Preview of Changes from NAR Lawsuit
Changes brought from the National Association of Realtors (NAR) the class action lawsuit begin taking effect on August 14, 2024. Many of the changes affect how real estate agents do business within the industry and with clients. Signed Buyer Agreements with a real estate agent will be a requirement to show properties on the Multiple Listing Service (MLS). Also, all agents will be required to have their buyer and seller clients sign a Compensation Disclosure. Agents are in the process of receiving further guidance from their brokers and from the San Antonio Board of Realtors (SABOR). I’ll have an update on the NAR settlement and how it will impact home buyers in Texas in my September market report.
Signs of a Balanced Market
The housing market in 78209 continues to show signs of shifting towards a buyer’s market, with an increase in the number of homes on the market and a decrease in average prices compared to a year ago. However, the discount off the original list price remains relatively small compared to other areas in San Antonio.
Data from the San Antonio Board of Realtors (SABOR), based on June 2024 statistics, covers activity across all price ranges in 78209, which can vary widely. Closed sales in June dropped to 26 from 53 in the previous month, marking the third consecutive decline in closed sales for this area.
The average sold price fell to $543,354 in June 2024, down from $595,528 in May 2024. In comparison, the average sale price in June 2023 was $627,971. The average price per square foot also declined to $252 in June 2024, compared to $269 per square foot in May – a decrease of more than six percent.
Higher Property Taxes
The intense buying activity of the pandemic has subsided, and most homes no longer command top-tier prices. The local market continues to adjust to pre-pandemic conditions. However, the drop in average sales price and price per square foot does not necessarily indicate a decline in property values. Many residents were hit with increases in their property valuations by the Bexar County Appraisal District, along with higher property taxes.
The increase in homes for sale in 78209 suggests that more affordable options may be available. In June, 92 homes entered the market, compared to 108 in May 2024. This amounts to 200 additional homes for sale compared to 175 during the same two-month period in June 2023.
More Homes on the Market
Interest rates are affecting sales activity, contributing to the rise in the number of active listings. In June, there were 268 properties for sale in 78209, up from 170 on the market a year ago. A larger inventory can lead to longer selling times, with the average time on the market rising to 57 days in June, up from 46 days in May 2024.
A six-month housing inventory is often seen as a benchmark for a buyer’s market, and SABOR data shows a 6.8-month inventory in June 2024, up from 5.8 months in May.
78209 Remain a Top Housing Market
One indicator of a micro-market’s desirability, such as 78209, is the original list-to-sold price ratio. In June, this ratio was 94.5%, an improvement from 91.9% in May. Many neighborhoods in 78209 ranks among Niche.com’s top 10 places to live in San Antonio. The area’s central location and the popularity of Alamo Heights I.S.D. schools continue to keep the 78209-housing market one of the strongest in the city. Sellers should price their homes according to market conditions. Also, prepare for a potentially longer selling period compared to 2023. More available homes provide buyers with more options to find a property and negotiate a better price.
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