Real estate was one of the main topics at the 2016 Economic Forecast in San Antonio a few months ago. The city has experienced slow, steady growth in recent years, and while things may cool off slightly in 2016, it’s still expected to be a positive year for the real estate market.
More Jobs, More Buyers
The Urban Land Institute’s 2016 “Emerging Trends in Real Estate” report named San Antonio as one of the top 20 markets in the coming year. The biggest influential factor is overall job growth in both suburban and urban areas. When there’s an increase in jobs there is a natural increase in buyers that will help keep the market hot.
New homes made by builders like Sitterle Homes in San Antonio sold at a faster pace in 2015 compared to 2014. This is in large part because builders were able to keep up with demand. If the jobs situation continues to improve, the demand for new homes will be as high as ever, and San Antonio home builders are preparing for a busy year in 2016.
Homes Under $200,000 Will Be Harder to Find
Analysts aren’t expecting the trend of higher home prices to turn around in 2016. The share of homes under $200,000 was 57% at the beginning of 2015, down from 68% in 2012. The drop probably won’t be dramatic, but the share will likely decrease by a few percentage points next year.
Industry Diversification Will Further Stabilize the Economy
Diverse economies are more stable economies that support steady growth in the real estate market. San Antonio is improving diversity in 2016 by supporting growth in new industries like biotech. New industries mean new job opportunities and new home buyers.
Fewer Foreign Investors
In the years following the Great Recession much of the real estate investment involved foreign buyers and investors. Now that the value of the dollar has strengthened and economies in Europe and Asia have slowed, San Antonio will likely see fewer foreign buyers in 2016.