The majority of the country has gone through such a strain in the real estate market, that it is difficult to imagine that there are any HOT SPOTS in real estate in the country right now. However, Texas has faired fairly strong throughout the “dog bath” of 2007. Even closer to home, San Antonio has had headlines touting a “Healthy and Steady Market”. Overall, from a broader perspective that is true! However, different pockets of San Antonio have been hit hard while other sections have not been phased by the economic downturn.

Why hasn’t San Antonio felt the “pain” of the rest of the country? Number one reason is the strong local economy and the job growth in San Antonio and Texas. The Toyota plant and other companies moving headquarters to San Antonio have given SA the greatest boost.

Despite this, the year ended with Single Family starts totally a 34% decrease while single family closings registered a 9% to 9.4% decline as compared to 2006 numbers. New home inventory with just 3,635 units under construction at the end of 2007, which was the lowest since 2003. Yet, that is good news, because the finished vacant housing supply that ranges from 1.8 to 2.3 months supply is tampering off due to soft new home inventory starts.

Dividing San Antonio into Corridors, we can get a general idea of how the overall picture looks. The West Corridor of San Antonio has a 30% share of the total Single Family starts. The Northeast Corridor a 23% share, while the North Central Corridor raised an 18% share. The Northwest Corridor which includes the infamous Boerne area, rounded out with an 8% share and the New Braunfels Corridor captured a 7% share. The South Corridors came in at shares around 2%-3%. Looking at the numbers, around 50% of new home production was priced below $175,000 while 20% was in the $175K-$225K range. Although, there was a 24% to 30% price ranges above $225K growth of new home construction.

Looking at the MLS stats, the number of closed sales in 2007 dropped 9.4%. Which indicates a fallback in activity for 2007 compared to 2006. Although, in 2006 there was a large increase in volume, the averaged price per home sold increased markedly. There was a significant decrease in sales volume in 2007, but an increase in average price which was more in line with the historical averages. Again, despite all this, as measured by the days on market, the overall supply and demand remained pretty much in balance.

Ah, and we can’t forget the foreclosure market, San Antonio has still seen an increase in the rate of foreclosures as with all the rest of the country. There is a scurry of short sales (a topic of another article) that have hit all real estate markets. If the banks/mortgage companies would take a stronger look at short sales, in lieu of foreclosures, that would certainly help the market. Be it short sales or foreclosures, there are still a hefty number of bargains in this end of the market.

Because of credit constraints with the mortgage companies, sub prime disaster, more and more people are leaning towards renting. There is a strong strong rental market in San Antonio, which is good news for the avid investors. If the rental price is competitive, the homes are renting in a fairly rapid time frame. We have had several homes rent literally within a couple of days in my property management division.

As a closing note, I can’t help but stop to think that if the public would just get out there and BUY, BUY BUY, instead of holding back and the banks would loosen up their reigns a bit, the economy could recover. The Feds have lowered the rates with predictions of more rate reductions. The interest rates have fluctuated up and down despite the Feds lowering the rates, but the rates are still below 6%. Once again, it is a GREAT TIME TO BUY! We are all looking forward to a more promising 2008!!!

San Antonio Business Journal - by Tricia Lynn Silva

Luxury homebuyers could soon have a new place to call home.

The first shovel of dirt has been turned on Serenity at Westover Hills — a new luxury garden-home development slated for the city’s far West Side.

The community will be located off of Westover Hills Boulevard and State Highway 151 — on land situated between the Hyatt Hill Country Resort and the Radisson Resort Hill Country. The neighborhood will actually be on land adjacent to the Radisson, says Rick Montelongo — whose firm, Montelongo Investment Corp., is serving as the developer and general contractor on the project.

Plans call for 35 garden homes that will range in size from 2,200 to 3,000 square feet. The price for a home: Anywhere from $345,000 to $425,000.

The first six model homes in Serenity are set for completion in early spring, says Montelongo, who adds that he expects to sell all 35 homes in the community within 24 months.

“Our first clients are already coming through the front doors,” Montelongo says.

He puts development costs for Serenity at about $10 million.

