San Antonio Housing Market 2022: Prices, Trends & Forecast
The pandemic may have hit other markets hard, but it didn’t slow down the housing market in San Antonio. The 2022 San Antonio housing market is now a seller’s market with more potential for growth for both sellers and real estate professionals. The current supply is quickly becoming larger than the demand, resulting in a surge in prices and houses spending significantly less time on the market.
Several factors have contributed to an increase in housing prices in the San Antonio area. The supply of homes is an average of one month, which is far from where it needs to be to see prices drop back down. The high demand for homes and little supply has created a surge in prices, making it a dream market for sellers. Homes spend one month less time on the market than they did in previous years, and they’re pricier.
Rapid population growth has exacerbated the problem with supply and demand in the area. It had the fastest population growth among large metropolitan areas at 3%. It grew by an estimated 1 million people.
Part of this population growth is the result of people having children. Still, a large portion is due to people flocking to the San Antonio area, which has become known as an area that offers ample jobs, including jobs in high-demand industries, such as the technology sector. Homeowners are seeking more space to continue working from home.
The latest report, released in April 2022, has shown a significant increase in the price of homes in the San Antonio area. YoY, or year over year, the median price of a home has increased to $338,700. According to the San Antonio Board of Realtors, the average price of homes has increased approximately 20% to an average price of $395,847.
Approximately 90% of homes on the market sold for the list price.
When it comes to location, San Antonio is still significantly cheaper than the rest of Texas for now.
The housing market trends seen in 2022 make it a seller’s market. The continual population growth, job growth, and consistent way that the supply is barely keeping up with demand are a trend seen throughout much of 2022.
Currently, the supply of houses is enough to keep up with one month of demand. It makes it a seller’s market, giving homeowners more leverage to increase the price of homes. That’s why so many houses are selling for the list price.
The average price that buyers are paying for homes has increased by 20%. Homeowners are now paying an increase of $28 per square foot, for a total average of $174 per square foot. San Antonio is believed to be one of the most overvalued housing markets, according to a report released by the Florida Atlantic University. Zillow has estimated that the price of houses will increase by almost 14% within the next year.
Homes are spending 6 days less than they previously were, with most houses selling in 1 month. San Antonio is the sixth in the housing market for metropolitan markets, so if you need to sell a home quickly, it won’t be hard to find a real estate investor like us who’s willing to pay cash and close quickly.
Single-family homes are in high demand. Single-family homes with 3-4 bedrooms only make up 61% of the housing market. In April, 3,255 single-family homes were sold, an 8% increase from last year. According to the San Antonio-New Braunfels report, there were 3,308 sales closed during the month of April, meaning that most people are purchasing single-family homes.
The current trends in the San Antonio area have drastically impacted the surge in demand for new houses. The unemployment rate has fallen from 5.5% to 3.3%, meaning that more people have the income to purchase a home. Rent prices have risen alongside housing prices, leading to many people concluding they can afford a mortgage. As more people come to San Antonio, they choose to purchase single-family homes instead of renting them.
Many of the trends that are being seen in the San Antonio real estate market are expected to continue over the next twelve months.
The housing supply and demand problem will not be fixed soon. For demand to outpace the current supply, which would turn the market into a buyer’s market, the housing market needs approximately a six-month supply. The combination of the current supply of one month and the rapid population growth makes this unlikely.
This will result in a continual increase in housing prices. Homeowners will continue to set the stage for prices and have negotiating power until the supply of homes drastically increases.
San Antonio has a fast-growing economy. Forecasts predict it will increase by almost 40% in the next year, which is significantly higher than the national average.
More families continue to move into the San Antonio area, and more people will opt for work-from-home jobs, seeing the trend in single-family detached homes continue. People need more room for both children and office space. This is not expected to slow down within the next twelve months. Decreased unemployment and a hot housing market are making this area popular for families nationwide.
The hot housing market is not going to slow down. It’s simply not a buyer’s market right now, and won’t be until the housing supply increases. Sellers will stay in a position of power regarding prices, and they will capitalize on it to get the most out of their investment. We pay cash for houses in San Antonio, no matter if the market supply is low or high, hot or cold. Investors must adjust their entry prices accordingly during a down market.
However, due to the expected growth of the economy and population combined with the expected increase in housing prices for the next twelve months, now could be a great time to invest. Real estate investors will see a return on investment if they sell before the prices go back down.
If you’re searching for a house, it’s essential to remember that it’s still a seller’s market. Working with a real estate agent can help you find a house at a decent price. If you’re selling a house, take the time to learn which home improvements offer the highest return on investment before placing your home on the market.