Coming in to summer we expect median list prices to rise but we also expect there to be more homes listed for sale. This isn’t the case in San Antonio where prices are rising but inventory is not. There are 16 percent fewer homes listed today than there were this time last year and as demand goes up, so too will list prices. San Antonio is definitely experiencing a seller’s market right now but if buyers want to take control they should either wait to purchase a home in the city, or move quickly before list prices and mortgages climb even further.
Watch for Rising Prices in San Antonio
San Antonio still has plenty of very affordable housing though the median list price for the city is definitely on the way up. Last year around summer San Antonio experienced a price hike and this summer looks to be no different. Median list prices are still some way off their last real peak in summer 2009 but if the trend continues it’s going to become increasingly difficult for first-time home buyers to be able to afford starter homes.
So what are the prices like right now – the median list price today is 9 percent higher than it was this time last year, rising from just under $170,500 to $185,000. Coming into the busier summer period is likely to be impacting list prices, but the fact that there are fewer homes listed today compared to last year will also be having an effect. This time last year 6,729 homes were listed for sale but the real estate inventory for San Antonio has dropped to 5,664 today which is a decrease of 16 percent.
Fewer Homes Listed For Sale
The drop in inventory is also, unsurprisingly, affecting the median days on market. Less homes listed in San Antonio means buyers are competing for the better homes and hence they sell quicker, and for more money. Last year it was taking an average of 66 days to sell whereas now the median days on market is down to 58. That’s a drop of 12 percent.
The median price per square foot is a more realistic factor to determine if real estate in San Antonio is becoming more expensive, and though the hike hasn’t been quite as pronounced as the median list price there is an increase there all the same. Last year the median price per square foot was $84 but it’s increased by 6 percent to today’s figure of $89.
Mortgage Rates Rising in Texas
We’re also seeing a summer rise in mortgage rates across Texas, and actually across the country as a whole. Rates have been rising the last few weeks and today they stand at 3.77 percent in Texas, which is the same as the national average. This is continuing the trend for May, following a low point in mortgage rates at the beginning of the month when they were closer to 3.3 percent. Now though mortgage rates are just about exceeding what they were this time last year. If rates do continue to climb at this rate first time home buyers are going to start having trouble buying homes in San Antonio.
If you’re planning a move this summer it may be better to get your mortgage approved and see if you can fix in a rate before the rates climb any higher. The combination of rising mortgage rates and rising list prices is going to start impacting the San Antonio real estate market soon.
