San Antonio Real Estate Market Report January 2008
February 22, 2008
San Antonio began 2008 with a slow month which saw the number of home sales for January drop 17.3 percent from a year ago, as well as a 1.9 percent drop in the median home price from $142,400 to $139,700, according to the Texas A&M University Real Estate Center.
While median home prices tend to dip each January from December, it was the first time since 1999 that the price dropped lower than the previous January’s price.
“It’s definitely a little down but not enough to create all that much excitement,” said Jim Gaines, research economist at the Real Estate Center. “I think the median price will still go up but at a relatively modest rate this year.”
The dip actually outpaced the rest of the state, which saw the number of home sales drop 14.4 percent and the median home prices stay statistically flat at $138,400 in January, compared to $138,200 in January the year before.
But while national prices are expected to continue to slide as inventories rise, San Antonio and Texas sales prices should not see an extended decline, Gaines said.
In fact, looking at the 12-month moving average that evens out seasonal price fluctuations, the median home price in San Antonio was up 4.6 percent to $147,208 as of the end of January 2008, versus $140,700 for the 12 months ending January 2007, Gaines said.
What may keep Texas’ price gains modest is the increasing home inventory across the state, due in part to the slower sales.
Sales statewide, including in San Antonio, are expected to drop this year by about 5 percent.
Meanwhile, the inventory of homes in San Antonio rose in January to 6.3 months from 4.4 a year ago. An inventory of 6.5 months is considered evenly balanced between buyers and sellers, so San Antonio appears on its way to a buyers’ market if not already.
Source: Texas A&M University Real Estate Center
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