I am not a huge fan of statistics because having taken several courses in my business studies, I know that they can be manipulated in many ways, suiting someone's needs. I also don't like that so many terms are thrown out without knowing what they mean. But it is important to understand market trends as investors and as real estate agents to help advise our clients. From a consumer standpoint, we should try to understand, to avoid buying blindly.
This report is from the San Antonio Board of Realtors. What you are looking at is a three year analysis of new and existing home sales by year and month, and includes data. I boxed the October data. But what does this all mean, really?
Over the 3 years shown, the number of homes that sold (closed listings) dropped from 3,444 to 2,656 for a difference of 23.17% drop. This particular number is important in that it lead to a crazy, competitive situation whereby buyers were putting in multiple offers on multiple properties just hoping to even be considered, typically at least 5-10% over the listing price, and throwing down cash or 20% down payments to be more competitve. This low inventory and record low interest rates led to the crazy Seller's market!
The Average price increased from $305,666 to $382,518 for a difference of 25.14% price increase over the 3 years.
The Median price increased from $138/sf to $183/sf for a difference of 32.6% increase in price per square foot. Is that not crazy or what?!?
A couple more interesting facts...
Original List Price % (OLP%). For 2020 it was 97.8, 2021 was 99.1%, and for 2022 95.8%. What that means is that if the list price was $300,000 then the sale price was $293,400, 279,300, and $287,400. Again these are "averages." Some houses got $325,000 listed at $300,000, some got $235,000, for example, but the take away is that for the "good houses" you need to throw down a lot of money and above list price.
Days on Market (DOM). Not an average but actual numbers. Typically it takes a mortgage lender 25 days to get to clear to close. Cash or hard money loans (same as cash from a closing view point) would be able to close in 7 days. The DOM trend was 48, 28, & 44. That means that on averge (mean), that half the homes closed with cash or hard money loans, squeezing out FHA and VA loans for sure. In San Antonio, Military City USA, that meant half our normal buyers were excluded.
Lastly, and my big take away from this is.... the trend is that things are normalizing. The OLP% has returned to 2020 rates so not so many bidding wars,
DOM has dropped to 44 so more FHA and VA loans are being considered (conventional can close in 21 days). The price per square foot has stayed high, but the number of active listings has nearly doubled so I think those prices will come down.
If you were not able to buy during the frenzy, and can live with ...As of Friday, November 25, 2022, the current rates in Texas are 6.76% for a 30-year fixed and 6.11% for a 15-year fixed. (Bank Rate.com) then it would be a good time to buy.
If you want to sell, let me help you get it sold!
Call Cathy Criado for your real estate needs today!