In 2023, the San Antonio housing market is expected to face new challenges amidst rising interest rates. The city, which is the second-largest in Texas, has been experiencing a hot housing market in recent years, with home values increasing steadily. However, as the Federal Reserve continues to raise interest rates to combat inflation, this could potentially impact the demand for homes in San Antonio.
Nevertheless, experts predict that the market will remain strong, with steady growth and increasing demand for homes in certain areas of the city. In this article, we'll take a closer look at the current state of the San Antonio housing market, including prices, trends, and forecasts for 2023.
San Antonio Housing Market Report: A Look at the Latest Trends
The San Antonio real estate market has been resilient, with July 2023 showing interesting trends and statistics. Let's delve into the details of the market report released by the San Antonio Board of REALTORS® (SABOR).
Overview of July 2023 Market Data
In July 2023, a total of 3,105 residential properties were sold in the San Antonio area. While this represents a 6% decrease compared to the previous year, the average sales price remained steady at $387,501 year-over-year. However, the median price experienced a modest 2% decline, settling at $323,000. Despite this decline, the overall health and attractiveness of the market remain evident.
Sales Distribution by Price
An examination of the sales distribution based on price percentages reveals the diverse nature of the San Antonio housing market. Notably, 9% of sales were priced at $199,000 and below, highlighting affordability. Most sales, comprising 73%, fell within the $200,000 – $499,000 range, showcasing the market's middle ground. High-end properties priced at $500,000 and above constituted 18% of the total sales, indicating the market's inclusivity.
Price per Square Foot and Days on Market
The price per square foot experienced a marginal 2% year-over-year decrease, amounting to $182. Homes spent an average of 57 days on the market, marking a substantial 104% increase from the previous year. This increase in days on market suggests a shifting dynamic in buyer and seller negotiations.
Buyer and Seller Commitment
Sara Briseño Gerrish, SABOR's 2023 Chair of the Board, emphasized, “The steadfast commitment of both buyers and sellers to real estate value is highlighted by the fact that properties sold for an average of 95.3% of their original listing price.” This commitment reflects the strength of the San Antonio housing market.
Inventory and Listings
New listings entering the market totaled 4,258, reflecting a prudent 17% year-over-year decrease, while active listings surged by 25% to reach 10,964, indicating a robust supply of housing options. Pending listings experienced an 18% year-over-year decrease, resulting in a total of 2,464. The month ended with a reported 3.8-month supply of inventory available, suggesting a balanced market.
Bexar County and Comparison with Other Major Counties
In Bexar County, a total of 2,152 properties were sold, marking a 7.1% year-over-year decrease. The average price displayed a modest 0.4% increase to reach $361,244, while the median price experienced a slight 2.7% year-over-year decrease, settling at $305,000. In comparison to other major Texas counties, Bexar County remains relatively affordable, with Travis, Harris, and Dallas reporting median home prices of $569,000, $330,000, and $375,000, respectively.
Texas Real Estate Landscape
In the broader context of Texas, the real estate landscape has shown notable trends. A total of 28,162 properties were sold, reflecting a 7.7% decrease from the same time last year. While the average price experienced a 1.4% year-over-year decrease, amounting to $434,183, the median price followed suit with a 0.7% decrease, reaching $349,900. The price per square foot showed a 0.7% decrease, at $190. Properties spent an average of 47 days on the market, and the market showcased a balanced supply with 3.3 months of inventory available.
The San Antonio housing market in July 2023 reflects a dynamic and resilient landscape. Despite a decrease in sales compared to the previous year, the market remains attractive and diverse in terms of price points. Buyer and seller commitment, as well as a balanced supply of inventory, contribute to the overall strength of the market. As we move forward, it will be interesting to see how these trends evolve and shape the future of San Antonio's real estate market.
San Antonio Housing Market Forecast 2023-2024
The San Antonio housing market, specifically the San Antonio-New Braunfels area, has experienced some changes in average home values and market activity over the past year. As we look to the future, it's important to consider the forecasted trends and potential opportunities that lie ahead for buyers and sellers. Let's explore the housing market forecast by Zillow for San Antonio.
Current Market Data (Data through July 31, 2023)
As of July 31, 2023, the average home value in the San Antonio-New Braunfels area stands at $293,180. This reflects a 1.3% decrease over the past year. Additionally, homes in this market typically go pending in around 20 days, indicating a relatively fast-paced environment.
Market Forecast (July 31, 2023)
Looking ahead, the market forecast for the next year shows a 5.1% increase by July 2024, suggesting potential growth and stability in the San Antonio housing market. This forecast provides some optimism for both buyers and sellers.
Key Metrics (June 30, 2023)
Several key metrics shed light on the current conditions:
- Median Sale to List Ratio: As of June 30, 2023, the median sale-to-list ratio is 0.995, indicating that, on average, homes are selling very close to their list prices.
- Percent of Sales Over List Price: In June 2023, 23.2% of sales were above the list price, suggesting that competition among buyers exists in certain segments of the market.
- Percent of Sales Under List Price: Conversely, 52.5% of sales were under the list price in June 2023, showing that negotiation opportunities are still prevalent.
- Median Days to Pending: Homes in the San Antonio area went pending in a median of 20 days as of July 31, 2023, indicating the market's agility.
Market Trends and Considerations
Considering the 1.3% decrease in average home value over the past year, some may wonder if home prices are dropping in San Antonio. While there has been a slight dip, it's important to note that the 5.1% one-year market forecast suggests potential for a rebound in prices.
So, is it a good time to buy a house in San Antonio? The answer depends on individual circumstances and goals. With a mix of homes selling above and below list price, there are opportunities for both buyers and sellers to find value in this market. It's crucial to work with a knowledgeable real estate agent who can provide insights tailored to your specific needs.
