San Antonio Housing Market Report November 2023

Navigating the ever-changing San Antonio housing market requires staying informed about the latest trends and market conditions. Whether you're a buyer or a seller, teaming up with experienced agents and understanding the data helps you make smart decisions for your future. 

In November, home prices in San Antonio remained at $313K signaling stability and a more balanced market where supply and demand are relatively in equilibrium. The number of homes available to buy went up by 1.2 months compared to last year to 4.5 months of inventory, giving buyers more choices. An increase in new and active listings provides relief from previous market constraints – all positive changes for a more normalized market.

Let's explore the main points from the November 2023 San Antonio real estate market:

• Increased homes for sale – The number of homes for sale increased by 22% compared to the previous year, giving buyers a broader selection. 

• Extended time on market – Homes now stay on the market for an average of 70 days, 18 days longer than a year ago. Tip: For sellers, patience is crucial. Pricing correctly and presenting the home well are essential for attracting buyers.

• Increase in new listings – New listings increased by 16% compared to last year and decreased by 9% from last month, a trend we see this time of year. 

• Shift in buyer demand – Pending sales dipped 6% compared to last year, and last month, 9% fewer homes went under contract. However, a first look at December numbers shows increased buyer demand.

• Decreased home sales – Home sales decreased by 4% compared to last year and decreased by 7% from the previous month.

• Housing supply and inventory – Housing supply currently sits at 4.5 months. This time last year, housing inventory was at 3.3 months.

• Current market snapshot – Currently, there are over 10,000 homes for sale, and more than 2,800 homes have seen a price reduction in the last month. 

Mortgage Rates Boost Holiday Home Buying

Mortgage rates falling below 7%  ignite holiday home buying as we take a first look at the beginning of December pending sales. The sustained drop is attributed to the Federal Reserve's indication of potential rate cuts in 2024. Freddie Mac's survey reveals increased activity in both home purchases and refinancing. The Mortgage Bankers Association found that demand for buying homes went up in five of the past six weeks, and refinancing went up by 19% last week, which is 27% more than last year. This signals an opportune moment for buyers and refinancers to benefit from favorable market conditions. Freddie Mac believes, “Given…the Federal Reserve Board’s current expectations that they will lower the federal fund's target rate next year, we likely will see a gradual thawing of the housing market in the new year.”

Home Prices and Market Dynamics

Despite consumer concerns, experts project a continued nationwide upward trend in home values. Fannie Mae's survey reveals that while nearly one in four consumers predicts a fall in home prices, national forecasts suggest a steady rise over the next five years. Recognizing home price appreciation as cumulative, even with a projected dip in 2024, the overall outlook remains positive.

"Homeownership is a lasting investment, and our region consistently demonstrates appreciation. In San Antonio, homeowners holding their properties for four years or more have seen a notable 35-40% boost in equity since 2019. This highlights real estate's enduring value and reaffirms its reputation as a wise long-term financial choice,” said Marisa Jackson, Agent Success Manager at Realty San Antonio Compass.

NAR's Optimistic Forecast for 2024

The National Association of Realtors (NAR) anticipates a significant boost in existing home sales, projecting 4.71 million transactions in 2024. 

"With an uptick in existing home sales anticipated, San Antonio’s robust housing demand positions it as a standout market. The overall positive outlook, marked by stable median home prices, paints an optimistic landscape for potential home buyers in the upcoming year," noted Marisa Jackson, Agent Success Manager at Realty San Antonio Compass.

San Antonio’s Economic Surge: Leading GDP Growth
In the latest CenTex Economy Update, the San Antonio housing market experienced positive economic growth, gaining 4.7% in real GDP in 2022. This places San Antonio as the 10th best-performing metro economy among the 50 largest in the nation. 

For personalized insights and expert guidance, connect with our local market experts at 210-361-6000 or realtor@realtysanantonio.com, to empower your real estate journey.

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.