Has the San Antonio new home construction market hit bottom?
Some experts say that the dismal start of the new home construction industry this year speaks volumes about where the housing market is and where it is expected to go this year.
Even further, many real estate experts are betting on the fact that the bottom of the housing market might come this year.
To give you an idea of the market and how it has changed, even from just a year ago, consider that there were 1,393 new homes started in the first quarter of 2009. That’s a 40 percent decline from last year’s numbers. Take it one step further and consider that in the last 12 months there were 7,762 homes started in San Antonio, which is a 33 percent decline from the previous 12 months.
To get a good idea of where the housing market was just a few years ago, consider 2006 and 2007, when San Antonio saw more than 17,000 new homes under construction.
Bright Spots
It’s not all doom and gloom in the San Antonio housing market, though. In fact, builders are now selling more homes than they are constructing, thus breaking down the large inventory of new homes on the market.
Home builders in San Antonio sold 9,847 homes from March 2008 to March 2009, thereby chopping away at the new home inventory and giving builders something to get excited about.
Most builders see tough construction lending as playing a major part in the decline in new home construction. If banks aren’t lending, the houses aren’t moving. Another major factor that seems to be coming into play regarding new home loans is the tighter restrictions regarding borrowers’ credit scores.
For those with good credit, however, the market for a new home is essentially wide open. Builders have recognized that new home buyers are essentially in the driver’s seat, and will remain there for the foreseeable future.
Interest rates are low, incentives are great and inventory is flooded, thereby providing the perfect opportunity for a new home buyer.