubbles, we don't inflate quickly or deflate quickly, rather we have a strong military and government presence that keeps us stable.
In recent years, however, our city and county government are actively recruiting corporations from other states so we are now seeing job growth in areas that we've not been associated. In fact, it's a myth that San Antonio's largest employment sector is travel; it's bio-medical. Let's look at how this is impacting our market.
ANNUAL SALES TRENDS
We rounded out the year with four consecutive quarters of growth. Overall, we surpassed 2011 by 1,712 in sales, which is the second year in a row that we grew consistently for a gross number of homes sold - 18,343.
INVENTORY
As you can see to the chart on the right, the yellow line shows that we are at an all time low in inventory. In part sellers are waiting for prices to return to the 2007 levels but that might take a little while longer.
However, those who are listing at market value are getting 98% of list to sales price; meaning, 2% margin. From a buyer's perspective that means, you need to offer within that range in order to get the house.
Case in point, I submitted an offer on behalf of a client who lost the sale over less than 1% difference. We didn't mind too much because there was a plan B, which he did get, and ended up being a better financial deal for him. Does that make it a sellers market?
DAYS ON MARKET
The number of days a house sits on the market should be calculated as an Absorption Rate, a ratio of active to sold listings. Anything less than 6 is a Seller's market, and vice-versa. So DOM alone doesn't indicate Seller or Buyer market, rather, how long your house might sit if you put it on the market, and that it is priced and staged well. Looking at our DOM chart below you can see that compared year to year, 2012 homes sat for 10% less, or 83 DOM. Not bad, not bad at all.
AVERAGE SALES PRICE
San Antonio is one of the most affordable metropolitan cities in the country, but due to job growth and our warm climate, our prices are creeping. Looking at the chart to the right, we've increased from $150400 in 2008 to $160,000 in 2012. I think we'll keep creeping as a big announcement is looming but nobody will say what company it is.... stay tuned!
$$$$$$$$$$ 2013 INSIGHTS $$$$$$$$$$
Did we hit bottom? Yes - Most speculate it was December 2011
Should we buy now? Yes - Even though Ben Bernanke will hold interest rates low to recapture the home values, they won't stay low forever and the market will result in higher prices.
Are there still foreclosures? Yes - but even those go for about 5% of list or better.
The best way to find the best deals is to work with a Realtor who understands what's happening in the market and how to structure an appealing deal. I'm ready when you are!
Charts courtesy of SABOR.com
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