News Summary

San Antonio is witnessing an increase in home purchase cancellations, leading the U.S. with a 22.7% rate. As buyers reconsider, properties are remaining on the market longer, with sellers adjusting prices to attract interest. The current economic climate is causing many potential buyers to hesitate, despite lower mortgage rates. As inventory levels rise, a shift towards a buyer’s market is evident as sellers face challenges in closing deals.

San Antonio Sees Home Sales Rates Take a Dive

San Antonio, Texas, is witnessing an unexpected twist in the home buying saga, as more potential buyers are backing out of their agreements. In July, a striking 15.3% of home purchases went unfulfilled, marking the highest cancellation rate for the month in several years. According to the latest analysis, around 58,000 home purchase agreements in the U.S. were scrapped last month—an increase from last year’s 14.5% and well above the 12% seen before the pandemic started shaking things up.

Leading the Pack with Cancellations

San Antonio isn’t alone in this trend, but it is leading the charge with a whopping 22.7% of contracts falling through. Other areas, such as Fort Lauderdale at 21.3%, Jacksonville at 19.9%, and Atlanta at 19.7%, are also grappling with this cancellation crisis. It seems the Sunbelt housing markets are slowing down, as the number of available homes increases thanks to a rise in new builds.

Homes Taking Their Sweet Time

Long gone are the days when houses were snatched up almost instantaneously. In July, properties were sitting on the market for an average of 43 days, which is the longest that stat has been in July since 2015! Areas like West Palm Beach and Fort Lauderdale are seeing all-too-common waits exceeding 90 days. This is a stark contrast to 2022, when homes would fly off the shelves in an average of just 24 days.

Buyers Regaining Control

With more homes available, buyers are regaining some power in negotiations. This shift in the market has prompted sellers to make concessions in order to complete sales. In fact, over 25% of sellers found themselves cutting asking prices in June, representing a level of price reductions not seen since 2018. As inventory approaches pre-pandemic levels, it is clear that potential buyers are taking their time and weighing their options.

Challenges for Future Buyers

Despite mortgage rates dipping recently to around 6.58% from mid-July’s 6.75%, many potential buyers remain on the sidelines, hesitant due to economic uncertainty. The rising costs of home insurance and property taxes seem to be weighing heavily in their minds. The latest reports show a slowdown in newly constructed homes as well, with 66% of housing construction firms offering sales incentives—the most prevalent in the post-Covid landscape.

A Wider Perspective

30% of the largest U.S. markets have experienced drops in home prices by at least 1% from their peaks. Additionally, median asking rent has also ticked up by 1.7% year-over-year in July. This could very well lead some would-be homebuyers to reconsider whether entering the purchase market is the right move for them.

The Road Ahead

Some experts are suggesting that a sustained decline in mortgage rates will be crucial to reviving buyer interest and activity in the housing market. With homes now taking longer to sell, sellers are encouraged to adjust their expectations accordingly. It looks like we’re navigating into a “buyer’s market”, with plenty of inventory available and price declines reported in various areas.

For those in San Antonio and beyond, the current landscape is full of twists and turns. Stay tuned as we watch this evolving housing narrative unfold!

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Author: STAFF HERE DALLAS WRITER

DALLAS STAFF WRITER The DALLAS STAFF WRITER represents the experienced team at HEREDallas.com, your go-to source for actionable local news and information in Dallas, Dallas County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the State Fair of Texas, Deep Ellum Arts Festival, and Dallas International Film Festival. Our coverage extends to key organizations like the Dallas Regional Chamber and United Way of Metropolitan Dallas, plus leading businesses in telecommunications, aviation, and semiconductors that power the local economy such as AT&T, Southwest Airlines, and Texas Instruments. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

San Antonio Experiences Surge in Home Purchase Cancellations