San Antonio Housing Market Update | September 2024
The San Antonio housing market is experiencing some interesting shifts this September. In this blog post, I’ll discuss some key insights and trends shaping the market. You can also check out my full video update below to dive deeper into the data.
National Headlines and Their Impact on San Antonio
I always like to start with a broader view of the real estate market and how it might affect us locally. There are two articles I came across recently that shed some light on current trends.
First, CNBC’s Jessica Dickler explores the “Vibecession,” “a term used to describe the disconnect between the economy’s performance and people’s feelings about their financial standing. While the economy seems strong, many people still feel uncertain. As inflation cools and the Federal Reserve considers lowering interest rates, this sentiment might shift, which could impact the real estate market.”
Another article from CNBC by Robert Frank discusses the surge in ultra-luxury home sales in places like New York and Palm Beach. “While it’s great to see movement in high-end markets, there are still challenges with million-dollar properties in some regions. For us in San Antonio, the luxury market might not be as prominent, but it’s worth noting how national trends can still influence local demand.”
San Antonio Real Estate Data Highlights
Now, let’s get into the local data, because things are getting interesting!
1. Inventory Levels Are Rising
- We’re seeing a 2% month-over-month increase in inventory, meaning more homes are available on the market.
- Some neighborhoods in San Antonio are starting to transition from a seller’s market to a balanced or even a buyer’s market. This shift can create opportunities for those looking to make a move.
2. Home Prices Are Shifting
- The median home price in San Antonio for August was $298,000, down about 2% from the previous month.
- Newly listed homes came in at a typical list price of $295,000, which is down 4.5%. This means sellers are getting more aggressive with pricing as the market adjusts.
3. Homes Are Taking Longer to Sell
- Homes are spending about 34 days on the market, an increase of about 10%. Buyers are becoming more selective, which is partly due to rising interest rates.
4. Pending and Sold Listings Are Down
- Pending home sales have dropped 14%, and the number of properties sold is down 16.5% from the previous month. This signals a cooling market as higher rates and seasonal trends come into play.
Interest Rates: What’s Next?
A lot of the changes we’re seeing can be attributed to rising interest rates. However, many experts believe that the Federal Reserve will start cutting rates soon, which could spark renewed buying activity. Even before any official rate cuts, we’ve seen a slight drop in interest rates, which helped boost activity for a short period. If rates continue to fall, we could see buyers rushing back to the market to take advantage of better mortgage deals.
Where Is the San Antonio Market Headed?
We’re in a transition phase right now. There’s been a 30% increase in supply over the last 12 months, which could tip the balance even further toward buyers if demand doesn’t pick up. Interest rate cuts will be a key factor in determining how the market moves forward.
For more in-depth analysis, check out my video below, where I go into greater detail about the local market trends and how they could affect your buying or selling decisions.
If you’re thinking about buying or selling, or if you have any questions about the San Antonio housing market, feel free to give me a call at 210-260-6617. I’d love to help you navigate this evolving market.
Until next time,
Krishna Perkins
San Antonio Real Estate Expert