As I tell all my clients, with every cloud comes a silver lining. The world crisis with Covid-19 has brought a lucrative benefit for sellers in the San Antonio area. Buyers are strongly in the market for homes with interest rates at historic lows. Yet the local inventory of homes for sale has dropped so low that we have buyers competing in unprecedented ways for homes. The inventory of existing (and new) homes is below the demand, so homes listed in good condition at the right price are literally flying off the market.
My last two buyer contracts in the last two weeks were multiple offers in the $400k and $500K price points. Most would assume that only the average price homes (which in San Antonio is about $235K) would be those in these situations, but clearly that is not true. Buyers of homes not even yet built are competing for lots which sell the moment they are released. I listed a home 24 hours ago and already have multiple offers!
The lessons here are–this is the ideal time to sell to capitalize on your equity. I would not recommend ‘waiting to see what happens with Covid’ as conditions could not improve for sellers with high demand and low inventory. If you are looking to move up in house, now is the perfect time because you can maximize your return and then win the right house with an unprecedented interest rate!
If you are renting or living with family and saving, NOW is the time to take advantage of interest rates that make borrowing money almost free, then find an experienced, strong realtor to represent you in finding the right home as it hits the market, writing a smart, competitive contract that both protects you and wins the bid! Right now mortgage banks have weathered the crisis the best and are offering the most competitive rates.
Commercial and land buyers — ditto! As the stock markets fluctuate what better place to put your money than the San Antonio market that has shown double digit increases in value in sometimes months. If you have a dream of building on land or building an office or just want to land grab, do it now. I will give you a real life example. In January of 2019, just 16 months ago, buildable lots in Canyon Lake were selling for $12-15K. Now those same lots are going for DOUBLE — $25K. I kick myself that I didn’t buy some as I bought for my clients and I could have doubled my money. Where else can you do that right now?
Mark my words — years from now many people will be regretting not taking advantage of this amazing time to buy or sell real estate.