In San Antonio and other US cities, not only are the price of gas and groceries going up, real estate prices are also on the rise. During the last year, San Antonio home values went up 14.3 percent according to Zillow, reaching nearly $300,000. However, nearly 47 percent of homes sold for under the list price. This can be confusing for buyers and sellers, who aren’t sure whether to make a move now, or wait. If you are thinking of buying or selling a house soon, a real estate agent is your best advisor to stay aware of market shifts. Taking a closer look at how inflation is affecting the San Antonio, Texas housing market can help you start a conversation with your real estate agent about the best plan to move forward.
Inflation, mortgage rates, and the overall state of housing
Housing markets fluctuate across the country, especially when it comes to inflation. For an overall picture of the US housing market and inflation, some real estate agents are reporting that home prices increased by 19.3 percent between February 2021 and February 2022. That’s partly because as mortgage rates went up, home prices went with them. That led to an 18.3 percent housing price increase between May 2021 and May 2022. When interest rates rise, and home prices increase, the housing market tends to slow down as buying a home becomes less affordable. This not only means higher prices, homes also sit on the market for longer — for example, Zillow reported in November 2022 that 21 days was the median for a San Antonio home to go from listing to sale.
Inflation considerations for buyers
Home prices will eventually go down, and buyers need to be ready for that moment. As homes sit on the market for longer, sellers may be more willing to offer price reductions and as inflation continues to rise, it’s possible that buyers could score deals on their dream homes. Working with a real estate agent who knows the market can help buyers to stay on top of trends and be ready to act when the market is more favorable for buyers. With inflation, buyers may end up paying more other costs on a home such as repairs, insurance, furniture, and utilities.
Inflation considerations for sellers
With home prices on the rise, it may be an ideal situation for San Antonio sellers to get more for their homes. However, because of inflation, there may be fewer potential buyers. Sellers may need to take extra steps to attract buyers, such as by offering discounts, renovating kitchens or bathrooms, and painting inside and outside. Marketing strategies such as virtual showings, dedicated websites, and professional photography and videos can help San Antonio sellers attract buyers not only locally, but in other parts of the country, to increase the buyer pool.
The San Antonio housing market, as with other real estate markets across the country, is not immune to inflation. Having a general sense of the market and knowing the factors that are shifting it can help buyers and sellers make informed decisions about their next steps.