San Antonio February Housing Market Report

February saw an increase in almost every measurable real estate category in the San Antonio metro area. Compared to this time last year, home sales in the area increased by 9%. The median sales price was $314,000, a massive 20% increase since this time last year. 

With this hot market, the available inventory reduced to 1 month, and homes spent an average of 38 days on the market (14 days less than February 2021). 

“2022 is showing a steady pace as we enter the last month of the first quarter with homes on the market for 38 days and 100 percent being sold for listing price,” said Tracie Hasslocher, SABOR's 2022 Chairman of the Board. "We saw a steady increase in median, average price, and pending sales for the month of February."

While there were plenty of highs for the market, real estate can be impacted by world events. February was a turbulent month for many reasons, and they’ve all begun to trickle down to impact buyers and sellers. With rising interest rates, inflation, lower inventory, and the beginning of the Russian-Ukrainian conflict, buyers and sellers should expect the unexpected. 

Additionally, instant buyers, known as iBuyers, like Opendoor, Offerpad, and Zillow are impacting the market. These platforms allow sellers to skip some of the traditional steps, like working with an agent, in an attempt to be faster and more convenient. But this comes at a price to the seller, and it also hurts future buyers. IBuyers cost home sellers around 13% to 15% of the home’s sale price, while working with an experienced agent costs just 5% to 7%, according to a research report from the real estate data firm Collateral Analytics. 

While the unpredictability of the stock market, the pandemic, interest rates, inflation, and global conflicts could leave buyers and sellers feeling unsure of what to do, it’s also creating more savvy buyers and sellers than ever before. Compared to previous generations, younger people are realizing the value of investing in real estate by purchasing a home. 

According to The National Association or Realtors, Millennials have been the largest share of buyers since 2014. With a bit of research, preparation, and the right expert by your side, you can make smart real estate decisions as the market heats up in 2022. 

In such a hot market, sellers sometimes find themselves waiting to ensure they get the most for their home, which is an understandable financial goal. With the record-breaking median sales prices, now is the perfect time to receive an estimate on your home’s worth.

According to LendingTree, late spring is the best time to sell your home. That means now is the perfect time to start the process. Additionally, you can buy before you sell, which will give you more security and control over the process.

If you want to sell your home and don’t know where to start, reach out to one of our talented agents and get the ball rolling. 

Buyers should be aware of rising rates, though. According to Reuters, the most popular home loan, the 30-year, fixed-rate mortgage, climbed higher than 4% for the first time since 2019. Additionally, buyers that plan to live in the home they purchase are up against iBuyers. The New York Times referred to them as “institutional house flippers.” 

According to CBS News, “most (not all) iBuyers sell a portion of their inventory to institutional investors that rent the homes out.” This can make the goal of homeownership harder and force more people to continue renting. 

Renting an apartment has gotten increasingly expensive in San Antonio as well. According to CultureMap San Antonio, the average rent for a one-bedroom apartment in the Alamo City increased 11.3% from February 2021 to February 2022.

For potential buyers hesitant to make any big changes in the current global climate, now is actually a great time to start your home search. 

Mark Sprague, state director of information capital at Independence Title, had insight into how Russia’s invasion of Ukraine could impact real estate. 

“The uncertainty in eastern Europe has stalled rising interest rates,” said Sprague. “Material and labor costs are on pace to rise from 4% to 5% monthly through 2023 and potentially further.”

It should be noted that the Federal Reserve raised interest rates 0.25% on March 16, 2022. Now is the time to act, because according to Forbes, the Federal Reserve may hike interest rates 6 more times this year.

No matter where you are in the home buying or selling journey, working with an experienced agent can be the key to understanding market changes and ensuring you meet your real estate goals.