San Antonio, TX Real Estate Market Trends & Analysis

Key Takeaways

  • The San Antonio real estate market is poised to catch the attention of a lot of up and coming first-time buyers.
  • Real estate in San Antonio is strong, and only expected to get stronger over the next 12 months.
  • Despite a lack of inventory and rising home values, demand is still high — perfect for San Antonio real estate investing.

The San Antonio real estate market, not unlike the rest of The Lone Star State, is incredibly hot at the moment. Not only have median home values increased for the better part of a decade, but the rapid ascension hasn’t scared away new buyers. In fact, the San Antonio real estate market looks to be in a great position to cater to the growing number of willing and able Millennials looking to buy a home in the near future. It is safe to assume San Antonio real estate won’t slow down anytime soon, and investors would be wise to remember that. As it stands, San Antonio looks to be a promising place to start investing in real estate.

Median Home Price San Antonio

The median home value in the San Antonio Metro area has been the beneficiary of some rather generous appreciation for the better at least six years. More specifically, however, median home prices in San Antonio Metro have been on the rise since 2012. Dating back to January of 2012, median home values were as low as $123,000, according to Zillow. Flash-forward to today, and median home values in the San Antonio Metro area are at an impressive $169,300.

In the past year alone, San Antonio Metro home values have increased by as much as 7.4%. United States home values, on the other hand, have gone up 6.7% over the past year, falling shortly behind the rate of San Antonio. That said, it looks like the market will balance out in the coming year. Whereas U.S. home values are expected to increase another 3.1% in the coming year, San Antonio Metro home values are only forecasted for an additional 2.3% over the same span. Despite their slower pace, industry experts are convinced San Antonio Metro home values could reach an average of $173,000 in one year’s time.

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Real estate in San Antonio

San Antonio Foreclosure Trends & Statistics

According to RealtyTrac, San Antonio currently has about 1,539 properties that are said to be in at least some stage of the foreclosure process. That means there are approximately 1,539 distressed properties that are either at risk of falling into foreclosure, are currently placed up for auction, or have already been repossessed by the loan originator. It is, therefore, a sad truth, but a reality nonetheless: there is a relatively large inventory of distressed properties in the San Antonio real estate market. And while that may sound like a bad statistic for homeowners, I can assure you there are two sides to every coin. Distressed properties represent a great opportunity for real estate investors in the San Antonio area.

According to data presented by RealtyTrac, “The median sales price of a non-distressed home was $76,000. The median sales price of a foreclosure home was $94,000, or 24% higher than non-distressed home sales.” For those of you keeping score, that’s an average savings of $18,000 for investors that can find and close on distressed properties.

There are deals to be had in the distressed San Antonio real estate market, which begs the question: Where are they? According to RealtyTrac, you should be able to find the majority of the distressed discounts at auction or by contacting local banks. In fact, it’s estimated that 55.4% of San Antonio’s distressed properties are up for auction, and the remaining 44.6% are bank-owned. If you are a San Antonio real estate investor looking for a deal, it’s in your best interest to check out the inventory of local banks and even visit a few auctions — that is, if you are looking to take advantage of that discount I spoke of earlier.

San Antonio Real Estate Market Predictions

The San Antonio real estate market, not unlike the rest of Texas, has been on quite a roll for the better part of a decade. In the last 12 months alone, the median home value in the San Antonio Metro increased as much as 7.4%, according to Zillow. It is worth noting, however, that the ascent of home values in the San Antonio housing market isn’t expected to stop anytime soon. In fact, prices are expected to continue increasing for the foreseeable future. More specifically, the experts at Zillow expect respective values to increase an additional 2.3% by the beginning of next year. Provided forecasts come to light, San Antonio home values could reach $173,000.

With San Antonio’s home values resting somewhere in the neighborhood of $169,000, Alamo City should serve as a prime destination for Millennial buyers. In fact, I would expect San Antonio to draw first-time homebuyers (particularly Millennials) in from around the country because of its relatively low entry price. There’s just one problem: inventory. San Antonio hasn’t been able to escape the inventory shortage plaguing the rest of the country, so while first-time homebuyers should see cheaper home values in San Antonio than in most parts of the country, inventory shortages will continue to drive up prices higher than new buyers want to see.

San Antonio real estate market

San Antonio Real Estate Market Summary

The San Antonio real estate market summary isn’t all that different from the rest of the country. Today’s $169,300 home value represent nearly a decade’s worth of appreciation, as home values were as low as $123,000 as recently as 2012. That said, it’s not hard to see why prices have grown exponentially: inventory levels. Not unlike the rest of the country, San Antonio is experiencing an inventory shortage that is simultaneously driving up prices thanks to a little thing called supply and demand. If for nothing else, there is plenty of demand for San Antonio real estate, but there isn’t enough inventory to meet said demand. As a result, homeowners will continue to increase asking prices in accordance with the demand.

Despite rising prices, San Antonio remains a relatively affordable housing market, which would explain why many expect to see the city become a hotbed of first-time homebuyer activity. If that’s not enough to convince you, San Antonio was recently named on Lending Tree’s list of the best cities to make a “fresh start.” Coming in at number 14 on the list, San Antonio boasts an attractive economy that should be friendly to most of those that move there.

Have you ever considered investing in the San Antonio real estate market? If so, what caught your attention? Better yet, if you haven’t, what has stopped you from moving forward with a deal? Feel free to let us know your thoughts on real estate in San Antonio in the comments below.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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