Jessica Phelps / Jessica PhelpsSeveral months after they started hunting for a home on the far North Side, Ray and Bianca Martinez threw in the towel late last year.
Their experience is a snapshot of San Antonio’s recent real estate history: The housing market rocketed through the pandemic as demand soared, available homes dwindled and prices jumped. Now, it’s coming back to earth. Higher rates added hundreds of dollars to average monthly payments for prospective buyers, who were also watching prices soar. The combination made it too expensive for some to afford a home.A home they bought near Windcrest in 2019 had rapidly appreciated and they expected proceeds from its sale would help with their next purchase.
The slowdown helped boost supply. Last year’s average inventory was 3.1 months, up from 1.4 months in 2021 and 1.7 months in 2020. “The economy is showing signs of resilience, mainly due to consumer spending, and rates are increasing,” said Freddie Mac chief economist Sam Khater. “Overall housing costs are also increasing and therefore impacting inflation, which continues to persist.”
Fall and winter are typically slow seasons, she said. Many military personnel have to move in the summer, so inventory may expand in the spring in advance of those relocations. “There’s a little bit of an impasse” now, he said. “Sellers are a little bit influenced by the prices and the action that they got on listings a year ago... perhaps sellers are still asking too much.
“We’re not getting as many of those high-end buyers that absolutely were here because of the pandemic,” Glast said.Tyler Goodall and Monica Dominguez were thrilled to find a newly built home last year, their first home, and avoid a bidding war. Joseph and Savella Constancio, who are both active duty military personnel, had a similar experience.