November 2009 San Antonio Realty Market Report

During the last 12 months, San Antonio has consistently ranked as either number 1 or 2 among the Nation’s leading large city economies. Notably, in October 2009, the Alamo City was ranked in Business Week and by the Brookings Institution as having the strongest metropolitan economy in the Nation. Also, a little more than a year ago in a Forbes Magazine study, the city finished second to Oklahoma City for the title of the having the Nation’s top economy..

Although not totally immune, San Antonio has escaped the current recession’s worst effects because its economy is driven by relatively recession proof sectors such as health care and insurance.

Strong Federal sector activity is also a major contributing factor. The infusion of manpower, money, and material resources associated with the area’s Military Base Realignment and Closing (BRAC) construction projects has served to mostly offset the national recession’s local impact. For at least two more years, the flood of BRAC resources will continue to enhance and stimulate San Antonio’s economic growth.

Considering the above, it’s not surprising that all key indicators are positive for San Antonio’s vitality for the indefinite future.

What about San Antonio’s housing market? Strong economies drive strong housing demand, and, in light of San Antonio’s thriving economy, realty market analysts expect San Antonio to have one of the Nation’s healthiest housing markets for months to come.

That’s not surprising. During good economic times and even during the current recession, San Antonio’s housing market has been recognized for its relative stability. Quoting the Brookings Institution’s Alan Berube, San Antonio didn’t participate in “the ridiculous run-up in housing prices” that caused catastrophic meltdowns when the Nation’s real estate bubble burst. “San Antonio didn’t lose as much in the first place, so it could be ready to turn around sooner,” he said.

Basically, the secondary impacts of the National recession have caused San Antonio’s housing market to experience an atypical and, hopefully, a short term downturn.

The downturn is reflected in these key market indicators for San Antonio single family detached homes as of today - November 7, 2009:

• There are 11025 active listings as compared to 12919 last year. The inventory is decreasing slowly. That’s usually a good sign for sellers and indicates a healthy trend toward achieving a balanced housing supply.

• The average list price for the most recent sales is $174,901 as compared to $194,962 at the same time last year. The average sale price for most recent sales is $168,084 as compared to last year’s $185,87l. For San Antonio, these figures represent an atypical and unusually drastic drop in home sale prices. The drop is undoubtedly driven by the purchase of a large number of less expensive properties by first time home buyers capitalizing on the up to $8000 First Time Home Buyer Federal Tax Credit Program. It remains to be seen how the recent continuation and expansion of the program will impact on San Antonio’s housing market.

• The average number of days on the market (DOM) for the most recent sales is 128 as compared to 117 last year. DOM figures have been unacceptably high for the last year but have started to trend downward. That’s a positive sign for San Antonio’s home market.

Industry analysts see these data as reflecting a housing market continuing to strongly favor buyers over sellers but trending toward a more balanced market in late winter or early next spring.

That’s all for our November 2009 San Antonio realty market report. In closing, we wish you a wonderful month and a happy and safe Veterans Day and Thanksgiving holiday.

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We’re Stephanie and Randy Kelley, Realtors® at Keller Williams Legacy, San Antonio. If you have questions, need San Antonio area realty or mortgage advice or assistance, or just want to chat, please call us at (210) 863-2661 or 867-8743, or send an E-mail to swkrealtor@aol.com or kelleybus@aol.com. Our SanAntonioHomeQuest.com Realty Solutions Team is always ready to help you with your home buying or selling needs.