August Sales Up in San Antonio in 2011 over 2010

In a recent article in mysanantonio.com, the number of reported home sales in August of 2011 in San Antonio showed a 10% improvement over the home sales of 2010.  There were 1771 homes sold that month versus 1617 sold in August a year earlier.  Unfortunately, home prices were down 6% from the previous year.  The lower median price indicates stronger sales in the lower price ranges during the economic downturn. 

What does the future hold?  San Antonio hopes to buck the national expectations of lower sales throughout the first quarter of 2012.  Time will tell. 

Happy New Year!

It's a new year, and there are hopes that the recession and its effect on local real estate are over.  Greater San Antonio Builders Association recently held their annual housing forecast where the outlook was for a slowly improving market in 2011. 

The highpoints of the discussion included:

• New home construction in 2010 was up 5.5% from 2009.  Projected new home starts in 2011 are expected to be up another 9%.
• Builders have scaled back production since 2007, leaving San Antonio with one of the tightest markets in the US in supply of new homes.
• Occupancy rates in San Antonio apartments are now above 90%, representing a pool of potential home buyers in the future.
• Texas issued more than twice as many home-building permits in 2010 as the next closest state, Florida.
• In 2010, the bulk of the new home sales in San Antonio were homes priced under $225,000.

New Terminal Opening at the San Antonio International Airport

The new terminal is opening at the San Antonio Airport this week.  Terminal B, as it is being called, cost $108 million and will begin serving passengers next month.  The goal is to have final certifications complete and security checks done before Thanksgiving, when holiday travel hits high gear.

Terminal B replaces an aging 1950's era building that was last upgraded in the 1960's for Hemisfair '68.  The 251,000-square-foot structure is the crowning piece of a $635 million capital program at the airport that has created more long-term parking, doubled the facility's vehicle-carrying capacity with a bi-level roadway and improved other features, including its baggage-handling and screening system.  San Antonio hopes the new Terminal B at International Airport will have an oversized impact on both travelers and the city's aviation future.
 
 

Sales of Existing Homes In San Antonio Have Slowed

From the San Antonio Express News' Jennifer Hiller comes:

San Antonio home sellers and real estate agents aren't quite singing the summertime blues, but sales of existing homes slowed considerably in July.  The number of home sales dropped 25 percent in July when compared with the same month in 2009, dipping to 1,491, according to data released Tuesday by the San Antonio Board of Realtors. 

The likely culprit of the unseasonable doldrums: the federal government's $8,000 carrot offered to first-time home buyers and $6,500 to some current homeowners, which was available to those who could go under contract by the end of April.  The tax credits boosted the number of home sales in the springtime, but most of those deals had closed by the time July rolled around.  “What we saw in the spring market was a surge in sales for the tax credit,” said Marietta Alba, SABOR chairwoman. 



But sales volume is still up 6 percent for the year, with 10,922 sales so far compared with 10,297 by the same time in 2009.  The expiring federal tax credits are also a likely reason the median sales price rose slightly, to $160,800.  Alba said that July saw an unusually high number of sales of homes above $500,000 — a group of buyers unlikely to be swayed by the federal tax credit — and a lower number of sales below the $200,000 mark most popular with first-time buyers. 


Earlier in the year, the number of first-time buyers in the market helped push the median price down slightly.  As the market moves out of its traditional peak season, Alba said SABOR expects the rest of the year to be steady, if unspectacular. 


“Our interest rates are still remarkably low and we're glad about that. Job growth continues,” Alba said. “We're still a steady and stable market.”  Homes sold slightly faster in July than they did in 2009, in an average of 84 days, which was 11 fewer than last year. And there were 1,430 pending sales at the end of July. 

Real estate agents and home builders both have noticed a drop-off in business from the usual summer frenzy. Most home buyers try to close a deal and move before the school year starts.  “I think we saw an increase until the month of May. In June we saw a drop,” said Richard Zepeda, an agent with Keller Williams Heritage.  Now Zepeda said he has noticed that builders again are offering good incentives to buyers and larger-than-usual agent commissions, as high as 7 percent, to spur interest. 
“The interest rates are so historically low,” Zepeda said. “It's the best time to buy if you can, especially while other people are still sitting on the fence.” 

Home Sales are Increasing in San Antonio; Prices are Not

The May real estate numbers are in for San Antonio, and the number of sales of existing homes in May increased 19 percent to 1,928 sales compared with the same month in 2009, according to a new report from the San Antonio Board of Realtors.  But the median price of a San Antonio home dipped 4 percent to $145,900 compared with May 2009.

The increase in the number of sales this May has been credited to the tax incentives for homebuyers that ended April 30th. 

