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Daily Real Estate News | September 19, 2007
Where to Find the Top Home Bargains
The days of house flipping appear to be over, but there are still good real estate bargains to be found in many parts of the country — places where homes are affordable, price appreciation is imminent, and the underlying economy is strong. Where can you find these good buys? Many of them are in the South, where the climate is appealing to both retirees and businesses.
With assistance from economists at Fiserv (FISV), Lending Solutions, and Moody's(MCO) Economy.com, BusinessWeek compiled a list of the best metropolitan areas for bargain homes by looking at affordability, forecasts for price appreciation and job growth, and recent price fluctuations.
Here are their top picks, the median home prices in these areas and the predicted increase in value over the next two years:
- Austin-Round Rock, Texas: $186,600, 5.4 percent
- Baton Rouge, La.: $174,700, 7.7 percent
- Birmingham-Hoover, Ala.: $164,900, 9.2 percent
- Corpus Christi, Texas: $130,000, 10.3 percent
- Durham, N.C.: $180,100, 6.1 percent
- Gulfport-Biloxi, Miss.: $154,200, 10.8 percent
- Houston-Sugar Land-Baytown, Texas: $154,900, 6.4 percent
- Mobile, Ala.: $140,400, 8.1 percent
- Montgomery, Ala.: $150,100, 7.8 percent
- San Antonio: $154,300, 6.4 percent
Source: BusinessWeek.com, Maya Roney (9/18/07)
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Pricey Hill Country dubbed 'Little California' by some
Web Posted: 04/12/2007 11:26 PM CDT
Jennifer Hiller
Express-News Business Writer
The hottest get-rich-quick investment in Texas is an old-fashioned one: land.
Rural property prices are riding high, up by Texas-size percentages for the past four years.
And the Texas Hill Country, home to some of the state's most expensive property, even has earned the nickname "Little California."
That's what the economists at the Real Estate Center at Texas A&M University dubbed the region because it draws so much attention from free-spending out-of-state buyers.
The economists were in town Thursday at a land market conference at the Hyatt Regency San Antonio hotel.
In Bandera, Blanco, Kendall and Kerr counties together, the median price per acre topped $7,086 last year, up 22 percent since 2005, and up more than 118 percent since 2001, said Charles Gilliland, research economist at A&M.
In the San Antonio region — made up of Bexar, Atascosa, Comal, Guadalupe, Karnes and Wilson counties — median land prices jumped 35 percent last year, to $3,799 per acre. But the most desirable tracts were selling for $25,000 an acre.
Sky-high prices should come as no surprise to local landowners. The San Antonio region's land prices have seen double-digit growth for six years now.
The San Antonio region outpaced the rest of Texas, where overall land prices increased 23 percent last year.
"It's sort of like a trip to the horse track," Gilliland said.
The Trans-Pecos region, which includes far West Texas and the Big Bend area, saw the state's most whopping runup in prices last year — 71 percent.
Prices in the Lower Rio Grande Valley rose 64 percent.
The statewide land rush continues to defy economic history and decades of data that track the rise and fall of rural property values.
It's enough to make an economist sound like he's spinning a yarn.
"Sometimes you have to worry about your credibility," said Gilliland, who doesn't think people are overpaying for land yet.
A variety of culprits has spurred the land frenzy.
Out-of-state buyers continue pulling up stakes in overinflated markets and planting money here quickly to avoid capital gains taxes. National interest in corn-based ethanol, an alternative fuel, has increased the price of farm land, while recreational users — from hunters to baby boomers looking for a bucolic spread for retirement — have driven interest in ranch properties.
Gilliland also suspects the wealthiest shoppers are snapping up the state's most attractive pieces of land, helping drive up the median prices.
But so far, there's no sign the land bubble will burst.
When there's uncertainty about the economy and concerns about inflation, tangible assets — such as land, precious metals and art — become more highly prized, Real Estate Center chief economist Mark Dotzour said.
But some Texans — at least those who remember the boom-and-bust days of the 1970s and 1980s — are starting to get nervous.
