San Antonio housing market looks bleak as home prices, sales continue their decline

Median home prices dropped for a fourth consecutive month, while sales dropped to a six month low, according to a recent report.

click to enlarge The decline in home sales could be a result of higher interest rates, with mortgage rates climbing towards 7% this week for the first time since 2002. - Pexels / RODNAE Productions
Pexels / RODNAE Productions
The decline in home sales could be a result of higher interest rates, with mortgage rates climbing towards 7% this week for the first time since 2002.
The median home price in San Antonio declined for a fourth consecutive month in September, according to the latest report from the San Antonio Board of Realtors (SABOR).

The median price of a single-family home in the Alamo City fell to $337,200, a 3.3% decline from June, when median prices peaked at $348,800, SABOR's numbers show.

Beyond that, home sales in the San Antonio-New Braunfels area reached a six-month low as interest rates continued their ascent to 20-year highs. According to SABOR's report, only 3,167 dwellings sold in September, a 13% drop from last year.

Although home prices are trending downward, the median price is still 14% higher than a year ago, according to SABOR.

The average interest rate for a 30-year fixed mortgage hit a 20-year high of 6.94% this week, according to Freddie Mac. With demand for mortgages already at a 25-year-low, another interest rate hike by the Fed in November could send home prices — and demand — down even further.

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