FAIR OAKS RANCH HOUSING REPORT FOR MAY, 2024

Greetings Fair Oaks Ranch neighbors. This is my now monthly Fair Oaks Ranch housing report with statistics for the month of May. My apologies for the delay, but we were on a much-needed vacation. And, as an aside, I really wish there were more flights out of San Antonio. Driving to Austin adds a lot of overhead to the trip…

To repeat, when analyzing the real estate metrics provided, we can see a correlation between the Months Supply of Inventory, the 12-Month Change in Months of Inventory, the Median Days Homes are On the Market, the List to Sold Price Percentage, and the Median Sold Price.

With a Months Supply of Inventory at 4, it indicates a balanced market where supply and demand are relatively equal. This means there is enough inventory to meet the current level of buyer demand. This figure has been inching up each month. What it means if you are a seller is that it will likely take a bit longer to sell and you’ll likely need to offer concessions to sell your home. If you are a buyer, you can expect more choice and the ability to negotiate terms.

The 12-Month Change in Months of Inventory increasing by +11.42% suggests a slight increase in inventory levels over the past year. This could be due to more properties coming onto the market or a decrease in buyer activity. In reality though, high interest rates are keeping many would-be buyers out of the market. There is some speculation that we may see the Fed drop interest rates before the November election. My take is that if it occurs, it will have more to do with politics than any significant impact on bringing buyers back to the market.

If you have urgency in terms of selling your home and want to receive fair market value for it, your best bet is to market to out-of-state buyers. Many have sufficient equity in the homes they’re leaving to purchase yours outright, in case. This eliminates the high-interest issue that prevents potential local buyers from taking the jump. Reach out to me if you want to learn how to do this.

The Median Days Homes are On the Market at 7 indicates that properties are selling quickly in this market. This could be a result of high demand, competitive pricing, or desirable locations. However, I suspect that it has more to do with very limited inventory.

The List to Sold Price Percentage of 98% shows that properties are typically selling very close to their listing price. This indicates a strong seller's market where buyers may need to be prepared to offer close to asking price to secure a property. While that is indeed a healthy percentage, I’ve been seeing significant price reductions in my neighborhood.

Finally, the Median Sold Price of $589,950 provides insight into the average selling price of homes in this market. This is a pretty significant drop form last month’s median price. It may indicate a shift towards first-time homebuyers with children, seeking to get established prior to the next school year. This can help both buyers and sellers understand the current pricing trends and make informed decisions.

Overall, these metrics paint a picture of a market that is balanced in terms of supply and demand, with properties selling quickly and close to their listing price. Buyers and sellers should take these factors into consideration when making real estate decisions in this market.

Included in this month’s report is information regarding home price appreciation. These are published quarterly and the current one includes data from the first quarter of this year. Note that I cannot get as granular on this report as I can with the monthly statistics which are solely for Fair Oaks Ranch. The appreciation data is for the entire San Antonio - New Braunfels area.

The good news for homeowners is that thus far, this year, home values have remained relatively steady with even some moderate growth. Last year, at least during the first three quarters, we began to see a slight decrease in home values. While the housing market remains soft, the lack of inventory is preventing any significant drop in home values.

If you find this information useful, please share it. If you would like to discuss these numbers in greater detail, please reach out to me at either:

Bill@HillCountryHomesteads.com or 408.827.8484