SAN ANTONIO – The real estate market is continuing to see a decline in sales as mortgage rates remain high after a somewhat volatile few years in the housing industry.
According to the San Antonio Board of Realtors (SABOR), home sales are down 9.7% across Texas and down 9% in San Antonio compared to this time last year.
Recommended Videos
Median and average home prices for the San Antonio area are also down.
Data from SABOR shows the median price of a home dropped 6% from June 2022 to June 2023, while the average price of a home had a very slight decrease of around $1,620 during the same time period.
| June 2021 | June 2022 | June 2023 | |
|---|---|---|---|
| Total Month Sales | 3,993 homes | 3,681 homes | 3,354 homes |
| Average Price | $341,180 | $397,144 | $395,524 |
| Median Price | $286,000 | $340,000 | $320,950 |
“Another noteworthy trend observed is the significant increase in the number of days on the market, which rose by 121% to reach 64 days,” said SABOR’s 2023 Chair of the Board Sara Briseño Gerrish. “This suggests a more deliberate decision-making process among buyers, potentially due to increased scrutiny or the need for a more thorough evaluation of available options.”
That trend can also be seen nationally. Roughly 14 of every 1,000 U.S. homes changed hands during the first six months of 2023, according to a new report from Redfin.
“That means prospective homebuyers have 28% fewer homes to choose from than they did before the pandemic upended the U.S. housing market,” data from the technology-powered real estate brokerage shows.
Nationally, house hunters searching for large homes in the suburbs have seen the biggest drop in their options, according to Redfin. Data shows buyers of four-bedroom-plus, suburban, single-family homes have 33% fewer houses to choose from.
Forbes recently released a mortgage rates interest forecast for the year and noted that home loans remain caught in a tug-of-war between high inflation and the Federal Reserve’s actions to rein in inflation, which often indirectly pushes long-term mortgage rates higher.
The Fed’s current policy rate is in the 5-5.25% range but new projections are indicated additional rate hikes before the end of the year.
“The indirect impact of more rate hikes portends an increase to the 30-year fixed mortgage rate -- which has been inching closer to 7% in recent weeks,” according to Forbes.
You can view more mortgage rate predictions from various real estate experts on Forbes.com.