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 Real Estate Market Trends
According to data from the San Antonio Board of Realtors (SABOR), the San Antonio-New Braunfels MSA housing market experienced a 30% decrease in all homes sold in January 2023, with steady increases in average and median home prices compared to the previous year. However, existing and new construction homes both saw a decrease in sales compared to January 2022.
The market is also seeing an increase in the number of days a home stays on the market, with 3.2 months of inventory available. Despite this, the price per square foot has increased, and a high percentage of homes closed for their original list price. In this article, we'll dive deeper into the San Antonio housing market and what it means for buyers and sellers in 2023.
Sales Trends and Prices
The San Antonio housing market experienced a decline in sales in January 2023, with 1,311 existing homes and 431 new construction homes sold. However, the average price of an existing home has increased by 6%, now at $364,080, and the median price at $299,000, an increase of 3% from the previous year. Meanwhile, new construction homes have seen a slight increase in average prices, now at $386,645, and a 1% decrease in median prices, now at $327,250.
Days on the Market and Inventory
The market is currently seeing an increase in the number of days a home stays on the market compared to the same time last year, with a reported 66 days on the market. This is a year-over-year increase of 94%, which can be attributed to the decrease in sales. Additionally, there is currently 3.2 months of inventory available, which suggests that there is more supply than demand in the market. Despite the decrease in sales and increase in days on the market, the price per square foot has increased by 2.8% to $164. Moreover, 93.1% of homes closed for their original list price, indicating that sellers are pricing their homes accurately in the current market conditions.
Bexar County and Other Major Counties in Texas
Bexar County has seen a 35% decrease in home sales, with an average home price increase of 6.7% and a median price increase of 2.6%. The other major counties in Texas, Travis, Harris, and Dallas, have seen increases in median home prices, with reported prices of $500,000, $300,000, and $338,500, respectively.
Across the state, home sales have decreased by 28.2% from January 2022. However, median prices have increased by 2.5%, and homes are staying on the market for an average of 62 days. There are 2.7 months of inventory available, and 93% of homes closed for their original list price.
What It Means for Buyers and Sellers
With the San Antonio housing market currently favoring buyers, sellers may need to adjust their pricing strategies and expectations accordingly. Buyers may have more negotiating power in the current market conditions, but it is still crucial to act quickly and make competitive offers. Overall, both buyers and sellers should work closely with experienced real estate agents who can provide valuable insights and guidance throughout the buying or selling process.
San Antonio Housing Market Forecast 2023-2024
San Antonio's housing market has shown steady growth in the past year, with an average home value of $286,195, an increase of 6.1% from the previous year. The market is currently doing fine, with homes going to pending in just 37 days and an average sale-to-list ratio of 0.985. However, the market is expected to cool slightly over the next year, with a 0.3% 1-year market forecast.
Investors and buyers can expect to see a decrease in the percentage of sales over list price, which currently stands at 17.3%, and an increase in sales under list price, which is currently at 60.8%. Looking at the current market trends and the forecast provided by Zillow's research, it is likely that the San Antonio housing market will continue to see growth in 2023-2024.
While there may be slight fluctuations, overall home values are expected to increase, which could be good news for investors and sellers. However, buyers should be prepared for a competitive market with a relatively low inventory, as seen in the 3.2 months of inventory reported in January 2023. Homes are also staying on the market for a longer period of time compared to the previous year, indicating that buyers may have more negotiating power.
The median sale-to-list ratio of 0.985 and the percent of sales over list price at 17.3% show that sellers are still able to command a premium price for their homes, but there is still room for negotiation. Buyers should be prepared to act quickly and make competitive offers if they want to secure a home in this market.
Overall, the San Antonio housing market is expected to remain strong in 2023-2024, with continued growth in home values and a competitive market for buyers and sellers alike. Investors should consider taking advantage of this market and investing in the area while the market is still hot.
Can the market crash?
There is always a risk of a housing market crash, but it is difficult to predict with certainty. Factors such as economic conditions, interest rates, and inventory levels can all contribute to the stability of the market. The San Antonio housing market has remained relatively stable and resilient despite the challenges of the past couple of years, and it is expected to continue to grow in the near future.
While the current trends in San Antonio appear to be positive, it's impossible to predict the future with certainty. Investors and homebuyers should always do their due diligence and consider factors such as their financial situation, long-term goals, and the overall health of the local economy before making any major decisions. While there is always some level of risk involved in any investment, a well-informed and strategic approach can help mitigate potential losses and maximize returns. Ultimately, only time will tell what the future holds for the San Antonio housing market.
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.