With all the good news related to new homes in San Antonio, you would think that real estate prices are making it difficult to buy new homes.
Well actually, new findings recently by Fitch Ratings have shed new light onto the cost of new homes in San Antonio. It seems prices have been over valued for some time. This is great news for new home buyers and has led to increased business demand for San Antonio home builders (especially New Braunfels home builders).
The San Antonio Business Journal recently reported: According to Fitch Ratings, homes in San Antonio are 15 percent overvalued, on the higher end of the statewide value of 11 percent. Back in the peak of the early 2000s — in other words, shortly before the economic crash of 2007 — San Antonio home prices were 18 percent overvalued, and all Texas homes were only 6 percent overvalued.
With prices on the rise in many Texas metropolitan areas, some real estate agents Katie Burke (San Antonio Business Journal) spoke to over the past several months said they were concerned that San Antonio prices are rising too quickly. The main reason is because the San Antonio market is being compared to other markets like Dallas, Houston and Austin.
In reality, the Fitch Ratings report will influence property prices and give new home buyers even more incentive to buy in the San Antonio real estate market — a great place to live and work with it’s booming job’s economy and very low cost of living compared with many other cities and regions across the nation.
There’s certainly no real estate price balloon because even thought the prices have been over valued, each home buyer can negotiate a better offering price. Prices are never fixed. That being said, San Antonio’s booming real estate market has been fueled by very real and tangible factors. These include:
San Antonio’s population has grown over the past few years, and that growth has mainly made up of high-income, educated people working within the medical, technology or financial services fields. In other words, it’s a very high quality population jump.
People are looking for homes are buying higher priced homes with more new homes being built with better quality and more luxurious features.
Interest rates have increased since the ridiculously low and unsustainable recession days. Inflation has become an important factor. Home prices and values in San Antonio may seem artificially high until we see a rise in interest rates.
The property market in San Antonio has always been slow and steady. Growth in property prices have generally been a direct result of better quality new homes on the market, and increasing numbers of residents with higher income prepared to buy more luxurious homes.
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