Below is the transcription for the video. San Antonio Housing Market (Forecast 2022)
Have you been wanting more information about the housing market? Well, let's talk about it. Hi, I'm Pam Roberts, Team Leader and Realtor for the Gateway Group at Keller Williams here in San Antonio, Texas. Welcome to San Antonio Homes Insider. On our channel, we give buyer tips and selling secrets for the real estate market. Every year, the Keller Williams Market Center here in San Antonio provides us with a conference to give us information about the forecast for the coming year. This year, we had representatives from two mortgage companies, Gold Financial and Aligned Mortgage. We also received great forecast market data from Dotzour who is a real estate economist and consultant here in Texas.
Certainly no one has a crystal ball to predict what exactly is going to happen in the future. But we have facts about our current market. There are five factors that we'll share today that economists look at when evaluating the market going forward.
#1 New Worth
The first factor that we're going to look at is the state of the Pocket Book of America. Net worth of individuals has been increasing while the debt has been decreasing. Individuals have more disposable income to buy a new home, upgrade from a current home, to buy a second home and invest in real estate.
#2 Inflation
Another factor that's been affecting us all is inflation and we've seen this throughout the marketplace. It's affected us at the pump, it's affected us at the grocery store and as well as the shopping centers that we visit. The cost of goods is going to continue to rise and the economists tell us why. There's actually going to be a shift away from product in China. That means more disruptions, potential changes, and issues regarding availability of goods in the marketplace.
#3 Housing Shortage
Next, we're going to talk about the housing shortage and you've noticed it probably wherever you live. It's a nationwide problem. We've also seen the inventory of homes moving down drastically in San Antonio and it's continuing to go lower and lower.
Months of supply means the amount of time it takes for the current houses that are on the market to sell without any new properties coming on the market. A balanced supply equals six months of inventory. As of January 2022, we are down 44% since last year and only have 1.4 months of inventory on hand. Another factor that we have to look at with low inventory of homes is the competition. We see more and more multiple offers in San Antonio. You'll need to have a real estate agent that has good strategies when working against other multiple offers.
#4 Housing Prices
When inventory goes down, prices go up and that is the subject that we're going to talk about. Demand drives those prices. So as long as the inventory is low, we're going to see prices rising in San Antonio. The average home price in January last year was just under $294,000. However, our price's jumped to almost $340,000 in January of 2022. This reflects a whopping 16% increase in prices over last year. And this does reflect both pre-owned homes as well as new construction homes.
If you're finding this information helpful, subscribe to our channel and give us a thumbs up because it helps our community grow and we'd really appreciate it. Many buyers are wondering will prices stabilize, will they go down? Well, indicators right now say prices are going to continue to go upward.
#5 Mortgage Rates
The last factor we're going to look at is mortgage rates. And mortgage rates have been on the rise and they could potentially rise more in 2022. This will slow the buyers down a little bit. The higher mortgage rates will limit the buying power of some buyers. Even with mortgage rates on the uptick, it's never been a better time to buy a home. To recap, our experts are optimistic that the housing market is going to continue to remain strong in San Antonio in 2020.
Why consider San Antonio?
So have you been planning to make a move and had not considered San Antonio in the past? We're going to give you some quick reasons why we think San Antonio is a great place to live, buy, sell, and invest in real estate. Location, location, location. San Antonio is centrally located in the US and we have access two great airports between the San Antonio International airport, as well as Austin so that you can get around just about anywhere in the world. In San Antonio, you can enjoy a relatively comfortable lifestyle and low cost of living. The housing prices in San Antonio are lower than any other major city in Texas. And we did a video about that subject and I'll link that right above so you can take a look at that next. Austin has been a big draw in the news in the recent months. However, San Antonio has some of the same advantages at a much lower cost. Take a look at that video.
I would be remiss if I didn't mention the natural beauty here in San Antonio, we have the lovely Hill Country and we also have great access to the Gulf Coast, which is a major attraction as well. In San Antonio, you have access to higher education, as well as stellar medical facilities. Overall, it's relatively safe and we have great schools as compared to other major cities around the country.
If you're wanting to have more information about San Antonio, we'll attach our relocation and guide link in the description below. So check it out. We're always here to answer any of your questions about San Antonio. Just give us a call, email, or link with us on any of the connections down below. Thanks and have a great day.
