San Antonio Market Update 5/25/21
Hello there! Here’s my latest market update for the San Antonio Real Estate Market. Watch the video below or read on to learn about all the new data!
COVID-19 Update
Everything seems to be going well. People are getting vaccinated, cases are declining, and things are getting back to normal.
The City of San Antonio is accepting applications for emergency rent and mortgage assistance. This is for individuals and families living within the San Antonio city limits who are experiencing hardship. Note that the landlords must be registered with the city as vendors, and will be paid directly.
For more information, register here
Additionally, the South Alamo Regional Alliance for the Homeless has put together an Eviction Prevention Toolkit to help landlords in San Antonio and Bexar County prevent tenants’ evictions.
Real Estate Market Update
Here we see the Showings Per Week in the starter home category in this market. I did have to update this chart recently. Last year I used $100-200k for my search field because that is the typical price for starter homes/investment properties. I decided to change it starting in the first week of April 2021 because property values have gone up so much that limiting it to $200k was not giving me an accurate picture of the types of homes in this category. I decided to bump everything up by $25,000 because that’s about the rate of growth.
The blue line represents $100-200k (in 2020) and the red line is $125-225k (in 2021). I know the comparison is not perfect, but it basically exists to tell us what that particular type of home had last year versus this year.
Rental Showings did not have to have this change because I look at all of the rentals in all of the price ranges. We are basically exactly on track with what we had last year.
Weekly Home Sales have been significantly higher this year. This graph ends the first week of May, so we are comparing this to last April. If you recall, last April we had so few closings because everyone was shut down and no showings or sales were happening due to COVID. Because of this, I would say that there are so many more sales than last year because of COVID.
Here we can see the Weekly Median Price and how quickly it is increasing, especially year over year. We will continue talking about that as we look at these numbers.
Here we will look at Weekly Home Sales in April. We talked about last year being so few because of the COVID lockdowns, so a 27% increase sounds like a really big deal, but really it is where we should have been last year had COVID not happened.
April Single Family Home Prices on the other hand, shows a really big difference. I like to include comparisons of the average and median home price because the average can be skewed so much by just a couple luxury home sales. If we look at the Median Price, a 15% increase year over year is bonkers! This would usually take 3-4 years to appreciate this much. This is definitely contributing to what we are seeing anecdotally on the ground with so few days on market and houses getting multiple offers over asking price.
Here we look at April Single Family Home Days on Market. I want to reiterate the point that the market is a crazy sellers’ market. Houses are getting listed and going under contract right away. You can see that the days on market are almost half of what they were last year.
For the Multifamily Home Days on Market, we see a slight increase since this time last year. The inventory is so small that it is going to be pretty much the same year over year.
Multifamily Home Prices have also not gone up significantly since last year because these are based on ROI. These are usually correlated more to rent prices than how hot the market is. Rental prices have increased single digits, so so have multifamily sales prices.
Here are the April Residential Rental Prices, which include single and multifamily rentals (but it does not include apartments). The modest increase in rental prices tracks with multifamily sales price increase.
This is what I pulled from Realtors’ Property Resource, which shows you how much San Antonio has grown and then some specific areas in San Antonio. We see that double digit growth over the last year and then 20% growth over the last two years, which is just unprecedented.
Then if we look at an area like Live Oak, which is really booming we see a 30% increase over the past two years! This is an area that is seeing a lot of older homes being flipped, which is contributing to the rise in prices. It is also located on the Northeast side of San Antonio, so a lot of people who can’t afford to live in Austin are buying on this side of San Antonio.
We can see similar growth within Converse, with a 19% increase in sales prices over the last year.
Conclusions
All of this kind of continues to make this point that it is a sellers’ market, the supply is extremely low and demand is very high. we have a lot of people moving in from out of state and they have higher incomes. If people just sold a home in California, they’re able to purchase for cash here in San Antonio.
I am a little concerned that San Antonians are going to start being priced out of the market because the median income in San Antonio is $72,000. That’s a concern that I am going to be looking at and affordable housing options going forward so that I can help San Antonians find the housing that they need.
If you’ve got any feedback or any topic you’d like to see on the blog, let me know! I love to learn from you guys! See you next time!
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