July 2024 San Antonio Housing Market Update | Home Prices

Welcome to the July 2024 San Antonio Housing Market Update! In this post, we’ll delve into the latest trends and insights in the San Antonio housing market, with expert analysis from Krishna Perkins, licensed Realtor. Whether you’re a buyer, seller, or just curious about the real estate landscape, this comprehensive update will provide valuable information to help you make informed decisions.

Election Year Impact on the Housing Market

As we navigate through another election year, it’s essential to consider how previous elections have influenced the housing market. Historically, election years bring a sense of anticipation and uncertainty, both for the country and the housing market. Krishna begins by examining home price forecasts, which set the tone for the rest of the report.

Fannie Mae, the most optimistic entity, predicts a 4.8% national home price appreciation, while Freddie Mac, the most pessimistic, forecasts a 0.5% appreciation. Despite varying opinions, the consensus points to a 2.8% home price appreciation by year-end. This positive trend is expected to carry over into the San Antonio housing market as well.

Mortgage Rates and Their Impact

Mortgage rates have been a significant topic this year, with many anticipating rate cuts that have yet to materialize. Historically, mortgage rates tend to decrease in election years. Reviewing data from the past 11 presidential elections, eight saw decreases in mortgage rates from July to November. This trend provides hope for potential rate cuts, which would benefit the housing market.

New Home Prices and Builder Strategies

New home prices have shown positive trends in 10 out of the last 11 presidential elections. Builders have adapted by constructing smaller homes and cutting back on extras to keep prices affordable. Incentives have also been introduced to help buyers manage higher interest rates, ensuring a stable new home market.

Existing Home Prices

Examining existing home prices, Krishna notes that seven of the last eight presidential elections saw price increases. While we’ve seen some price decreases recently, the expectation is that home prices will rise once mortgage rates decrease. This potential increase could significantly impact the San Antonio housing market, making it crucial for buyers and sellers to stay informed.

Overall Home Sales Trends

Overall home sales have historically risen in nine of the last 11 presidential elections. Despite some decreases in specific years, the general trend points towards an increase in home sales post-election. Krishna anticipates a rise in total home sales in 2025 based on current market conditions and expected interest rate cuts.

San Antonio Housing Market Insights

Focusing on the San Antonio housing market, Krishna provides detailed insights:

• Inventory Trends: Inventory has been inching up, with an 11.68% month-over-month increase. This is great news for buyers but creates more competition for sellers.
• List-to-Sold Price Ratio: Properly priced homes are seeing about a 3% drop to the final sales price, with a median of 32 days on the market.
• Median Sales Prices: The median sold price is just shy of $299,000, showing a slight decrease from the previous month, indicating stable prices.
• New Listings: The number of new listings has slightly fallen, while active listings have increased by 10%, offering more options for buyers.
• Pending Sales: Pending sales are down, reflecting the typical seasonality of the market as buyer activity slows towards the end of summer.

Looking Ahead

As we approach the end of 2024, both buyers and sellers are eager for interest rates to decrease. While dramatic cuts aren’t expected soon, incremental reductions may occur, potentially leading to price increases in various areas.

Stay informed and make the best decisions for your situation by keeping an eye on market reports and trends.

Watch the Full Update

For a detailed analysis and Krishna’s expert insights, watch the full video below:

For more information or any questions, feel free to contact Krishna Perkins at 2110-260-6617. Don’t forget to like, subscribe, and hit the notification bell to stay updated with the latest market reports!