When looking at the overall real estate market in the United States in recent years, it is easy to be discouraged about both commercial and residential real estate.
Over a third of homes purchased in 2016 went to investors rather than those simply wanting a new home, and the actual home ownership rate fell to its lowest rate in half a century. As far as commercial real estate, a leading economist predicts a 3-7% drop in commercial real estate sales in 2018, which follows a strong increase over the last 7 years. He predicts rising interest rates could scare off some buyers, and those who use their retail space for purposes such as shopping malls could struggle as well.
However, more business owners and real estate investors have been rethinking their approach and achieve better success rates. Although store closings are often in the news, it is important to note that more stores actually opened in 2017 than closed, with a net increase of more than 4000 stores across the country.
What The Real Estate Market Looks Like For San Antonio
When it comes to either commercial or residential real estate, location means a lot, and there are many indications that San Antonio is a good location. According to an article from BisNow, home values have appreciated significantly over the last several years. Those who purchased homes in San Diego nine years ago saw an average increase in value of more than $66,000 in that time, compared to less than $17,000 appreciation average nationwide.
Over the last five years, the value increase has lowered, but a new influx is expected for many different reasons, including
- Population growth
- Industrial clustering
- Office rents remaining flat allowing for business start ups and expansion
- Strong job growth, which translated into increased demand for new retail, office, and industrial space
- San Antonio's upcoming tricentennial. The 300th anniversary has more people taking a closer look at the city to visit, live in or explore business opportunities.
If you are looking for real estate investment opportunities in San Antonio, it is important to look closely at what you are getting into, whether you are planning to own the property or rent it. With the high number of renovations in the city in recent years, you'll want to be sure that all the work was done right in order to avoid costly surprises. Having a good real estate attorney can help you make sure you are getting a fair deal whether you are looking to upgrade your home or expand your business.