Boom location

Besides being sandwiched between two high-end hospitality ventures, Serenity is also poised to benefit from the residential and commercial boom taking place on the city’s far West Side — including the growth in master-planned community Westover Hills.

“That whole Westover Hills area — the new companies coming in — it’s the natural (location) for a high-end housing development,” Montelongo says.

But given recent numbers posted in the city’s housing market, is it wise for Montelongo to strive for Serenity now?

According to Houston-based Metrostudy, for the 12 months ended Dec. 31, 2007, construction began on 12,594 homes — down from the 19,098 housing starts recorded at the end of 2006.

Current stats, however, have not dampened Montelongo’s mood about Serenity at Westover Hills. “I feel very confident about (the project),” he says. “The market has been calling for it.”

It is the entry-level production builders that have been feeling the brunt of the local housing downturn, Jack Inselmann of Metrostudy told the Business Journal this past November. Inselmann is the vice president of the U.S. Central Division of the housing-research firm.

“The custom guys are telling me, ‘We can’t keep up (with demand),’” Montelongo adds. “High-end homes with custom amenities are still in demand.”

And Serenity, Montelongo continues, is targeting a growing demographic among homebuyers — the Baby Boomers with a desire to downsize from their large homes and the young professionals looking for something high-end. Both groups, he adds, share a desire for something that is luxurious, but also low-maintenance.

Montelongo is already well-known in the residential arena. He is the president and CEO of Montelongo Homes & Remodeling — one of the city’s largest residential remodeling firms.

The firm ranked No. 2 on the Business Journal’s list of the Largest San Antonio Remodeling Firms — reporting $4.2 million worth of remodeling work in 2006.

Montelongo Investment was created in 2002 as a means for offering acquisition/investment, development and construction services to a new market — including clients doing business in the commercial real estate arena, the firm’s founder says.

By Matt Woolsey

By Michael Patterson

Oct. 13 (Bloomberg) — U.S. stocks rose for a fifth straight week, the longest stretch of gains since May, after minutes from the Federal Reserve and better-than-expected retail sales bolstered expectations that the economy will keep expanding.

Wal-Mart Stores Inc., the world’s largest retailer, climbed to a two-month high after boosting its third-quarter profit forecast. Yum! Brands Inc., owner of the Pizza Hut and Taco Bell restaurant chains, jumped the most since September 2005 on earnings that topped analysts’ estimates. Exxon Mobil Corp., the biggest oil company, led a gauge of energy shares to a record after crude prices rose to an all-time high.

Minutes from the Fed’s Sept. 18 policy meeting showed central bankers avoided language that might have suggested the economy would fall into a recession. The Commerce Department said retail sales increased 0.6 percent last month, from the 0.2 percent gain predicted by analysts in a Bloomberg survey.

“The consumer is a staying force, earnings growth is going to prove better than we think and that’s the best outcome for the stock market,” said James Paulsen, who helps oversee $175 billion as chief investment strategist at Wells Capital Management in Minneapolis. “There are still good possibilities here.”

The Standard & Poor’s 500 Index climbed 0.3 percent to 1,561.80, completing the longest winning streak since the seven- week period ended May 18. The Dow Jones Industrial Average gained 0.2 percent to 14,093.08. Both benchmarks closed at records on Oct. 9. The Nasdaq Composite Index added 0.9 percent to 2,805.68.

Fed Minutes

Fed officials concluded it was best to lower their benchmark rate by half a point to 4.75 percent, double the amount that most economists forecast, the minutes showed.

Further policy decisions “would depend on how economic prospects were affected by evolving market developments and by other factors,” according to the records, released this week. Any statement on the balance of risks to the economy “could give the mistaken impression that the committee was more certain about the economic outlook than was in fact the case.”

The Commerce Department’s retail sales report also helped allay concerns that a housing-fueled consumer slowdown might cause the world’s biggest economy to contract. Consumer spending accounts for about two-thirds of gross domestic product.

Wal-Mart gained 3.7 percent to $47.06, the highest since Aug. 8. Third-quarter earnings will be 66 cents to 69 cents a share, 4 cents higher than the previous forecast, after the retailer countered slowing sales growth by reducing packaging and energy costs.

