Home Buyers: You May Face Less Competition as Bidding Wars Ease

One of the top stories in recent real estate headlines was the intensity and frequency of bidding wars.

With so many buyers looking to purchase a home and so few of them available for sale, fiercely competitive bidding wars became the norm during the pandemic – and it drove home prices up. If you tried to buy a house over the past two years, you probably experienced this firsthand and may have been outbid on several homes along the way.

But here’s the news you’ve been waiting for: data shows clear signs bidding wars are easing this year.

According to the National Association of Realtors (NAR), the average number of offers on recently sold homes has declined considerably over the past few months (see graph below):

The graph shows homes were seeing a high of around five offers earlier this year. But the latest data shows that average was down to just shy of three offers per recently sold home. This shift is happening largely because rising mortgage rates moderated buyer demand and slowed home sales, resulting in a growing supply of homes on the market. Essentially, more choices for buyers.

What This Means for You

If you put your home search on pause because you were outbid last year or because you didn’t want to deal with the peak intensity of bidding wars, you can breathe a welcome sigh of relief. While it’s still a sellers’ market, an uptick in inventory gives you a window of opportunity to jump back in. You may still be competing with some buyers, but it likely won’t be anything like it was just a few short months ago.

Bottom Line

If you put your plans on pause because of intense bidding wars in recent years, it may be time to kick off your home search. Today, bidding wars are easing and that may mean less competition for you as a buyer. If you’re serious about buying a home or making a move, let’s connect to get started today.

How Is Remote Work Changing Homebuyer Needs?

With more companies figuring out how to efficiently and effectively enable their employees to work remotely (and for longer than most of us initially expected), homeowners throughout the country are re-evaluating their needs.

With more companies figuring out how to efficiently and effectively enable their employees to work remotely (and for longer than most of us initially expected), homeowners throughout the country are re-evaluating their needs. Do I still need to live close to my company’s office building? Do I need a larger home with more office space? Would making a move to the suburbs make more sense for my family? All of these questions are on the table for many Americans as we ride the wave of the current health crisis and consider evolving homeownership needs.

According to George Ratiu, Senior Economist for realtor.com:

“The ability to work remotely is expanding home shoppers’ geographic options and driving their motivation to buy, even if it means a longer commute, at least in the short term…Although it’s too early to tell what long-term impact the COVID-era of remote work will have on housing, it’s clear that the pandemic is shaping how people live and work under the same roof.”

Working remotely is definitely changing how Americans spend their time at home, and also how they use their available square footage. Homeowners aren’t just looking for a room for a home office, either. The desire to have a home gym, an updated kitchen, and more space in general – indoor and outdoor – are all key factors motivating some buyers to change their home search parameters.

A recent realtor.com-HarrisX survey indicates:

“In a June poll of 2,000 potential home shoppers who indicated plans to make a purchase in the next year, 63% of those currently working from home stated their potential purchase was a result of their ability to work remotely, while nearly 40% [of] that number expected to purchase a home within four to six months and 13% said changes related to pandemic fueled their interest in buying a new home.

Clearly, Americans are thinking differently about homeownership today, and through a new lens. The National Association of Home Builders (NAHB) notes:

“New single-family home sales jumped in June, as housing demand was supported by low interest rates, a renewed consumer focus on the importance of housing, and rising demand in lower-density markets like suburbs and exurbs.”

Through these challenging times, you may have found your home becoming your office, your children’s classroom, your workout facility, and your family’s safe haven. This has quickly shifted what home truly means to many American families. More than ever, having a place to focus on professional productivity while many competing priorities (and distractions!) are knocking on your door is challenging homeowners to get creative, use space wisely, and ultimately find a place where all of these essential needs can realistically be met. In many cases, a new home is the best option.

In today’s real estate market, making a move while mortgage rates are hovering at historic lows may enable you to purchase more home for your money, just when you and your family need it most.

Bottom Line

If your personal and professional needs have changed and you’re ready to accommodate all of your family’s competing priorities, let’s connect today. Making a move into a larger home may be exactly what you need to set your family up for optimal long-term success.

San Antonio Area Home Sales Increase as Summer Approaches

San Antonio area home buyers started their summer shopping in May, causing total sales volume to jump by 10 percent to 3,608 homes sold during the month, according to the Multiple Listing Service Report from the San Antonio Board of REALTORS® (SABOR) which reports on all areas contained within the MLS. The average home sales price saw an increase of just two percent year-over-year for a price of $274,238 and the median inched up just three percent from last year for a price of $238,800. Housing inventory continued to remain low with only 3.8 months available, demonstrating once again that the San Antonio area continues to favor sellers.

