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The number of homes with price cuts jumped by nearly 6%, according to a new analysis.
That data comes as one prominent economist predicts that home prices across the nation could fall 20% in the coming months as mortgage rates continue their climb.
According to SABOR's most recent report, the median price of a home in the San Antonio metro area plunged to $323,190 in October. Although that price is up 8% year over year, it's still a 7.6% decline from May, when the median home price in San Antonio peaked at $348,800.
At the same time, home sales declined for the seventh month in a row to 2,656, a 19.9% drop from the previous year. October's drop in home sales is the steepest since May 2020, when sales fell by 20% year over year.
Moreover, homes in the San Antonio area are sitting on the market longer, according to SABOR. On average, single-family homes remain on the sales block for 44 days, a 57% increase from a year earlier.
San Antonio's real estate market correction is in tune with national trends, and it's likely the result of higher interest rates. The 30-year-fixed mortgage rate hit 6.58% this week, the highest since 2007, according to mortgage lender Freddie Mac.
Potential home buyers in the Alamo City and beyond can expect home prices to keep dropping. Kieran Clancy, a senior U.S. Economist at Pantheon Macroeconomics, recently told Business Insider that he expects home prices nationally to drop around 20% from their June highs.
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