By BRUCE X. FOREY
Real estate industry 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. Agents who use the Multiple Listing Service (MLS) to present and show properties with clients will be required to enter a written Buyer Representation Agreement before touring a home. Also, real estate brokers and their agents brokers will be required to have their sellers, perspective sellers and buyers 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).
Home sellers will no longer be required to pay the buyer agent’s commission The thought is this savings will trickle down to buyers in the form of lower prices for homes. This remains to be seen. Also, questions remain on the buyer’s agent commission and the level of service a buyer will receive in relation to the fee charged. I’ll provide an update on the NAR settlement and how it will impact 78209 home buyers and sellers in my September Real Estate Market Report.
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.
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.
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.
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 and be prepared for a potentially longer selling period than last year. More available homes provide buyers with more options to find a property within their price range and potentially negotiate a better price.