“The low inventory means increased demand so for those looking to move, this is a good time to think about putting your house on the market,” said Grant Lopez, SABOR’s 2019 Chairman of the Board. “But that doesn’t mean buyers are out of luck. Even though inventory is tight, there are still thousands of properties on the market, with May
reporting over 10,000 active listings available.”

In fact, May 2019 reported nearly a thousand more homes on the market than the same month last year. This May also reported an increase in the number of homes sold in the mid-range (those priced between $200,000 and $500,000), with those sales accounting for 62.3 percent of the homes sold. Meanwhile, homes priced under $200,000 made up another large portion of the market – 31.5 percent – and homes priced over $500,000 accounted for 6.2 percent of sales.

In just Bexar County, a total of 2,422 homes were sold in May, reporting a median sales price of $224,900 and an average of $257,812. For comparison, in Travis County, the average sales price of a home was $525,835. In Harris County the average price of a home sold was $339,685 and in Dallas County, that price was $398,286.

“San Antonio has continued to be an attractive place for businesses and families to relocate to due to our affordability and quality of life,” said Gilbert S. Gonzalez, SABOR’s President and CEO. “Fortunately, there are still homes available at all price points, meaning buyers have options when looking for the property that is right for them.”

If you are thinking of buying or selling a home in the San Antonio metropolitan area, and want to work with a trusted San Antonio REALTOR® throughout the process, contact Trudy Edwards of KELLER WILLIAMS Realty Heritage, at (210) 595-9801, or by email at TrueSARealEstate@gmail.com.

SA Sales Recap	May-17	May-18	May-19
Month Sales	3,091 (11% increase)	3,290 (8% increase)	3,608 (10% increase)
Average Price	$256,677 (5% increase)	$269,410 (5% increase)	$274,238 (2% increase)
Median Price	$221,300 (5% increase)	$231,600 (5% increase)	$238,800 (3% increase)

*Percentage increases are based on a year-over-year comparison.

Trudy Edwards Earns the New Homes Co-Broker Designation

Trudy Edwards, REALTOR®, with Keller Williams Heritage has successfully completed the New Homes Niche course offered by the New Home Co-Broker Academy and has earned the New Homes Co-Broker (NHCB) designation. Through completion of this course Trudy Edwards has gained knowledge needed to help home buyers purchase during the pre-construction phase of a new community, and new construction homes.

New construction in the San Antonio area is booming, with new home communities being built in and around Bexar County and infill housing and small developments being built closer to the downtown San Antonio area.

By earning the New Home Co-Broker designation Trudy Edwards has positioned herself to be able to serve new construction home buyers with:

• Pre-sale or pre-construction for purchase contracts and terms
• Designs and styles new home builders are incorporating into their communities
• Knowing the “ins and outs” of working with the builder’s internet advisors and on-site sales teams

New construction homes are growing in popularity among home buyers across the country. According to a study by New Home Builders Inc., 35% of those shopping resale homes will consider a new home.

If you are looking to buy a new home in the San Antonio area you can browse new homes from over 25 different builders in over 248 communities in the San Antonio area at Trudy Edwards’ new home search website – www.showingnew.com/trudyedwards.

San Antonio Area Sellers’ Market Continues with Only 3.6 Months of Inventory

The San Antonio Board of REALTORS® reported a two percent dip in the number of San Antonio area home sales compared to this time last year, with 2,523 homes sold in September. However both the average and median prices in September showed increases, according to the San Antonio Board of REALTORS Multiple Listing Service Report. The average home sales price increased by seven percent to $245,126 while the median rose five percent to $224,600.

Homes stayed on the market for an average of 52 days before selling. With just 3.6 months of inventory available we are still in a Sellers’ Market in San Antonio. However, 3,000 new listings hit the market in September, and the month ended with 2,149 sales still pending.

The low inventory has been favorable to sellers, but you can see from the amount of sales still pending that a number of people are continuing to find homes. The best thing to do in this market is be prepared before you even start looking, meaning getting pre-approved and knowing what you’re willing to compromise. This will help you
make a decision faster and be competitive.

Around 40 percent (39.83 percent) of homes sold last month were those priced under $200,000, while the majority of home sales, 54.54 percent, were those priced between $200,000 and $500,000. The remaining 5.6 percent were those homes priced over $500,000. Overall for the first three quarters of 2018, the volume of home sales have increased six percent year-over-year for a total of 24,834 homes sold. The average price is up four percent over 2017 at $260,165 and the median has increased five percent to $225,600.

Bexar County reported a total of 1,900 single-family homes sold in September, a 3.2 percent decrease. The average price of a home sold in the county increased 5.2 percent to $247,062 and the median rose 5.1 percent to $214,000.

If you are thinking of buying or selling a home in the San Antonio metropolitan area, and want to work with a trusted San Antonio REALTOR® throughout the process, contact Trudy Edwards of KELLER WILLIAMS Realty Heritage, at (210) 595-9801, or by email at TrueSARealEstate@gmail.com.

