In the latest real estate market summary from the San Antonio Board of REALTORS for December 2023, we observe a nuanced landscape shaped by varying trends across different property types and market segments. Let’s dive into the key takeaways and their implications for both buyers and sellers in the San Antonio area.
Overview of Market Activity
December’s figures show a mixed bag of results with a slight decrease in closed listings for all property types combined (-3% from the previous year) but an uptick in multifamily and residential lots & acreage segments by 8% and 3%, respectively. Interestingly, while the median price for all properties held steady, specific categories such as rural farms & ranches saw a significant increase in median price (19% year-over-year), highlighting a growing interest in more spacious, outside-the-city living options.
Price Dynamics
The average price for single-family homes remained stable, reflecting a market that balances buyer and seller expectations well. Condominiums and townhomes, however, experienced a notable decline in average price (-24%), suggesting a potential opportunity for buyers eyeing this segment. The rural farms & ranches segment also saw an impressive 2% increase in average price, further underscoring the heightened demand for more secluded, private properties.
Inventory and Listings
Active listings for all property types have risen by 22%, indicating a more favorable market for buyers with more options to choose from. However, this increase in inventory varies significantly across different property types, with rural farms & ranches experiencing a substantial 49% uptick in active listings, contrasting with a more modest 19% increase for single-family homes.
Market Absorption and Days on Market (DOM)
The Days on Market (DOM) have seen an increase across the board, with all property types experiencing a 20% longer period before sale. This trend suggests that while buyers have more options, they are also taking their time to make purchasing decisions, possibly negotiating more favorable terms.
Implications for Buyers and Sellers
For Sellers: The current market conditions underscore the importance of pricing properties competitively, particularly in segments experiencing price declines or longer DOM. Sellers in high-demand segments like rural farms & ranches might find it advantageous to list their properties now to capitalize on the increased interest.
For Buyers: The rise in inventory and the longer DOM provide a more relaxed environment for decision-making and negotiating. Buyers interested in condominiums and townhomes may find particularly good deals due to the segment’s price adjustments.
Conclusion
The San Antonio real estate market presents diverse opportunities and challenges for buyers and sellers alike. While the overall market shows slight contraction in closed listings, the increase in inventory and stabilization of prices in many segments offer a promising landscape for 2024. Buyers have the leverage of choice and negotiating power, whereas sellers in sought-after segments can still capitalize on strong demand. As always, a strategic approach tailored to the nuances of the current market will be key to successful real estate transactions in the coming year.