Yum jumped 8.4 percent to $37.24. Profit climbed to 50 cents a share from 42 cents a year earlier. That beat the 45-cent average of 11 analysts’ estimates compiled by Bloomberg. Yum also said it will buy back as much as $4 billion of its shares in the next two years.

Energy Shares Rise

A measure of energy shares in the S&P 500 rose 2.6 percent for the top gain among 10 industry groups. Oil prices rose for four consecutive days and closed at a record $84.05 a barrel in New York yesterday. Energy stocks have climbed 30 percent as a group this year for the top rise in the S&P 500.

Exxon added 2.3 percent to $93.48. ConocoPhillips, the third-biggest U.S. oil company, gained 1.8 percent to $85.72.

“There ought to be more opportunity in energy,” said Jeff Layman, chief investment officer at BKD Wealth Advisors, which manages about $1.4 billion in Springfield, Missouri. “The longer oil sustains at these high levels, the more likely the companies will surprise on the upside in terms of earnings.”

Stock Market Outlook

Reports next week on consumer prices and housing starts will give investors further clues on the outlook for interest rates and economic growth. Prices probably rose in September, while builders began work on fewer homes for a third straight month, according to economists surveyed by Bloomberg.

Ron Sweet, vice president of equity investments at USAA Investment Management Co., said third-quarter earnings reports will also help determine the stock market’s direction through the end of 2007. Eighty-six members of the S&P 500 are scheduled to release results next week.

“It really comes down to earnings,” said Sweet, who helps oversee about $18.9 billion in San Antonio. “If third-quarter earnings come in without any bad news, it really could be a good 12 months for stocks.”

The yield on 10-year U.S. Treasury notes rose 0.05 percentage point to 4.68 percent after signs of the economy’s resilience diminished the appeal of fixed-income securities. Bond yields move inversely to prices.

Market Conditions for
San Antonio, TX

Reported By
Robin Rogers

As of 09/12/2007

San Antonio’s real estate market continues to run contrary to most large cities on the coast, and is still chugging along. Although days on market have lengthened from last year, and there are 33% more homes for sale, and prices are drifting downward from 25% appreciation levels in some neighborhoods, it has just begun to be a buyer’s market. Rental income is still positive, especially with fewer entry-level home buyers able to qualify for admittedly dodgy mortgages. Forbes.com listed San Antonio as fourth on its list for home sellers; sixth for best overall housing markets.

The San Antonio Board of Realtors figures show that sales of single-family homes are only down 7% from 2006. Appreciation of 7% in turn overall from the same time period may not sound earth-shattering, but San Antonio has always been a very stable market, both slow to grow and slow to decline.

Home builders still have plans on the books for 14,000 more homes. In one of the most telling signs of the transition to a buyer’s market, I was recently contacted by a builder’s sales representative with a list of entry-level to midrange inventory homes to sell. When I asked if the builder was currently selling to investors, the sales rep said yes–the first time I’ve heard that answer in 3 years.

Meanwhile, jobs and dollars migrate to the local economy. In the southwest part of the city, a $90-million Union Pacific Terminal is projected to make an economic impact of $2.48 billion in the next 20 years, while bringing new jobs to the area. San Antonio’s military installations are getting an injection of federal funds, too: $506 million to Fort Sam Houston; $52 to Lackland AFB; and more than $11 million to Randolph AFB. All three military installations are located in areas of the city that could benefit from more affordable, or more attractive, rental housing.

Stefanie Arias
Express-News Staff Writer Independence Day may fall on Wednesday, but the celebrations happening in and around San Antonio promise a weekend’s worth of entertainment. It’s probably safe to say there will be a few tired folks at work Thursday.Area celebrations are listed in the All Directions section of the calendar. Here’s what’s happening within the city limits:

July Fourth 2007 Celebration: The city’s official celebration, in its eighth year, includes live music, games, rides, food and the H-E-B Fireworks Extravaganza. The fun starts at Woodlawn Lake Park, 1103 Cincinnati St., at 10 a.m. with children’s pre-parade activities at Woodlawn Lake Gym.

