On this episode of Commerce Street, experts spoke about how the seller market is affecting rent, mortgage assistance programs, and options for first-time home buyers.
SAN ANTONIO – "Are you able to compete in this market?"
That's the question real estate agent Sarah Briseno Gerrish says that any first-time home buyer must face a real estate market that has made it increasingly difficult to find homes over the past two years.
On this episode of Commerce Street, an original business podcast from KENS 5, experts talked about how the seller's market is affecting rental and mortgage assistance programs, how first-time home buyers can still get the home of their dreams, and the benefits of buying a home has right now.
Listen to our full conversation with Sarah Briseno Gerrish, Board Member of the San Antonio Board of Realtors, on Apple Podcast, Google Podcast, Spotify, or the podcast player below. (Article goes below).
Around spring 2021 came stories of bidding wars, aggressive offers, and even gifts like cookies and muffins delivered to sellers to sweeten the deal.
The San Antonio Board of Realtors says we have entered a "seller's market" at that time. There were many reasons for this … historically low interest rates, remote working that caused people to look for other housing, and people moving in from other states, including California, for work opportunities and a lower cost of living.
KENS: Tell me about your real estate experience here in the city of San Antonio.
Briseno Gerrish: I am a second generation real estate agent and have been in our industry for 20 years. So I've certainly seen San Antonio in different real estate cycles.
KENS: How would you say the last couple of years, or really the last year and a half compared to what you've seen over time?
Briseno Gerrish: Right now we've had low inventory for a few years and that is probably related to several factors. We still have record-low interest rates, and to be honest, only further construction has not kept pace with demand. And so these articles really show why our market is so fast moving right now.
KENS: You also work with a lot of first-time buyers. What are some of the reasons people are choosing to buy now?
Briseno Gerrish: I believe, however, that there are currently still many people who want to benefit from historically low interest rates. And there are only people willing to move from renting to buying. San Antonio is still a relatively affordable market compared to other major Texas metropolitan areas. So, I mean, it's an attractive time to buy.
KENS: Do you find that many buyers are from outside of San Antonio or from San Antonio? A bit of the mix?
Briseno Gerrish: It's fair to say it's a mix. There are people outside of Texas seeing our prices and they are amazed at the amount of square feet of land you can buy because we have a lower cost of living. So we're still relatively cheap, even though our prices are rising. But I would say there is a mix of people who come from abroad and then only from the local area who just move around in the metropolitan areas of Texas.
KENS: What do people love or enjoy most when you show them homes in San Antonio?
Briseno Gerrish: That's a good question. So the joy of owning your own home is always exciting. And you know, everyone has different experiences. But just so that that particular buyer can envision their own space and decorate it in their own safe space, are you looking at their dream home. That's a happy, magical part of itself. I think this is one of the most rewarding for people. And it's their own property. You don't have to be accountable to anyone and you can decorate as you wish. So it's an exciting time for people.
KENS: We heard last year that the market was hot. If you want to buy, you need to shop quickly. Are we still seeing this or has it slowed down at all?
Briseno Gerrish: So we are in what is known as a seller's market. So it basically means that there are more buyers than there are actually houses for sale. And because there are more buyers than there are actually houses for sale, you start to see that it happened. Multi-offer situation, buyers are making aggressive offers and things are moving really fast.
KENS: What tips do you usually have? Not exactly first-time homebuyers, but just about all homebuyers.
Briseno Gerrish: And so I would say the first tip I have for you is to go with a broker. You can find a broker at Sabor.com to find a knowledgeable broker who knows today's market to put together an aggressive plan because that is exactly what you need to do in today's market. There are things you could do with your offering. You can see that many are foregoing assessment progress, shorter option or review periods. You start seeing the list price above just to stand out from the crowd. And it's a multi-offer situation. But if you consult with your broker, you can come up with a plan that is best for you.
