We were doing some research the other day and looking at stats for the real estate market in San Antonio and there were a few surprises in there. Sometimes, even though our gut tells us one thing, the numbers may tell us something completely different – and vice versa. Our market has been interesting through 2024 and although we wouldn’t say it was the best year ever for real estate, we also wouldn’t say it was the worst.
If you’ve followed along with any of our market reports recently (we’ve covered zip codes 78232, 78247, 78248, 78249, 78250, 78257, 78258, 78259, 78260, and 78261 recently), you’ll know that San Antonio has seen its ups and downs, but also has its bright spots and weaker markets areas.
The San Antonio real estate market continues to evolve in fascinating ways, with distinct patterns emerging across different neighborhoods and price points. Let’s explore the nuances of this dynamic market in greater detail.
Market Overview: The Big Picture
The overall market shows encouraging stability, with 2,567 residential properties sold representing a 6.8% increase year-over-year. This growth isn’t uniform across all areas, however, and understanding these variations is crucial for both buyers and sellers.
Price Dynamics And Affordability
The median home price of $317,000 tells only part of the story. When we look closer at individual neighborhoods, we see significant variations:
Alamo Heights, traditionally one of San Antonio’s most prestigious areas, maintains its premium position with an average price of $921,880, though experiencing a -3.5% year-over-year adjustment. This slight decrease might represent an opportunity for buyers who have previously found this desirable area out of reach.
In contrast, areas like Converse show remarkable affordability with a median price of $265,000, while still maintaining steady appreciation rates. This area has seen a modest 1.8% increase in median prices, making it an attractive option for first-time homebuyers and investors.
Neighborhood Spotlights
Timberwood Park: This area has shown particular resilience, with a notable 70.0% increase in existing home sales compared to the previous year. The median price of $477,500 for existing homes represents strong value for a suburban location, especially considering the area’s generous lot sizes and natural settings.
Fair Oaks Ranch: Despite a -4.8% adjustment in average prices, this luxury market maintains strong fundamentals with a median price of $640,000. The area’s 4.1 months of inventory suggests a balanced market, offering opportunities for both buyers and sellers.
Boerne: This charming Hill Country adjacent market shows strength in its existing home segment, with an impressive 85.7% increase in sales. The median price of $490,000 for existing homes reflects the area’s desirability while still offering value compared to similar properties closer to downtown.
Market Segments And Property Types
Single-Family Homes: Continuing to dominate the market, single-family homes show steady growth with 2,506 sales, up 7.0% year-over-year. The median price of $320,000 for single-family homes represents stability in this crucial market segment.
Townhouses and Condominiums: An interesting development is the growing townhouse market, with median prices increasing by 32.1% year-over-year to $300,500. This significant appreciation suggests growing demand for low-maintenance living options, particularly in areas close to employment centers.
New Construction Trends
The new construction market deserves special attention, showing varied performance across different areas:
Bexar County: New construction sales increased by 3.1%, with a median price of $303,959, indicating steady demand for new homes despite higher construction costs.
Schertz: This area shows particular strength in new construction, with an average price of $463,903 and robust sales activity, suggesting strong demand for suburban new builds.
Investment And Development Hot Spots
Several areas are emerging as particularly interesting for investors and developers:
Cibolo: Shows strong growth potential with a 54.0% increase in dollar volume for all residential properties, indicating growing market confidence in this area.
Universal City: Demonstrates remarkable stability with a 15.8% increase in median prices for all residential properties, suggesting sustained demand in this military-adjacent market.
Looking Ahead: Market Trajectories
Based on current trends and local market indicators, we can anticipate several developments:
Near-Term Outlook
- Continued strength in suburban markets as buyers seek value outside the urban core
- Growing importance of new construction in meeting market demand
- Increasing interest in townhouse and condominium properties, particularly in urban areas
- Stabilization of prices in premium markets like Alamo Heights and Fair Oaks Ranch
Long-Term Prospects
- Sustained growth in northeastern suburbs like Schertz and Cibolo
- Ongoing development of mixed-use communities to meet changing lifestyle preferences
- Expansion of luxury market options in Hill Country adjacent areas
- Increased emphasis on master-planned communities offering amenity-rich environments
Strategic Considerations
For Buyers
- Consider emerging markets like Converse and Universal City for value opportunities
- Watch for price adjustments in premium areas that might create buying opportunities
- Explore new construction options in growing suburban areas
- Research townhouse and condominium options in established neighborhoods
For Sellers
- Understand your specific submarket’s performance metrics
- Price strategically based on local inventory levels and absorption rates
- Consider timing in relation to new construction competition
- Focus on property preparation and presentation in more competitive markets
Our analysis reveals a market with numerous opportunities across different segments and areas. The key to success lies in understanding these local variations and how they align with individual goals and preferences. Whether looking to buy, sell, or invest, the San Antonio market continues to offer diverse opportunities for those who take the time to understand its complexities.
