San Antonio ranks third for home-price growth

​​SAN ANTONIO – Ready, set, grow! Rising home prices have landed San Antonio in third place nationally for price growth, according to a Federal Housing Finance Agency report​.

Metrostudy Regional Director Jack Inselmann says that San Antonio has "picked up some momentum" over the past few years. In fact, single-family home prices in San Antonio have increased 8.9 percent over a year ago.

The pace of home construction in San Antonio has also reached a 12-year high in the second quarter, according to a Metrostudy report. Builders began work on 3,498 homes, a 6.8 percent spike over the same period last year.

However, rising land, labor, and building costs make it difficult for developers to construct homes in lower price ranges, therefore making few of the new homes in San Antonio affordable. The median price of a home in the San Antonio region rose 4 percent to $239,500 in July, and sales jumped 6 percent, according to the San Antonio Board of Realtors. Despite this, the region is still more affordable than other major Texas metros.

Other Texas cities included in the top ten overall price growth rankings were Austin (fourth) and El Paso (tenth). 

The Real Estate Center has more information on San Antonio-area housing:​