San Antonio is among the fastest-growing cities in the United States, with a population growth rate of 16.5% from 2010 to 2020. This means that there is a high demand for housing that has many homeowners and developers moving to meet that demand.
We work alongside land developers, production builders, and individuals in San Antonio on a regular basis, not only to prepare land for brand-new builds but also to lay the groundwork for additions to existing builds.
Before you jump to buy a home or land in the San Antonio area, there are a few things you’ll want to know about the real estate market:
1. New Construction Remains on the Rise
When the majority of people start looking to move, they tend to look at existing homes first but, to help meet the demand for housing in San Antonio, homeowners and developers have turned to new builds or developing subdivisions in the past and this trend has continued.
According to the San Antonio Board of Realtors MLS monthly summary report, new construction homes were up by 17% year-to-date over the same period last year while existing single-family homes were down by 5% (source). However, the market is shifting as you consider when we last reported these numbers, new construction was up by 39% and single-family homes were down by 24% (source).
When searching for your home in San Antonio, don’t forget to expand your search to include all options from new constructions to undeveloped land to existing homes. There are so many options to make this area your home!
2. Know What’s in Your Soil
Did you know that there are more than 1,300 soil types in Texas? (source) With such a large number of possibilities, it’s even more important than ever to know what’s in your soil before you decide to build. This allows you to be aware of any potential barriers you’ll have to overcome with landscaping, additions, and more.
San Antonio is in Bexar County which sits in two zones: Blackland Prairie and the Edwards Plateau. Soils in this area can be shallow, stony, gravelly, and contain clay and limestone.
Texas Rock Milling is based near San Antonio so we have years of experience working in the Hill Country surrounded by rocks and other potential barriers you may face in your soil.
3. Real Estate Inventory is Stable
San Antonio has been one of the hottest real estate markets in the country and was even named one of the top 10 “hidden gem” housing markets in 2022.
Today, the inventory in San Antonio remains stable with 4.9 months of inventory available as of May 2024, up from 3.7 months last year (source).
“The months of inventory remained balanced…new listings surged by 15% to 4,767, while active listings saw a significant 34% increase to 12,727, indicating ample options for buyers,” said Will Curtis, SABOR’s 2024 Chair of the Board (source).
4. Custom or Production Builder?
Made the decision to look for new construction? You’ll want to determine if you prefer a production builder like a subdivision or a custom builder.
A production builder handles much of the preparation work for you by partnering with someone like us to transform the barriers on the land into a base ready for your home. We can also help lay the foundation for all future roads and ensure that the land has been leveled so the site of your future home will stand the test of time.
If you choose a custom builder, each person is different. Sometimes you are responsible for finding your own undeveloped land, and a company like Texas Rock Milling can support the project to create access to the land, transform any barriers to your build, and clear the land for the custom builder to bring your dreams to life.
The cost of the final product is relatively the same; however, in a custom build there are no limits other than your budget and the size of your property. You will want to be prepared to handle site prep of bringing in water, electric, and sewage lines when it comes to a custom build. So be sure you are working with a custom builder and architect that can account for those costs if it is not already present on the land you are considering.
5. Longer Selling Periods
“The average number of days on the market increased by 8% to 77 days, suggesting a slightly longer selling period for properties compared to the same time a year ago,” said Will Curtis.
That’s right! So far in 2024, the average number of days houses have been on the market increased by 8%. This means you have more time to find exactly what you are looking for. Unlike in past years, you have time to weigh your options before you submit an offer.
6. Houses are Closing Near the Original List Price
SABOR reported that 94.5% of homes have closed at the original list price (source). Buyers don’t have to go into an all-out bidding war just to have a chance at the home they want, which is great news for buyers looking to make San Antonio their new home.
This trend ensures that your investment into a home and property here in San Antonio will be true to the value of the property.
7. Majority of Homes Between $200K and $499K
74.2% of house sales were between $200,000 and $499,000. The overall median price in San Antonio was $314,00 ($1,000 less than the same time period last year) while the median price across all of Texas was $350,000 (up 0.7%).
This price range will also carry some competition as this is the price range of the majority of sales. If you can’t find exactly what you are looking for, consider making improvements on an existing home, purchasing undeveloped land to build a custom home, or raising your budget to make the most of the Hill Country.
8. More Options on the Market
In past years, new construction had the majority of options available for purchase. While new construction is still on the rise, overall inventory has increased from recent years. Both new and active listings on the rise with new listings being up 20% at 5,541 and active listings were up 39% at 13,769.
You have plenty of options to make your home here!
Whether we are working with individual home buyers, developers, or landowners, Texas Rock Milling can solve the challenges the San Antonio landscape presents while passing the savings on to you. Rather than incur costly haul-off expenses, we use our state-of-the-art milling equipment to transform your barriers into an asset by reusing them for the foundation of a build, grading to prevent erosion, or the base for a new road.
If you are looking to make the move to this market, Texas Rock Milling is the go-to option for minimizing your expenses when it comes to a new build, addition, or reinforcing access to your land. Be sure to mention us to your builder as well!
We hope to see you around the neighborhood soon!
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