The first quarter is often considered a transition period for the real estate market, with a slow start in January and February, before picking up in March.
In January, there were 1,974 home sales, an 8.3% year-over-year drop, according to the San Antonio Board of Realtors’ monthly market report. Inventory ticked just below the balanced-market level at 5.49 months.
Sales heated up in February for a total of 2,363, yet still declined 1.9% from the same time last year. And inventory climbed slightly to 5.51 months.
By March, buyer demand began to improve with 3,100 homes sold, representing a 10.3% increase year-over-year. With affordability keeping many on the sidelines, inventory continued to climb, reaching 5.76 months.
The March jump in sales meant that the first quarter ended with a 4.5% boost in sales compared with the year-ago period. Days on market hovered around 100 during the quarter.
“Overall, the San Antonio market continues to show balance, with steady pricing and increased sales activity creating opportunities on both sides of the transaction,” SABOR board Chair Ed Zapata said. He added that growing inventory means buyers and sellers must “navigate a more dynamic and competitive landscape.”
Although six months is typically considered a balance between buyers and sellers, the San Antonio market has been functioning more like a buyer’s market as it cools from the pandemic-era of tight supply and rising prices.
In February, Redfin reported that San Antonio was the fifth-strongest buyer’s market in the nation, with 104% more sellers than buyers. Homes are sitting on the market longer because there are twice as many sellers as buyers. With the increase in competition, buyers have ample time to mull over their options.
In turn, sellers are adjusting prices and having to adapt to the slower pace after the volatile demand, bidding wars and homebuying frenzy of the pandemic era.
Most sellers in Texas had to slash their asking prices, according to a Texas Realtors’ report. Almost 75% of sellers reduced their price at least twice before the sale, up from 21% the previous year.
But even though buyers hold the negotiating power, median prices in San Antonio have held steady throughout the last three months — edging down less than 1% to $292,999 in January, rising 3.4% to $299,900 in February and edging up less than 1% to $316,850 in March.