Hello, Alamo City! Here’s your monthly snapshot of the San Antonio real estate scene!
This year, I’m trying something new: offering free 30-minute phone calls from 6:45 AM to 7:30-ish AM, Monday through Friday. Why these early hours? That’s when I walk my dog and usually listen to real estate podcasts anyway, so it’s the perfect time for me to connect with people.
I get a lot of questions about real estate, and this gives me a dedicated time to answer them and hear your thoughts on the market. If you’d like to chat, schedule a call through the link below. Just make sure to book ahead—no unscheduled calls, please!
👉 Schedule a Call https://calendly.com/helpforhomeownerssa/30min
I look forward to chatting with you soon!
San Antonio Single Family Real Estate Market Data
San Antonio remains a buyer’s market as we head into the winter months, with seasonally expected price decreases. Data from Realtor.com and Redfin shows month-over-month price declines, with Redfin reporting the largest drop of 1%. Rocket Mortgage, using a rolling average, reports more moderate changes. These price decreases are typical for this time of year and align with my earlier predictions, so there’s no need for concern.
The data on how quickly homes are selling is mixed: Rocket Mortgage reports homes selling slightly faster, with days on market dropping from 72 to 69. Redfin shows the opposite, with an increase from 56 to 62 days.
Realtor.com agrees with Redfin, showing an increase from 64 to 70 days on market.
I tend to agree with the Redfin and Realtor.com data, which points to homes taking longer to sell—a sign of a slightly weaker single-family housing market.
Listing performance also had mixed results: Rocket Mortgage: A small rise in homes selling below the asking price (59.3% to 60%). Redfin: An improvement in the sale-to-list price ratio (96.1% to 97%). Realtor.com: Held steady at 99.17%.
Finally, let’s check in on inventory. In November, housing inventory dropped to 3.0 months, down from 3.2 months in October and 3.4months the month before. This decrease suggests a slightly stronger market, even as other indicators remain mixed.
Here’s my summary of the San Antonio single-family real estate market:
It’s still a buyer’s market, and we’re seeing seasonally normal price decreases as we head into the winter months. The underlying housing data is mixed, but the market is exceeding my expectations. While it’s weaker overall, I think this is primarily due to seasonality, and it’s holding up much better than I anticipated.
I’m sticking to my prediction of a seasonally slower winter market and still expect a strong rebound for the spring real estate season.
Our Personal Portfolio
Let’s take a look at where our personal portfolio stands today:
The Lazy Fox properties are still up in the air. The potential renters were waiting on a court settlement, so I canceled their leases, and the properties are back on the market. Their real estate agent really screwed me by not disclosing this detail. If I’d known, I would have gone with another renter who was ready to commit. Lesson learned on my end!
The property I took back from an owner-financed deal is under contract and set to close next week. This one looks like a win! The house sold faster than I expected, and I believe the new buyers will be a better fit for the property.
Last month, I mentioned we had properties under contract from radio ads. One went through probate, which is now complete, and the second is still resolving minor title issues. Both are on track to close in January, and I’m excited to wrap these up soon.
You might remember the deal I found on Facebook last month while searching for subject-to properties. They were asking for $31K down and had multiple offers, but I ended up paying $40K—and I still think it was a fantastic deal! That property has closed, and we’re now working on the rehab.
For our personal portfolio, we’re staying cautious. Our focus remains on owner-financed or subject-to deals, prioritizing interest rates below 4%.
Deanna’s land-flipping business continues to thrive! She closed on the property in Wimberly and is preparing to list it back on the market.
As we move forward, we’re optimistic about the opportunities ahead. We’ll keep adapting to market conditions and making strategic decisions to ensure long-term success.
Multi-family
The San Antonio multifamily market is holding steady despite dealing with an oversupply of new apartments. Developers have already delivered about 10,300 units this year—more than all of 2023—and we’re hitting a new high for the area. Even with all this inventory, the market showed some surprising strength in the third quarter. Vacancy rates stayed flat, and asking rents ticked up 1% over the past three months to $1,150 per month, which is only slightly below the peak from last year. Strong demand in areas like Far North Central San Antonio is helping keep things balanced for now.
That said, rents are still down about 4% compared to last year, landing San Antonio in the top 10 cities with the biggest rent declines. This isn’t shocking given the amount of new inventory hitting the market. Experts think the rental market will stay soft through 2025 as we absorb the surplus, but the pace of new development is expected to slow next year, which should help things stabilize over time.
On the investment side, sales activity is in line with what we saw last year, but prices have taken a hit. The median price per unit is $94,100, down from over $100,000 in the past few years. A lot of the properties trading now were bought at peak levels during 2021 and 2022, which is dragging prices down.
Looking ahead, we’re expecting more units to come online in the fourth quarter, which will keep the pressure on. But with San Antonio leading the country in population growth—adding nearly 22,000 residents last year—and continued job market expansion, demand should eventually catch up. Rent growth will likely stay tepid for the next several months but I expect a slow upward trend to start in the middle of next year as vacancies tighten and fewer units come on the market.
For investors, now could be a great time to explore opportunities. I’ve been expecting to see more owners selling at big discounts, and it looks like that’s starting to happen. This reminds me of the single-family market back in 2010 and 2011—there’s potential for some serious wins if you play your cards right. If you’re thinking about multifamily syndications, make sure to work with Managing Partners who know how to handle challenging markets. I’ve seen a few teams offering projected returns north of 20% on properties that seem to have been bought recently at great prices.
The San Antonio multifamily market may be facing short-term challenges, but long-term, I think there’s a lot to be optimistic about.
This past month, I’ve been staying hands-on at the Annex, tackling a variety of projects to move things forward. I’ve personally installed flooring, repaired drywall, tiled a shower enclosure, and taken care of a handful of other odd jobs around the property. I still firmly believe in the potential of this property and am committed to putting in the work to make it a success.
We’re also continuing to work on the new mortgage refinance, which will be a key step in ensuring this property’s long-term success. It’s a work in progress, but we’re making steady strides.
Summary
The San Antonio single-family housing market showed mixed performance last month. Inventory decreased to 3.0 months, suggesting a slightly stronger market, but homes are taking longer to sell, with Redfin and Realtor.com showing increased days on market. Prices are softening as expected for the winter, with Redfin reporting a 1% month-over-month decline. I don’t anticipate a dramatic downturn, with average home prices likely decreasing by less than 5%. While 30-year mortgage rates remain a headwind, the market is holding up better than expected. I’m optimistic about a strong rebound in the spring and continued improvement heading into 2025.
The San Antonio multifamily apartment market remains oversupplied, with a record 10,300 units delivered this year, but demand driven by population and job growth is helping to balance the market. While rents are down 4% year-over-year, they rose 1% in Q3 to $1,150, and vacancy rates have held steady. The oversupply is expected to persist through 2025, though a slowdown in new development could lead to a future shortage. Median prices per unit have dropped about 6%, creating opportunities for investors. I believe this is an excellent time to invest with experienced managers acquiring properties at significant discounts.
Remember this year, I’m trying something new: offering free 30-minute phone calls from 6:45 AM to 7:30 AM, Monday through Friday, just to talk about real estate.
If you’d like to chat about the market, investing opportunities, or our upcoming deals, schedule a call using the link below. You can also stay in touch by joining our monthly newsletter or reaching out anytime at homehelpsa@gmail.com or 210-960-6543.