So when will Texas land prices come back to earth?
"The stock market is your biggest competitor," Dotzour told the audience of rural land specialists.
Plenty of investors have fled from stocks or diversified their portfolios to include real estate in the past 10 years as scandals and fraud have hit Wall Street.
"There's a lot of guys who said, 'You know, I enjoy land. I even bought me a fake pair of boots,'" Dotzour said.
He even joked about a guy scratching up his SUV with steel wool to quickly fake a true off-road look.
When that guy starts to focus on stocks again, he said, Texas land prices will stop skyrocketing.
But Dotzour doesn't think the prices will fall to previous levels when that happens. Texas land still is a bargain compared with the rest of the country, and the state continues to add new residents.
Dotzour had this advice for landowners, for now: "Hang onto your land," he said. "I know we're in fairyland on land and real estate, but I don't see anything on the horizon that would change that for the next 12 months. Hold on for another year because people don't have any other option to invest in."
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| 2007 San Antonio Real Estate |
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Regarding the resale single family home market, – “2007 was equal to our “second best year” for resale single family home sales in San Antonio”. 2007 accurately compares to year 2005, which two years ago was San Antonio's best year ever.
In 2007 the top 10 cities that show price gains. Honolulu topped the list of 31 local market areas in the Index report with a 17.9% gain, followed by Salt Lake City (up 11.6%); Austin (up 8.6%); and – SAN ANTONIO came in the #4 position with a 7.89% gain. In addition to Austin and San Antonio, other Texas cities making the top 10 list include: Dallas and Houston.
Resale Market
It is estimated that we will end 2007 with approximately 22,700 sales of existing single family homes.
As you can tell from the graph, this compares to 25,069 sales in 2006 (our banner year); 23,043 sales in 2005; and 19,527 sales in 2004.
These current numbers put San Antonio sales of existing single family homes for 2007, approximately 8% lower than 2006; but it is comparable to our second best year of 2005. Yes – it’s down – but hardly depictive of a down market.
(Inventory: Resale Market):
Next, let’s look at inventory. A contributing factor to price appreciation is housing supply and demand – defined as how many homes are on the market in relationship to the average number of sales occurring in the marketplace. The benchmark of a 6.5 month supply in housing is a strong indicator of continued price appreciation. As you can tell from this graphic, our 2005 average for months inventory was 4.5.
(chart) January 4.9
February 4.9
March 5.0
April 5.0
May 4.9
June 4.9
July 4.8
August 4.4
September 4.2
October 4.1
November 3.9
December 3.8
In 2006, our average was down to 4.1 months.
(chart) January 3.9
February 3.9
March 3.9
April 4.0
May 4.0
June 4.0
July 4.0
August 4.1
September 4.2
October 4.4
November 4.3
December 4.2
In 2007, our average was up to 5.7 months. (based on 11 months of data – January – November):
(chart) January 4.4
February 4.8
March 5.0
April 5.3
May 5.7
June 6.0
July 6.1
August 6.1
September 6.2
October 6.4
November 6.3
Based on the graphs, inventory levels play an important factor in our housing forecast.
At year end 2007, MLS showed an inventory of 12,000 listings
Compare this to 2006 levels, that showed an inventory of 9,300 listings at year end.
This shows an increase in the listing inventory of existing/resale homes of approximately 29%
Prices of Existing/Resale Homes:
Next, the 2007 price distribution of resale/existing single family home sales this past year.
As we categorize all price ranges, let’s look at the breakdown in this next screen.
As you can see, our largest price category is in the $100,000 - $179,999 range at 43.5% of the MLS sales. What’s also important to note is that 21.7% of the MLS sales are in the under $100,000 category – making 65.2% of the resale market under $180,000.
(Chart)
Up to $100,000 21.7% of the sales
$100,000 - 179,999 43.5% (the largest price category)
$180,000 - 249,999 16.6%
$250,000 – 399,999 12.5%
$400,000 – 549,999 3.3%
$550,000 – 749,999 1.4%
$750,000 – 999,999 .6%
$1million + .4%
What’s noteworthy in this next slide is that the single largest subset in the price distribution chart is in the price range of $120,000 - $139,999 at 12.8% of the sales.
