San Antonio Housing Market Update October 2023

The San Antonio housing market has experienced some intriguing developments in recent months. We’ve observed fluctuations in new home listings, changes in median list prices, and shifts in the number of properties under contract. Additionally, the ongoing war in Israel has sparked concerns about its potential impact on the real estate market in the United States. In this blog post, we will summarize the key points from the provided transcript and provide a call to action for homebuyers.

San Antonio Housing Market Overview:

1. August’s Surprising Uptick: In August, the San Antonio housing market saw an unexpected surge in new home listings. While it’s typical to witness a decline in new listings as the fall season approaches, San Antonio defied this trend with a 10% increase in new listings, outperforming national averages.
2. September Data: Fast forward to September, and the local market took a different turn. New listing activity decreased by 5.2%, reflecting the onset of seasonal changes and possibly higher interest rates. Median list prices remained relatively stable, showing a slight 1% increase.
3. Market Dynamics: While San Antonio is still considered a seller’s market, there’s a more significant inventory available, offering more choices for homebuyers. The supply increased by 9.3% month-over-month, creating favorable conditions for buyers.
4. Impact of Interest Rates: Higher interest rates have contributed to the market’s fluctuations, affecting both buyers and sellers. The number of properties under contract fell by almost 19%, likely due to the higher borrowing costs.
5. Pricing and Days on the Market: The typical sold price for homes in San Antonio remained steady at around $299,995, with a 2% discount on the list price. Homes spent an average of 35 days on the market, making it a competitive market for sellers.

The Impact of the Israel War on Real Estate:

As the ongoing war in Israel unfolds, it raises concerns about its potential impact on the U.S. real estate market. While the situation is still evolving, there are some similarities with the Russia-Ukraine conflict’s impact on the U.S. housing economy earlier.

1. Stock Market Uncertainty: Stock markets have been volatile since the conflict began, and this uncertainty might make aspiring homebuyers more hesitant to invest in real estate, particularly in the luxury real estate market.
2. Inflation Concerns: The fear of how a full-blown war in Europe might affect U.S. inflation, which is already at a 40-year high, could influence the housing market. Inflation tends to lead to higher interest rates, which can impact affordability for homebuyers.

What can home buyers do?

In light of the current market conditions and geopolitical uncertainties, it’s essential for homebuyers in San Antonio to remain vigilant and informed. Here are some steps to consider:

1. Consult with a Real Estate Professional: Work with an experienced real estate agent who can provide guidance based on the latest market conditions and help you make well-informed decisions.
2. Be Prepared Financially: Stay updated on interest rates and be prepared for possible fluctuations. Ensure your financial readiness for a home purchase.
3. Keep an Eye on the Market: Stay informed about the local and national housing market trends to understand how they might affect your buying process.

Conclusion: The San Antonio housing market has shown fluctuations in new listings, inventory, and prices, and the ongoing conflict in Israel introduces another layer of uncertainty. By staying informed, working with professionals, and being financially prepared, homebuyers can navigate these conditions and make the best decisions for their real estate investments. Our thoughts and prayers are with the people affected by the Israel War, and we will continue to monitor its potential impact on the housing market.