HOUSTON SCHEDULED FORECLOSURE AUCTION TRENDS
SAN ANTONIO MEDIAN PRICES & APPRECIATION
MEDIAN HOME SALES PRICE
YEAR-OVER-YEAR PCT CHANGE
HOUSTON SCHEDULED FORECLOSURE AUCTIONS (STARTS)
YEAR-OVER-YEAR PCT CHANGE
1000%
2,500
60%
$250,000
50%
800%
$200,000
2,000
40%
30%
600%
$150,000
1,500
20%
400%
10%
$100,000
1,000
0%
200%
-10%
$50,000
500
-20%
0%
-30%
$-
-
-200%
percent upswing from the metro’s post-recession trough in Q1 2012. In Bexar County, ATTOM reported that a three-bedroom single-family home was rented for $1,407 a month in 2018, a 4 percent increase from 2017, resulting in a potential annual gross rental yield of 9.1 percent. Foreclosure auctions in the San Antonio metro area are down nearly 80 percent from their January 2006 peak, and total foreclosure filings are down 78.5 percent from the same time frame. A total of 2,801 San Antonio-ar- ea properties were scheduled for public foreclosure auction through November 2018, down 3 percent from the same period in 2017. •
SAN ANTONIO HOUSING STATS AT A GLANCE
‘ALAMO CITY’ TAKES AIMATHOUSING
But Harvey destroyed so many homes that the oversupply of vacant units were quickly absorbed. “All the indicators for real es- tate in the market are pretty green right now,” said Brian Foster, head of sales and marketing for Texas Turnkey Properties. “The market is being driven by job growth and that’s driving population growth. All the people coming in need a place to live. The biggest challenge we seem to be facing is getting enough inventory.” Foster’s company focuses on purchas- ing homes in the $130,000 to $175,000 price range with three bedrooms, two baths, a garage and a backyard, typically 1,500 to 1,600 square feet. Foster notes the majority of inves- tors are coming from either of the two coasts. For those who are coming, a 1 percent rent-to-value ratio is the ideal, although not always achievable. According to ATTOM Data Solutions, affordability in Harris County was
down 9 percent in the third quarter from a year ago, with a median sales price of $221,888. Average monthly rent was $1,565 for a three-bedroom home during the quarter, a 9 percent increase in rent from a year ago and providing a potential annual gross rental yield of 9.5 percent. For the Houston metro area as a whole, the median sales price for a home was $231,563 in the third quarter, a 3.5 percent increase from the same period the year before, and a 103 percent upswing from the post-recession bottom price report- ed in the third quarter of 2012. Still, there is opportunity in Houston. While way down from their peak before the Great Recession, the number of foreclosure auctions in the metro area is up 54 percent from a year ago. A total of 8,953 Houston-area properties were scheduled for foreclosure auction through November 2018, up from 5,806 during the same period in 2017.
$215,710 median home price, up 7.6 percent $1,407 average rent for 3 bedroom, up 4 percent (Bexar County) 9.1% potential annual gross rental yield (Harris County) $44,000 average gross flipping profit, 29.3 percent gross ROI 8,952 scheduled foreclosure auctions, up 54 percent
A recent report by the San Antonio mayor’s Housing Policy Task Force claims that the home of the Alamo is “beginning to experience more severe affordable housing problems than in the past.” Third quarter 2018 results from ATTOM Data Solutions showed a 12 percent decline in housing afford- ability in Bexar County while the me- dian home sales price for the quarter was $208,125, up 10 percent over the same quarter the previous year. According to a Forbes report from May 2018, San Antonio was the city with the largest population boom in the nation through 2017. Unemployment rose slightly for the San Antonio metro area to 3.1 percent for October 2018 from 3 percent the year before. On the job front, the metro area reported a 13.6 percent increase in net new jobs over the five-year peri-
od ending October 2018, but only 0.88 percent job growth for the previous 12 months through October of this year, according to data from Stewart Title. “In San Antonio there’s a diverse population there. And there’s a lot of gentrification going on in San Antonio,” Amuchastegui said. “San Antonio has a lot of redevelopment and rebuilding going on.” Amuchastegui said his company buys rental homes outside of the city limits at an average price of around
$150,000 for a 1,500 square foot, three bedroom, two bath with a garage. “I think most investors when investing within the city limits are looking for flipping opportunities. If you’re looking for buy and hold then you’re going to be 30 minutes outside of the city limits,” he said. According to ATTOM Data Solutions, the median sales price on a home in the San Antonio metro area was $215,710 in the third quarter 2018, a 7.6 percent increase from a year ago, and a 123
Joel Cone is a freelance business writer based in Southern California. His articles have appeared in California Real Estate magazine, Real Estate Southern California, OC Metro, GlobeSt.com, Foreclosure News
Report, the Los Angeles Daily Journal and the Smarter Investor blog for U.S. News &World Report, as well as many other print and online publications. Contact him at snocone1030@gmail.com.
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