San Antonio Housing Market Report February 2024

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As spring arrives, the San Antonio housing market prepares for its busiest season, offering opportunities for buyers and sellers. Buyers can benefit from a decreased year-over-year median sales price, making homes more affordable. Additionally, a 24% year-over-year increase in inventory levels provides buyers with more homes to choose from. Sellers can also take comfort in the market trends, with month-over-month increases in pending and closed sales indicating heightened buyer activity.

Let's dive into the latest trends and what they mean for you:

• Home prices increase — Median home prices increased by 1.7% from January to February and decreased by 3% annually.
• Increased homes for sale — The number of homes for sale rose by 24% compared to last year, providing buyers with a broader selection.
• Extended time on market — Homes now remain on the market for an average of 80 days, up 10 days from a year ago.
• Rise in new listings – New listings increased by 13% annually, boosting confidence in the market.
• Heightened buyer demand monthly — Demand increased by 3% over last month, driven by lower mortgage rates and more appealing home prices.
• Increase in home sales – Home sales increased by 14% compared to last year and increased by 33% from January.
• Housing supply and inventory — Housing supply currently stands at 4.3 months, up 1.0 months from last year and unchanged from last month.
• Current market snapshot – Over 11,000 homes are for sale, selling for 93% of their original listing price.

Sellers' Advantage in Today's Real Estate Market

Sellers continue to hold a strong position, capitalizing on sustained demand even as housing inventory stabilizes. Despite an uptick in available properties, the seller's market endures, driving ongoing buyer competition. 

"With expert guidance from a seasoned real estate advisor, sellers can strategically prepare their listings and establish competitive prices to entice eager buyers," advised Marisa Jackson, Agent Success Manager at Realty San Antonio Compass. “Given current market conditions, navigating the spring housing market is hyperlocal and requires patience and flexibility.”

Is Now the Right Time to Buy?

As we head into the spring homebuying season, more buyers are entering the market. Insights from Fannie Mae and Pulsenomics' Home Price Expectations Survey indicate ongoing growth in home prices, expected to average between 3-4% annually over the next five years. Delaying a home purchase could lead to higher costs in the future.

“Experts predict steady appreciation in home values, making now an opportune time to invest in future wealth accumulation. Knowing that prices are expected to rise should give you confidence in buying a home, as it signifies your home is an asset poised to increase in value over time,” advised Marisa Jackson, Agent Success Manager at Realty San Antonio Compass.

Mortgage Rates Edge Down Slightly
According to Mortgage Daily News, mortgage rates have fluctuated recently. The average rate for a 30-year fixed home loan dropped to 6.91% on March 27th, down from 7.16% the previous month. While rates have decreased from their peak in 2023, they remain in the mid-to-high 6% range, with no significant drop expected soon. 

"Understanding how mortgage rates impact affordability and monthly payments is crucial for homebuyers," says Marisa Jackson, Agent Success Manager at Realty San Antonio Compass. “With the Federal Reserve's cautious approach to interest rates, buyers and sellers must stay informed and adaptable as they navigate the changing dynamics of the housing market.”

Sellers Are Back For Spring

"The first couple of months of 2024 have been positive for seller confidence," stated John Coake, Head of Sales at Realty San Antonio Compass, reflecting on the surge in active and new listings entering the market. “This increase in listings bolsters optimism in the real estate market for the upcoming spring season.” 

Moreover, sellers have ample equity at their disposal. According to analytics firm CoreLogic, the average homeowner with a mortgage closed the year with $298,000 in equity, marking a gain of over $24,000 in the fourth quarter alone.

Residential Construction Sees Growth

According to the U.S. Census Bureau and the Department of Housing and Urban Development, the housing market saw a significant increase in residential construction activity in February 2024. Building permits rose compared to the previous year, indicating more homes are planned for construction. Also, housing starts experienced a notable uptick, especially in single-family homes. This surge in construction suggests an expanding supply of new homes, providing buyers with more options and potentially reducing market competition.

San Antonio Ranks Among the Top 10 Metros Nationally

According to the latest CenTex Economy report, San Antonio's economic landscape showcases notable growth with a 2.7% year-over-year increase in job growth, San Antonio ranks among the top 10 metros nationally. The city's construction and natural resources sectors lead the way with a robust 7.4% growth rate, reflecting a thriving economy. Despite challenges, such as a 3.8% unemployment rate in January, San Antonio remains competitive in the Texas job market. As benchmark revisions reveal even stronger job creation than initially estimated, it underscores San Antonio's resilience and potential for sustained economic growth.

Buying or selling a home is a big purchase, and it’s our job to ensure you get it right. Our team of real estate professionals has the inside scoop you won't find online. We'll dig deep into every detail, weigh your options, and ensure you get the best deal. With us, you'll save money, keep cool, and feel confident in your decision. You deserve top-notch representation, and that's exactly what we deliver.

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