A report this week based on the Fiserv Case-Shiller Indexes said San Antonio home prices could slide slightly this year, but only by 0.5 percent. Nationally, a 3.1 percent decline is expected this year, with steep home price declines continuing in hard-hit markets such as Nevada, Arizona and Florida.  Once again, San Antonio is one of the more stable real estate markets in the country.

With around 7.8 months of inventory — meaning that if no more homes came onto the market, it would take 7.8 months, in theory, to sell the entire inventory at the current pace — the market remains tipped slightly in favor of buyers. About 6.5 months of inventory is considered a market balanced between buyers and sellers. 

The other good news?  The average number of days on the market for a San Antonio home that sold in May was 83, a quicker pace than the year before.

San Antonio Economy Gets a 400 Bioscience Jobs Boost

The big announcement yesterday was that InCube Labs is going to open a research facility in San Antonio.  It will be a research laboratory, focused on developing major medical breakthroughs.  InCube's founder and CEO, Mir Imran, is the developer of the automatic implantable cardioverter defibrillator, which has become a standard in cardiovascular care.  He announced that he picked San Antonio over other Texas cities because of its research institutions, the military and the business community.

The good news for the San Antonio economy?  The company will create jobs with salaries ranging from $50,000 to over $200,000 which Mayor Julian Castro said is on track with his push for higher paying jobs in the city.  According to Imran, InCube will also launch five life science companies in San Antonio: three by the end of this year and two more within three years after that.  The companies will create about 400 jobs and will collectively spend $100 million.

NCAA Women’s Final Four to boost S.A.

The upcoming NCAA Women’s Final Four is going to be a big boost the San Antonio economy, according to William Pack of the San Antonio Express-News.    The games will be played in the Alamodome in downtown San Antonio on Sunday, Apr. 4th and Tuesday, Apr. 6th.  It is estimated that the Final Four is going to generate $20.9 million in spending from about 28,000 visitors from outside the San Antonio area.

Sporting events such as the Final Fours have become big economic generators because of the large number of out-of-town fans they draw, and the amount those fans spend at local restaurants, auto rental outlets, hotels and tourist attractions.  In addition, this time there are two teams from the region, Baylor and Oklahoma, and more fans than originally estimated may decide to attend in person.  Seating in the Alamodome has been capped at 23,000 for the championship, but it could be expanded if demand warrants.

Compare the projected $20.9 million impact to previous San Antonio events:

• 2009 Washingston State vs. Notre Game football game at the Alamodome - $15.6 million
• 2008 Rock 'N' Roll Marathon - $20.9 million
• 2008 Mens Final Four at the Alamodome - $47 million
• 2007 Valero Alamo Bowl - $42.6 million
• 2007 Big 12 Championship football game at the Alamodome - $30.5 million
• 2002 Women's Final Four at the Alamodome - $17.1 million to $20.3 million

On a personal note, as a graduate of Baylor University, Go Lady Bears!

San Antonio Home Sales - Is it a Good time to Sell or Not?

So is it a good time to sell a home in San Antonio?  Yes!  It is a good time to sell because whether you are staying in town or moving elsewhere, there's an abundant supply of homes to pick from when you become a buyer.  Interest rates are still near all time lows, and loans are still being made, as long as you have decent credit and a job that looks secure.  Big if's for many nowadays, but a bonus for those that do.


So, how does this market compare to '09's market and '08's market? The graph below shows that the last three months for which we have data to compare,  November and December of 2009 and January of 2010, sales have outpaced the previous year, and hopefully will continue to do so. 

San Antonio Home Sales Per Month

As a seller, it may take a little longer to get your home sold, but houses are still selling. Prices have remained somewhat steady in most areas of town, but as the number of foreclosures increase, we may see more drops in home sales prices.  The next graph compares the distribution of sales prices in San Antonio, comparing sales in 1999, five years later in 2004, and five years later in 2009. 

Price distribution of San Antonio Home Sales

The sales of homes from $120,000 up last year (2009) outpaced the comparison years, 1999 and 2004, while the sales of homes below $120,000 lagged considerably behind.  When comparing homes in the upper ranges of $200,000 and up, sales in 2009 were two to three times as plentiful as 10 years earlier in 1999.  Obviously inflation plays a part in this change, but as the city has grown in the last ten years, more companies have re-located to San Antonio bringing higher wages, and the growth of our medical industry and military commands continues to create a demand for higher end housing. 

Optimism reigns in the San Antonio real estate markets, at least at the present time!

Statistical information from the Texas A&M Real Estate Center.

What's the San Antonio Housing Market Doing in 2010 So Far?