The Salute to the Red, White and Blue Parade starts at 11 a.m. Children of all ages are encouraged to wear patriotic attire and prizes will be given for best costume, most patriotic, best bike and best group.

Opening ceremonies begin at noon on the west end of the park. 5 Star Band hits the stage at 5:30 p.m., followed by the Air Force Band of the West at 7:30. The Kids’ Zone will have games, carnival rides, contests and other activities. Fireworks start at 9 p.m. Admission is free. No alcohol is allowed in the park.

Star-Spangled Festival: Lackland AFB’s gates open at 3 p.m. for the 29th annual celebration that offers game booths, a kids’ carnival, paintball, music and food. “The Fly-By” concert, showcasing Tops in Blue, pays tribute to 60 years of Air Force history at 8 p.m. The festival wraps up with a fireworks display at 9:45.

Admission is free; no backpacks, coolers, video cameras or pets are allowed. Enter through the Gateway East Gate off Southwest Military Drive. Valid photo ID and proof of car insurance are required.

Patriotic Ceremony and Salute to the Union: Fort Sam Houston invites the public to the 23rd annual celebration. The program begins at 9:30 a.m. and includes patriotic music, readings from the Declaration of Independence, a roll call of the original 13 Colonies, a talk and prayer by George Washington (portrayed by Mark Collins) and a keynote speech by retired Lt. Gen. Ricardo S. Sanchez.

The Alamo City Community Marching Band performs at the flagpole at 11:25 a.m., followed by a roll call of all 50 states with a cannon salute at noon. Admission is free. Enter at the Binz Engleman Road or Walters Street gates.

Frontier Fourth of July: The Institute of Texan Cultures celebrates outdoors on the Back 40 with Texas characters sharing stories of life on the frontier. Activities include tug-of-war, sack races, doll making, a piñata and stilt walking. Bring a picnic lunch and enjoy a live brass band. Members of the Alamo Area Council Boy Scout Troop No. 36 lead flag retirement ceremonies throughout the day. Bring old and worn flags for decommissioning and proper disposal. The celebration runs from 10 a.m. to 2 p.m. Included with museum admission, $4-$7.

Fourth and baseball: The San Antonio Missions play the Tulsa Drillers at 5:05 p.m. Wednesday at Wolff Stadium on U.S. 90 West. A fireworks display and a performance by Robert Earl Keen (who’s become a Fourth of July tradition for the Missions) start after the game at 8:30. The concert and fireworks are free with tickets to the game, which cost $15-$25.

Freedom Fest: If you can’t wait until Wednesday to celebrate, head to the annual event at Market Square on Saturday and Sunday. Grupo Vida, Los Hermanos Cortez, Johnny and the Heartbreakers, Eric Flores and Grupo Suave are just a few of the acts that will perform. Ballet folklorico dancers will also take the stage. The festivities run from noon-11 p.m. Saturday and noon-10 p.m. Sunday. Admission is free.

