Home Prices In San Antonio | Surprising Data You Need To See
Home prices in San Antonio peaked in June of 2022 and have been correcting ever since. But have home prices hit bottom yet? Today I will review the data to help you decide whether now is the right time to buy a home or sit tight.
Since the beginning of 2022, we have seen the fastest increase in interest rates in recent history to tame the red-hot inflation.
Interest Rates Today
As you can see from this graph, interest rates started at 3.22% in January last year and peaked at over 7% in November 2022. Through December, you will notice that rates began to fall and settled close to today’s rates in the mid to upper 6% range. This doubling of interest rates has added hundreds of dollars to monthly mortgage payments seemingly overnight. As you will see on this next graph, it has significantly impacted the housing market.
Have Home Values Hit Bottom?
This graph represents indices reporting data from across the U.S. The data was compiled by Case Shiller, FHFA, Black Knight, and CoreLogic. Like in 2020 and 2021, home values began climbing in 2022 again as buyers continued to purchase homes, seemingly in a race to beat the rate hikes as seen in the previous graph until about June. From July through October, in almost every one of these indices, home values took a hit or gained no value as interest rates took hold of the market.
Home Prices In San Antonio
Our next graph brings us to the local home prices in San Antonio. The home prices in this graph are for San Antonio’s month-over-month median single-family home sales.
As you can see, like the average of the country, home prices in San Antonio also peeked in the May/June time frame. In May, median home prices in San Antonio were at three hundred seventeen thousand dollars and then made a small point three two percent increase through Jun and then fell a full two point one two percent in July and two percent in August.
In September, home prices in San Antonio fell again another two-tenths of a percent, rebounded the loss briefly in October and then lost over two and a quarter percent in November.
Now the good news for those that sold in December is that buyers seemingly reacted to some better rates and pushed the market back up by over two and a quarter percent.
So, where does this leave us now? Have home values hit bottom? Maybe… Lawrence Yun Chief Economist of The National Association Of Realtors weighs in and says:
“The upcoming months should see a return of buyers, as mortgage rates appear to have already peaked and have been coming down since mid-November.”
That said, there’s no guarantee that the market will not see any hiccups or fluctuations. But as I have mentioned several times in other reports, San Antonio is still a destination for relocation even with our new higher home prices. As inflation corrects across the country and investors return to the market when more economic certainty arrives, increased competition for homes will resume. To what level, I don’t know, but the cycle will continue. It’s up to you to decide if now is the right time for you to make a move. If you’re ready to move in the San Antonio area let’s connect.
