For the last 6 years, the San Antonio middle class has faced hardship due to rapidly rising home prices.
The labor market lacks construction workers, while the supply of home is tight in the market. This has led San Antonio’s home prices to surge in recent years.
In August 2012, the median local price was $161,400, which is 43 percent lower than last month.
The National Association of Realtors issued a report saying that sales of existing homes fell in July for the fourth straight month to the slowest pace in more than two years. This is because high prices had reduced demand.
San Antonio Home Prices are High due to Low Supply
The local economists note that the existing supply is still not at a healthy level. The construction of new buildings doesn’t meet the market needs.
SABOR has measured the average time it takes for a home to be sold if no new home is listed. Hence, it took 3.7 months in August. It is slightly looser than August 2017’s inventory of 3.6 months.
There are signs that supply could slow down in San Antonio as well. In the second quart of this year, construction of 3271 homes started. It is 9 percent increase from the same period in 2017.
The number of home listings in Denver, Seattle and Nashville, is increasing, which could slow down price growth.
San Antonio keeps setting sales record this year. According to SABOR, 30,692 homes were sold in 2017, and 22,550 homes were sold in the metro area. It is 7.8 percent higher than at the same time in 2017.
Mortgage rates have dramatically fell within the last years and are below historical norms. It was higher than 6 percent for much of the 2000s and above 9 percent for much of the ’80s and ’90s.
However, this year’s rise in mortgage rates has greatly impacted the sales nationally.