By AMY GREEN
Associated Press

Ferman Gonzales grew up on San Antonio’s south side, part of a large Hispanic community where developers used to be reluctant to invest. Not so anymore. Five years ago Gonzales, 34, and his wife bought a 2,429-square-foot, three-bedroom home there in a neighborhood called Lago Vista. The couple fell in love with their home for its open floor plan and large front porch - design features developers put in place with the goal of attracting Hispanic Americans. Hispanics like Gonzales are helping to transform the U.S. housing market. Their surging numbers and high regard for homeownership are nudging builders and lenders to appeal directly to them with new designs, marketing and financing options. By 2010 the country’s total of Hispanic households is projected to grow from today’s 10 million to 13.5 million. The overall rate of homeownership climbed in the 1990s to its highest ever at 68 percent, and Latino homeownership during that time rose faster than that of any other group, by 6 percent to 48 percent, according to the U.S. Census Bureau. Immigration is not driving the growth, said Henry G. Cisneros, secretary of the Department of Housing and Urban Development during the Clinton administration, and now founder and chairman of CityView, a real-estate development company in San Antonio. Hispanic-American families tend to be younger and larger, Cisneros said, and their numbers are growing not only in states such as Florida, Texas and California but across the Midwest and elsewhere. They include the first generation of middle-class Hispanics to enter the U.S. housing market on a widespread scale, he said. “It is no longer an adjunct to the housing market. It is core business strategy for almost anyone in the home-building business,” said Cisneros, editor of the book, “Casa Y Comunidad: Latino Home and Neighborhood Design.” “In some markets they’re going to sustain (the) momentum of the markets. They’re going to be the principle reason for growth.” Builders are responding with designs they believe will appeal to this new diversity in buyers, Cisneros said. There are, for example, designs meant for multigenerational families who want more bedrooms, with bathrooms in hallways that everyone can share. Some homes may include finished garages that can be converted into bedrooms in future years. Others may include bedrooms both upstairs and downstairs, for elderly grandparents. These homes may place kitchens at the center of the social space and include gas stoves suitable for open-flame cooking of traditional recipes. Home plans emphasize gathering spaces in front of the homes, allowing neighbors to socialize more easily, said Fernando Pages Ruiz, a builder specializing in affordable housing for minorities in Lincoln, Neb. He is the author of the book “Building an Affordable House: Trade Secrets for High-Value, Low-Cost Construction.” Some builders are constructing entire developments targeting Hispanics with common courtyards, he said. “It’s a different mentality,” he said. “This is not one of seeking privacy in the outdoors. It’s seeking companionship.” Builders are hiring bilingual staffers and distributing marketing materials in English and Spanish. Pages Ruiz said Hispanic buyers are attractive to builders partly because they often have close family ties, making it less likely they will default on loans. “Hispanics have a homeownership culture. Home is important. So painting a home, owning a home, being able to be free within it, in other words, to invite your mother and cousins and have family experiences in the house without worrying about the landlord, is very important,” he said. “If you’re going to default within the context of a Hispanic society, your family and friends are going to help you.” Many Hispanics tend to avoid debt and deal in cash, and so some may have little or no credit history, said Frances Martinez Myers, chairwoman of the National Association of Hispanic Real Estate Professionals. “We’ve seen lenders begin to develop and adapt products that appeal or fit the needs more appropriately of the Hispanic market,” Martinez Myers said. Lenders are responding with programs requiring little or no down payment; allowing alternative forms of credit history, or accepting tax identification numbers instead of Social Security numbers on loans. Pages Ruiz envisions more change. Hispanics are a perfect fit for the new urban model of mixed-use development - they tend to be entrepreneurial and open businesses in their homes and nearby commercial districts, he said. “These designs will become more common and for everyone,” he said.

Rachel Stone
Express-News Business Writer Doomsayers who prophesy a real estate market downturn aren’t talking about Texas.

“All this negative news is not happening in Texas,” said Mark Dotzour, chief economist at the Real Estate Center at Texas A&M University.

The Texas economy is among the nation’s strongest, and San Antonio and Austin have two of the hottest real estate markets, said Dotzour, who was in the Alamo City on Wednesday for a meeting with the Real Estate Council of San Antonio.

“Our job growth is double the national average, and our population growth is unbelievable,” Dotzour said, referring to Texas overall.

Texas gets about 400,000 new residents every year, he said.

Of San Antonio, Dotzour said: “The taxes are low, and it’s one of the best places in America for corporations to relocate.”

“Our houses are affordable, and we’re not overbuilding.”

He warned that Dallas and Houston could be getting close to overbuilding in commercial real estate, which would cause prices to start dropping.

“I don’t see that happening in San Antonio,” he said.

Commercial property values are increasing rapidly, especially in Central and South Texas, Dotzour said. He used Austin’s Frost Bank Tower as an example. Equity Office Properties Trust bought the downtown office tower last year for $188 million, setting a Texas real estate transaction record at $354 per square foot. Blackstone Real Estate Advisors bought Equity last year for $39.2 billion.

Now Blackstone is selling the tower to Los Angeles-based Thomas Properties Group Inc., along with nine other office buildings, for $1.15 billion.

“And they think that’s a great deal,” Dotzour said.

