San Antonio Home Inventory Reaches Highest Levels in a Decade
San Antonio’s housing market has seen some significant shifts as we transition into the fall and winter seasons, which are typically slower for home sales. According to the latest data from the San Antonio Board of Realtors, inventory levels have risen to 5.3 months in July and 5.26 months in August, marking the highest levels we’ve seen since February 2013. This increase in supply is noteworthy, especially for those keeping an eye on the San Antonio real estate scene.
Understanding Inventory Levels
So, what does that inventory number really mean? Essentially, it measures how long it would take for homes currently on the market to be sold at the current sales pace. Generally, a six-month supply is seen as a balanced market, which keeps things fair for both buyers and sellers. With numbers over five months, signs are pointing towards a market that is starting to normalize, moving away from the fast-paced selling frenzy we experienced during the pandemic.
Market Dynamics
However, with this uptick in available homes, there’s a mixed bag for buyers. While they have more choices, many are still balking at the high prices and mortgage rates that are lingering. From July to August, sales dipped by 4%, following a notable 11% surge in July from the same time last year. The median sale price saw a slight decrease, dipping 1.85% to $313,995 in August, while remaining steady at $320,000 in July. It seems there’s still a lot of hesitance out there among potential buyers.
Time on the Market
One other significant change is the amount of time homes are sitting on the market. In August, the average time listed jumped by 12% to 65 days. July had already shown a rise of 9%, with homes averaging 63 days. With that increase, sellers have had to adjust their strategies. Some are lowering their asking prices in hopes of attracting more interest, while others have opted to hold off on selling completely, choosing to rent out their homes and wait for the market to pick up.
The Impact of Previous Trends
Looking back, during the height of the pandemic, home inventory dropped to less than two months as buyers rushed in to take advantage of historically low mortgage rates. This surge in purchasing power drove prices up significantly. Now, with mortgage rates still on the higher side, about 6.2% for 30-year loans (compared to 7.18% last year), many potential buyers are still feeling sidelined despite recent decreases in rates.
The Road Ahead
As the Federal Reserve prepares for a potential rate cut this week, many are left wondering how this will play out in the housing market. Experts suggest it might take time for the effects to trickle down into actual increases in transactions. A lot will depend on how buyers adjust to combining high home prices with the lingering supply challenges.
As we head deeper into the fall, it’s clear the San Antonio housing market is at an interesting crossroads. Will buyers finally see the opportunities they’re waiting for, or will prices hold them back? Only time will tell, but for now, the landscape is changing, and there are definitely more homes to consider.
