Reports Indicate 10% Decline in Texas Home Sales, Resulting in Limited Choices for Prospective Buyers

The real estate market in San Antonio, Texas continues to experience a decline in sales, mainly due to high mortgage rates and the repercussions of a volatile few years in the housing industry.

According to the latest data from the San Antonio Board of Realtors (SABOR), home sales in Texas have decreased by 9.7%, with San Antonio specifically seeing a 9% decline compared to the same period last year.

Furthermore, median and average home prices in the San Antonio area have also dropped.

SABOR’s data reveals a 6% decrease in median home prices from June 2022 to June 2023, while the average home price experienced a slight decline of approximately $1,620 during that same timeframe.

SABOR’s 2023 Chair of the Board, Sara Briseno Gerrish, highlights another notable trend: a significant increase in the number of days on the market, which has risen by 121% to reach 64 days. This suggests that buyers are taking more time to make decisions, potentially due to increased scrutiny or the need for a more thorough evaluation of available options.

This trend is not limited to San Antonio alone; it can be observed nationwide. According to a report from Redfin, approximately 14 out of every 1,000 homes across the U.S. have been sold during the first half of 2023. This means that prospective homebuyers now have 28% fewer properties to choose from compared to pre-pandemic times, further exacerbating the scarcity of options in the market.

Redfin’s data also reveals that the group most affected by this shortage are those searching for larger homes in suburban areas. Buyers looking for four-bedroom-plus, suburban, single-family homes now have 33% fewer options available.

Looking ahead, Forbes has released a mortgage rate interest forecast for the year and noted that home loans remain caught between high inflation and the Federal Reserve’s efforts to curb it, indirectly causing long-term mortgage rates to rise. Although the Fed’s current policy rate ranges from 5% to 5.25%, new projections indicate additional rate hikes before the end of the year.

This increase in rates could potentially push the 30-year fixed mortgage rate closer to 7%, as indicated by Forbes.

For more mortgage rate predictions from various real estate experts, visit Forbes.com.