Northeast San Antonio Housing Market Update April 2023
Have Home Value Declines Stabilized?
You be the judge. Nationally Case-Shiller and FHFA show a steady decline after peaking in May-June due to interest rates doubling at over 7%.
Month Over Month Local San Antonio Home Value Declines
At first glance, the local data for home value declines can look scary, but when we consider what was happening at the peak of 2022 it can make more sense. In 2022 leading up to the May-June time frame, buyers were fighting tooth and nail to get into homes before interest rates finally moved many buyers to the sideline and drastically changed their behavior.
No more would run-down homes fetch top dollar along with turnkey properties.
In December, you can see a spike in activity here in San Antonio as home builders and resale sellers finally started seeing results from offering incentives to buyers.
We went through a winter cool-down in January. And ever since then, we have been back on the incline as spring has approached.
Year Over Year San Antonio Home Values
After looking at month-over-month trends taking a step back and looking at year-over-year trends shows we still have positive home price appreciation.
Could something in the market force prices come down further? Possibly. But currently, experts are predicting average home price appreciation to remain flat or slightly negative in 2023. And then moving forward in 2024 with 1.9% appreciation and around a 3-4% increase in value across the nation starting in 2025.
What Will San Antonio Home Prices Look Like
While there are never any guarantees when making home price predictions based on historical movement patterns of people moving from higher-priced markets and colder climates, my guess is that San Antonio and surrounding suburbs will continue to see higher-than-average appreciation rates predicted in the chart above.
Bottom Line
Interest rates are the leading factor holding back buying activity. The Fed seems reluctant to lower rates at this time and may increase rates again this May. However, with inventory still hovering under at 2.5 months here in San Antonio home prices may continue to remain stubborn enough to continue to the upside. Are you ready to make a move? Let’s connect