Pexels / Pixabay
The number of homes with price cuts jumped by nearly 6%, according to a new analysis.
The median home price in the San Antonio area fell for a fifth consecutive month, while home sales here experienced their steepest drop since the onset of the pandemic, according to the San Antonio Board of Realtors.
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.
Coming soon: SA Current Daily newsletter. We’ll send you a handful of interesting San Antonio stories every morning. Subscribe now to not miss a thing.
Follow us: Google News | NewsBreak | Instagram | Facebook | Twitter