San Antonio Housing Market Report April 2023

In today's market, it's crucial to adopt fresh tactics and strategies to succeed. Partnering with experienced agents and staying up-to-date with the latest market trends in your area can help you make informed decisions that set you up for a successful future.

The San Antonio housing market continues to show signs of balance as home prices increase, pending sales remain robust and properties are selling closer to their list price. In this blog, we delve into the latest data and market trends, offering a glimpse into what the coming months may hold.

So, what happened in the San Antonio housing market in April 2023? Let’s take a closer look:

• The number of homes for sale increased by 106% compared to the previous year, providing homebuyers with more options and opportunities.

• The average days on the market increased to 70 days, up by 39 days compared to a year ago.  

• The number of new listings entering the market decreased by 4% compared to a year ago, however increased by 3% from last month as sellers prepare to hit the market before summer.

• The number of homes under contract fell by 11% compared to a year ago.

• The number of homes sold declined by 13% compared to a year ago, however, closed sales are holding strong month over month.

• Monthly inventory levels reached 3.3 months compared to 1.2 months in April 2022.

• Median home sale prices decreased by 1% year over year to $320K, however, they had a strong increase from last month’s $314K.

There are over 7,000 homes for sale and over 2,000 homes have reduced their price in the past 30 days.

Is the End of Home Price Decline in Sight?

In the past three months, home prices in San Antonio have shown consecutive growth, countering previous predictions of a 20% national price drop. In January 2023, San Antonio home prices reached their lowest point at $308K, experiencing a year-over-year gain of 3%. However, since then, prices have started to rebound, reaching $320K in April 2023. This upward trend brings hope for potential sellers in our market.

If you've been waiting for home prices to stabilize before making a move, it may be a good idea to consult with a local real estate expert to determine if now is the right time for you.

The Role of Home Price Moderation

The decline in home prices that began in July of last year, can be attributed to various factors, including inflation, increasing mortgage rates, concerns about a potential recession, and stress within the banking system. However, this moderation in prices has had a positive effect by counterbalancing the affordability challenges caused by fluctuating mortgage rates. It has created opportunities for more buyers, especially first-time home buyers, to enter the market. Furthermore, the stability of mortgage rates and projected improvements in 2024 contribute to a favorable outlook for affordability.

Impact of Mortgage Rates

Per Freddie Mac‘s Primary Mortgage Market Survey, the 30-year fixed-rate mortgage averaged 6.39% as of May 18, up four basis points from last week’s 6.35%. The same rate averaged 5.25% a year ago at this time. Experts predict further rate reductions in the coming months, aligning with the anticipated economic slowdown and the Fed's planned adjustments. This creates a favorable environment for prospective buyers.

 “We continue to expect that mortgage rates will drift down over the course of the year as the economy slows, as we move closer to the Fed lowering rates beginning in 2024, and as financial market volatility finally begins to settle down,” said Mike Fratantoni, chief economist at the Mortgage Bankers Association.

Buyer Activity and Market Conditions

Despite the fluctuating mortgage rates, buyer activity has been on the rise. Pending sales have been holding strong since January 2023, and although there is slightly more inventory available, the underlying demand remains robust. 

Marisa Jackson, Agent Success Manager, Realty San Antonio, noted, "Agents are witnessing heightened interest in open houses and receiving more showing requests, which are positive indicators of a healthy and accelerating buyer demand as we enter the month of May."

Strong Job Market Fuels Homebuyer Demand

Strong job growth in San Antonio is driving increased demand from homebuyers in the area. The latest data from the Texas Workforce Commission reveals a drop in unemployment, with the rate reaching levels similar to the previous year. In April, San Antonio's unemployment rate stood at 3.4%, down from 3.9% the previous month but slightly higher than April 2022's rate of 3.3%. The entire state of Texas experienced its 26th consecutive month of workforce expansion, resulting in a statewide unemployment rate of 3.7%. Notably, Texas added 33,300 jobs overall, with the San Antonio-New Braunfels metro area contributing 8,300 of those positions. Key sectors driving employment growth in San Antonio include leisure and hospitality, which added 2,100 jobs, and professional and business services, which saw gains of 3,200 jobs in the area. The robust job creation across all industries in Texas is a testament to the strength of the state's employers and the overall health of its economy. San Antonio's civilian labor force has also increased, indicating a growing population of both working individuals and job seekers. With San Antonio experiencing positive job growth and a thriving economy, it comes as no surprise that the demand for homes in the area is on the rise.

Seize the Opportunity: Time to Sell

"If you're considering selling your house, the continued activity of buyers in the market this year should be encouraging. It's a clear indication that there are potential buyers out there who might be interested in a home like yours," advised Marisa Jackson, Agent Success Manager, Realty San Antonio.

The intense housing market frenzy influenced by the pandemic has subsided, which means for sellers to adjust their expectations and understand that selling a property may take longer, offers may or may not exceed the asking price, and bidding wars have cooled off. It's crucial to remember that real estate is highly localized and can vary significantly by specific area.

"The months of April, May, and June traditionally represent the prime time for selling a home. As we navigate through these peak home selling months, it's advisable to seek guidance from a real estate expert who can help you navigate the current market conditions," recommended Marisa Jackson, Agent Success Manager, Realty San Antonio.

Whether you’re a buyer or seller, understanding the latest trends and market conditions empowers you to make informed decisions. Contact a local professional to embark on your real estate journey and achieve your goals at 210-361-6000 or email realtor@realtysanantonio.com.

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