Welcome to the exciting world of San Antonio real estate! Did you know that in 2023, San Antonio was ranked as one of the top 10 housing markets to watch by Realtor.com? With its rich culture, booming job market, and affordable housing options, it’s no wonder why so many people are flocking to the Alamo City. Whether you’re a first-time homebuyer, seasoned investor, or simply curious about the local market, this guide will give you the inside scoop on everything you need to know about San Antonio’s real estate scene in 2024. Let’s dive in and explore what makes this Texan gem a standout in the property world!
The Current State Of San Antonio’s Real Estate Market
So, you’re curious about the San Antonio real estate market? Well, let’s not waste any time and get right into it.
First things first, home prices are still on an upward trend – not at the breakneck speed we saw during the pandemic, but we’re back to relatively calmer appreciation much like we’ve always had. Some neighborhoods have experienced a price drop, but overall, when you look at the charts, San Antonio’s home prices continue their overall upward trend.
When compared to Texas or the overall US, San Antonio and the Bexar County area still remain a relative bargain, but we’ve definitely been on that upward trend (even while being down -2.3% in median estimated price over the past 12 months (stats are for August 2024 and taken from the Realtor Property Resource).
Make no mistake, San Antonio is still a hot real estate market. The city just keeps growing – last time I checked, we had seen something like 1.6% population increase year-over-year. That’s a lot of people come to the Alamo City.
The good news is that inventory is picking up, and we’re finally starting to get to a comfortable point where we have enough homes to fulfill our demand for them. Of course, with the prices rising, affordability becomes a big issue.
One of the things that has really been stirring up the San Antonio real estate market (and everywhere for that matter) is interest rates. They’ve finally started to ease up a bit, but when they jumped up fast, it threw everyone for a loop. We suspect they’ll remain a little up and down back and forth for the next few months, but hopefully, after the elections, they’ll begin to stabilize a bit more.
Our honest opinion? Don’t let the rates and high prices scare you off. If you’re ready to buy and have the means to buy, then now is the right time to buy. The longer you wait for the perfect mix of interest rates and inventory, the higher prices will climb. Don’t get stuck waiting for that “perfect” moment.
Rental prices have climbed (too high if you ask us) as well. This is great news for investors and landlords, and if you can afford to pick up a few properties this year, you may want to consider adding them to your stable of properties.
If you are a landlord, we have a tip for you. I don’t know if you’ve noticed it, but they are throwing apartments up left and right – and many of them come with incredible amenities. They are your direct competition, so if you can afford to spruce up the home, now is a great time to do it.
Just remember – real estate is a marathon, not a sprint. If you want to win, you need to be in it for the long haul. Don’t let FOMO push you into a decision you aren’t ready for. If now is not your time to buy, it doesn’t make sense to force it.
Hot Neighborhoods In San Antonio
The San Antonio Business Journal just released an article about where the money is in San Antonio (Where the Wealth Lives – September 13-19, 2024 Issue). If you’re looking for hot neighborhoods, there 5 zip codes are a great place to start.
78215
The 78215 zip code is hot for a reason – it’s the area around The Pearl and there is constant new development happening in the area. If you’re looking for somewhere cool to live, a convenient place close to downtown, or a place that’s ready for you to renovate and slip, 78215 is a great place to look.
The problem with this area is the high demand, so there isn’t much available. Investors have been pounding the pavement in the area, knocking on doors, and locating owners to try and make the deal before it hits the wider MLS market.
You can search homes for sale in 78215 on our website.
78209
Who doesn’t know 78209? This zip code is the San Antonio equivalent of that famous Beverly Hills zip code, 90210. Known for being the home of Alamo Heights – both the neighborhood and the school district – this part of town is excellent for its location and beautiful homes on tree-lined streets.
Once known for its older, Craftsman-style homes, Alamo Heights has been evolving over the years to include new, modern glass and steel homes as well as the remodeled historic homes of the past.
The charming streets and quiet neighborhoods throughout this area are highly sought after and desired, so you’re going to pay for that high demand.
If you’d like to search for a home, you can check out these homes for sale in 78209.
78257
We’ve recently taken a look at the real estate market in 78257 to analyze some of the statistics and see what’s been happening in this popular zip code. Most people know it as the home of The Dominion, which is perhaps on of San Antonio’s best know master planned communities.
If you have the money, this area has plenty to offer, but it’s definitely not the cheapest part of town.
You can find homes for sale in 78257 here.
78248
Located inside Loop 1604 and roughly encompassing the neighborhoods that extend off of Huebner Road, the 78248 zip code has a high concentration of highly sought-after neighborhoods in one spot. It’s no surprise that this zip code often makes buyers‘ lists of must-sees.
