San Antonio 2023 Housing Forecast! What to expect this year
I am a true believer in information. The more information we have about what is going on, the better we can guide our clients and friends so they can make better decisions. This is why I make it a point every single year to attend the San Antonio Board of Realtors (SABOR) housing forecast. This event has a great lineup of speakers, from city officials that talk about infrastructure and housing projects, to economists that focus on Real Estate research.
In a nutshell the video below summarizes what we learned about what we can expect in 2023 and I have also added a few more details and sources for anyone that would like to dig a little deeper.
SAN ANTONIO IS A GREAT PLACE TO LIVE
The Alamo City´s affordability index is 91.5%, which makes it 8% cheaper than the average city in the United States. In addition the city is expected to grow by about 36% in the next 7 years to about 3 million residents in 2030. Some growing pains (necessary ones though) will be constant construction to extend roads as well as airport improvement projects for more efficient travel.
2. HOUSE PRICES AND INTEREST RATES WILL STABILIZE
If you have been keeping up with the Real Estate trends (or economics in general) we are entering a recession, and although that is a scary word, the economists during the forecast made emphasis on the fact that this won't be like the 2008 crisis and the recession will be mild and mostly felt in 2Q and 3Q of this year. Once inflation is under control (and it has already declined since last year) we will continue to see a dip in interest rates as well. Given this slow drop, however, home prices (which had skyrocketed during the pandemic) will also drop to match current buyers' purchasing power. POSITIVE NOTE: If you are on the market for a home, buyers have more leverage to negotiate, especially with builders who are offering incentives to both cover closing costs and buy interest rates down.
3. IT'S STILL A GREAT TIME TO LIST
San Antonio is quite stable and there are still plenty of buyers in the market for homes given the continuous influx of people. A good #REALTOR® will do a full analysis on current housing conditions and you can still have a very successful sale in today's market!
4. RENTAL PRICES WILL CONTINUE TO RISE
Great news if you own rental properties but not so good news if you are a renter. It is a great idea to chat with a #REALTOR® about pros and cons of buying vs. renting to make sure you are weighing both options; especially if your rental agreement is up for renewal in the near future.
5. INVESTORS! MORE LEVERAGE MEANS BETTER DEALS
It might be a great time to be on the lookout for investment opportunities with better margins than what we have seen in the last couple of years. With more buyer leverage and more inventory to choose from, prices on remodel projects should become more attractive.
NEED MORE INFO? Visit us at WWW.MYNESTSA.COM and feel free to send me a message! We are always happy to guide you and answer any specific questions regarding your Real Estate situation.
SOURCES:
2023 SABOR Forecast presenters were:
Sara Briseño Gerrish, SABOR's 2023 Chairman of the Board
Will Curtis 2023 Chair-Elect
Jenna Saucedo-Herrera, Greater:SATX
Mark Carmona, City Chief Housing Officer
Cynthia Lee, KW
Laura Lopez, PIO, TXDot
Ali Wolf, Chief Economist Zonda
Sources provided:
Comments