As we look at this breakdown, please note that San Antonio’s average sales price for existing single family homes for 2007 is $183,080 - - an increase from $171,650 in 2006.
The median sales price for 2007 is $150,100 - - an increase from $142,200 in 2006.
As you can tell from this next graph, , San Antonio has experienced a healthy price appreciation in the existing single family home market since 2002.
(SLIDE OF AVERAGE PRICE INCREASES FROM 2002 TO 2007)
2002 $131,200 …… to
2003 $138,600 …… to
2004 $144,000 …… to
2005 $157,583 …… to
2006 $171,650….. to
2007 $183,080
Highest Average Sales Price by Area: (Resale Market)
Geographically, if we look at our MLS map areas to determine the locations of areas that had the highest average sales price during 2007, we find that:
n Area 10 (NW San Antonio – North of Loop 1604, east and west areas of I-10) came in the #1 position – with an average price of $369,018.
n Area 25 (Kendall County - Boerne) had the 2nd highest average sales price at $341,155……….and
n Area 18 (the Stone Oak area) had the 3rd highest average sales price at $283,369.
Largest # of Sales by Area: (Resale Market)
Looking at our map area to determine locations around our city that had the largest number of sales in 2007, we find:
n North Central Area 18 (Stone Oak) had the largest number of sales;
n NE Area 27 (Schertz – Guadalupe County) had the 2nd largest number of sales; and
n NW Areas 1, 2 and 3 followed with the next highest numbers.
(charts should depict estimated numbers for 2007: Source San Antonio MLS):
Area 18 2,361 sales
Area 27 1,616 sales
Area 2 1,453 sales
Area 3 1,399 sales
Area 1 1,396 sales
San Antonio Subdivisions: Price Appreciation and Square Footage Values:
As mentioned earlier, we may have experienced fewer sales of existing single family homes in the San Antonio area in 2007 (compared to 2006) – however, the real strength of the market is portrayed in the price appreciation we experienced.
Analyzing the value of various San Antonio neighborhoods is one of the most common requests received. Using our MLS database, we analyzed a three year history of 30 subdivisions in our marketplace to look at valuation trends.
n Alamo Heights came in with a square foot value of $190 in 2007 – compared to $164 per square foot in 2005. The year to date average sales price in Alamo Heights is $419,011.
n The 2007 average sales price for the NC neighborhood of Bluffview was $481,571 ($125 per square foot); an increase of approximately 8%.
n In Deerfield (NC), the average sales price increased to $317,809 in 2007 – with a $105 per square foot value. Comparing this square foot value to 2005, we see a 14% increase.
n The NW neighborhood of Braun Station showed a square foot value of $82, compared to $73 in 2005 – a 12% increase.
n The North Central neighborhood of Hunters Creek showed a square foot value of $103, compared to $88 in 2005 – a 17% increase.
n Coming in at $208 per square foot (or an average sales price of $656,875) – Olmos Park shows a 22% increase when comparing the 2006 square foot value.
n The NE neighborhood of Olympia showed an average sales price in 2007 of $206,941 … or $88 per square foot. This compares to $82 per square foot in 2006 (a 7% increase).
n In Shavano Park (NC), the average sales price in 2007 was $593,389 ($164 per square foot), showing a 21% increase in price from 2006; and ….
n In the Dominion, the 2007 average square foot price of $184, with an average sales price of $820,019 is a 15 % increase from 2006.
Based on the number of sales and price appreciation in 2007, we saw an increased demand in properties South of Loop 1604. Part of this could be the desire to move closer in to avoid traffic congestion and commute time.
