A changing market From the cover
What you need to know
April median home prices
-51.23%
$800K
KEY
The market for single-family homes in the north San Antonio area—and across much of the city—is showing flexibility for some buyers, as homes stay on the market for three to four months on average in 2024, and sellers are once again offering a few concessions to buyers, said Chelsea Roberts, the 2024 president of the Four Rivers Association of Realtors. But several factors, including high interest rates and inflation, are keeping prices high. Months of inventory on the market—an indicator determined by counting the number of active listings and pending sales in a market, according to the National Association of Realtors—would traditionally indicate a more “balanced” market, but price inflation and interest rates are curbing some activity as potential buyers wait it out, Roberts said. According to the NAR, if inventory is rising there is usually less pressure for prices to increase. “In 2020-2021, people would pay $10,000 over the asking price. In 2023 and now in 2024 we're seeing that it's more negotiable. People are able to put in at times lower offers than asking,” Roberts said. “But there's not as many buyers. We're not yet in a buyer's market.” Keith Campbell, a realtor with LPT Realty Group, said interest rates have reduced the amount of house people can buy, leading buyers to be more educated and patient when purchasing a home. Compared to 2021 and 2022, sellers are having to do more to market to buyers. “Buyers are a whole lot more patient now,” Campbell said. “Houses aren’t flying off the market. Your house has to look good, smell good, show right, and it has to be priced right.”
2023 2024 2022 2020 2021 2019
$640K
+1.67%
+11.11%
+12.98%
+0.37%
$480K
$320K
$160K
$0
78148
78154
78233
78266
78108
April average days on the market
100
+138.88%
+115.79%
+541.66%
+247.62%
+95%
KEY
2023 2024 2022 2020 2021 2019
80
60
40
20
0
78148
78154
78233
78266
78108
SOURCE: SAN ANTONIO BOARD OF REALTORS/COMMUNITY IMPACT
Interest rate changes The Federal Reserve can combat inflation by increasing interest rates or stimulate the economy by lowering them. Over the past 20 years, the rate has fluctuated between 0% and 5.33%.
How we got here
ownership, the maintenance costs associated with a home and the longevity of investments, he said. “In 2023, we might have shown around 20 houses before the buyer made an offer,” Campbell said. “We are easily showing double or triple that now. It could be 50 to 60 houses before they make a move.” With the changes in interest rate, Campbell said his recommendation is for buyers to go for homes they can afford payments on, and if interest rates decrease, potentially refinance the loan on the home. “If rates go down, you can refinance, but if they continue to go up, you will be happy you got a home when you did,” he said
Jose Trinidad, a finance and economics professor at Texas State University, said looking to the baby boomer generation is one example of how the elevated interest rates and home prices change behavior in the market. Many baby boomer homeowners attained gains in their home values, but they cannot opt to size down due to higher prices compounded with higher interest rates, he said. Interest rates are currently around 7%, but the market still hasn’t slowed down for buyers. Campbell said buyers are seeing more houses before committing to a purchase, due to rising interest rates and changes in the market. Buyers are more interested in the cost of
6%
5%
5.33%
4%
3%
2%
0.25%
1%
0%
2019
2020 2021
2022
2023 2024
SOURCES: FEDERAL RESERVE, FREDDY MAC/COMMUNITY IMPACT
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