Writer: Jerrica DuBois
2 min read March 2023 — San Antonio’s rebounding real estate industry received an impressive nod from RE/MAX as noted in the brokerage’s recently released inventory data for the nation’s top metropolitan areas.
According to the findings, San Antonio had the fourth-highest year over year increase in the country in inventory stock as of Feb. 2023 — a total increase of 234.3% from the previous year, going from 0.9 months supply of inventory to 3.1.
These numbers from Alamo City surpassed the national average for inventory, which sits at 1.7 months of stock as of Feb. 2023.
“The market is becoming more of what it was pre-pandemic,” Gilbert Gonzalez, chairman and CEO of the San Antonio Board of Realtors told Invest:. “The months of inventory are averaging at 3.3, with days on the market up 84% compared to this time last year, at 70. San Antonio continues to be one of the most affordable cities to live in, returning to some normalcy as compared to the last two years.”
The RE/MAX report listed Raleigh, North Carolina, Dallas, and Salt Lake City, Utah, with higher year over year percentages than San Antonio, at 367.3%, 343.4%, and 264%, respectively. However, only Bozeman, Montana, topped San Antonio’s 3.1 months’ supply of inventory with an impressive 3.3.
Most industry leaders are taking this data as a positive sign, however, there is still a long way to go. According to the National Association of Realtors, a healthy market is indicated by at least six months of housing inventory.
According to a recent report from Realtor.com, the number of days that homes are on the market are also on the rise. For San Antonio, listings are now active for an average of 70 days before a purchase is made. This is up from the previous year’s report of 43 days, a strong indicator of bounceback as potential buyers are not in as much competition for one property.
“San Antonio has always been able to handle downturns better than most communities, so we continue finding creative ways to meet demand,” Pedro Alanis, executive director of the San Antonio Housing Trust Foundation Inc. told Invest:. “We look at housing as a system just like any other piece of critical infrastructure. It’s how we approach policy and planning, while being strategic in our affordable housing investments.”
Rising interest rates have also played a role in boosting the inventory in Alamo City. As rates continued to increase, buyers under contract for building new homes were no longer able to afford it. That inventory of quick move-in homes skyrocketed, doubling the average of the last five years by the end of 2022. While initially, those homes just sat under the uncertainty of the market, they are now beginning to sell.
According to housing market intelligence firm Zonda, getting the quick move-in homes inventory sold also allows builders to obtain more lots to start new projects. Increasing interest rates have also led to the stockpile of vacant developed lots, which are lots that are ready for construction upon a builder’s purchase.
“Within Central Texas we need more middle housing — including townhomes, duplexes, or even an auto-court that is a collection of five houses across a drive-way, etc.,” Thad Rutherford, president & CEO of SouthStar Communities told Invest: “For San Antonio especially, we believe there is this missing middle and if this is addressed then it will automatically help with affordability. You need to not only develop houses, but you also need to make them based on people’s wages. Building more housing will bring prices down, but our industry needs to be creative about what types of housing are being built.”
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