“The San Antonio housing market starts off the year in fine shape with good new home production in the first quarter,” says Jack Inselmann of Metrostudy. “New home inventory is still very tight, home prices are increasing and housing values are improving.” In addition, new lot delivery has finally caught up with demand thereby beginning to fill a void that has impacted production over the last couple of years. “The annual starts increase over a year ago is negligible in comparison but only because of the loss of the low end market in the San Antonio area, the one significant negative in the local market,” says Inselmann.
In 1Q14 there were 2,192 single family starts which is a 7.0% increase when compared to the 1Q13 rate of 2,048. The current Annual Starts rate is 8,526 which is 0.3% higher than the 1Q13 annual rate of 8,505. 1Q14 closings totaled 1,955 which is a 4.3% increase over the 1Q13 rate of 1,875. The current Annual Closings rate is 8,256 units, a 5.7% increase over the 1Q13 annual rate of 7,813. Housing priced $300,000-500,000 [+33%] and $500,000+ [+28%] are exhibiting robust growth trends with the 1Q14 analysis.
Developed lot inventory has increased each of the last three quarters thereby increasing the overall lot supply from 17,002 lots in 2Q13 to 18,384 lots as the end of the first quarter of 2014. This has helped to stabilize the lot inventory and provide relief to high demand areas that saw their lot supplies diminish over the last three years. Of course the key difficulty remains in keeping lot costs in line with the San Antonio affordability ratio where it is now virtually impossible to reproduce lots for new housing priced under $175,000.
For information contact: Jack Inselmann at 210.710.3635
Metrostudy, a Hanley Wood company, is the leading provider of primary and secondary market information to the housing and related industries nationwide. Established in 1975 in Houston, Metrostudy provides research, data, analytics and consulting services that help builders, developers, lenders, suppliers, retailers, utilities and others make investment and business decisions every day. www.metrostudy.com
Learn more about markets featured in this article: San Antonio, TX.