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AVERAGE SALES PRICE |
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SUBDIVISION |
YR 2005 |
$/SQ FT |
YR 2006 |
$/SQ FT |
YTD 2007 |
$/SQ FT |
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ALAMO HEIGHTS |
$347,806 |
$ 164.00 |
$436,149 |
$ 181.00 |
$419,011 |
$ 190.00 |
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BLUFFVIEW |
$417,058 |
$ 105.00 |
$445,066 |
$ 116.00 |
$481,571 |
$ 125.00 |
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BRAUN STATION |
$135,382 |
$ 73.00 |
$144,130 |
$ 80.00 |
$158,773 |
$ 82.00 |
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CAMINO BANDERA |
$185,072 |
$ 74.00 |
$193,476 |
$ 78.00 |
$214,012 |
$ 81.00 |
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CASTLE HILLS |
$238,512 |
$ 83.00 |
$251,094 |
$ 94.00 |
$281,784 |
$ 98.00 |
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CHURCHILL ESTATES |
$196,060 |
$ 81.00 |
$217,168 |
$ 91.00 |
$215,480 |
$ 95.00 |
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COLONIES NORTH |
$133,851 |
$ 74.00 |
$131,905 |
$ 81.00 |
$141,740 |
$ 87.00 |
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DEERFIELD |
$256,159 |
$ 92.00 |
$294,792 |
$ 101.00 |
$317,809 |
$ 105.00 |
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DELLVIEW |
$78,934 |
$ 67.00 |
$87,893 |
$ 75.00 |
$92,076 |
$ 77.00 |
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ELM CREEK |
$410,905 |
$ 116.00 |
$458,819 |
$ 131.00 |
$490,666 |
$ 132.00 |
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ENCINO PARK |
$182,585 |
$ 75.00 |
$189,405 |
$ 82.00 |
$207,541 |
$ 88.00 |
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FAIR OAKS RANCH |
$379,460 |
$ 120.00 |
$414,922 |
$ 132.00 |
$435,169 |
$ 133.00 |
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HARMONY HILLS |
$142,431 |
$ 75.00 |
$145,770 |
$ 85.00 |
$161,587 |
$ 87.00 |
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HIDDEN FOREST |
$177,285 |
$ 80.00 |
$189,884 |
$ 86.00 |
$211,625 |
$ 91.00 |
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HUNTERS CREEK |
$233,027 |
$ 88.00 |
$261,430 |
$ 101.00 |
$280,674 |
$ 103.00 |
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LONGS CREEK |
$119,346 |
$ 63.00 |
$138,957 |
$ 66.00 |
$143,439 |
$ 74.00 |
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MONTE VISTA |
$377,941 |
$ 177.00 |
$385,882 |
$ 149.00 |
$419,937 |
$ 161.00 |
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NORTHWEST CROSSING |
$107,652 |
$ 63.00 |
$119,877 |
$ 71.00 |
$129,088 |
$ 72.00 |
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OAKWELL FARMS |
$314,514 |
$ 113.00 |
$339,276 |
$ 125.00 |
$383,190 |
$ 139.00 |
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OLMOS PARK |
$484,763 |
$ 169.00 |
$510,773 |
$ 170.00 |
$656,875 |
$ 208.00 |
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OLYMPIA |
$175,487 |
$ 78.00 |
$189,364 |
$ 82.00 |
$206,941 |
$ 88.00 |
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ROGERS RANCH |
$337,414 |
$ 98.00 |
$363,517 |
$ 108.00 |
$386,279 |
$ 113.00 |
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SAN PEDRO HILLS |
$133,604 |
$ 71.00 |
$147,618 |
$ 79.00 |
$168,689 |
$ 84.00 |
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SHAVANO PARK |
$435,537 |
$ 120.00 |
$489,087 |
$ 129.00 |
$593,389 |
$ 164.00 |
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STONE OAK |
$192,440 |
$ 77.00 |
$187,396 |
$ 85.00 |
$194,325 |
$ 82.00 |
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TERRELL HILLS |
$411,665 |
$ 139.00 |
$399,514 |
$ 150.00 |
$527,166 |
$ 176.00 |
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THE DOMINION |
$611,197 |
$ 197.00 |
$714,047 |
$ 157.00 |
$820,019 |
$ 184.00 |
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THE VINEYARDS |
$269,729 |
$ 91.00 |
$267,418 |
$ 94.00 |
$276,229 |
$ 99.00 |
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TIMBERWOOD PARK |
$234,108 |
$ 93.00 |
$267,262 |
$ 105.00 |
$289,406 |
$ 109.00 |
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WESTCREEK |
$143,885 |
$ 64.00 |
$157,325 |
$ 69.00 |
$158,412 |
$ 74.00 |
In summary of all of these numbers, what we discovered about the existing/resale home market for 2007 and what can we look forward to in 2008? We found that…
n Our sales numbers are down from 2006; however, the number is comparable to 2005 levels – which still depicts a great market.
