I'm sure everyone is getting tired of these questions but I could use some help and advice on what to do from here. To give a little background, my family and I moved to San Antonio area last July from Round Rock. We sold our home there (wish we waited after seeing current selling prices but it is what it is) and have been renting since July in the Northwest area. My job is located in the west side (around hwy151 / potranco area). We've just began looking for homes from the Castroville area up towards Boerne (trying to stay no more than 40 minute commute if possible) but homes are selling so quickly and/or the houses we like are overpriced.

My current dilemma is we have to notify our landlord whether or not we renew for another year or not by the end of this month. There is a chance I could go month to month but I'd have to confirm this. Regardless, it seems the market is too hot and I'd be over paying at this point but interest rates are still low. Additionally, I have a soon-to-be 5 year old that also would be starting Kindergarten this fall and a 6 month old baby to consider.

My question to the experts on here is: would you stay another year at least and hope the market cools but run the risk of interest rates rising next 1-2 years? Would you purchase a lot and hold on to it for custom build in 1-2 years and continue to rent? Would you go with a builder that is offering pre-designed houses and lots in new neighborhoods that are being developed (such as https://chesmar.com/communities/potranco-oaks/). Or would you just keep searching the market and buy this summer (In other words: just find something that has most of what we want so that we can have a place and be moved in before school starts this Fall)?

I'm not sure what the right answer is but was hoping for some input on those who have been in this situation before.

Thanks for reading.

What are your wants/looking for? Is pre-existing out of the picture or would there be potential for it?

We've been searching for pre existing homes at this time. We're looking for 1-2 story house on at least 1/3 acre lot (preferably 0.5acre plus) 4 bed 2+ bath house. Ideally 2.5 car garage.

I would engage with Jamie at Red Pear Realty to get solid comp and bid advice and (active on this forum) to get 2% to help with closing your mortgage.
IMO, prices are going to keep going up, especially if another 2 billion of money is printed in support of infrastructure. Interest rates are ticking up as well over the last month.
Look to have to bid as much as 10 to 35% or more over list price on existing homes. Note that many new home builders are no longer locking in prices via price escalation clauses and others are not releasing homes to sell until 30 days prior to completion due to the rise in materials cost, not to mention the shortage in materials to build the homes. I would suggest finding an existing home in the school district you want vs a new build. Buy for location and if you are handy or don't mind hiring contractors, you can always improve or modify the house. If I can help with your mortgage, please let me know. I have been doing this for over 30 years and would like to earn your business and answer any questions you may have regarding a new or existing home mortgage.

Go month to month on your lease for now. The standard form normally has that written in but your Landlord might use his own & not have that option.

Thank you all for the advice. We'll continue to search.

My phone is 713-352-8004 or my cell is 817 403 9181 if I can help. We have online application and esign with doc loading interface for your convenience. Happy to discuss any questions you may have.