Navigating the ever-changing San Antonio housing market requires staying informed about the latest trends and market conditions. Whether you're a buyer or a seller, teaming up with experienced agents and understanding the data helps you make smart decisions for your future.
In October, the San Antonio housing market experienced key shifts, presenting both opportunities and challenges for buyers and sellers. Median home prices saw less than a 1% year-over-year increase at $419K, and home sales decreased by 9%, suggesting a market where buyer demand has shifted.
Let's explore the main points from the October 2023 San Antonio real estate market:
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Increased homes for sale – The number of homes for sale increased by 21% compared to the previous year, giving buyers a broader selection.
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Extended time on market – Homes now stay on the market for an average of 66 days, up by 2 days from the previous month and 22 days longer than a year ago. Tip: For sellers, patience is crucial. Pricing correctly and presenting the home well are essential for attracting buyers.
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Decline in new listings – New listings decreased by 4% compared to last year and decreased by 13% from last month, a trend we see this time of year.
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Shift in buyer demand – Buyer demand dipped 11% compared to last year, and last month, 4% less homes went under contract.
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Fluctuating home sales – Home sales decreased by 9% compared to last year and decreased by 13% from the previous month.
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Housing supply and inventory – Housing supply currently sits at 4.4 months. This time last year, housing inventory was at 3.2 months.
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Current market snapshot – Currently, there are over 12,000 homes for sale, and more than 3,000 homes seeing a price reduction in the last month. The median home sale price decreased by less than 1% compared to the previous year, now at $319K. Pricing the home correctly is imperative to avoid potential price reductions.
Source: San Antonio Board of REALTORS®, All MLS.
2024 Housing Market Forecast
Experts from Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors predict a rise in home prices, emphasizing real estate as a sound investment. Increased sales activity offers optimism for potential home buyers. Monitoring supply and demand, mortgage rates, and potential price pressures are key.
Housing Market Resilience Amid Rising Rates
“Year-over-year comparisons show a steady trend in sales activity. Assuming stable mortgage rates, modest year-over-year gains in home sales are likely in early 2024,” noted Marisa Jackson, Agent Success Manager at Realty San Antonio Compass.
Changes in mortgage rates significantly impact the buying and selling dynamics. The Federal Reserve's decision to maintain rates provides a more predictable borrowing environment for home buyers.
Housing Supply Growth This Year
Housing supply grew 37% from the beginning of the year. Factors such as mortgage rate fluctuations, normal seasonality, and demand dynamics contribute to the ebb and flow of inventory.
“When mortgage rates rise, housing inventory tends to increase. Conversely, when rates drop, inventory decreases, leading to heightened competition. Buyers are often waiting for rates to decrease before making decisions. If mortgage rates increase, we can expect housing inventory to keep growing in 2024. On the other hand, if mortgage rates decline, we anticipate increased buyer demand, greater competition, and reduced supply,” said Marisa Jackson, Agent Success Manager at Realty San Antonio Compass.
Home Prices: A Return to Normal Seasonality
Home prices experienced no changes year-over-year in October indicating market normalization.
“San Antonio home prices are seeing normal seasonality this time of year. It's important to recognize the seasonal nature of the housing market. Prices typically rise at the start of the year, peak in the spring and summer, and then slow down as fall and winter approach. It's a natural ebb and flow,” said Marisa Jackson, Agent Success Manager at Realty San Antonio Compass.
Is Real Estate Still a Good Investment?
Real estate remains a stable, long-term investment with the potential for wealth-building. Public sentiment favors real estate as the preferred long-term investment, and homeowners' net worth surpasses renters by 40 times.
In a transitioning market, informed decision-making is crucial. Understanding trends and forecasts helps both buyers and sellers navigate the San Antonio housing market with confidence. For personalized insights, connect with local market experts at 210-361-6000 or realtor@realtysanantonio.com.
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