SAN ANTONIO - Houston-based Metrostudy has released its latest newsletter highlighting San Antonio’s housing market.
“Home builders entered 2013 with strong demand and low inventory levels spurring the need for increased levels of construction,” states Randall Allsup, regional director of Metrostudy’s San Antonio office.
A lack of inventory on both new and existing home fronts, combined with a stronger sales pace, is also prompting an increase in pricing. Resale inventory is currently at a 5.4-month supply, a level that historically has indicated a seller’s market.
“It’s not just the strong demand and low supply driving up prices,” he adds. “Builders are getting hit with increased lot costs, construction costs and labor costs. We expect to see home appreciation of more than 3 percent this year, with new home prices jumping 10 percent or more in good locations during 2013.”
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