San Antonio Housing Market Update | May 2024
Welcome to the May 2024 housing market update! I’m Krishna Perkins, your host, and today we’ll delve into both national and local real estate news, focusing particularly on the San Antonio housing market. But before we dive in, let me extend a warm Happy Mother’s Day to all the incredible moms out there!
Now, let’s get started with a national overview. One of the significant factors shaping the real estate landscape is inflation, which continues to surpass target rates. This high inflation has prevented significant interest rate cuts by the Federal Reserve. Despite expectations, we haven’t seen any rate cuts yet due to the persistent inflation rates, hovering around 8.9%.
Moving into the local scene, we observe interesting trends and responses within the San Antonio housing market. Builders are adapting to consumer demands and economic conditions by constructing more smaller-sized homes. In 2023, over a third of builders built smaller homes, and this trend is expected to continue in 2024. It’s essential for both buyers and sellers to pay attention to these shifts in demand and adjust their strategies accordingly.
As we analyze the market, it’s evident that sellers still hold the upper hand, despite some shifts. Inventory has increased by almost 5.5% from March to April, giving buyers more options. However, with 3.87 months’ worth of inventory, San Antonio remains a seller’s market. Sellers who price their homes correctly are experiencing quick sales, with properties selling within 3% of the list price.
Median sold prices for homes in San Antonio have reached $299,000, up nearly half a percent month-over-month. However, property values have remained relatively flat, indicating stability rather than significant growth. This stability can be attributed to the cautious approach of buyers and sellers amid economic uncertainties.
An intriguing aspect of the current market is the prevalence of assumable mortgages. This offers a clear advantage to both buyers and sellers, allowing for more flexibility and potentially better terms. Sellers, especially those who bought their homes in 2020 or 2021, should explore this option to maximize their opportunities in the market.
Looking ahead, it’s crucial to stay informed and adaptable in this dynamic real estate environment. Whether you’re a buyer or seller, understanding market trends and leveraging available resources can make a significant difference in achieving your goals. Feel free to drop your questions or comments below, and I’ll be happy to address them.
Until next time, stay informed, stay proactive, and happy house hunting!
Krishna Perkins