1. Price Trends
San Antonio continues to be a seller's market, with strong demand for homes. This has resulted in a steady increase in home prices. In 2022, the median home price in San Antonio rose by approximately 11%, and we expect this trend to continue in 2023.
2. Inventory Levels
One challenge buyers are facing is the limited inventory of available homes. The low housing supply has created a competitive environment, often resulting in multiple offers on desirable properties. If you're a buyer, being prepared and working with a proactive Real Estate Agent is crucial in this market.
3. Interest Rates
The good news for both buyers and sellers is that interest rates remain historically low. Low rates are encouraging buyers to enter the market, and this can potentially translate into more opportunities for sellers.
4. New Developments
San Antonio is experiencing a surge in new residential developments and construction projects. This is particularly notable in the suburbs and surrounding areas, where communities are expanding to accommodate the city's growing population.
Predictions for 2023
Now, let's take a look into the crystal ball and see what we can expect for the San Antonio real estate market in the coming months:
1. Continued Price Growth
We anticipate that home prices will continue to rise throughout 2023, albeit at a slightly slower pace compared to recent years. This means that if you're considering buying a home, acting sooner rather than later might be a wise decision. Take note that in August of 2023, home prices were down 1.8% compared to 2022, and sitting on market for an average of 38 days compared to 22 in 2022 (source:
REDFIN). This alludes to a Buyer’s market, so if you’re looking to buy, you may get some seriously great incentives when you close.
2. Inventory Challenges Persist
The limited housing inventory is likely to persist, at least in the short term. Buyers should be prepared to act quickly when they find a home they love. Having a mortgage pre-approval in hand and working with an experienced Real Estate Agent can make all the difference in securing your dream home.
3. Steady Interest Rates
Experts predict that interest rates will remain relatively stable in 2023. However, it's essential to keep an eye on economic conditions and Federal Reserve decisions, as any significant changes could impact mortgage rates.
4. Focus on Suburban Living
As urban areas become more congested, we expect a continued focus on suburban living. San Antonio's suburbs offer excellent schools, amenities, and a quieter pace of life. This trend is likely to drive demand in areas like Boerne, Schertz, and New Braunfels.
How Can You Navigate the 2023 San Antonio Real Estate Market?
Whether you're a buyer or seller, the key to success in the San Antonio real estate market in 2023 is preparation and expert guidance:
For Buyers:
Get Pre-Approved: Start by getting pre-approved for a mortgage. This not only helps you understand your budget but also makes your offers more attractive to sellers.
Work with a Real Estate Agent: Partner with a seasoned Real Estate Agent like me who understands the local market intricacies and can help you navigate the competitive landscape.
Be Patient and Flexible: In a competitive market, it may take time to find the right home. Be patient and stay open to different neighborhoods and property types.
For Sellers:
Price Realistically: While it's a seller's market, it's essential to price your home realistically. An overpriced property can deter potential buyers.
Enhance Curb Appeal: First impressions matter. Invest in curb appeal to make your home stand out.
Hire an Experienced Real Estate Agent: A skilled Real Estate Agent can help you market your property effectively and negotiate on your behalf.
So, there you have it—a glimpse into the 2023 San Antonio real estate market and what to expect. Remember, the real estate landscape can change quickly, so staying informed and working with a trusted Real Estate Agent is your best strategy for success. If you have any questions or are ready to embark on your real estate journey, don't hesitate to reach out to me. Here's to a fantastic year in San Antonio real estate!
-Evie Hansen
