You see the headlines everywhere, “the nations housing market is dismal with no end in sight”. While most of the nation's real estate markets are mired in a slump, San Antonio's residential real estate market logged it's third best year ever in 2007 with an appreciation rate of approximately 5%. Because of the local job market, the local economy is stable. The addition of Toyota's Tundra Truck Plant, The National Security Agency's Satellite Center, Microsoft, Rackspace and The TPC San Antonio Golf Resort have created many high paying jobs in comparison to the local average wage. Even though the Toyotaplant is cutting production of their Tundra truck for three months, the company remains optimistic in the economy rolling back to better days. Additionally construction at Fort Sam Houston began in January 2008 on a $1.56 billion project and is expected to add approximately 10,000-12,000 jobs during the next three years.
SA has recently gained national notoriety from Fortune, Forbes and HomeVestors magazines as the place to invest in residential real estate.
Investors are not as active as in recent years but as the national market continues its decline many are betting that SA's prices will not remain among the lowest in the country. Stable market conditions, high cap and moderate vacancy rates and low price structure add up to low risk as investors are concerned with declining values in other markets.
During the first half of 2008 inventory has risen nearly 20% from the same period of 2007. Sales are down about 15%. Properties located inside of Loop1604 are still experiencing high demand. Outside of the loop is a different story. Prices are mostly stable but there are some surprisingly good opportunities out there right now. The one thing that has not made the headlines is the fact that the glut of rental inventory is history and rents are gently rising. Interest rates have fluctuated widely lately and are around 6.25% for a 30 year fixed rate.
