Relief Seen in 2018 from Sharply Higher Housing Prices

We may see some relief this year from the skyrocketing property values which have driven up homeowners' property taxes over the past few years, News Radio 1200 WOAI reports.

The Real Estate Center at Texas A&M University is predicting an increase in home values in Texas of 6.6% in 2018.  That compares to the last several years, where increase of 10 to 20 percent in the value of home homes has not been uncommon.

The Center predicts home builders will move more aggressively into the starter home market in 2018, building more homes priced between $150,000 and $200,000. The average home in San Antonio today costs nearly a quarter million dollars.

“That’s a difficult task,” said Research Economist Dr. Luis Torres, “considering rising land cost and skilled-labor shortages."

He says right now, with all of the pressures on home builders, from higher costs of materials, to increasingly expensive local regulations, to the fact that Hurricane Harvey rebuilding has stripped San Antonio of skilled workers, many home builders find it impossible to build new homes for less than $300,000, which is one of the main reasons why the price of existing homes has been rising so rapidly.

“The state’s economic acceleration and employment growth bode well for housing demand. Prices should ease slightly as home builders stretch to build more entry-level and first move-up homes, generally priced from $150,000 to $250,000," Dr. Torres said.

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