n In 2007, San Antonio experienced a healthy price appreciation of resale homes, identifying our City as one of the best real estate markets in the country.
n The latest annual forecast by the National Association of REALTORS predicts potential increases in sales and price appreciation by mid-2008, with a continuing positive trend into 2009. Always remember that …. Homeowners in it for the long-term nearly always come out ahead in building wealth.
n Please keep in mind that all “Real Estate is Local”. Look at local circumstances that impact the market, such as job growth (which according to economist Ray Perryman – the San Antonio metro area is expected to add approximately 85,400 jobs over the next five years), affordable interest rates (6.5% or less) and price appreciation (certainly not double digit, but San Antonio continues to see steady price appreciation). These are positive conditions here that will impact our local real estate market in 2008.
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The beauty of the San Antonio market is that with an economy that's in a growing mode, you can buy that property and rent it out and almost have the rent carry the mortgage payment. San Antonio's westward expansion is expected to continue for the next eight to 10 years. According to a recent report by real estate research group Local Market Monitor; San Antonio's home prices are still a bargain compared to other national markets. San Antonio's median home price is about 8 percent lower than the firm estimates the price should be.
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| San Antonio Market News |
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San Antonio chosen for $67 million VA polytrauma center - 9/12/2007
(San Antonio: Medical) |
San Antonio has been selected as the site of the U.S. Department of Veterans Affairs' newest national polytrauma center. The facility will provide comprehensive care to veterans coming home from Iraq and Afghanistan. This will be the fifth such site in the nation. The Level One facility will cost $67 million to build. VA polytrauma centers are inter-disciplinary health care centers designed to provide a range of treatments for wounded soldiers.
[San Antonio Business Journal]
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San Antonio bases may receive $578.4M - 9/12/2007
(San Antonio: Economy) |
The $1.515 billion bill for Texas military facilities and Veterans programs was passed by the Senate. According to El Paso Inc., President Bush has indicated his intention to approve the bill, following reconciliation with a House version. Fort Sam Houston in San Antonio will receive a total of $506 million that will include $156 million for alterations to the San Antonio Military Medical Center North and $96.4 million for Medical Education and Training Facility dormitories. Under the Veterans Affairs section of the bill, they will secure $29.4 million for Fort Sam Houston National Cemetery gravesite development. Lackland Air Force Base in San Antonio will receive $37 million for the Base Realignment and Closure Commission Headquarters Administration Center, $14 million for the Basic Expeditionary Airmen Skills Training Facility, and $900,000 for a Security Forces Building. Randolph Air Force Base in San Antonio will receive $10.9 million for a Civilian Personnel Office Administration Center Facility and $554,000 for planning and design of a new taxiway. Camp Bullis in San Antonio will receive $7.4 million to replace a health clinic and $1.6 million to create an urban assault training course. (See www.senate.gov/~hutchison/pr090607a.html)
[Company News Release]
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400-Unit Broadstone Westover Hills apartments underway - 9/10/2007
(San Antonio: Multifamily) |
Alliance Communities, the Texas division of Phoenix-based Alliance Residential Co., has broken ground on Broadstone Westover Hills, a 400-unit apartment community that will be situated within a 3,500-acre master-planned community in San Antonio. Amenities for the project, which will debut its first units in second quarter 2008, will include attached garages, a fitness facility, a cyber lounge and access to the Hyatt Hill Country Resort golf course.
