San Antonio Housing Market Update | January 2024
The San Antonio housing market has experienced dynamic shifts in recent months, with new home listings reaching a peak at the end of November 2023. As we enter early 2024, there’s a notable trend in declining mortgage rates, sparking interest and anticipation among homebuyers and sellers alike.
Interest Rates and Market Trends
Interest rates are pivotal in shaping the real estate landscape, influencing competition among buyers and sellers. And so far 2024 has witnessed a continued downward fluctuation in mortgage rates, presenting a favorable scenario for active homebuyers.
Experts are optimistic about this trend, with Goldman Sachs forecasting three consecutive 25 basis point cuts in March, May, and June. This move aims to reset the policy rate, addressing concerns about restrictive territory. Dean Baker, a senior economist, also observes a downward trajectory in mortgage rates, potentially reaching levels below 6%, which would be considered low by pre-Great Recession standards.
Local Market Insights
Shifting the focus to the local San Antonio housing market, the city is still experiencing a seller’s market, though the margin has decreased slightly. With 3.99 months of inventory, the market remains competitive. The price-to-sold-price ratio stands strong at 97.3%, indicating favorable conditions for sellers. Additionally, the median days on the market have been reduced to 41 days, reflecting a faster selling pace.
Key Metrics:
- Median sold price: $290,000 (3.2% higher than the previous month)
- Median estimated values: $292,500 (7% change from November to December)
- December new listings peaked but have been on a steady decline
- Active listings with a median list price of $314,000 for larger homes (1,800 square ft or more)
Predictions and Closing Thoughts:
While the San Antonio housing market experienced just above-normal home price appreciation in 2023, smaller homes have dominated the market. However, with lower interest rates, larger homes may be regaining focus in the coming months.
Fluctuations based on economic data and new cycles leading up to each quarter may influence the market. Moreover, being an election year adds an element of unpredictability, as housing policies and promises may emerge from both political parties.
If you want to make a move, let’s connect! Call or text 210-260-6617