San Antonio Housing Market Report Year-End & December 2023

Navigating San Antonio’s housing market requires staying informed about the latest trends and market conditions. Whether you're buying or selling, teaming up with experienced agents and understanding the data helps you make smart decisions for your future. 

After a slower-than-normal 2023 and a relatively quiet December, the market is gaining momentum as we enter 2024. Mortgage applications are on the rise, multiple offers are becoming more common, and there's a noticeable decrease in withdrawn listings. Home prices held steady at $319K, and housing inventory settled at 4.3 months, up by 1.0 months from this time last year. The market's confidence is reinforced by a notable surge in new and pending listings, setting a positive tone for the year ahead.

Let's explore the main points from the December 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 73 days, 14 days longer than a year ago. 
• Increase in new listings – New listings increased by 19% compared to last year and decreased by 20% from last month, a trend we see this time of year. 
• Shift in buyer demand – Pending sales remained nearly unchanged month to month, compared to last year with a slight <1% increase.
• Decreased home sales – Home sales decreased by 3% compared to last year, however, increased by 9% from the previous month.
• Housing supply and inventory – Housing supply currently sits at 4.3 months. This time last year, housing inventory was at 3.2 months.

Current market snapshot – Currently, there are over 11,000 homes for sale, and more than 2,900 homes have seen a price reduction in the last month.

Reflecting on 2023: A Year of Challenges and Milestones

Nationally, the year concluded with 4.09 million existing home sales, marking the lowest level since 1995, as reported by NAR. The 30-year fixed-rate mortgage reached a 23-year high in early November, and a persistent shortage of inventory remained a challenge throughout the year for homebuyers.

Mortgage Market and Housing Outlook for 2024

In 2024, Fannie Mae predicts a positive shift in the mortgage market, expecting rates to drop below 6%, reviving existing home sales. Amid a slowly growing economy, the housing market is anticipated to find balance, benefiting from a decline in inflation and potential rate cuts. Following a market low in the second half of 2023, signs of improvement are evident. Fannie Mae envisions a stable rise in existing home sales, limited home price growth, and forecasts an increase in origination volume. 

“This positive outlook creates opportunities for both buyers and sellers, promising lower rates, enhanced affordability, and a more stable housing market in 2024,” said Marisa Jackson, Agent Success Manager at Realty San Antonio Compass.

San Antonio Job Growth: Impact on Housing Market

San Antonio stands out with a strong year-over-year job growth of 3.2%, placing it among the top-performing metros, alongside Dallas (3.3%) and Fort Worth (2.8%), according to the latest Centex job growth and unemployment report. Despite a slight dip in jobs in December, the seasonally adjusted series indicates stability, with a modest gain of 0.5% in San Antonio. Unemployment rates vary, with San Antonio at 3.1%, slightly below the national average. Understanding these job market nuances is crucial for potential home buyers and sellers in San Antonio, as employment trends directly influence the real estate landscape.

“For potential home sellers, comprehending job market dynamics is crucial as they influence buyer demand and overall market conditions,” explained Marisa Jackson, Agent Success Manager at Realty San Antonio Compass.

Homebuilders’ Growing Optimism

San Antonio's housing market faces a dynamic start in 2024 as home builders express growing optimism for the second consecutive month, with the NAHB/Wells Fargo Housing Market Index rising seven points in January. This surge in confidence is attributed to mortgage rates staying below 7%, enticing buyers back into the market after a period of higher borrowing costs. However, despite the positive sentiment, challenges such as reported price cuts (31% of builders reducing prices by an average of 6%) and impending supply-side issues are on the horizon. 

Mortgage Applications Increase, Influencing Homebuyer Demand

Mortgage applications went up by 3.7% for the week ending January 19, 2024, according to the Mortgage Bankers Association's Weekly Survey. 

“Even though the interest rates on mortgages slightly increased, there was still a rise in applications from people wanting to buy homes. More loan applications could mean more people are interested in buying homes, impacting the overall demand in the housing market,” said Marisa Jackson, Agent Success Manager at Realty San Antonio Compass.

As you embark on your real estate journey, Realty San Antonio Compass is here to guide you through the ever-changing market. Our team of experienced agents is committed to providing personalized insights and expert guidance, empowering you to make informed decisions for your future. Connect with us at 210-361-6000 or realtor@realtysanantonio.com to ensure a successful and seamless real estate experience. 

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