San Antonio Housing Market Report March 2023

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The San Antonio housing market is stabilizing, creating momentum for buyers and sellers as both new and active listings increased year over year, and homes under contract rose 27% from last month. In this blog, we’ll take a closer look at the latest data and market trends to provide insights on what to expect in the coming months.

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

• The number of homes for sale increased by 132% year over year, bringing more choices and opportunities to homebuyers.

• The average days on the market increased to 72 days, up by 38 days, compared to a year ago.  

• The number of new listings entering the market increased by 5%, compared to a year ago, indicating rising seller confidence. 

• The number of homes under contract fell by 12%, compared to a year ago, however, they increased by 27% compared to last month as buyer demand gained momentum this spring.

• The number of homes sold fell by 12%, compared to a year ago, however, closed sales have increased by 79% since January 2023.

• Monthly inventory levels are at 3.2 months, compared to 1.2 months in March 2022.

• Median home sale prices experienced no change year over year at $314K. 

There are over 7,000 homes for sale and over 2,000 homes have reduced their price in the past 30 days. Having an experienced agent to price your home correctly is more important now than ever.

Rising seller confidence and buyer demand heat up as spring approaches

The number of new listings entering the market increased by 5% compared to the same month last year, and has been making a comeback, increasing by 19% since January 2023. This indicates rising seller confidence, and as the weather warms up, more sellers are getting ready to put their homes on the market before summer. The number of homes under contract also saw a 27% increase from the previous month, as buyer demand gains momentum this spring.

“Pending home sales have been growing since January. We are seeing signs that the housing market slow down is coming to an end,” said Marisa Jackson, Agent Success Manager, Realty San Antonio.

In line with this, the Mortgage Bankers Association reported demand for purchase loans moved up for the fourth week in a row, as mortgage rates continued to slide back from their 2023 highs. Buyer demand is also growing as home prices have eased from their pandemic peak.

Home prices stabilize after a year of fluctuations

Median home sale prices experienced no change year over year and returned to $314K in March, indicating a balance in the market. Home prices in San Antonio peaked in June of 2022 at $348K. 

“We are likely to see increased seasonal demand in the coming months, but the stabilization of home prices is a positive sign for the market,” said Marisa Jackson, Agent Success Manager, Realty San Antonio.

Increased inventory provides more options for homebuyers

The San Antonio housing market saw a 132% increase in the number of homes for sale in March 2023 compared to the same month last year. While the inventory slightly decreased from the previous month, it is still a significant increase from last year's low supply. With over 7,000 homes for sale, homebuyers now have more options to choose from than they have had in recent years. 

“This time of the year is typically when housing inventory starts climbing. We are seeing are a rebound in housing market conditions. We expect to see an increase in pending home sales in the coming weeks,” said Marisa Jackson, Agent Success Manager, Realty San Antonio.

Positive economic outlook fuels momentum in San Antonio’s housing market

According to the 2023 Texas State of the Economy Report, the outlook for the Texas economy outperforms the national forecast. This positive economic outlook, based on expected revenue growth, strong hiring, and talent retention, is reflected in the San Antonio housing market. San Antonio's Gross Domestic Product (GDP) is forecasted to grow 1.4% in 2023, according to a report by the Kenan Institute of Private Enterprises. Despite recession concerns, San Antonio's economy is projected to outperform that of most cities in 2023 and is predicted to be among the 10 fastest-growing in the nation.

Mortgage rates impact homebuyers’ budgets

The 30-year fixed mortgage rate has been bouncing between 6-7% this year, impacting home buyers' monthly payments and ability to qualify. However, mortgage rates have been declining, creating increased optimism among prospective homebuyers as the housing market heads into the peak season of spring and summer. It's important for homebuyers to explore all of their mortgage options and understand what impacts mortgage rates and buying power to plan their home buying budget accordingly. In addition, affordable housing resources and overcoming the down payment hurdle for homebuyers will be key to achieving homeownership. 

If you're looking to buy or sell in today's real estate market, don't go at it alone. Partner with a trusted real estate expert who can guide you every step of the way and help you achieve your goals. Contact a local real estate professional today to learn more!

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