From the neighborhoods of Inwood and Deerfield (both with multiple, smaller enclaves) to the gorgeous homes along Cadillac Drive, 78248 offers more choices than most of the other zip codes mentioned here. However, that doesn’t mean you’re not going to spend much here – this area is a good representation of the new face of San Antonio, one of growing home prices and suburban neighborhoods.
Looking for homes for sale in 78248? You know we have them.
78015
While it may technically be a part of Boerne and Fair Oaks Ranch, we still consider the 78015 zip code as part of the larger San Antonio area. Popular with those looking to “get out of the city,” this area attracts homebuyers looking for larger lots and more of a relaxed, country vibe. It’s not that far outside of San Antonio and thanks to it being along the IH10 corridor, you can get downtown a lot faster than you might think.
If you want to “escape” and have some room to move, you should check out the homes for sale in 78015.
Where Is Your Favorite Neighborhood?
Do you have a favorite neighborhood in San Antonio? We’d love to hear about your favorite pick in the San Antonio real estate market. Let us know and who knows, maybe we’ll feature your neighborhood in a future post.
Types Of Properties Available In San Antonio
San Antonio has property to fit just about every lifestyle and need. We’re a very varied city and while the median sold price in San Antonio for August 2024 was $284,140, we can go lower and higher, depending on where we’re shopping.
Taking a look at the MLS this morning as I was writing this, I found the cheapest property on the MLS was $54,700 for 816 square feet with two bedrooms and one bath home in zip code 78237 and the most expensive home was $7 million for a 5,649 square foot home with four bedrooms and three baths on 11.47 acres in Clearwater Ranch.
Even condominiums run the gamut – current prices range from $19,500 for a 709 square foot condo with one bedroom and one bathroom in The Towers on Park Lane to $3.15 million for a two story penthouse atop The Arts Residences with 3,850 square feet, three bedrooms, two baths, and some pretty incredible views.
Land can vary greatly too – from a $10,000 0.087 acre lot on the city’s westside to a $2.97 million, 5.2 acre tract on the northwest side of town. Of course, there are larger commercial tracts of land available as well.
How about ditching the city and heading to the country for a bit of ranch life? For this, we move outside the city limits and find 93.354 acres in Dryden, Texas for $65,000, all the way up to $28.95 million for 11,619 acres in Sonora, Texas. You read that right…more than 10,000 acres! The listing says the property has 28 water wells, multiple homes, and eight different fenced pastures for grazing. I don’t know about you, but that one might be too much for me to handle!
And if you want to build something new, we have plenty of builders ready to work with you – from national companies to local, family-owned custom home builders. Here the only limits are your budget and imagination!
San Antonio Real Estate For Investors
San Antonio has been a goldmine for investors over the years and has always offered a great entry-level price for a new investor. Obviously, as our city grows and prices rise, it gets tougher, but we are still more affordable than most, and plenty of opportunities exist in the Alamo City real estate market.
In addition to the usual reasons any city has a large renter population, San Antonio also has one very key ingredient that makes it a great place for investors – the military. Because the military population can be quite transient, there are always opportunities for rental homes to supply housing to our troops.
Focusing on suburban neighborhoods near the military bases is a great way to start. Also popular for rentals is the city’s northwest side (a little further from Lackland Air Force Base, but still close enough), the Stone Oak area, and anything you can pick up for a decent price near the Pearl.
Just remember to have a decent pool of cash to take care of the home – many first-time investors get caught with big bills early on when things go wrong, and it can take you out of the game as quickly as you jumped in it.
Our property taxes aren’t getting cheaper either (even though the state flirts with some form of abatement every couple of years). Our taxes are higher than in a lot of parts of the country, but we also don’t have a state income tax, so that helps take some pressure off too. Don’t forget that they will continue to climb and figure that into your numbers so you’re not caught off guard.
If you’re thinking about investing in San Antonio real estate, our advice would be to start small and learn as you go. Hire a good property manager – it will cost you money, but it will alleviate a lot of headaches. Maybe look into a single-family home in an area with good schools – those tend to be solid investments.
If you need help, give one of our agents a call – they’re knowledgeable, friendly, and ready to help you find your next rental property.
Navigating The Buying Process In San Antonio
The first step you should take? Hire a real estate agent. Obviously we’re biased and want your business, but we’re being serious too – you should have someone to represent your best interests on your side. A buyer’s agent is that person. They can help you locate areas to look, homes to show, and set everything up so that you don’t have to call 100 different numbers to try and check out the homes you like.
And that’s only the beginning of their services.
Your agent will help you narrow down some of the areas you might find interesting and get you out there looking. It is essential to know your budget at this stage, so get with a local lender (your agent definitely has a few names of lenders that have done outstanding work for their clients) and get preapproved. You’re going to need to submit a preapproval letter with your offer, and it’s a lot easier to do now than to do at 5 pm on a Saturday after a busy day of house hunting.
