San Antonio’s Housing Surge Continues - San Antonio has been giving real estate experts reason to smile for months. When the mercury in the Alamo City hit its peak back in August, so did the city’s home sales – and they haven’t let up since. In fact, San Antonio was one of our choices for the top U.S. cities ending 2012 on a high note.
Just how high of a note DID the Alamo City end the year on?
When all was said and done, San Antonio’s home sales hit a two-and-a-half year peak – and the total number of home purchases was 10% higher than it was in 2011. In fact, that number of pending contracts hadn’t been hit here since April 2010, and back then, buyers were rushing out to take advantage of federal tax credits. This time around, though, there wasn’t any kind of incentive. Instead, people were out buying simply because they wanted to!
And, luckily, the momentum hasn’t slowed one bit since the calendar switched to 2013 – so it’s safe to say that San Antonio is smack in the middle of a housing surge! Real estate experts around the Alamo City say that they expect the number of home sales to increase another 9% in 2013. While that’s not quite as big of a jump as we saw in 2012, it’s still a huge gain. And, considering the demand is based solely on the market itself – rather than any kind of incentive programs – it’s a testament to just how strong things are getting here.
And, as 2013 moves along, buyers around San Antonio won’t just have existing homes to choose from. There will also be a glut of new homes to choose from, too. Since San Antonio’s housing market has taken such leaps and bounds over the past year, builders have stood up and taken notice. As a result, local experts expect to see the number of newly-built homes increase by as much as 15% by the time the year is over. Those won’t just be any ol’ homes, though. Home construction has been on the rise in San Antonio for the past several months, and throughout that time, one thing has been clear – people here want luxury homes. In fact, the number of home sales between $200,000 and $500,000 jumped 30% last year, so builders are taking full advantage of that trend. As a result, the number of San Antonio’s custom-built homes is expected to go up significantly this year – simply because the market demands it!
How has this housing market been able to sustain such a surge for so long?
Part of it is simply due to location. Texas has always had a strong overall economy. However, San Antonio gets the benefit of sitting right along the I-35 corridor – with Austin (deemed by many to be a smaller version of Silicon Valley) less than 100 miles to the north. It’s also only about three hours from Houston – a city that many deemed “fiscal cliff-proof”. San Antonio itself has a strong oil and gas industry – two things that will always be stable, no matter what the rest of the economy is doing. More recently, San Antonio’s housing market has benefitted from rising rental prices. With rental properties at 97% occupancy – and the average rent sitting at over $1,300 per month – more and more San Antonio residents are giving up the hassles of renting and becoming homeowners. When you look at it from those two perspectives, San Antonio’s housing market could keep booming for a long, long time!
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