The San Antonio real estate market is on par with the national average in terms of home prices, but remains a hotbed for investor activity.
San Antonio Real Estate Market & Trends
San Antonio, otherwise known as the Alamo City, continues to demonstrate an increased propensity for everything that has made Texas one of the hottest markets in the United States. On the one hand, the San Antonio real estate market continues to stay current with the national average, as homeowners and investors in the region were the beneficiaries of incredibly brisk sales. On the pricing end, however, San Antonio continued to trail behind that of its neighboring cities as appreciation rates for San Antonio real estate were not as high, at least compared to other cities in the state. Having said that, the San Antonio real estate market remains more affordable than most major markets around the country, including a hotbed for investor activity.
San Antonio, TX Real Estate Market Statistics:
The average home price in San Antonio is $195,500. Even after the high levels of appreciation that have swept through Texas, the current median home price in San Antonio is nearly $20,000 less than the national average of $215,767. To get to where they are now, home values for San Antonio real estate have appreciated by as much as 5.8 percent in the last year, which is 0.3 percent less than the national average. The San Antonio real estate market remains relatively healthy and consistent, as gains in the last three years have extended the trend of positive price growth after the recession. In fact, over the course of three years, San Antonio homes have appreciated 24.8 percent. For those considering San Antonio real estate investments, the following provides a breakdown of appreciation rates in previous years:
- Homes purchased in the San Antonio, TX housing market one year ago have appreciated, on average, by $13,900. The national average was $15,781 over the same period.
- Homes purchased in the San Antonio, TX housing market three years ago have appreciated, on average, by $47,282. The national average was $49,356 over the same period.
- Homes purchased in the San Antonio, TX housing market five years ago have appreciated, on average, by $58,371. The national average was $68,727 over the same period.
- Homes purchased in the San Antonio, TX housing market seven years ago have appreciated, on average, by $66,172. The national average was $59,758 over the same period.
- Homes purchased in the San Antonio, TX housing market nine years ago have appreciated, on average, by $66,024. The national average was $16,435 over the same period.
One reason for lagging appreciation rates could be the number of foreclosures in the San Antonio real estate market. According to RealtyTrac, the number of San Antonio foreclosures during the month of June was 12.6 percent higher than the previous month, and 22 percent lower than the same period in 2015. In terms of REO properties, the number of bank owned homes in San Antonio fell 45.3 percent from last year.
Again, the San Antonio real estate market is one of the hottest in the United States. The reason behind the city’s recent explosion may be attributed to the strength of its local job market. Accordingly, it is the job market that continues to serve as the main component of local supply and demand. With an unemployment rate of 3.7 percent (1.3 percent below the national average), and a one-year job growth rate of 2.8 percent, employment remains strong compared to that of other markets. The numbers are encouraging for the housing sector, as more people will be permitted to transfer from renters to buyers. Data compiled by Trulia suggests that the most popular neighborhoods in San Antonio are Dominion and Heritage.
With the recent expansion of the economy and the encouraging job sector, new housing construction remains low. The current level of construction is 12.5 percent above the long-term average, with single-family housing permits increasing 2.1 percent over the course of a year, suggesting that local inventory levels have stabilized.
Despite recent appreciation rates, the San Antonio housing market remains affordable. In fact, it is more affordable than most comparable markets. In the first quarter of 2016, the average homeowner in San Antonio has allocated approximately 9.7 percent of their income to their mortgage payment. On a national level, the average homeowner dedicated 14.5 percent of their income to a mortgage.
San Antonio, TX: Real Estate Market Summary:
- Current Median Home Price: $195,500
- 1-Year Appreciation Rate: 5.8%
- 3-Year Appreciation Rate: 24.8%
- Unemployment Rate: 3.7%
- 1-Year Job Growth Rate: 2.8%
- Population: 1,440,900
- Median Household Income: $52,689
San Antonio, TX: Real Estate Market (2016) — Q1 Updates:
So far in 2016, the San Antonio real estate market has enjoyed decent home prices and appreciation rates. The first quarter has been on par with the national average, as home prices, which have grown relative to last year, are currently $195,500. Additionally, home appreciation rates in San Antonio continue to rival the rest of the country, with homes appreciating at a rate of 5.8 percent during the first quarter of 2016. On a long-term basis, however, the appreciation rate for San Antonio real estate outpaced the national average. Homes purchases in San Antonio seven years ago have appreciated, on average, by $66,172; compared to the rest of the country at $59,758.
One major component of the San Antonio real estate market is home affordability, which continues to be the best in the nation. The first quarter of 2016 saw homeowners pay 9.7 percent of their income to mortgage payments while the national average paid 14.5 percent. In fact, this percentage is actually lower than San Antonio’s historical average of 10.9 percent. That said, one important indicator San Antonio investors and homeowners should pay attention to is new housing construction. In Q1, the level of construction was 12.5 percent above the long-term average, which suggest the local inventory is stabilizing.
The San Antonio real estate market remains a haven for investors and homebuyers, and the trend should continue in the second-half of 2016.
San Antonio, TX: Real Estate Market (2014):
In 2014, the San Antonio housing market, much like the rest of Texas, was firing on all cylinders. All you needed to do was compare 2014’s data with information from the previous quarter to see how well San Antonio was handling the recovery. Over the course of just four months, year-over-year appreciation rates nearly doubled to eight percent, as home values averaged $185,500.
During the 2014 calendar year, the San Antonio real estate market received strong support from the local economy. In fact, the job sector actually improved from 2013, with the unemployment rate dropping 1.3 percent, and settling at an encouraging 3.8 percent for the year. In other words, San Antonio’s unemployment rate during 2014 was well below the national average and only got better as time went on. Where things really started to look appealing was the one-year job growth rate, which revealed job growth rate during 2014 topped three percent. That meant all the new jobs that were created were being filled. The job sector did well in 2014, helping to maintain the area’s supply and demand.
The San Antonio real estate market continues to see encouraging signs — especially for investors. According to RealtyTrac, San Antonio had about 1,961 homes that entered into some form of foreclosure — default, auction or bank owned — in 2014. That said, San Antonio real estate investors took comfort in the fact that those distressed properties were being offered at a median price of $82,000 — up from the previous year. With San Antonio real estate investors benefitting immensely from the amount of foreclosures on the market, San Antonio was one of the hottest markets in the country during 2014.