Plus, it will help you see exactly what you can afford. A good lender will show you what to expect from not only your mortgage payment, but also add in taxes and insurance so you can get a better picture of your monthly outflow.
With preapproval in hand, it’s time to find that house.
Once you’ve identified the house, your Realtor will “run comps” to look at similar homes that have sold nearby to help determine whether the list price is high, low, or just right. They’ll look at other factors as well – as we often mention, pricing a home for sale isn’t just about numbers.
Your agent will review and submit the offer paperwork to the listing agent. From there, it’s a wait and see – do they accept, do they want to negotiate on some terms, etc.?
If they accept, it’s time to get inspections set up. A general home inspection and WDI inspection (looking for wood destroying insects like termites) are usually the two ordered, but you may need others for things like pools, wells, and septic systems.
This usually happen during your option period and allows you to negotiate any potential repairs you might want done.
From there, everyone else begins their work on the back end of things – title commitments, loan underwriting, appraisals – all items designed to make sure the house can be sold and that the bank is willing to lend you enough money to buy it. Your lender may ask you for a lot of paperwork during this time – make sure you deliver it to them quickly to avoid any bottlenecks.
In the final week or so, you’ll start getting ready to close on your new home. Ordering a home warranty, choosing your insurance, and making sure your funds are ready to go. Before you know it, you’re sitting in front of a stack of papers at the title company and signing for what seems like forever.
Once the bank releases the funds to the title company, your loan is funded and you are the proud new owner of a home. Time to get those keys and start decorating!
Selling Your San Antonio Property
Selling your home follows the same path as buying, but you just have different responsibilities.
For a seller, there is a lot more prep work. Getting your home ready for sale is all about cleaning, decluttering, maximizing curb appeal, and taking care of those little repairs and fixes you never seem to get around to. You want potential buyers to walk into your home and be wowed by what they see.
Quite often, the better your home looks, the higher the price it can command. It’s hard for sellers, but trying not to be too emotionally attached can really help.
Your agent will advertise your home, get it into MLS, and coordinate showings. Hopefully, it won’t be long until you get your first offer and you can decide if it’s the one.
From there, it’s inspections and any repairs, making sure the home appraises for the price you’re selling it for (if not, depending on how the contract is written, there may be some negotiation here if it doesn’t meet value).
It will feel like a whirlwind, but eventually you’ll be signing paperwork and handing your keys over.
(Yes, we purposely didn’t mention the packing all of your belongings up part – we hate that part!)
Hopefully, you’ll receive a good amount of money for your home, which you can use for many things – including a new home! Sellers are almost always buyers, too.
The Impact Of San Antonio’s Growth On Real Estate
In the late 90s, San Antonio was still a sleepy town compared to cities like Dallas and Houston. We were the big city with the small town feel. Homes priced under $100K weren’t uncommon and $150K would buy you an excellent home.
But those days are long gone.
We saw an interesting statistic in the San Antonio Business Journal (a good one if you bought a home back then) – since 2000, median home prices have increased 161%. If you had bought a home back then with a 30 year mortgage, not only would your house be worth more than twice what you paid for it, but you’d also be 6 years away from paying it off completely.
But it’s not just about the prices going up. The whole character of San Antonio’s real estate market has shifted. Back in the day, it was all about those older, established neighborhoods. Now? New developments are popping up like mushrooms after a rainstorm, especially on the north and west sides of town.
And that brings us a lesson learned by many, often the hard way – if you see an area starting to develop, don’t wait to buy. People used to think, “who would want to live that far out?” about Stone Oak. Now, the prices are much higher, and Stone Oak doesn’t seem that far away.
Or how about the Southside? When Toyota came and built their plant, suddenly housing developments were popping up all over. The influx of tech companies and other big employers has driven growth in many areas and helped our population swell.
All this growth comes at a cost, though: increasing property values, strain on infrastructure, and, let’s not forget…traffic. Affordable housing has become an issue, and suddenly, people can’t afford to live in the areas where they grew up. Add to it the real estate boom of the pandemic and many people are priced out of buying.
At the end of the day, San Antonio’s growth has been a double-edged sword for real estate. It’s created incredible opportunities but also some real challenges.
For investors, it can seem like a dream come true, but we’ve seen slowing growth in the rental prices as they soared as well. Make smart choices and you can definitely do well as an investor, but watch your rent prices as they aren’t always as high as your outgoing mortgage, taxes, and insurance.
Of course, we love this city and we hope you do to. There’s a little something for every style and taste here in San Antonio and we think it’s an excellent place to live, work, learn, and invest. We’d love to talk with you about your needs and see if we can’t find the perfect solution. Get in touch with one of our Realtors and we’d be happy to help.