The economist’s remarks contradicted a report released Wednesday from Moody’s, which ranked San Antonio among the worst markets for commercial real estate, based on limited data. Moody’s is an investor services company that provides credit ratings, research and risk analysis.

New York-based Moody’s tracks commercial real estate markets based on data from seven property types but only captures numbers for three in San Antonio: multi-family, full-service hotels and limited-service hotels. Missing are data for retail, downtown office, suburban office and industrial property types.

The report concluded that developers overbuilt apartments and hotels in response to a population increase from Hurricane Katrina evacuees and that now there’s a supply of apartments and hotels that is too high, making it a risky market for lenders.

“In certain circles, those reports are very relied upon. They’re very valid, and they can give a good indication of the strengths and weaknesses of certain markets,” said Kim Gatley, research director for REOC Partners Ltd., who tracks the retail, office and industrial markets in San Antonio.

“It seems that the Moody’s report always shorts the San Antonio market, and it’s because they don’t weigh in on all the data.”

The Moody’s report doesn’t give an accurate picture of the local commercial real estate market, she said.

“All indications are that we’re going to have another strong year in San Antonio,” she said.

Commercial real estate seems to be just one segment of an overall hot real estate market in the area. Dotzour noted that San Antonio and Austin also have two of the strongest housing markets.

San Antonio has 4.8 months of existing home inventory. A 6.5-month inventory is considered healthy, and anything less is considered a high-demand market.

“You’d think builders would be stampeding, but they’re not,” Dotzour said.

He thinks large-volume home builders have slowed down in reaction to lowered demand in other parts of the country but aren’t making exceptions for Texas, where demand is high and supply is low.

That more builders aren’t building new homes in San Antonio and Austin “defies economic logic,” he said.

Dotzour warned real estate professionals to watch the mortgage industry for signs of economic trouble.

“They’ve made serious mistakes by lending to people they shouldn’t have, and that’s coming to roost now,” he said.

Dotzour also will speak about the Texas real estate economy today at the Annual Outlook for Texas Land Markets conference at the Hyatt Regency San Antonio hotel.

By Scott Burns  |  March 30, 2007

Q Can you suggest the best way to minimize capital gains on the sale of my house? My husband and I bought a house in San Diego in 1975 for $65,000. My name was on the title. We made about $130,000 of improvements. He died in 1999, when the house was worth $325,000 to $350,000. There were no changes done to remove my husband’s name from the mortgage, title, etc. after his death. Now I am 75 and would like to sell the house the value of which is around $600,000.

The mortgage is paid off. I took out a $90,000 home equity loan to assist in fixing it up for sale and provide me with rental money while the house is being shown for sale. I have not remarried. The house I hope to buy in Texas is $360,000. I have been told I should expect my taxes to be near $50,000. It seems as if I will not be able to afford a house worth half of what the San Diego house is worth.

I only have Social Security to live on. I was told to just buy a cheaper house, but it doesn’t seem right that I can’t go into a house with about the same price as the one I’m leaving.

A You may have misunderstood your realtor. As I see it, your tax liability on the sale of the house will be quite small, about $10,000. You can understand it by walking through the figures with me.

First, the cost basis of the house is $195,000 ($65,000 purchase price plus $130,000 in improvements). So your share of the cost basis for the house is $97,500. Your husband’s share was the same, but values are “stepped up” at death to the value at that time. The share you inherited from your husband has a cost basis of $162,500 to $175,000. As a consequence, the cost basis of the house when you sell it will be about $260,000. In addition, as a single-income tax filer, you have an exemption of $250,000.

So you can realize about $510,000 from the sale with no tax liability. You can also deduct the realtor’s commission and other costs immediately related to selling. On a $600,000 sale, that could be $36,000 plus fix-up expenses. So your taxable capital gain will be about $54,000 less the fix-up expenses. Your tax bill will probably be about $10,000, less if you spent much on the presale fix-up. When all the paperwork is done and the home equity loan has been paid off, you will have about $464,000 cash. You should have an accountant help you with this.

That’s the good news.

