Many of the cities in Texas and Oklahoma have largely avoided many of the economic devastation that has hit many of the nation’s major cities. Real estate markets in each city have largely suffered from the negative impact of the economy. The Texas markets have stayed steady for the most part, including San Antonio. As the city’s better than average employment numbers and job creation statistics have kept San Antonio real estate steady for the most part, recent trends in the housing market could spell a local resurgence in early 2012.
The San Antonio area, just like some of the other Texas cities, hasn’t been thriving, yet it’s still in a good situation, especially when compared with other markets. Still, the area market has faced some obstacles. Throughout the first eight months of the year, San Antonio sales were down from the 2010 numbers.
The fall in sales within the first eight months has been put to an end, however. The statistics from September revealed that area sales experienced an eight percent increase over the same month in 2010. These figures could be really telling for a possible turnaround or closing of the sales gap, especially when you consider that area sales had been suffering for the first eight months.
Another sign that potential buyers could be turning their heads is the continuing jump of rental rates on apartments in the area. San Antonio apartments are now averaging about $758 a month, up another two percent from previous averages. Apartment rentals have been on a constant climb this year, departing from a 2010 in which they stayed steady for the most part. The jumping rent prices could be a factor for potential buyers who are deciding between a lease and purchase.
Another selling point for potential buyers this fall is the extremely low mortgage rates throughout the nation and in the San Antonio area right now. A 30 year fixed rate mortgage is currently sitting just above or below four percent, depending on the date. However, the sub four rates are a first for the San Antonio area.
Overall, the steady employment of the area (in comparison), should help to keep the San Antonio real estate market in a better position than most around the country. Employment in San Antonio is driven as some of the major markets for military, financial services; health care and oil are located in the area. Even though the job hits have fallen on most industries, sectors such as health care and military industry have been positioned better.
As we wait for the October statistics to come in for the San Antonio area, the results will be telling. A steady follow up of the impressive numbers from September could spell an unexpected, yet small boost for the San Antonio market. The fourth quarter of the year is often a slow period, however the differing numbers between the first two quarters and September could be telling. Hopefully a combination of historic-low mortgage rates, cut prices and a raise in overall sales can continue throughout the end of the year and into 2012.
Guest Blog post by Kala Bell