For the first half of 2011, the numbers for the San Antonio real estate market have largely been lower than expected. Luckily, the statistics from August and September have signaled a small resurgence in the area housing market. With the winter months often turning buyers away, the San Antonio market could follow up a strong early fall with steady numbers in November and December. At the very least, the numbers from September show appeal to prospective buyers who are weighing factors in deciding to buy a home.
Prospective buyers are often clouded with the decision of whether to keep renting out an apartment or to make the big step into buying a home. In the second half of 2011, San Antonio apartments have seen increasingly high rent rates, including a 2.5 percent jump from the rates of 2010. Prospective buyers and renters in the San Antonio area are also forced to choose from apartment listings at a 93.5 percent occupancy rate, making the choices very slim.
Because the rent prices have continued to jump, many of these prospective buyers are weighing harder on the option of buying a home. Another major factor for prospective buyers is the bottom line price. For the same reason rental rates may drive them to buy, they could also be attracted by declining sale prices in the San Antonio area. A median average of $183,762 for single family residential homes in September represents a three percent drop from the same time in 2010.
One of the big attractions to buying right now is the continuous dropping of mortgage rates. Right now, a 30 year, fixed rate offering has fallen to 3.94 percent, going lower than any rate in recent memory. Along with the higher rental rates, falling mortgage rates and lower median price, the San Antonio real estate market experienced a year increase in sales of nearly 8 percent in September. While the first nine months have been largely behind the 2010 rate, the big jump in September could be telling.
With the increase in sales and lower prices, the inventory in the San Antonio area has gone down a small amount. The average time on the market has increased, however, giving prospective buyers more time to make decisions during their own housing search. The September numbers have continued to cap what has largely been a very steady year for the San Antonio market. Unlike many of the real estate markets around the country, the area has used a better than normal employment situation to help keep real estate somewhat steady.
With the figures from September being particularly inviting for home buyers in San Antonio, the area market could close its sales gap by the end of 2011. The overall pace remains a little behind the nine month average for 2010, however the jump in September is encouraging. The low mortgage rates and high rental rates in the area should bring some prospective buyers into the housing market, either as the year closes or near the beginning of 2012.