San Antonio Housing Market Report November 2024

Staying informed about the San Antonio housing market is crucial whether you're looking to buy or sell. With fluctuating mortgage rates, changing inventory levels, and shifting buyer demand, making informed decisions is essential in this dynamic environment. In this blog, we'll dive into the latest trends, analyze key indicators, and discuss what these changes mean for you.

San Antonio’s housing market is wrapping up the year with more options for buyers and steady opportunities for sellers. The median home price reached $299K in November, up 2% from last year, while active listings rose 14%, offering growing inventory. Homes spend an average of 72 days on the market, giving buyers more time to make decisions, while well-positioned properties sell faster and closer to their list price. With the housing supply at 4.8 months, the market creates opportunities for buyers and sellers. Let’s take a closer look at these trends and what they mean as we move into 2025:

• Active Listings Increase – Homes on the market rose 14% year-over-year, showing growing inventory, while a <1% month-over-month dip signals steadiness in supply.
• Home Prices Stabilize – Median home prices increased 2% year-over-year to $299K, with a 2% dip from last month, reflecting a steadying market trend.
• Time on the market Increases—The average time on the market rose to 72 days, up 2 days year-over-year, while Realty San Antonio Compass listings sell 5 days faster at an average of 67 days.
• Increase in New Listings – New listings are up 3% year-over-year but down 18% month-over-month, reflecting a seasonal slowdown as the holidays approach.
• Buyer Demand – Pending sales rose 1% year-over-year but dipped 8% month-over-month.
• Home Sales Increase – Home sales rose 16% year-over-year but dipped 2% month-over-month, reflecting sustained buyer activity alongside the typical seasonal slowdown at year-end.
• Housing Supply and Inventory – Housing supply is at 4.8 months, a 0.3-month increase from last year, reflecting a balanced market.
• Market Snapshot—Over 14,000 homes are on the market, selling at an average of 93% of their original list price. 

Mortgage Rates Expected to Stabilize in 2025
After a volatile 2024, mortgage rates are forecasted to stabilize and ease slightly in 2025. Projections from Fannie Mae, Mortgage Bankers Association, and Wells Fargo predict gradual declines, with rates averaging 6.67% in Q4 2024, moving to 6.58% in Q1 2025, and easing further to 6.45% by Q2 before settling at 6.33% by year-end.

“While mortgage rates are still elevated compared to pre-pandemic levels, this stabilization offers a more predictable environment for buyers and sellers heading into next year. Buyers can focus on factors within their control, such as improving credit score and saving for a down payment,” explains Marisa Jackson, Vice President of Sales at Realty San Antonio Compass.

Why Home Prices Aren’t Likely to Drop
The balancing act between supply and demand continues to keep home prices steady. San Antonio’s housing market remains stable, with active listings up 14% year-over-year and closed sales rising 16% in November. “Consistent buyer demand, combined with growing inventory and steady median prices, suggests that home values are unlikely to decline,” notes Marisa Jackson. “Sellers are still well-positioned to achieve competitive prices in this balanced market.”

Looking ahead, forecasts for 2025 predict home price appreciation between 0.6% and 3.5%. New home sales are also expected to increase, contributing to modest but steady overall growth.

Housing Supply and Sales Trends
Housing supply is forecasted to grow in 2025, marking the highest levels since December 2019. This gradual increase offers buyers more choices while maintaining moderate competition. Pending home sales are running approximately 1% ahead of 2023’s pace, reflecting steady buyer activity despite elevated mortgage rates. 

“An increase in housing supply represents a move toward a more balanced market, providing buyers with more options and helping sellers set realistic expectations,” says Marisa Jackson.

Why Selling During the Winter Can Be a Smart Move
The winter season presents a unique opportunity for sellers. Motivated buyers, often driven by urgent life changes, are active and ready to act decisively. While the housing supply is slightly higher than in recent winters, overall levels remain seasonally low, giving sellers an edge in a less competitive market.

“The cooler months bring motivated buyers and fewer competing homes, creating a prime opportunity for sellers to maximize their market advantage,” explains Marisa Jackson.

Newly Built Homes: A Growing Opportunity
Newly built homes now account for nearly 29% of available inventory. Builders are focusing on smaller, more affordable options, making new builds increasingly accessible. While navigating builder contracts requires attention, a knowledgeable real estate agent can simplify the process.

“The increase in newly constructed homes is giving buyers more options while builders prioritize affordability to meet market demand,” says Marisa Jackson.

Housing Demand Remains Resilient
Despite elevated mortgage rates, housing demand continues to show strength. This momentum has carried into December, signaling a gradually strengthening market. Reports from the National Association of Realtors (NAR) and the Mortgage Bankers Association (MBA) also highlight sustained buyer activity, reinforcing the market’s resilience.

Your Next Move in 2025
As we head into 2025, the housing market is poised for a more predictable environment, stabilizing mortgage rates, steady price growth, and increasing inventory. For buyers, this means greater clarity and more opportunities to find the right home, especially as new construction expands and sellers adapt to changing market conditions. For sellers, the continued demand and low competition in certain areas present a chance to achieve competitive returns.

Your Moves Inspire

At Realty San Antonio Compass, we closely monitor the market to provide the most up-to-date insights and strategies. Your moves inspire us to help you navigate market trends, decode pricing dynamics, review contracts, and leverage negotiation skills to secure the best outcome for you. Connect with one of our local agents today to confidently navigate your next move.

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