Page 8 - 2021 Parade Style Magazine
P. 8

   A MESSAGE FROM THE PRESIDENT
  WELCOME TO THE
Parade of Homes
Welcome to the Parade of Homes! We are glad you are here as we showcase ten exceptional custom home builders and their homes. Everyone knows that housing is hot right now. Housing starts are forecasted in the United States to reach 1.6 million in 2021 and 1.7 million in 2022.
Mortgage rates are expected to modestly climb over the next two years as inflation rises due to a stronger economy and increased government spending. There have been challenges for new home buyers and builders alike with low inventories and rising material costs. While low inventories and the spike in lumber prices have been a real issue, the Greater San Antonio Builders Association’s members tell me that they are gearing up and more new home inventory is coming!
People ask me why the market is so hot right now. The pandemic has made our homes even more important with more people working from home and kids attend- ing school virtually from home too.
Buyers are vastly different across the eight homebuying groups. Seven of the groups are actively buying in the housing market. The first-time home buyers, millennials between 21 and 41 years old, are the largest buying group. Affordable housing and the ability to come up with a down payment are the reasons that this buying group do not already own a home.
The move-up buyer is made up of different generations but primarily include those between 41 and 61 years old known as “Generation X”. The pandemic led this buying group to seek lifestyle changes and most of this demographic typically have or had a home to sell.
The luxury buyer is very active in today’s market. These buyers are looking for larger, quality home space with special features due to spending more time at home. This group is also made up of a significant number of out-of-state buyers who are moving to Texas because we are a lower-taxed state with no state income tax.
The retiree buyer, or the 55+ market, was not quick to buy or relocate during the pandemic due to travel constraints and because they were hit the hardest with early, forced, and planned retirements. It is interesting to note that not all 55+ buyers down- sized, some bought or are actively looking for larger homes. The effects of the virus on the 55+ buyer was more prominent than any other age group. The rebound of the housing market coupled with record stock market returns, motivated over 55+ buyer to build or buy a new home.
The next buying group of investors are taking advantage of the low interest rates and many are seeking the monthly income that comes with investing and renting.
Ed Berlanga, President
Greater San Antonio Builders Association
Investors are looking for portfolio diversification with better returns and many investors are from out-of-state.
Second-home buyers stepped up to buy that second home away from home after spending a year at home. The second-home buyer has the financial wherewithal to purchase and maintain a second home. With the ability to work from home and historically low interest rates, sales have continued to rise as people reevaluate life in big cities.
Relocation buyers move for a variety of reasons, with more affordable housing and employment opportuni- ties being key reasons to relocate. Relocation buyers are looking for several things including change, more space, affordability, and lower taxes.
The international buyer was the only buying group that saw a sharp decline. The pandemic and travel restrictions had an impact, and we hope to see them back in the market as travel restrictions ease.
Home sales are at their highest levels in 15 years and the Greater San Antonio Builders Association’s members are ready to help you build, buy, or remodel the home of your dreams. Visit our website at www.sabuilders.com for a list of members that can help you achieve your goals.
Thank you for attending the 2021 Parade of Homes! We hope you enjoy the tour.
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