● For starters there is the most basic notion of real estate in the summer: Families are taking a break, spending time together and are not as focused on the house-hunting front.
● Secondly, the rates have spiked just a little bit from last year to now and that may have planted a mental seed of doubt in the minds of a small percentage of the home buying public.
● Third and most important, a tight market means current homeowners are having a tough time finding a house as nice as their current one when looking for that upgrade purchase.
This is a real phenomenon not only in San Antonio but through the South, Southwest and West Coast. There has been very little in the way of new product being brought to the market by builders and developers. Consequently, you have a constriction of available product for sale. For example, take someone who has lived in their home for 8 years and is ready to purchase a bigger home. if they paid $195,000 for the current home 8 years ago, the new home that they feel is a "Step Up" might be in the $450,000 range nowadays and that would stretch their budget way beyond their means.
However, from a savings/cash/college tuition perspective, this is fantastic news for those who purchased their homes prior to 2009. The market has rebounded and if you home is in good shape, the increased value might be incentive to sell their current home and still have enough left over for an emergency fund even after putting 20% down on a new purchase.