San Angelo, Texas boasts a real estate market that keeps getting stronger. Over the past five years, the local market has seen rising home values, reduced unemployment and a growing economy. Home sales are on pace for their best year since 2007. A growing number of first-time homebuyers have pushed the market to seven year highs. If that wasn’t enough, the San Angelo real estate market is consistently ranked by many publications as one of the best small cities for business and employment. The area’s future job growth expectations, which exceed the national average, should continue to move the city forward at an exciting rate. There is little to suggest that the San Angelo real estate market is not one of the best in the state of Texas, if not the entire country.
Data provided by Realtor.com suggests that the current average sales price in the San Angelo real estate market is $132,586. This figure is slightly above the statewide average of $130,482; but well below the national number of $306,420. The average home price in San Angelo is $238,861. That is more than 80 percent higher than the average sold price. This figure greatly outpaces the Texas average of $157,692; and the national number of $205,264. These numbers speak to the strength of the market. Anytime you can combine low average sales prices with high home prices, you have a market that is desirable for both buyers and current homeowners.
Over the past five years, Zillow has identified massive appreciation rates int he San Angelo real estate market. This number does not appear to be slowing down any time soon either. The average list price, according to Homefacts.com, shows a nearly 7 percent increase from the same time last year. With higher average list prices and an increase in demand, as is evidenced by a surge in new housing permits, local home values should continue to rise. First-time homebuyers are helping push the market to its highest level since before the market collapse. With a current median age of 37, the San Angelo housing market has been trending younger in recent years. This trend has helped add to the local buyer pool, and increase demand for real estate. This demand has been one of the key factors in pushing home values higher.
In 2013, San Angelo was ranked number four on Forbes’ list of “Best Small Cities for Jobs Rankings.” Kiplinger’s also named it as one of the “Best Cities of the Next Decade.” San Angelo has a very diverse economy for its size. In addition to many oil based services, the area is also a large employer of cattle and lamb processing industries, agricultural research centers, telecommunication companies and BlueCross. The growing economy is reflected by its current low unemployment rate of 3.9 percent. This number is under the Texas average of 4 percent, and much lower than national figure (5.4%). The future job growth rate for the local area is 38.30 percent, which is higher than the national average of 36.10 percent. This is a further sign that the market is not only strong, and continuing to get stronger, but has plenty of room to grow.
Local affordability continues to drive interest and strength in the San Angelo real estate market. The current cost of living ($50,600) is 8.3 percent lower than the rest of the state. The median household income number ($49,260) is just off the state average of $51,696. Simply put, this is a market that is not only very affordable, but also has income averages that support much higher home prices. The local demand is also reflected in the amount of new home permits filed in recent years. In 2013, new housing permits were at a higher number than at any point in the last 15 years. After a decline in new permits, the market quickly bounced back and averaged 465 over the next two years. At the height of the market in 2006, this number was only 489. Not only has the San Angelo housing market recovered and stabilized, but it has begun to thrive.
One of the reasons the market has managed to continue its climb is the minimal impact of foreclosures. RealtyTrac has identified 121 homes in some stage of foreclosure in the San Angelo housing market. This represents a 44 percent decline from the previous month, and a 47 percent reduction from last year. Of course, the real winner here is the entire San Angelo real estate investing community. Distressed properties typically sell for a discounted rate, increasing potential spreads on deals. The majority of San Angelo’s distressed properties are going to be placed up for auction. Representing 70 percent of the distressed market, auctions may be the best source of deals for anyone interested in San Angelo real estate investing. Another 30 percent are bank-owned, and currently acting as non-performing loans for the institutions that have repossessed them.
San Angelo is the county seat of Tom Green County in Texas. The city is the principal city of the San Angelo metropolitan area, with a population just under 120,000. Because of its diversity, plenty can change with just a few turns. Trulia lists the most active zip codes in terms of activity and list price over the most recent 30 day period. The most popular zip codes with the highest volume were 76904, 76901, 76903 and 76905. Since the beginning of the year list price, sales price and sales volume have all increased.
The San Angelo real estate market is a testament to the recovery. With low unemployment, minimal foreclosures, a growing economy and high demand for housing, there is much to like. If the market was not impacted by the national market collapse of 2008, there is a strong chance nothing can slow it down. New housing permits are up and home values have increased over the last 60 months. Unemployment is not a major factor and the area is highly affordable. An area prime for new business is growing every day. If you put all of these together, you are left with a real estate market that has a high ceiling.
San Angelo Real Estate Market Summary:
- Current Median Home Price: $238,861
- Current Median Sales Price: $132,586
- Unemployment Rate: 3.9%
- Population: 97,492
- Median Household Income: $49,260