Here’s what the market in March showed, and what it likely has in store…
The average sales price is continuing to tick up slowly. The average home price has jumped a couple of thousand dollars from $259k-261k since January.
The average days on market has also increased, too. It’s risen from 58 days to 68 days. We haven’t seen time on market above two months in quite a while, so this is a significant difference. Part of that impact is likely a trickle effect remaining from the combination of higher interest rates over the winter (mid-5s) and the government shutdown, which though it didn’t have a huge impact in San Antonio (we had it impact several of our clients, unfortunately), it was enough to create concern in the marketplace for a short period.
There were 4,364 listing agreements signed in March. For perspective, that’s roughly 10% of all listings signed in 2018.
There were also 6,092 pending sales in March, which was over 11% of all sales last year. We definitely saw the uptick in sales begin around late March, but we are expecting an even higher report for April as the number of showings on our listings spiked around the second week of April and continued to increase from there.
Interest rates are good–they’re in the mid-4s. For military clientele or first home buyers who purchase in late 2015-early 2017 in the mid-3s who are ready to purchase again, the jump to mid-4s is a bit of sticker shock, but historically, rates have averaged in the mid-8s over the past 50 years, so mid-4s are still really low!
Prices have not skyrocketed, so we still have a pretty stable housing economy.
The reduction in BAH at multiple ranks has impacted the purchasing power of military homebuyers and those in the areas surrounding military installations who need to sell as a lower purchasing power impacts the number of buyers available at certain price points.
Two months on market average for listings, though, still means we are in a strong seller’s market, as we would need to be closer to 4-5 months on market average to see a buyer’s market.
If you have questions about what the housing market update means for your particular situation, please don’t hesitate to reach out.
Check back each month to get an understanding of what is going on in the housing market in San Antonio.
Got specific questions? Email me at firstname.lastname@example.org