[Texas Real Estate Business]
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Villas of San Miguel luxury condominiums groundbreaking - 9/7/2007
(San Antonio: Multifamily) |
Laredo-based Ramos-Gonzalez Designs has broken ground on 22 luxury condominiums dubbed the Villas of San Miguel. Located near the Medical Center, the buildings are expected to start going up within the next three weeks. Pre-sale prices will start at $315,000 for a two-bedroom and top out at $363,000 for a three-bedroom unit. The condos range from 1,800 square feet to 2,137 square feet. The first condos are expected to be ready for move-in early next year.
[San Antonio Express-News]
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$12.6 Million Lackland construction contract awarded - 8/23/2007
(San Antonio: Public Facilities) |
The U.S. Army Engineer District in Fort Worth awarded Browning Construction Co. Ltd. a $12.6 million contract to build four new camps and a Core Administration Area for Basic Expeditionary Airman Training at Lackland Air Force Base. There were 330 bids solicited on Jan. 11, 2007, and three bids were received.
[San Antonio Business Journal] |
Union Pacific begins development of local rail port - 8/22/2007
(San Antonio: Infrastructure & Transportation) |
(Southwest Bexar County) - Union Pacific Corp. has officially begun construction on the company's planned $90 million intermodal terminal in Southwest Bexar County. This 300-acre rail port is expected to generate $2.48 billion worth of cumulative economic impact for the area over the next 20 years. Through it, companies will be able to ship and receive containers and trailers containing household goods as well as automotive parts for the Toyota Motor Manufacturing Texas Inc. plant. Once open in late 2008, the San Antonio Intermodal Terminal will initially process 100,000 trailers a year with the potential of handling 250,000 trailers and containers per year. The terminal is being built on a tract of land at Old Pearsall Road, Interstate 35 and Loop 410.
[San Antonio Business Journal] |
S.A. airport handling record traffic load - 8/18/2007
(San Antonio: Infrastructure & Transportation) |
San Antonio International Airport has been very busy. Traffic hit a record high in 2006 with 8 million passengers, beating the previous record set the year before by 8 percent. And over the past two years, airlines added nearly a dozen nonstop destinations, bringing the total to 41. To keep up with growth, a $637 million expansion recently started to position the airport for decades to come. Officials expect to open 1,600 spaces in a new five-story garage by Christmas 2007 and the other 1,200 by fall 2008. Construction to extend an elevated roadway and build an eight-gate terminal is scheduled to finish in late 2009. The projects are part of a plan to build two terminals, raze an old terminal and upgrade runways by 2012. When finished, the airport will have better runways to handle more flights, 50 percent more parking and up to 11 more passenger gates to bring the total to 35. Big changes are also underway for Stinson Municipal Airport, the general aviation reliever for the main airport. A $4.8 million project will quadruple the terminal. When finished, possibly by December 2007, there will be retail areas, car rental counters, more offices and conference rooms, additional restaurant space, and room to house Palo Alto College's aviation program.
[San Antonio Express-News] |
Homewood sweet on $14M Suites on Stone Oak Parkway - 8/17/2007
(San Antonio: Hotel) |
(North Central San Antonio) - Officials with Homewood Suites have broken ground on a new hotel. The $14 million project will be located along the northwest quadrant of Loop 1604 and Stone Oak Parkway in far North Central San Antonio. The five-story hotel will feature 106 rooms (a mix of studio, one-, and two-bedroom suites). McClure Hagee Management (MHM) is the developer of the hotel and also is spearheading the development of a retail center on land adjacent to the hotel site. MHM tapped locally based REOC Development LLC to develop the retail center. MHM purchased a little over 3 acres of land at Loop 1604 and Stone Oak for the Homewood project. REOC Development purchased roughly 7 acres from the sellers and the project is set to debut in April 2008. REOC is developing a shopping center that will span 28,500 square feet. The anchor retailer is The Billiard Factory, which has purchased 18,000 square feet in the middle of the center for its latest local outlet. The remaining 4,000- and 6,500-square-foot spaces located at either end of the center are being marketed as resturants.
