Mention the words “housing bubble,” and what might come to mind are Dallas or Austin. But a report released from National Mortgage News indicated that home prices in the San Antonio-New Braunfels Metropolitan Statistical Area (MSA) were at all-time highs, while wages are remaining flat. The combination of high home prices and non-moving wages can create a housing bubble.
National Mortgage News noted that the price-wage growth gap for the region was 14%, with an affordability index of 77. Meanwhile, data from the San Antonio Board of Realtors found the median home sales price was $214,300, a record high.
Economists paint another story. Lawrence Yun with the National Association of Realtors said San Antonio home sales are 30% below than when the market crashed in 2008, meaning no bubble. And Jim Gaines with the Texas A&M Real Estate Center indicated that the metro continued to gain jobs.
Per: February 2018 Issue Real Estate Center at Texas A&M University