In the San Antonio Express newspaper, Jennifer Hiller reports on the sluggish San Antonio housing market.  The highlights of her article include:

• The median price of a San Antonio resale home was $139,700 in January, down 6 percent from the same month last year.
• The number of January sales in San Antonio was essentially flat: 834 sales this year compared with 836 sales in 2009.
• Homes  in San Antonio were taking an average of 92 days to sell in January.
• In January, 127 sales, or about 15 percent of all San Antonio sales, were lender-owned.

Based on some encouraging fourth-quarter 2009 numbers, SABOR in January projected an increase in the number of home sales this year, along with possibly some price appreciation.  But the January 2010 numbers did not show that strength in our local market.  Hopes are still high for a strong recovery this Spring due to the coming warmer weather, the low interest rates and the tax credit deadline.

San Antonio Area Companies Are On the "Best to Work For" List

Three San Antonio area companies are ranked in the "100 Best Companies to Work For" list from Fortune Magazine.  A relatively new company, NuStar Energy LP is ranked at No. 21, while nearby New Braunfels company Scooter Store is ranked No. 38, and San Antonio insurance giant USAA is ranked No. 45.  The score is determined by a random survey of employees and the pay, benefits, hiring, communication and diversity of the company.

NuStar showers employees with no-cost health insurance for them and their families, and an old fashioned pension plan.  Full time turnover is a low 3%!

The Scooter Store practices celebrations for employees, including quarterly pep rallies and daily birthday parties.  40% of employees are salespeople who earn commissions based on their performance.

USAA boasts top of the line benefits such as a 401(k) match of up to 8% of pay and performance bonuses up to 18% of pay for their almost 22,000 employees.

Congratulations for these three fine area companies in the Alamo City area!

San Antonio Housing Forecast for 2010

On Monday, Jan 4th, local San Antonio Realtors, builders, developers, and other experts, gathered to hear the predictions for the 2010 San Antonio housing market.   They describe their outlook for new housing starts and closings as cautiously optimistic, expecting it to be as good or better than the '09 market.  Fueling the optimism is the expectation of an influx of jobs into San Antonio in the coming year.

In 2009, San Antonio housing starts and closings dropped 18% and 25% from the previous year.  But by the end of the year, the market showed signs of bottoming out, leaving builders and developers anticipating a much better year.  Currently San Antonio has a healthy inventory of available homes, and about 2,000 homes under construction, making us one of the top housing markets in the United States.

REALTOR® Magazine-Daily News-Cities Where Housing Is on the Mend

                           REALTOR® Magazine-Daily News-Cities Where Housing Is on the Mend

from Forbes Magazine, Dec. 9, 2009

No cities have totally avoided the foreclosure crisis, but some were able to sidestep the worst of it.  These markets are now recovering quickly....

1. Harrisburg- Carlisle, Pa.
2. Austin-Round Rock, Tx.
3. Ogden-Clearfield, Ut.
4. Buffalo, NY
5. Knoxville, Tn.
6. Raleigh, NC
7. SAN ANTONIO, TX.
8. Syracuse, NY
9. Salt Lake City, Ut.

Moline, Il tied with St. Louis, Mo, Wichita, Kansas and Rochester, NY

So, once again, San Antonio has made an appearance on a "good list" of cities.  Congrats to SA!

Are Homes in San Antonio Overpriced?

Are homes in San Antonio, Tx overpriced?  They are, according to an article yesterday from Forbes magazine, "Cities with the Most Overpriced Properties". 

According to Forbes, home owners in some parts of the country have clung tenaciously to their notions of the value of their homes, despite having no luck selling their properties.  Markets were ranked based on the ratio of the median initial list prices compared to the median list prices when the properties actually sold.  Also considered was how long the properties stayed on the market.  And finally, Forbes considered expert forecasts of price increases which were encouraging home owners to price their homes high.

The top 10 areas Forbes found with the most over-priced properties were:

1. Orlando, Fla
2. Miami - Ft. Lauderdale - Pompano Beach, Fla
3. Jacksonville, Fla
4. Baltimore - Towson, Md
5. Chicago - Naperville - Joliet, Il
6. SAN ANTONIO, TX
7. Denver - Aurora, CO
8. Tampa - St. Petersburg - Clearwater, Fla
9. Indianapolis - Carmel, Indiana
10. Austin - Round Rock, Tx

My take on this?  We do have a LOT of homes on the market in San Antonio.  Do I think a lot of them are over-priced?  Not really.  The market in San Antonio has only seen modest gains in the last 5 to 10 years, and our housing is already inexpensive compared to a large part of this country.  Should we expect to see prices come down in the near future?  I hope not, because that would wipe out the modest equity many people have in their homes.  San Antonio has a good solid economy, and our future looks bright!  Perhaps Forbes magazine needs to take a closer look.