Like the rest of the country, San Antonio real estate is having a rough time. Usually this situation is caused by a shift in the supply and demand of available homes, which can be caused by a number of factors, some of which are: increases in interest rates, which reduces the number of qualified buyers, the over-building of new homes, national economic conditions, or a combination of these and other factors.
A sad situation for real estate in general, but, as history has taught us, most recently between 1980 and 1990 when the real estate market went through a transition from a strong sellers' market to a market that produced a massive number of foreclosures, the market will recover.
The prospect in San Antonio is far more promising than in many of the other larger cities. Lower than average unemployment, high rankings in national polls on issues such as growth, economic development and a very favorable cost of living, leads me to believe that our market will return to normal within the next year.
According to Kori Ellis in Your Guide to San Antonio, we had a population increase of 22% between 1990 and 2005. Another recent unconfirmed TV news report estimated that we will add anohter 600,000 to our population over the next two decades. I think this figure is a little overly ambitious, but, we will grow. And there will be a need for housing. It all adds up to a great future for San Antonio.