Top 5 reasons the San Antonio real estate market is improving

For all of you still reeling from the tough San Antonio real estate (SARE) market in 2010, now is the time to pick yourself up, dust yourself off and look forward to a more promising 2010.

Don’t expect the market to move quickly though, as recovery from last year’s national recession will take time. However, many real estate professionals are quite optimistic that 2010 will be a better year for anyone involved in the SARE industry.

The San Antonio Board of Realtors (SA), in fact, has projected not only an increase in the number of home sales, but also an appreciation of the price of SaARE. In other words, for everyone who managed to survive last year’s success, next year will be much better.

There are some sticking points in the SARE market, don’t hesitate. For example, homebuilders still find it difficult to obtain financing to complete projects. And on the other side of the lending process, banks are still turning down home loans for many would-be homeowners. Short sales and foreclosures have certainly had a negative impact on the lending industry over the past year, so it makes sense that lending will continue to be quite tight over the next year.

1. However, the SARE market for homes priced under $200,000 is sure to see the biggest jump, both in sales and real estate appreciation. There is currently a 5.9-month supply of homes priced below $200,000 on the market; a six-month inventory is generally considered a balanced market.

2. Combine that with low interest rates and the extension of the federal homebuyer tax credit, and there seem to be plenty of interested buyers entering the real estate market in 2010.

However, homes priced over $1 million are still struggling and are likely to continue to struggle for the next year. In fact, this market is now awash with 61 months of home inventory.

3. Many analysts see the recovery in the San Antonio housing market as continuing as housing demand tends to coincide with consumer confidence, which has continued to improve in recent months.

4. SA is also expected to see an increase in its housing market as job losses continue to decline. As San Antonio begins to create new jobs next year, the demand for San Antonio real estate will certainly follow suit. San Antonio recently announced the addition of thousands of new military and private sector jobs, which means there will be an influx of workers looking for housing.

5. A recent study by Metrostudy found that builders in San Antonio are expected to build about 8,000 homes this year, an increase of nearly 12 percent from 2008. Sales incentives and discounts offered by builders are sure to boost the growth of new homes. sales throughout San Antonio, and will surely help rebuild San Antonio’s battered housing market.