SAN ANTONIO – The average sale price of a home in San Antonio in July was $295,000, according to Redfin. This is an increase of 12% since the same period last year. However, with a dodgy national economy and an apparent pullback in home offers, what does the local real estate market look like and what happens next?
Jack Hawthorne, CEO of Keller Williams Heritage, joined Leading SA to explain the current local property market and trends.
“So the number of homes sold is absolutely slowing down a bit. We’ve seen those units drop about 15% year over year. However, we also see that house prices continue to increase year over year, by about 12%. So while we’re seeing fewer homes sold overall, we’re not seeing any of the values go down,” Hawthorne said.
There are many questions in the aftermath of GDP contracting two quarters in a row; some economists say it’s a technical recession, but here locally. Hawthorne said the market should be safe.
“In San Antonio, we had such a strong hyper-local market that it’s supported by a lot of different things that the national economy just doesn’t have the luxury of. And so because of that, our market is probably going to grow a little slower than it has. But there’s no reason to believe he’s going to go back,” Hawthorne said.
In addition to housing prices, rents have risen dramatically every year.
“Rents have actually gone up about 21% year over year, which is a lot… We’ve also seen a lot of people who have been evicted from Austin moving to New Braunfels and the east side of San Antonio because it’s much more affordable, and it’s about a 45 minute to an hour ride depending on when you do it. This is one of the most surprising trends we’ve seen that we didn’t really expect,” Hawthorne said.
With the influx of people moving to the town of Alamo and surrounding areas, what is keeping home prices in our area from reaching Austin?
“Austin was intentionally designed to reject growth. And if you look historically, that’s how it was designed. The original founders did not want this to happen. San Antonio is very growth oriented. They want to save money. They want to bring people in and have a very diversified economy with a lot of different services offered. We also have the ability to grow in many different directions, and so we’re seeing new construction in housing… And now we don’t expect us to hit those wild 25, 30 years of appreciation %. because it’s not healthy, it’s not sustainable, and it’s really not good for the economy,” Hawthorne said.
It’s not just people from Texas who move to San Antonio.
“San Antonio is one of the most popular places nationally for commuting. The reason is that we have a great infrastructure here…we have a great infrastructure for a lot of housing. Even if we are in short supply, there are still many more than elsewhere. We’re a very affordable place to live, and it looks like our local government is really pushing initiatives to put more money and more attention into areas of the city that are traditionally underdeveloped and not as popular. . So they seek to expand this trade as much as they can. And it just gives out-of-town residents a lot of opportunities that they just didn’t have anywhere else,” Hawthorne said.
Copyright 2022 by KSAT – All rights reserved.