San Antonio's real estate market is experiencing an uptick as mortgage rates have taken a dip this month, raising home buyer activity in a summer that's been otherwise slow for housing movement. FOX San Antonio reports that with rates falling below figures seen in over a year, industry professionals are noticing changes, "They dipped, and people were seeing that we're seeing 8% interest rates on their pre-approval, started to see 6.5% interest rates on it," said Jay Baig, CrossCountry Mortgage Sales Manager. This decrease has been a beacon for potential buyers, including a rise in first-time homeowners now able to enter the market with greater purchasing power.
Despite the encouraging rates, the San Antonio housing landscape remains a balanced market. According to Zillow's monthly report, homes in San Antonio are staying on the market longer with an average of 63 days which is nearly double the national average, the shifting landscape is seeing more listings, and some price reductions, as reported by mySanAntonio, As the June Zillow Home Value Index marginal rose by 0.1% to $289,118 up 34.9% since the COVID-19 pandemic, indicating an adjustment period while the markets react to the economic climate and interest rates.
Sources indicate that the potential for future rate reductions could bring more buyers to the fray. "September, December, both of those are really being watched. I think buyers are anticipating that and getting ready to get on mortgages probably again, around five and a half percent," Jay Baig told FOX San Antonio. This expectation might suggest a seasonal pattern in the upcoming months where buyers time their entry into the market.
Comparatively, neighboring cities are exhibiting their own market trends; Austin has entered more of a buyer's market with a slight decline in their Home Value Index, while Dallas and Houston have seen increases, however modest they may be, as noted by mySanAntonio; and although San Antonio has seen price cuts on 31.7% of sold listings, there's been a 28% increase year-over-year on inventory, reflecting a market that is both correcting itself and still navigating the impacts of economic unpredictability that has followed in the wake of the pandemic.