KENS: So let's tune in a little bit to what we're seeing in terms of rentals in San Antonio. How is the market currently looking compared to other years? Did the rents cost more or less? What will we see
Briseno Gerrish: So I would say that the inventory shortage on the purchasing market definitely has an impact on the rental market. You have some people who may not want to compete in this fast-paced market or just want to sit out or wait for it to cool down. And so this time of year is traditionally the busy time for sales and rentals. And so people start to see them say, 'Well, let me sit in this marketplace and keep renting.' And so you see rents just as the buying market is moving fast and rents and rents are also rising.
KENS: Is it typical for San Antonio that apartments go super fast?
Briseno Gerrish: I would say it seems to be going a little faster now. I think we've always had a healthy real estate market, but the rental and purchase market is certainly going faster.
KENSL Well, you mentioned that this is a busy time of year for people to move. Why this?
Briseno Gerrish: Usually when school is over and the kids are home this is a time to take your next step and try to settle in before the school year starts. It just seems like a typical time.
KENS: What are some of the things that someone who decides OK should I hire? Rent on. Should I buy what are some of the things that you recommend to people?
Briseno Gerrish: Well, I think when you talk to your broker, you will formulate a plan. Are you able to keep up with this in this market? Do you have your closing costs, right? Or do you have your deposit ready? And are you ready to pull that trigger? Because it's so fast? You need to be aggressive once you identify a property that you want to get an offer on. So it is worth considering whether you want to compete at this price with this process as it is a longer process. It's a little roller coaster ride, an emotional roller coaster ride when you are dealing with multiple offers. And you may have to do it a couple of times. But here, too, there are many people who benefit from the low interest rates. And that's just a time to decide if this is the market for you or to keep renting. I would just say all you have to do is formulate a plan that your broker has.
KENS: So we tune in a little bit to the people who are making their first decision to buy a home. What are some of the things to think about or some of the tips that you have?
Briseno Gerrish: Well I think it's important to make a list of the non-negotiable things and see if that's even possible in today's marketplace just because things are moving fast and there just isn't a lot of choice. And so you can see in this market that people are perhaps a little more flexible than in most markets. And that's something to choose from, do you know if this is the time for you? I think that's the most important thing. Obviously when you take out a mortgage you want to get your finances in order and make sure you have your pre-approval and are ready. And I think the most important thing is to know today's market, to be ready. It will likely be a lengthy process to finally get a home. But I think it's worth it in the end once you've reached the finish line.
ERICA: Have you noticed any changes in the mortgage loan area?
Briseno Gerrish: So in today's fast-moving market, you see a lot of buyers who forego a valuation in order to compete with multiple offers in this situation. And so that has a lot to do with your loan and your down payment. And that's one type of discussion you should have with your broker and lender to help you formulate that plan. However, the most important step is figuring out what type of loan is best for you and what your options are.
KENS: How is this seller's market affected by mortgage assistance programs?
Briseno Gerrish: So there are still down payment support programs. It just depends on some of these programs. If there are additional contingencies, just keep that in mind, as many sellers today are looking for offers with the fewest contingencies. Not to say it's not impossible, but many sellers have to choose since this is their market. So this is just something to consider in today's market.
KENS: So just for you personally, if you think back to the past year or so, what did you enjoy most during that time, or what did you enjoy overall about being a real estate agent in San Antonio?
Briseno Gerrish: I think what I learned more about this process is that I think this moment is a bit longer because the process from actually looking at it to actually closing it and getting the keys is a bit more satisfying. It's just part of the process of getting together. So it's a longer trip. It's a bumpier trip. But the finish line feels better.
KENS: Where are the best places to find information about what first-time home buyers in San Antonio should be aware of?
Briseno Gerrish: I would say the best resource is to go to SABOR.com and there are plenty of resources to buy selling tips and identify your broker to see who works best with you.
Below we have more tips for first-time home buyers and ways to make your offering stand out:
RELATED: 'Inventory at an All Time Low' | Record low supply and people moving away from the west coast create housing battlefield in SA
source https://seapointrealtors.com/2021/08/01/hot-real-estate-market-affecting-rents-and-home-prices-in-summer/
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