[San Antonio Business Journal] |
Retail real estate market is still blooming - 8/17/2007
(San Antonio: Retail) |
According to the mid-year 2007 report conducted in San Antonio by affiliated firms The Weitzman Group and Cencor Realty Services, San Antonio's retail real estate sector continues to enjoy robust activity. As of June 30, the city's retail sector recorded an occupancy rate of 91 percent, down slightly from a rate of 91.2 percent as of Dec. 31, 2006. The slight dip was due to a wave of smaller retail centers that are still in their leasing phase. The recent analysis is based on a study of all multitenant retail centers in greater San Antonio that are 25,000 square feet or larger. In terms of job growth the city recorded nearly 21,000 net new jobs between March 2006 and 2007. That equates to a job growth rate of 2.5 percent. Metrostudy recently noted that for the 12 months ended June 30, 2007, San Antonio's housing market recorded 16,382 single-family starts. "While this is down from the (almost 19,000 starts) recorded in 2006, it will still enter the record books as one of the area's strongest years ever for residential growth," Weitzman and Cencor note. The Weitzman/Cencor June 30 report shows that the local retail market consisted of 28.6 million square feet of space. And that number is slated to grow pretty quickly, thanks to some noted projects by a slate of large-format retailers. Wal-Mart Stores Inc. recently opened a new SuperCenter at 11210 Potranco in Northwest San Antonio. The company also has plans to expand its property at Jones Maltsberger Road in North Central San Antonio. H.E. Butt Grocery Co. is in the process of expanding its existing 75,000-square-foot site at Loop 1604 and Blanco Road on the far North Central Side to create an H-E-B PLUS! store that will feature 142,000 square feet of groceries and general merchandise. Work is also underway to bring an H-E-B Plus! store to Southeast Side retail center McCreless Mall.
[San Antonio Business Journal] |
A shift toward the higher end - 8/10/2007
(San Antonio: Housing) |
Last summer, new homes priced over $225,000 made up just 19 percent of the real estate market. This summer, they have a 28 percent share. Builders not only are building more homes in that price range, they're selling them faster. The rise of the upper-middle-class market is related to the soaring price of building materials, which has made home building more expensive the past few years, along with a steady addition of good-paying jobs to the local economy. Also, most buyers at that price level are purchasing their second or third home and so have built up home equity elsewhere to reinvest in a new home. They often have stronger credit histories and that, with their healthy down payments, means less trouble qualifying for a mortgage than some first-time home buyers. San Antonio is riding a wave of job creation and low unemployment, which feeds the real estate industry a stream of home buyers. The unemployment rate for the eight-county San Antonio Metropolitan Statistical Area reached 4.4 percent for June, down from 5.3 percent in June 2006. Meanwhile, San Antonio's job count reached 834,800, 2,500 more than May and 17,200, or 2.1 percent, higher than June 2006, according to Alamo WorkSource. The professional and business services sector added 2,700 jobs overall. Houses that a few years ago sold for $175,000 to $200,000 today sell for between $200,000 and $225,000. Only in the sought-after older areas such as Terrell Hills or Alamo Heights will buyer demand and limited supply cause prices to rise. San Antonio builders have started about 27 percent fewer homes this year. About 90 percent of that decline has happened in the under-$150,000 range, and the share of new homes priced under $175,000 slid from 66 percent last year to 53 percent this year.
