San Antonio Housing Market Report July 2023

In the ever-evolving San Antonio housing market, staying up-to-date with the latest trends and market conditions is crucial for both buyers and sellers. By partnering with experienced agents and understanding the data, you can make informed decisions that align with your goals.

The San Antonio real estate market has shown impressive durability even as mortgage rates rise. Through there was a 6% decrease in closed listings compared to last month, the market's stability since July 2022 is a positive sign. As things even out, potential buyers might expect a more stable environment, offering a good opportunity for those who've been unsure about buying. This blog takes a closer look at the current trends and gives a glimpse into San Antonio's housing future.

Let's start by looking at the important points from July 2023:

• The number of homes for sale increased by 25% compared to the previous year and grew 8% from last month, giving more options for people looking to buy a home.

• The average days a home stays on the market decreased by 7 days from the previous month, now at 57 days, but it’s 42 days longer than a year ago.

• The number of new listings entering the market decreased by 17% compared to the previous year, and dipped 8% from last month, potentially signaling fewer new weekly listings for fall home buyers.

• Homes under contract fell by 18% compared to last year and the demand from buyers cooled by 10% compared to last month, which may indicate the market is slowing down.

• Home sales decreased by 6% compared to the previous year and dropped by 7% from the previous month.

• The number of available homes in July stayed around the same as the previous month, at 3.8 months, compared to a 2.7 month supply a year ago.

• The median home sale price decreased by 2% compared to the previous year, now at $323K. This is a 0.6% increase from the previous month, which could indicate stabilization in home prices for buyers.

• Homes sold closer to their list price at 95%, compared to 93% in January. This shows sellers might have more power in negotiations.

• Right now, there are over 9,000 homes are for sale, and more than 3,000 homes have lowered their price in the last month. 

The Interplay Between Inflation & Interest Rates

The connection between inflation and interest rates remains a key focus of market talks. The idea of a "soft landing" by the Federal Reserve gains attention as traders study the changing economic situation. With conflicting signals, people thinking of buying homes are recommended to think through their choices and look into different mortgage strategies. Even though things seem steady right now, the uncertainty about what the Federal Reserve will do and the mixed signals make it hard to predict how rates will change.

Mortgage Rates and the Road Ahead

After climbing for five consecutive weeks, the 30-year fixed-rate average hit 7.23% during the week of August 25th, as reported by the recent Freddie Mac survey. This was an increase from the previous week's rate of 7.09%. These mortgage rates are now at their highest point since 2001, and they're expected to stay high due to a combination of economic factors. The re-emergence of inflation pressures has led to predictions of a rate increase in September, reflecting a broader economic strength that's pushing up the 10-year treasury yield. When treasury yields go up, so do mortgage rates. This pattern is anticipated to continue for around six to nine months.

John Coake,  Head of Sales at Realty San Antonio, noted, "Homebuyers are adapting to the new normal of mortgage rates. Waiting for rates to decrease could result in missing out on home value growth and facing more buyer competition in the housing market."

Pro Tip: If you’re a potential first-time home buyer, explore our guides on qualifying for a home loan, essential questions to ask, overcoming down payment myths and affordability resources to get started.

The Promise of Opportunity in Texas

"Texas continues to hold its reputation as a land of promise. It has transformed into a focal point for businesses, generating employment chances for many. As a result, we're seeing more families and investors coming to our region," remarked Marisa Jackson, Agent Success Manager at Realty San Antonio. Against a backdrop of economic optimism, San Antonio's remarkable population growth comes into view, positioning it alongside three other Texan cities in the top 15 nationally for growth between 2021 and 2022.

Transitioning from Summer to Autumn: A Look at the Fall Forecast

With new listings decreasing by 17% compared to the previous year and an 8% decline from the previous month, the market might cool down even faster as we transition into the autumn months.

These factors point to a potential slowdown in market activity during September and October, with more sellers possibly choosing to wait. Nonetheless, there's a positive aspect to consider—homeowners with substantial equity have reached an impressive four-year peak. Especially in San Antonio, residents have witnessed a notable 34% increase in their equity since July 2019.

"For those who currently own a home and are thinking about a move, it's a good idea to reach out to a local professional for a free market analysis. You might be pleasantly surprised at the extent of your equity," advised Marisa Jackson, Agent Success Manager at Realty San Antonio. Discover how a Realty San Antonio agent markets your home for sale.

The Impact of Getting Your Home's Price Right

Based on the price reduction data for July provided by the San Antonio Board of REALTORS®, it's noteworthy that 86% of homes that were sold in San Antonio needed their prices adjusted within a month. This underscores the significance of setting a property's price accurately in line with its true value. Homes that are priced correctly tend to sell 2.7 times faster compared to those that require price changes. A closer look at different price ranges reveals a consistent pattern: homes that need price adjustments often take longer to find buyers. Informed by local data and trends, both buyers and sellers can make more informed choices to ensure successful and smooth transactions.

Whether you're in the market to buy or sell, having a strong understanding of the most recent trends and market conditions gives you the knowledge to make well-considered decisions. Start your real estate journey and achieve your objectives with the guidance of a local professional. Feel free to get in touch at 210-361-6000 or email realtor@realtysanantonio.com. 

Don’t forget to 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.