Good morning BP Community!
We've got some neat things happening in the San Antonio housing market that I felt like sharing with you on this fine weather Monday morning! Strap in for stats and things!
We're half a month removed but I wanted to highlight some YOY data from February as well as some interesting info I found on the MLS regarding Recent Rehabs that closed last month.
- First off, February added just over $42,000 to the average sale price across the MLS over the same time last year. This is a 15.6% jump in a year's time! The average Sold $/sqft jumped by 14.8% as well!
- We removed almost an entire month from our Average Days on Market over the same time last year.
- Here's, to me, the most interesting bit. Our active listings were down by roughly 54% in February YOY where our Closed Sales were only down 4.2% from last February. We're hovering just above a month of inventory. The demand is there and growing but there really isn't an abundance of available opportunities.
Here's how that's been effecting investors that are turning properties with quality rehabs. Last month, 62 properties listed as a Recent Rehab across Bexar County closed ABOVE their list price by an average of 2.54% and sold in an average of 27 days on market. If you apply this data to February's Average Sale Price (~$313k) that would add just under $8k to your final sale price! Quality work is being rewarded in this market!
This market is red hot and still heating up. To add a little perspective, from 2010-2019 San Antonio's population grew by just over 221,000 according to the Census Bureau ranking it in the top 5 for fastest growing cities in that time. The going estimate is that San Antonio will add ~1 million people to our population by 2040. This means (ON AVERAGE) we'd have to add roughly 50k new residents to the city every year, or just over 4000 new residents every month to hit that projection. There were 4266 active listings last month according to InfoSparks.... WE NEED MORE HOUSES!!!
I found this info interesting and I hope these insights provide some good value to the investors and/or agents working this city. Let me know what you're seeing in the market. I'm consistently seeing deals that seem a little tighter at first work out great for my flippers by the time they turn around to flip it both from selling for a higher price than initially projected and with how quickly their remodeled houses sell! One of my investors had to take his house off the market so that he'd stop receiving calls on it. He got overwhelmed with competing offers the first week it hit the market. NUTS!!
Have a great week!
Wow Chris this was very awesome information. I knew the market is hot but to see the actual numbers is insane!! Thanks for sharing.
Thanks for the great insight Chris!
Great info Chris!! Thanks for sharing! You are absolutely right that the longer get you hold a property, the more it is increasing in value so it’s panning out to be a win-win for all investors (for now anyways ;)
SAN ANTONIO & SURROUNDING AREAS & Throughout TEXAS:
I concur with Chris’s markers and assessments within his post.
As a Real Estate Investor and Realtor, as well as a Self-Storage Property Manager I can tell you this market is extremely hot. I see it on a day-to-day basis. From Retail to Land to Investment properties.
Land that was on the market for a year or more is now becoming extremely competitive… From Developers to Investors to End Users, people are snatching property up that is six to seven figures like you would not believe. I lost my last three deals to more competitive contracts.
On the investment end, everything is just so-so deals especially with foreclosures on hold. So that leaves the other properties that are lifted from the cracks and crevasses in San Antonio and surrounding areas. Inexperienced Investors are buying bad deals to scratch that itch and wholesalers still filling in those gaps.
As for Retail Buyers, homes are receiving multiple deals… You must be extremely aggressive when providing offers in certain areas. Sometimes with shortened to no option periods. Pre-Approval and Cash is king! It took a recent client of mine seven offers on six different properties.
An exceptionally good friend who is closing three to six properties alone per month made a real-time statement last week (March 2021)
“We have 10k people looking at 3k houses... The market is nuts! the last 4 houses I have listed have been under contract in less than 8 hours... NUTS!!!” – Joey Gonzalez, Realtor
Some new home builders such as Pulte are on a freeze due to the demand and lacking material supplies that cannot keep up in this market. Other builders such as Gehan and Scott Felder are breaking records by selling and building homes north of 1,500 (2019) to well over 3K homes (2020).
We just need to keep on fighting and grinding it out.
Your Real Estate Ally,
Thanks for the info Chris! Newbie here looking to buy in the San Antonio area.