Thursday, January 08, 2015

January 2015 San Antonio Home Sales Report

This January 2015 San Antonio Home Sales Report is from the sanantoniohomequest.com website.


Calendar year 2014 saw the most active San Antonio area resale and new home sales activity since the benchmark 2006 sales year.  

2014's impact was impressive.  Compared to 2013, closed single family home sales increased 4.23% (from 23502 to 24541), average list price increased 4.72% (from $215,075 to $225,729), and average sales price increased 4.92% (from $208,040 to $218,805).  The area ended the year with the lowest inventory of available homes for sale seen in the last decade.

Throughout last year, the nation's leading realty market analysts consistently ranked San Antonio as having one of the United States most successful residential realty markets.

Why?

The reason is easy to see. Since the end of the Great Recession, the entire San Antonio metropolitan area has evolved into an economic powerhouse driven primarily by the rapidly petroleum sector associated the nearby Eagle Ford shale oil field.  Other contributing factors are the area's well funded local government and Federal service components,  combined with the financial impact of having a large Federal service enterprise, a growing retiree community, thriving service industries, plus dynamic educational, medical, financial, tourism, and service industries.

Now, entering 2015, there is the possibility of a significant change in the area's economic circumstances.  Gas and oil field development and the refinery and sale of petroleum products have traditionally been the most significant industries contributing to the state's economic success. Although good for America's motoring public, the recent collapse of crude oil and gas prices might bode ill for Texas' most significant industries.  Economists are watching the situation warily, cautioning a wait and see attitude regarding the long term impact of low petroleum prices on both San Antonio, specifically, and the state in general.

In the face of uncertainty, what does the future hold for San Antonio's home sales in the next 4 months?  Will the market remain as active as in 2014, or pull back under threat of potentially less favorable economic conditions?

Here is the most likely short term answer.

Home sales will remain strong because San Antonio's economy has become highly diversified and, therefore, less reliant on the petroleum industry.

The inventory of newly constructed and resale homes will remain critically low.

Newly constructed and well prepared resale homes will sell quickly.

The market will favor sellers over buyers.

Home prices will likely increase, probably falling within San Antonio's typical 2% to 3% range as opposed to 2014's 5% increase.

As often pointed out in this column, home buyers should take heart in knowing that, historically, San Antonio has a consistent record of moderate but steady home value appreciation and residential sales market stability.  Also, San Antonio area homes are still very affordable when compared to homes in the nation's other large metropolitian markets.

We are Randy and Stephanie Kelley, Realtors®  at Keller Williams Legacy, San Antonio, Texas.  If you are looking to sell or buy a San Antonio area home, visit our sanantoniohomequest.com website or contact us at (210) 863-2661 (Randy) or (210) 867-8743 (Stephanie). Our goal is to help you get the best price, terms, and conditions for your realty investment.




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