If Social Security is your only source of cash income, buying a $360,000 house is a really bad idea. Remember, real estate taxes in Texas are a lot higher than in California. You’re likely to pay about $7,200 in annual real estate taxes on a $360,000 house. Add utilities, insurance and maintenance, and the annual cost of owning the house, without a mortgage, is likely to take every dime of your Social Security income. Of course, you’ll still have $100,000 in cash left from the home sale, but it would have to cover all of your other expenses for the rest of your life.

Fortunately, you can duplicate your San Diego house for much less than $360,000. According to the National Association of Realtors, for instance, the median single family home resale price in San Diego was $579,800 at the end of 2006. That’s 3.3 times the $175,200 median resale price of existing homes in Austin, the most expensive city in Texas. (Here are the median prices in other Texas cities: Houston, $148,600; Dallas, $144,300; San Antonio, $140,600; and El Paso, $131,800. And don’t forget Amarillo at $108,300.)

The difference in housing prices tells you why it currently costs $2,669 to rent a 24-foot Budget truck to move from San Diego to Dallas but only $299 to rent the same truck to move from Dallas to San Diego — lots of people are thinking what you’re thinking. Empty moving trucks are piling up in Texas.

If it were my choice, I’d set a target price of about $150,000 for your house in Texas. That would leave you with a $300,000 investment fund plus your Social Security income to support your personal expenses, the new house — and an occasional trip to La Jolla.

William Pack
Express-News business writer Although the local economy may not grow at a breakneck pace this year, two reports released Thursday reinforced San Antonio’s standing as a vibrant economy that is withstanding the woes afflicting the nation’s economy.”Overall, the message from the numbers for 2006 has been it was a great year for San Antonio,” said Joe Krier, president of the Greater San Antonio Chamber of Commerce. “San Antonio has been on a roll and continues on a roll.”

The chamber’s fourth-quarter economic report showed that the unemployment rate fell again, leaving San Antonio with the second-lowest rate of the state’s major cities behind Austin. Sales-tax rebates grew by nearly 11 percent in the quarter from a year earlier, and commercial real estate filled up at a healthy clip. The city in the fourth quarter hit five-year lows for vacancy rates in office space and industrial space.

Also Thursday, job numbers released by the Texas Workforce Commission showed the area overall experienced a healthy year.

Travis Tullos, an economist who heads the chamber’s economic analysis panel, said a housing slump has been blamed for much of the turmoil in the economy nationally. San Antonio, on the other hand, still offers “great affordability” in housing and is doing well compared with residential markets elsewhere, Tullos said.

The chamber’s numbers showed existing home sales fell by 2.5 percent in the fourth quarter from a year earlier, but the average home price was up by 6.5 percent to $171,815. Metrostudy has reported that builders started a record 19,092 single-family homes last year and will build 17,000 more this year, which would be the second-best number behind 2006.

“Some cities would kill for those homebuilding numbers,” Krier said.

The Texas Workforce Commission jobs numbers for January showed a fairly typical slump in hiring for the month, but 3.2 percent job growth for the year ending in January. That equates to 25,300 new jobs for the year.

“It’s very good growth to move into a new year with,” said Aaron Smith, Alamo WorkSource’s labor market analyst. “Couple that rate of employment expansion with low unemployment … and what we have is a job market that is providing area residents with extremely good career growth opportunities.”

San Antonio’s unemployment rate in January rose to 4.4 percent from 3.8 percent in December. But it was lower than the 4.9 percent recorded in January last year and is the strongest January rate the area has experienced since 4.1 percent in 2001, Smith said.

Nationally, unemployment reached a four-month high in January at 4.6 percent. Statewide, it was 4.5 percent. Both of those rates, unlike the area unemployment total, are adjusted for seasonal factors.

For the month, San Antonio lost 11,300 jobs, the biggest hits coming in sectors covering educators and the retail trade, which typically sustain losses in January. Smith said the drop-off in January has often been steeper than this year, although retailers fared worse this year than last with a loss of 5,000 jobs.

Krier said job growth has continued in San Antonio because existing businesses are doing well. While growth may not continue this year at the historic levels it reached the past two years, Krier believes it should remain strong.

“We’ve just gone from being fabulous (in 2006) to being great this year,” Krier said.