New markets require new approaches and tactics. Working with a trusted real estate expert in your local area will help you make an informed decision for your future.
Now is the time of year when housing industry experts analyze market data to forecast what’s to come. We’ve rounded up a few of the most important predictions for you to consider below, but before we get to it, let’s talk about how we finished 2022.
Median home prices peaked in June and declined by 6% through December. The year ended with slight increases in average and median prices for a home in San Antonio at $379,000 and $324,000, respectively, according to the San Antonio Board of REALTORS®. Despite this increase, the housing market continued shifting towards buyers as home sales declined 10% last year and inventory increased, with homes on the market for 37 days, about the same yearly average in 2021.
Let’s take a look at what happened in the local San Antonio housing market for December 2022:
- The number of homes for sale increased 101% year over year.
- The number of new listings entering the market fell 17%, compared to a year ago.
- The number of homes under contract fell 39% and the number of homes sold fell 30%, compared to one year ago.
- Monthly inventory levels increased to 3.2 months, up 1.8 months, compared to December 2021.
- Average days on the market increased to 59 days from 10 days one year ago.
- Median home sale prices in December increased 6% year over year to $324,000.
- There are over 9,000 homes for sale and over 1,500 homes have reduced their price in the past 30 days.
Source: San Antonio Board of REALTORS®, All MLS.
What will influence the 2023 housing market?
Steadying interest rates
The Federal Reserve has pledged to slow down interest rate increases in 2023. Mortgage rates are expected to land somewhere in the mid-5% to low-6% range. Pro Tip: Learn more about mortgage rate locks to support your buying power with certainty.
Growing but slowing home prices
Affordability remains a concern for buyers, but experts hope this will stabilize as home prices continue to moderate. The affordability challenge is real, but we’re here to help. Don’t be fearful of fluctuating mortgage rates to put off your needs or what is important to you and your family. Here are three things homebuyers need to know!
Motivated sellers
Sellers are more likely to agree to concessions when homes aren’t moving quickly, covering expenses like home warranty plans and even discount points towards a lower interest rate.
Inventory still lagging
The number of homes for sale will lag behind pre-pandemic levels but will be up from last year, giving buyers more homes to choose from. Economic factors, including increasing construction costs, and supply chain and labor issues could cause inventory to fall this year.
Bottom Line: If you’re thinking of buying or selling a home this year, don’t be fearful of fluctuating mortgage rates to put off your needs or what is important to you and your family. A trusted real estate professional can help you navigate the market. There are many unique options, including affordability resources and creative financing, to help you move forward with confidence.
Follow us on social media for breaking market updates, graphics, videos, and more @realtysanantonio, and subscribe to our market newsletter by clicking sign up in the top right corner of our website.