[San Antonio Express-News] |
Companies are flocking to S.A. - 8/7/2007
(San Antonio: Industrial) |
At least one company is expected to announce another 250,000-square-foot data center in Westover Hills by year's end, said Mario Hernandez, president of the San Antonio Economic Development Foundation. San Antonio is seeing record activity from outside companies looking to locate operations. The city has a record 115 active prospects, up from 96 last year. Already this year, 12 companies have announced plans to locate new operations in San Antonio, creating a total of 1,247 jobs. Two of the biggest projects are coming from existing companies adding another phase to their operations. Maxim Integrated Products Inc., a Sunnyvale, Calif.-based chipmaker that bought Philips Semiconductor's old manufacturing plant in San Antonio, is adding 300 new jobs, and Accenture Inc. is adding 650 employees this year. Another big project is Microsoft Corp.'s $550 million data center, which the San Antonio Economic Development Foundation expects will add 100 jobs. San Antonio still is seeing a lot of interest from manufacturing companies that make large items that would cost too much to ship from China. Even though the U.S. manufacturing industry has been shrinking in recent years, San Antonio's manufacturing base has been growing. Helping to boost San Antonio's manufacturing base is Toyota Motor Manufacturing of Texas' plant, which began building Tundra trucks last fall. To date, San Antonio has landed 39 Toyota-related companies.
[San Antonio Express-News] |
S.A. housing market sturdy despite drop - 7/26/2007
(San Antonio: Housing) |
Home sales and prices are dipping nationally, but San Antonio remains a lone star in the market, enjoying one of the best years on record. The number of existing-home sales in San Antonio dropped 17 percent in June compared to June 2006. The inventory of existing homes on the market hit 12,190, up 72 percent over last June. Sales volume was up 15.7 percent when compared to June 2005, a month that was considered, at the time, to be part of a banner real estate year. Then 2006 came along and shattered all real estate records. Despite the dip, San Antonio's single-family home prices are climbing. Experts still classify the market as healthy. The median sales price so far this year is $149,300, up 6.5 percent over the first half of 2006. The median is the point at which half the homes sell for more and half for less. Much like the closely related existing-home market, San Antonio's new-home sales have dipped this year, too, falling from an all-time high in 2006. First-quarter housing starts dropped 25.5 percent, according to Metrostudy, a housing research firm. But if local builders start the nearly 16,000 homes Metrostudy expects this year, 2007 would be the third-best year on record, after 2005 and 2006.
[San Antonio Express-News] |
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| San Antonio Rental Market |
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San Antonio has traditionally had a strong supply of renters from the many colleges throughout the city, hospitals, and growing jobs/economy. A new $850-million Toyota trucks parts manufacturing plant recently opened on the west side of town, ushering in a new wave of residential building around the plant.
There are eight schools in San Antonio that boast a student population of around 72,000 students. They are the University of Texas at San Antonio, San Antonio College, St Philips College, Palo Alto College, St Mary’s University, Trinity University, Our Lady of the Lake University at San Antonio and the University of Texas Health Science at San Antonio.
The largest employers in San Antonio are Lackland Air Force Base/37th Training Wing, Fort Sam Houston, Randolph Air Force Base, City of San Antonio, Northside ISD, San Antonio ISD, North East ISD, University of Texas Health Science Center at San Antonio, University Health System, City Public Service, Bexar County, University of Texas at San Antonio, Brooke Army Medical Center, Brooks City-Base, U.S. Postal Service, San Antonio Police Department, South Texas Veterans Health Care System, AT&T, H.E.B. Grocery Company, Valero Energy Corporation, USAA, Zachry Group, Sanitors, Inc., SBC Southwestern Bell, Baptist Health System, Methodist Healthcare System, Administaff, Eye Care Centers of America, Taco Cabana, VIP Temporaries, Frost National Bank, Southwest Research Institute, Aaron Rents and Sells Furniture, Christus Santa Rosa Health Care, World Savings, JP Morgan Chase Bank and Citicorp.
The city is also home to some of the largest military concentrations in the United States. Fort Sam Houston on the city's northeast side hosts Brooke Army Medical Center and Lackland Air Force Base on the city's west side is one of the world's largest training complexes. Randolph Air Force Base on the far northeastern outskirts is the headquarters of the Air Education and Training Command, headquarters for Air Force personnel management and also host’s pilot training.
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