Rising home prices in the San Antonio area catapulted the region into third place in the nation for price growth over the past year, according to a new report means you can sell your San Antonio house fast and get a great sale price!
Single-family home prices in the San Antonio area climbed 8.9 percent over a year ago, according to the Federal Housing Finance Agency. Two other Texas metros were also part of the top 10: Austin ranked No. 4 and El Paso ranked No. 10. What does this amount to – you can sell your San Antonio house fast!
San Antonio has “picked up some momentum” over the past few years, said Jack Inselmann, regional director at Metrostudy, an analytics firm that assesses the local market. Other larger markets have also experienced increases, he said, but growth has started to decelerate as local activity has picked up.
Inventory remains tight but it may loosen soon: The pace of home construction in the San Antonio area reached a 12-year high in the second quarter, according to a recent Metrostudy report. Builders began work on 3,498 homes, a 6.8 percent spike over the same period last year and the most housing starts since 2007.
Texas as a whole has been the most active state in housing, especially new house production, over the last eight years.
Still, because of high construction costs and municipal fees, few of the new homes in San Antonio will be considered affordable. Land, labor and building costs are rising, making it more difficult for developers to construct homes in lower price ranges.
Only 12 percent of the homes being built will cost under $200,000, a range that’s shrunk from around 80 percent in 2007. But as demand rises, more developers are focusing on constructing homes in that bracket, Inselmann said.
Nationwide, home price gains have slowed despite historically low mortgage rates, according to the FHFA report. Prices rose 5 percent from the second quarter of 2018 to the second quarter of 2019, compared with 6.7 percent during the same stretch the previous year.