The third quarter is traditionally a slower time for real estate activity. However, in Texas home prices and demand are at historic highs. The third quarter sales volume was almost equal to the second quarter - typically the hottest quarter, indicating that the housing market is not slowing down. According to the Quarterly Housing Report by the Texas Association of Realtors, 80,105 houses were sold in the third quarter, a 18.97% increase in sales compared with third quarter sales in 2012.
Prices in the third quarter also increased. According to the same report, median sold home prices in Texas rose 10% and average sold home prices rose 11%.
San Antonio is a good example of the robust Texas real estate market.
According to the Texas Association of Realtors, the median price for homes sold in San Antonio in October rose from $146,000 in October 2012 to $159,900 in October 2013, a 9.5% increase. Homes for sale in San Antonio spent 20 fewer days on the market compared with October 2012. Current market conditions show a 4.4 month supply of housing inventory, down from 5.2 months last October.
With interest rates still relatively low, buying power remains strong as well. Comparing interest rates in 2007 when home prices were also strong with current mortgage rates and today's prices, consumers can still afford more house for their money, despite the increased home values.
Using a $2,000 monthly mortgage payment as an example: In 2007, with a then-typical interest rate of 6.38% (Freddie Mac), a homeowner could afford a $320,412 mortgage. In 2013, with an interest rate of 4.49% (Freddie Mac), a homeowner could afford a $395,186 mortgage.
The combination of strong buying power, low housing inventory and high demand have made the third quarter of 2013 an historic quarter in Texas real estate.
Check back soon for a closer look at what is happening in specific neighborhood markets.
In the meantime, Visit RealLuxury San Antonio to search for homes for sale in San Antonio and the surrounding areas. Contact Jennifer Perloff for complimentary, customized reports covering home values in your desired neighborhood or learn about the schools where you want to move.
