Home Sales in San Antonio Experience Notable Slowdown This Summer

Home Sales in San Antonio See a Slowdown This Summer

San Antonio, a vibrant city known for its rich culture and warm hospitality, is currently experiencing a shift in its housing market. According to recent data, houses that are on the market during the summer months are taking significantly longer to sell than in previous years. The report indicates that in August, homes in San Antonio lingered on the market for an average of 57 days, which is approximately 12 days longer compared to the same period last year.

A Market Cooling Off

Thomas Tunstall, a Senior Director for Research at the UTSA Institute for Economic Development, remarked, “The market just isn’t as red hot as it used to be.” After several months of brisk sales where homes were snatched up almost as soon as they were listed, it seems the housing landscape is transitioning. This cooling trend is perceived as a natural part of the market cycle.

One contributing factor to this slowdown seems to be the impact of previous stimulus funds. David Macpherson, the Chair of the Economics Department at Trinity University, explained, “There was a lot of stimulus money where people did spend a lot, and then has driven down over time these excess funds that people had above normal.” He points out that inflationary pressures have diminished families’ disposable income, making it tougher to save for down payments on homes.

Summer Sales Falling Short

Historically, summer months have been a peak time for home sales in San Antonio. However, this year, sales have surprisingly dropped for the first time in years. “It’s a measure of how unusually slow San Antonio’s housing market has been this summer,” said Macpherson. As people are becoming more cautious, many seem to be holding off on purchasing decisions.

Waiting for Better Rates

One reason behind this caution is the expectation that interest rates may decline in the near future. Macpherson explains, “If you know that interest rates are going down in the future, you’re going to wait to buy to take advantage of those lower rates.” Just earlier this month, the Federal Reserve lowered interest rates, further influencing buyers to pause their home purchasing plans.

Price Adjustments on the Horizon

As homes continue to sit on the market longer, David Vequist, a Professor of Management at the University of the Incarnate Word, adds that homes may start to see necessary price drops. According to him, “the longer a home stays on the market, the more price drops it will see.” This could likely affect the newly built properties currently in high demand as well.

Advice for Prospective Homebuyers

For those looking to navigate this slightly slower market, experts have some valuable advice. It is wise to connect with a lender to determine your budget for a comfortable monthly mortgage payment. With the current changes in interest rates and property availability, having a clear financial plan can help buyers feel more prepared for their home search.

In summary, while the San Antonio housing market may not be as frenetic as it was in prior years, this period offers a unique opportunity for buyers. With increased time on the market, potential for better rates, and fluctuating prices, it’s undoubtedly a time for careful consideration. So whether you’re a first-time homebuyer or looking to upgrade your living space, being informed and patient may very well work in your favor.