San Antonio Housing Market Report March 2024

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In March 2024, the San Antonio area experienced a 14% increase in new home listings from the previous year. According to the San Antonio Market Report, this uptick has led to the region boasting over four months of available inventory. This provides more options for home buyers and helps stabilize prices. Sellers benefit from increased confidence in the market, with more opportunities to sell their properties at fair values.

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

• Home prices increase — Median home prices increased by 5% from last month and experienced no change from last year.
• Increased homes for sale — The number of homes for sale rose by 35% compared to last year and 4% from last month, providing buyers with a broader selection.
• Extended time on market — Homes are now on the market for an average of 79 days, up 7 days from a year ago.
• Rise in new listings – New listings increased by 14% annually, boosting confidence in the market.
• Increased Buyer demand monthly — Demand increased by 4% compared to last month but decreased by 19% compared to last year.
• Increase in home sales – Home sales increased by 3% compared to last year and 20% from last month.
• Housing supply and inventory — Housing supply currently stands at 4.4 months, up 1.2 months from last year.
• Current market snapshot – Over 12,000 homes are for sale, selling for 93% of their original listing price.

Where are home prices headed this summer?
“Home prices typically peak in June, driven by optimal inventory and demand,” said Marisa Jackson, Vice President of Sales at Realty San Antonio Compass. “Home prices aren’t falling, they’re rising, just at a slower pace. In the long run, waiting to purchase a home may cost you more.” 

The surge in new listings provides more options for buyers and helps stabilize prices. Additionally, the rise in closed sales reflects continued buyer interest. The current housing supply suggests a balanced market with potential for price growth amidst continued buyer demand.

Fannie Mae Reports Positive Outlook for Home Buying and Selling
Fannie Mae's latest report reveals encouraging sentiments among consumers regarding home buying and selling opportunities, maintaining a positive trajectory in March. Indicators for a "good time to buy" and a "good time to sell" continued to rise steadily, suggesting growing confidence in the housing market. 

“The supply of homes for sale is growing this year, creating a favorable environment for home buyers, giving them more options. For sellers, the positive sentiment suggests an opportune moment to list their properties, with growing demand and optimistic buyer outlooks contributing to a vibrant market,” said Marisa Jackson, Vice President of Sales at Realty San Antonio Compass.

Millennials Take the Lead in Homebuyer Demographics

The National Association of Realtors highlights a significant milestone: millennials now represent the largest cohort of homebuyers, constituting 38% of all purchasers. This demographic shift marks a notable transition, with millennials surpassing baby boomers, who now account for 31% of total sales. 

“This demographic shift may signify evolving trends in housing preferences, influencing everything from property features to marketing strategies, ultimately impacting the housing market dynamics for buyers and sellers alike,” said Marisa Jackson, Vice President of Sales at Realty San Antonio Compass.

Should You Wait for Mortgage Rates to Lower?

While experts say rates will come down, current mortgage rates are above 7%. The robust American economy indicates that short-term interest rates will likely remain high. As people seek new opportunities or require more space, they realize there may be more practical options than waiting for better mortgage rates. This shift in perspective is evident in the increasing number of homeowners considering moving despite higher rates. 

“Looking ahead, mortgage rates are unlikely to drop soon. So, it's all about making smart choices based on your situation instead of hoping for better rates,” shared Marisa Jackson, Vice President of Sales at Realty San Antonio Compass. “For homebuyers waiting for lower mortgage rates, it's important to note that even slight rate decreases could spur increased demand, leading to reduced inventory and heightened competition in the market.”

Texas Home Financing Trends: What Buyers and Sellers Should Know

According to the latest Texas Residential Mortgage Survey (TRMS), Texas sees a positive trend in home financing, with optimism among industry experts reaching new heights. Despite challenges like fluctuating mortgage rates, the Texas housing market remains relatively strong due to its robust economy and lack of state income taxes. This trend suggests improved opportunities for home buyers, who may find more options for loans and purchasing homes, and sellers, who may benefit from increased buyer activity in the market.

Exploring Newly Built Homes: A Solution for Homebuyers

In today's competitive housing market, finding the perfect home within your budget can be challenging. Newly built homes emerge as a promising solution. Unlike existing homes in short supply, newly constructed properties offer a fresh inventory for buyers to explore. This uptick in new home construction provides more choices for homebuyers, whether seeking move-in ready homes or wanting to customize their build. Additionally, builders offer incentives such as mortgage rate buy-downs, making new homes more affordable and appealing.

Your Moves Inspire

At Realty San Antonio Compass, your moves inspire our agents to serve as invaluable guides throughout your real estate journey, alleviating complexities and always advocating for your best interests. They will navigate market trends, decode pricing dynamics, review contracts, and leverage negotiation skills to ensure you can make an informed decision and secure a favorable outcome. Connect with a local agent today to confidently navigate your next move.

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