Opportunities And Challenges Still Exist For San Antonio Realtors
The housing market in San Antonio is poised to impress once again. According to Builder magazine, San Antonio ranked fourth in the nation due to its thriving housing market, which will have many San Antonio realtors reconfirming what they already knew: that 2008 was good and 2009 may even be better.
Unlike other parts of the country, such as Florida and California, San Antonio did not see the over-the-top real estate appreciation that then subsequently saw a sharp decline in prices. This important factor, along with San Antonio’s excellent job growth and retention, and its thriving, local economy, means that San Antonio realtors are among a select few in the nation who can look back on 2008 and not see a disaster.
Builder magazine ranked the cities according to their housing market by taking two, important factors into consideration: people and employment. An ever-increasing population due, in part, to the many tax incentives for business and corporations to operate out of Texas, have allowed the housing market to remain strong and real estate sales to remain steady throughout 2008.
Builder magazine’s top 10 healthiest markets:
3. Fort Worth
4. San Antonio
6. Raleigh, NC
7. Seattle, WA
8. Indianapolis, IN
9. Fayetteville, AR
10. Washington, DC
Healthier Banks = Healthier Housing Market
Among the many other reasons for San Antonio realtors to feel positive about the upcoming year is the recent news from the Houston Chronicle, which states that the banks in Texas are some of the healthiest in the nation.
Some of the reasons given for this strong rating among the nation’s banks include the fact that banks in Texas enjoy a stronger economy and regulatory guidance, thanks to the Savings and Loan crisis nearly two decades ago.
Because of Texas’ already strict loan guidelines, as a result of lessons learned from the Savings and Loan Crisis, it was able to avoid from the sub-prime loans that banks across the country are now being burdened with. In fact, with the exception of the Dallas-Forth Worth area, banks in Texas hold fewer sub-prime loans, and carry more capital than other banks throughout the country.
What does this mean for San Antonio realtors? Increased sales, thanks to more relaxed lending practices and more banks approving home loans.
Although the profitability of Texas banks showed a decline in the fourth quarter of 2008, they still performed well above national levels. Because of the more conservative lending practices of Texas banks, the banks ranked high in both regulatory capital and asset quality.
Although San Antonio fared well in comparison to other, major markets in the US over the last year, it did experience a 5.5 percent price drop in home values during the fourth quarter of last year.
San Antonio realtors, like realtors in many parts of the country, are hoping the economic stimulus package will encourage homebuyers to begin buying again. As a result, many San Antonio realtors are looking forward to a positive spring home buying season.
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