CONTINUED FROM 1
A RISING MARKET In 2022, the average home prices in the northeast metrocom have increased at a rate of around 17% while average single-family rental prices have increased 12%. In turn, for properties to remain a ordable to workers, labor wages would also need to experience similar increases.
35
1604
N
10
AVERAGE HOME SALES PRICE 78148 78266 78233
SINGLE FAMILY HOME RENTAL RATE
78154 78108
78148
78266 78233
78154 78108
$2K
$600K
$500K
$1.75K
$400K
$1.5K
$300K
$1.25K
$200K
$100K
1K
0
0
2018
2019
2020
2021 2018 SOURCES: MONIQUE CARDENAS REALTOR AT KELLER WILLIAMS CITY VIEW. JASON BRIDGMAN WITH BRIDGEMAN PROPERTIES COMMUNITY IMPACT NEWSPAPER 2022* 2020 2019 2021 2022*
*NOTE: 2022 DATA AS OF JUNE
San Antonio and the surrounding areas face issues similar to other cit- ies across the nation, including lack of inventory, rising costs and supply chain issues, SABOR CEO Gilbert Gon- zalez said. “With all that demand, our [average] days on the market was 30 days, and our inventory is 1.4 months [in June], so it is still a little better than other communities,” Gonzalez said. “Since 2017, we have seen a 38% increase in the median price per square foot, and it has absolutely made it a competitive market just like everywhere else.” Losey said the number of days a house sits on the market and how many months supply of inventory, or MSI, are available are two key indica- tors of the health of a market. A strong housing market Gonzalez said the housing market in the San Antonio area remains strong. “There is a reason people come to San Antonio, and we feel like the most popular reason is you can still nd a house and have the opportunities to buy a home at many di erent price points,” Gonzalez said. “It is not easy by any chance, the market is just as demanding here, but it is still much more a ordable than other parts of the country.” While San Antonio has lower hous- ing prices than other parts of the coun- try, Tim Brown, owner of the RE/MAX Corridor in Schertz, said the housing market is changing at a rapid rate that Realtors have not seen before. “We have seen some extremes, but we have never seen anything go so
of June, which is a slight increase from the 1.2 months inventory available early this year. “It is important to understand, when we say low inventory, we are not being dramatic,” she said. “In many mar- kets, inventory is less than one month. Essentially, in a balanced market, you want to see about 6.5 months of inventory.” Real estate experts recommend buy- ers purchase a home priced at three to four times their annual salary. First- time buyers should invest in a home priced at three and a half to four times their salary, meaning a rst-time buyer making $50,000 annually can a ord a $175,000-$200,000 home, Losey said. In the Northeast San Antonio met- rocom this year, the lowest average home sales price across the ve ZIP codes—78266, 78148, 78233, 78154 and 78108—is $253,253, which, according to the a ordability formula, would require a rst-time homebuyer to have a minimum annual income of $63,313. Of those zip codes, 78233 was the only one that does not have a median income that meets the requirement for the lowest average home value of $253,253, according to the 2020 Census. Only two zip codes, 78108 and 78266, have median incomes that enable a buyer to a ord a higher priced home of $346,588, which is the average home value in 78154. “At this point, not only would home price appreciation have to revert … to its average, it would also have to have nominal price declines in order to return to a ordability, prepandemic,” Losey said. “That is because income
areas in Texas, said Celine Williams, interim executive director for the San Antonio Apartment Association, a non- pro t trade association representing multifamily and rental housing. Williams said in 2022, Austin, Dal- las and El Paso had average apartment rental increases of 19.2%, 17.4% and 16.4%, respectively. With increases in San Antonio being lower than other cities, it draws in population growth, and the city is expected to see an increase of 80,000 households by 2026, Williams said. Williams said the community must work together to make San Antonio a place where rental housing providers can operate cost-e ciently, meet their increased overhead expenses and have enough left over in pro ts to invest in new apartment communities. “We know there are many people struggling to nd housing they can a ord, which is why we need our elected o cials to challenge anyone who tries to postpone new, viable and a ordable housing projects,” she said. A ordability Losey said homebuyers are fac- ing multiple e ects that put pressure and increases on the housing market including price appreciation, inventory of homes, population growth and a rise in mortgage interest rates. The rise in interest rates has put pressure on homebuyers, especially those buying a home for the rst time, causing a decline in the number of home sales and an increase in inven- tory, Losey said. In the San Antonio area, inventory was at 1.4 months as
quickly as this,” Brown said. “Every- body knew interest rates were going to rise and whatnot, but the in ation just took such a strong hold, and it has made buyers very reluctant right now.” Mortgage interest rates at the begin- ning of March were around 3% and have increased to nearly 6% in June, Brown said. Brown said he anticipates more competition and believes the market will cool to a point where people can receive and use loans more reliably. “We will see more people that are coming in with our conventional [Federal Housing Administration] and [Veterans A airs] loans actually have a chance to compete in the mar- ket again,” Brown said. “People still need to buy homes, and people still need a roof over their heads. Even though homes are expensive, they are still a good investment, because in 10 years, that $350,000 home will be worth $400,000.” Rents on the rise As San Antonio-New Braunfels MSA median home prices have increased 17% from $249,500 in 2021 to $292,600 in 2022, median single-family rental rates have also increased 13% year over year, according to Brown. “When housing values go up, the taxable value goes up, and unfortu- nately, the people who own rental properties do not get any homestead exemptions,” he said. Despite these increases, the average rental rate increase in San Antonio is lower than cities, such as New York, Miami and Phoenix as well as other
16
COMMUNITY IMPACT NEWSPAPER • COMMUNITYIMPACT.COM
Powered by FlippingBook