The San Antonio real estate market has been a hot topic of discussion for many homeowners, prospective buyers, and real estate experts. As the market landscape evolves, it’s essential to gain insights from experienced professionals who can provide guidance on the ever-changing dynamics of the industry. And so, we turn to Kevin Best, a well-respected figure in the San Antonio and surrounding areas’ real estate scene. With over 25 years of experience and extensive knowledge, Kevin offers valuable insights into the current state of the market and what the future might hold.
San Antonio Real Estate Market: A Steady Ship
Best starts by emphasizing the stability of the San Antonio real estate market.
Last year, San Antonio was characterized as a strong seller’s market, with skyrocketing home prices. Home values in the city increased by a remarkable 20.5% compared to the previous year and a substantial 59% over the past five years. Home inventory in April of 2022 was a mere 1.6 months, signifying a highly competitive market.
Now we are starting to see our market and other markets in Texas and across the United States cool down. It is important to note there is still a strong demand for the right properties: those that are newer, updated, clean, and appropriately priced.
A Dip in Home Sales: What Does It Mean?
The first quarter of 2023 saw a minor dip in both home sales and median prices. Kevin explains that this dip is closely tied to interest rates and people’s unwillingness to overpay. However, he raises an interesting question regarding the spring and summer of 2024. Will the market return to historical pre-pandemic levels? “We experienced it this year – a great spring, a great summer and a fall that has started to fall, no pun intended, as it does every year.”
According to Kevin, there is never a bad time to sell, but success depends on factors within one’s control. As he says to all of his sellers, “The only things that we can control from this side of the equation are price and condition. We can’t control a war in the Middle East, we can’t control the federal government or interest rates, we can’t control any of that. We need to focus on what we can and that is making sure that the price and condition of the property are aligned.”
In today’s market, sellers are urged to prepare their homes for sale thoroughly. Kevin advises that now more than ever, it is important to have a seasoned agent with the right contacts to get the cosmetic repairs taken care of prior to going on the market. “Whether its staging, painting, landscaping, etc., sellers are really having to put their best foot forward on every front. During the pandemic craze 2 years ago, people got away with doing nothing to prepare their homes and they would still sell. Today we are having to go back to what we have always done which is prepare the home, price it well and promote it to the right buyers.”
Now is the Time to Buy
Buyers, Kevin explains, tend to be more sensitive to interest rates and the state of the economy, unless they are paying in cash. The fear of missing out is strong, as they believe that waiting may yield more opportunities. However, Kevin suggests that now is the time to buy.
Buying now and refinancing later can be a more advantageous strategy, as it avoids having to compete with multiple offers when interest rates drop and affordability increases.
“There is some aggressive financing available that helps all parties. Some of these banks are waiving lender fees, so you can float it back down at really no cost.”
Steady Growth in Inventory
While the number of homes for sale in San Antonio has marginally increased since 2022, it’s important to be ready to adapt to market changes. Kevin predicts that inventory will continue to grow, reinforcing the need to stay informed and flexible in this evolving market.
If you are considering a move or just have questions about the current market in your area, put your trust in the BEST and give Kevin a call. With a wealth of experience and a passion for helping clients, Kevin is not just your real estate agent, but your trusted partner in your real estate journey. He is here to answer your questions, offer guidance, and provide the support you need to insure the process is as smooth as possible for you!