San Antonio Area Home Sales Recap	Sept. 2016	Sept. 2017	Sept. 2018
Total Month Sales	2,618 (9% increase)	2,580 (1% decrease)	2,523 (2% decrease)
Average Price	$241,757 (4% increase)	$245,126 (2% increase)	$261,825 (7% increase)
Median Price	$203,700 (6% increase)	$213,400 (5% increase)	$224,600 (5% increase)

*Percentage increases are based on a year-over-year comparison.

San Antonio Area Home Sales Saw Double Digit Increase in April

The volume of home sales in the San Antonio area shot up 17 percent year-over-year in April, according to the Multiple Listing Service (MLS) Report from the San Antonio Board of REALTORS® (SABOR) which reports on all areas contained within the San Antonio MLS. A total of 2,848 homes were sold in April and 98 percent of those homes sold for list
price. The month ended with 2,881 sales still pending and inventory remained low with a tight 3.4 months available.

In addition, both the average and median home prices experienced modest increases, with the average price rising two percent year-over-year to $255,952 and the median price increasing three percent year-over-year to $222,800.

While it’s true that the low inventory means homes are high in demand, there are still many properties available for sale at a variety of price points, For those looking to buy, just know that you’ll need to be ready to make a quick decision. You can prepare by
making sure you know your priorities and getting pre-approved.

Homes in the mid-range of prices continued to make up just over half the market – 53.4 percent – while homes priced under $200,000 accounted for 40.1 percent of the homes sold. The remaining 5.9 percent of the homes sold were those priced over $500,000. April reported 8,870 active listings and 4,045 new listings available.

Meanwhile, the number of home sales in Bexar County increased 15.3 percent year-over-year for a total of 2,107 homes sold. Both the average and median prices in the county experienced little year-over-year growth, with the average remaining consistent with last year for a price of $242,045 and the median edging up just 1.8 percent year-over year
to $208,500.

“With nearly 3,000 sales still pending at the end of April, we head into the beginning of the summer buying season with a healthy start and expect to keep seeing strong sales figures,” said Gilbert Gonzalez, SABOR’s Interim CEO. “Higher prices should encourage more owners to put their homes on the market, adding much needed supply to our inventory.”

SABOR Multiple Listing Service Report:

SA Home Sales Recap	April 2016	April 2017	April 2018
Total Month Sales	2,481 (4% increase)	2,443 (2% decrease)	2,848 (17% increase)
Average Price	$234,575 (4% increase)	$251,738 (8% increase)	$255,952 (2% increase)
Median Price	$199,400 (5% increase)	$215,400 (8% increase)	$222,800 (3% increase)

*Percentage increases are based on a year-over-year comparison.

If you are thinking of buying or selling a home in the San Antonio metropolitan area, and want to work with a trusted San Antonio REALTOR® throughout the process, contact Trudy Edwards of KELLER WILLIAMS Realty Heritage, at (210) 595-9801, or by email at TrueSARealEstate@gmail.com.

San Antonio Home Sales Are Up as Mortgage Rates Continue to Drop

If you are thinking of buying or selling a home in San Antonio, this is a good time to be in the market. The San Antonio Board of REALTORS® (SABOR ) recently reported a 7 percent increase in September sales compared to the same month in 2011, according to the September 2012 Multiple Listing Service report by). The average and median prices for September are also up, both showing a 2 percent increase from last year.

“Sales in the midrange of prices ($200,000 to $500,000) have been up the last several months, peaking in June,” Liza Reyes, SABOR Chairman of the Board, said. “This month, a good portion of sales continued to occur in this midrange, which kept prices higher and on par with previous months.”

Locally, the total number of homes sold has steadily increased in 2012, with only a small taper in September after the summer boom. However, the comparative increase in sales, with 1,683 homes sold in San Antonio in September 2012, compared to 1,534 in September 2011, confirms that the local housing market is holding steady.

Mortgage rates this month at or around 3.49% are back at record lows. The decline in the 30-year fixed rates is partially due to a result of the Federal Reserve’s recent move to buy $40 billion of mortgage-backed securities each month until the job market improves. As a result, mortgage applications for refinancing and home purchases increased across the nation.

Home buying affordability remains high for home buyers who buy now while rates are low.

	Setpember 2010	September 2011	September 2012
Total Month  Sales	1,391	1,534	1,683
Average Price	$185,778	$190,211	$192,594
Median Price	$149,900	$152,500	$157,900

For more information about buying or selling a home in the San Antonio area, contact San Antonio real estate resource, Trudy Edwards of Legend Realty Group, KELLER WILLIAMS Realty Heritage at (210) 595-9801 or truesarealestate@gmail.com for a complimentary consultation.