The San Antonio housing market is experiencing fluctuations, but it remains dynamic and offers potential for growth. Whether you're considering buying or selling a home in this area, staying informed about current market conditions and forecasts is essential. Consult with local experts to make well-informed decisions that align with your real estate goals.
San Antonio Real Estate Investment: Should You Invest Here?
San Antonio is a city located in South Central Texas that has shown steady growth in its real estate market over the years. With its strong economy and affordable cost of living, San Antonio is a great place for real estate investment. Whether you are a first-time investor or an experienced one, San Antonio offers a wide range of real estate opportunities.
Top 7 reasons to invest in San Antonio for the long term:
- Strong Job Market: San Antonio's economy is diverse and has a low unemployment rate, which makes it an attractive place for job seekers. This means that the demand for housing will continue to grow, making it an ideal place for real estate investment.
- Affordable Housing: San Antonio's housing market offers affordable options for both investors and homebuyers. With a lower median home price compared to other major cities in Texas, San Antonio offers a chance for investors to buy properties at a lower cost.
- Population Growth: San Antonio is among the fastest-growing cities in the United States, with a population growth rate of 16.5% from 2010 to 2020. This population growth has resulted in a high demand for housing, which translates to a stable real estate market for investors.
- Military Presence: San Antonio is home to several military bases, which has a positive impact on the local economy. The presence of military personnel means that there is a consistent demand for housing in the area, making it an ideal place for real estate investment.
- Pro-Business Climate: San Antonio is known for its pro-business environment, which attracts new businesses and creates job opportunities. This environment helps to keep the local economy stable and supports the growth of the real estate market.
- Favorable Landlord-Tenant Laws: Texas has some of the most favorable landlord-tenant laws in the country, which can make investing in San Antonio's real estate market less risky for investors. These laws provide landlords with more control over their properties and help ensure that tenants fulfill their lease agreements.
- Strong Rental Demand: San Antonio has a strong rental market, with a vacancy rate of less than 6%. This means that there is a high demand for rental properties, which can help investors generate a steady stream of rental income.
- Appreciation Potential: San Antonio's real estate market has been appreciating steadily over the past decade, and this trend is expected to continue in the coming years. This means that investors who purchase property in San Antonio now could see their investments appreciate in value over time
- Favorable Tax Laws: Texas has favorable tax laws for real estate investors, including no state income tax and low property taxes. This can help investors save money on taxes and increase their net returns on investment.
- Tourism: San Antonio is a popular tourist destination, attracting millions of visitors each year. The city is home to several famous landmarks, including the Alamo and the River Walk, which contribute to the local economy and provide additional opportunities for real estate investment.
- Quality of Life: San Antonio offers a high quality of life with excellent schools, affordable cost of living, and a warm climate. This makes it an attractive place for families and retirees, which in turn increases the demand for housing and creates a stable real estate market for investors.
- Low Cost of Living: San Antonio's low cost of living makes it an attractive destination for residents and investors alike. The city offers affordable housing, transportation, and entertainment options, which can help investors maximize their returns.
Overall, San Antonio's growing population, diverse housing options, strong economy, and favorable landlord-tenant laws make it an attractive destination for real estate investors. With strong rental demand, appreciation potential, and favorable tax laws, San Antonio is a promising market for long-term real estate investment.
Other Real Estate Investment Markets in Texas
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in San Antonio.
Consult with one of the investment counselors who can help build you a custom portfolio of San Antonio turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of San Antonio.
Not just limited to San Antonio or Texas but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete San Antonio turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Apart from San Antonio, there are several growing real estate markets in the state of Texas. Dallas is the one that is popular among real estate investors. It is a great market because it has a strong economy and constant population growth and will make your pockets bigger. As rents go up smart investors should invest in Dallas.
Dallas’s local economy is a mix of aerospace, computer chips, telecommunications, transport, energy, and healthcare sectors and Finance and Business Services. These sectors are all providers of good wages which allows for a strong market for Dallas investment properties.
The Dallas-Fort Worth area is exploding due to its strong job market, low housing costs, and low taxes. The Fort Worth housing market presents an excellent opportunity for investors because it is cheaper than its big brother and providers a wider variety of properties. The Fort Worth real estate market has a much lower density than the Dallas real estate market.
You can find high-density housing in downtown Fort Worth, but it is far easier to find horse-friendly properties in the Fort Worth real estate market than in the distant suburbs of Dallas. This is, of course, in addition to the luxury housing markets in both cities.
Similarly, Houston is another great market for investing in real estate. Houston, TX is becoming a hotbed of buyer activity that could be beneficial for real estate investors; just ask the multitude of overseas investors who are choosing Houston as the city of choice to invest in for the foreseeable future.
The Houston metro area offers great opportunities for investors who are looking for a stable market that offers both cash flow and equity growth at a price that is STILL well below their replacement value.
With Austin, Texas, becoming a more diverse city every year, there are plenty of opportunities to take advantage of – from buying new homes to different investment options in the Austin housing market. Austin is a leader across the country with jobs and when you combine that with home prices not as drastically increasing, you’ll get a real estate market that many others envy. It may be the second most expensive housing market in the state with a median home price of around $395,000, but it is still far cheaper than California or New York. Buy up condos or townhomes, and you’ll be able to see a sizable return on the investment.
Let us know which real estate markets in the United States you consider best for real estate investing!
Please do not make any real estate or financial decisions based solely on the information found within this article. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. This article aimed to educate investors who are keen to invest in San Antonio real estate. Purchasing an investment property requires a lot of study, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and taking the help of a real estate investment counselor.