The Future of Real Estate in San Antonio
On the heels of another record-setting year for real estate sales in 2018, San Antonio looks poised for continued – if slowing – expansion due to job growth and affordable home options.
Let’s run down what the experts are forecasting for the Alamo City as we approach 2020:
San Antonio Express News: "Not Enough SALT In High-Value Markets – Homeowners in high-dollar, high-tax markets will feel the effects of the late 2017 tax bill that limits deductions on state and local taxes (SALT) to $10,000 – a number easy to surpass in property taxes in some markets. Buyers in high-end markets may face regrets when tax time arrives."
San Antonio Board of Realtors [via CultureMap.com]: "Though the numbers are climbing, SABOR says this shouldn't dissuade newbie buyers from jumping into the real estate market. Despite the upward mobility, San Antonio is still among the most affordable markets in Texas.
"That affordability combined with job growth across many industries like tech, medical, and military make this a desirable place to buy and sell property,” said SABOR president Gilbert S. Gonzalez."
Realtor.com: "Millennials will continue to make up the largest segment of buyers next year, accounting for 45 percent of mortgages, compared to 17 percent of Boomers, and 37 percent of Gen Xers. While first-time buyers will struggle next year, older millennial move-up buyers will have more options in the mid-to upper-tier price point and will make up the majority of millennials who close in 2019. Looking forward, 2020 is expected to be the peak millennial home buying year with the largest cohort of millennials turning 30 years old. Millennials are also likely to make up the largest share of home buyers for the next decade as their housing needs adjust over time."
Freddie Mac [via TheMortgageReports.com]: "When Freddie Mac published its latest mortgage rate forecast on May 15, it contained good news for homeowners and homebuyers alike. Because it revealed that its team of specialist economists is optimistic. It reckons mortgage rates will probably rise only a little between now and the end of 2020.
"For a 30-year, fixed-rate mortgage (FRM), it expects them to average 4.3 percent through this year. And, as an annual average, to inch up to just 4.5 percent in 2020. That’s way down on many older forecasts."
That summarizes what the big names in real estate are seeing in their crystal ball, as we close out the year and look forward to 2020.
While growth may be slowing a bit, looking at these predictions gives a number of reasons for continued optimism and confidence in the San Antonio market.