As we head into the final months of 2024, the housing market presents a unique opportunity for home buyers to get a great deal on a home of their dreams.
October, November, and December bring together a perfect storm for home buyers: an increase in available homes, the lowest mortgage rates seen in the past 15 months, and sellers motivated to close deals before the end of the year.
This article will examine why these months are ideal for homebuyers, current market trends, and how prospective buyers can make the most of these opportunities.
The "Perfect Storm" for Homebuyers
Timing is crucial in the real estate market. The end of 2024 has created a perfect storm for value buyers, with increased housing inventory, declining mortgage rates, and sellers eager to negotiate before the new year.
More Homes on the Market
The final months of 2024 have set the stage for San Antonio buyers, offering a rare combination of high inventory, competitive mortgage rates, and sellers motivated to close deals before the new year.
Whether you’re a first-time buyer or looking to upgrade, this is the perfect moment to secure a home in one of Texas's most vibrant cities.
Let’s dive into why now is an ideal time for San Antonio buyers and explore the top neighborhoods that fit a range of lifestyles.
Increased inventory means buyers can be more selective.
Fewer competing buyers in fall/winter months.
Sellers are more motivated to negotiate.
Families may prefer spring and summer moves, freeing up homes for immediate sale.
“Inventory levels have steadily increased in the second half of 2024, offering buyers more options than we've seen in recent years. This increase puts buyers in a strong position, with sellers motivated to close deals before the year ends."
Mortgage Rates Drop to 15-Month Low
One of the key factors driving the value buyer opportunity is the significant drop in mortgage rates. After two years of consistent increases, mortgage rates have finally started to decrease, reaching their lowest point in over a year.
As of October 2024, the average 30-year fixed mortgage rate sits at 5.99%, down from a peak of 7.25% in late 2023.
Mortgage Rates Dropping in the Last Few Months
| Date | 30-Year Fixed Mortgage Rate |
|---|---|
| December 2023 | 7.25% |
| March 2024 | 6.85% |
| July 2024 | 6.35% |
| October 2024 | 5.99% |
Mortgage rates hit a 15-month low, making homeownership more affordable.
Lower monthly payments help buyers qualify for larger loans.
A rare opportunity to lock in favorable terms after years of rising rates.
“This is the lowest we've seen mortgage rates in over a year," explains David Martinez, Chief Economist at Horizon Mortgage Group. "For buyers who have been waiting for the right moment, the lower rates combined with increased inventory make now an ideal time to jump into the market."
Why Now is the Perfect Time to Buy in San Antonio
Higher Inventory Levels: The real estate market has more available homes, which means buyers have greater options across San Antonio.
Declining Mortgage Rates: Rates have dropped, with October 2024 marking the lowest mortgage rates in over a year.
Motivated Sellers: With fewer buyers active during fall and winter, sellers are more open to negotiations.
Seasonal Slowdown: Many families delay moves to avoid school disruptions, reducing buyer competition and enhancing your negotiating power.
Top Neighborhoods in and Around San Antonio
San Antonio offers diverse neighborhoods, each with unique features to fit different buyer needs. Here are six popular areas:
| Neighborhood | Features | Avg. Home Price | Nearby Amenities |
|---|---|---|---|
| Alamo Heights | Upscale, historic charm, excellent schools | $600,000 | Alamo Quarry Market, The Witte Museum, San Antonio Zoo |
| Stone Oak | Family-friendly, gated communities | $450,000 | North Central Baptist Hospital, The Vineyard Shopping Center |
| Downtown | Urban living, nightlife | $550,000 | River Walk, Majestic Theatre, Market Square |
| Tobin Hill | Artsy vibe, close to Pearl District | $425,000 | Pearl Brewery, San Antonio Museum of Art |
| The Dominion | Luxury living, golf communities | $750,000 | The Shops at La Cantera, The Rim |
| Castle Hills | Quiet suburb, large lots | $420,000 | Castle Hills Park, North Star Mall |
Motivated Sellers and Seasonal Slowdown
The fall and winter months tend to see a slowdown in buyer activity, which means sellers become more motivated to negotiate. According to industry experts, this year is no different. Sellers who haven't sold during the peak summer months are now facing increased competition from other listings and are eager to close deals before the holidays.
Motivated sellers are more open to negotiating prices and terms.
Fewer active buyers increase your bargaining power.
Sellers who missed out on the peak summer market are eager to close before year-end.
"Many sellers are looking to wrap up transactions before the end of the year, especially if they've been on the market for a while," says Jennifer Reynolds, Real Estate Advisor at Veteran Home Realty. "This gives buyers an upper hand when it comes to negotiating prices and closing terms."
Real Estate Market Trends in San Antonio: Q4 2024
More Homes on the Market
With an increase in available homes, buyers in San Antonio can now be more selective. According to the National Association of Realtors (NAR), inventory levels have risen 10% year-over-year, giving buyers a broader range of properties across various neighborhoods.
More choices – More inventory means more homes to choose from.
Less competition – Fewer buyers during the fall and winter months.
Negotiating advantage – Sellers are more inclined to offer concessions.
"We've seen inventory rise steadily in the second half of 2024, offering buyers more options than we've seen in recent years," says Maria Sanchez, Lead Agent at SA Dream Realty.
Key Strategies for Value Buyers in Q4 2024
If you're looking to take advantage of this value buyer opportunity, it's essential to approach the market strategically. Here are some key strategies for navigating the housing market in the last quarter of 2024:
1. Get Pre-Approved for a Mortgage
Before you begin your home search, it's important to get pre-approved for a mortgage. This not only shows sellers that you're serious, but it also gives you a clear understanding of how much you can afford. With mortgage rates currently at their lowest point in 15 months, now is the time to lock in a competitive rate.
Pre-approval signals to sellers that you’re a serious buyer.
Provides clarity on your budget and loan options.
Locks in a lower interest rate for a defined period.
Tip: Compare rates from multiple lenders to ensure you're getting the best deal.
2. Take Advantage of Increased Inventory
With more homes on the market, buyers have the luxury of being selective. Take your time to explore different listings, and don't be afraid to negotiate. With fewer buyers competing for homes, you're in a strong position to secure a great deal.
More available homes mean more options.
Buyers can be choosier and explore different listings.
Negotiation power is stronger in a less competitive market.
3. Be Ready to Act Quickly
While there is increased inventory, it's still important to act quickly when you find a home that meets your criteria. Sellers looking to close before the end of the year may respond favorably to offers that can close quickly.
Competitive homes may still go fast despite increased inventory.
Be prepared to make an offer if the right home appears.
Work closely with your lender to ensure financing is in place.
Tip: Work closely with your real estate agent to streamline the homebuying process and make sure your financing is in place.
4. Negotiate Closing Costs and Extras
In a buyer's market, sellers may be more willing to cover closing costs or make concessions, such as including appliances or offering a home warranty. Don't hesitate to ask for these perks during negotiations.
Sellers may offer to cover some or all closing costs.
Additional extras like appliances or home warranties can sweeten the deal.
Buyers have more leverage in negotiations due to fewer competing offers.
Current Housing Market Data for October, November, and December 2024
As of October 2024, several key housing market metrics indicate favorable conditions for buyers. Here's an overview of some of the most important statistics:
Median Home Price: The national median home price is currently $416,000, representing a slight increase of 2.5% year-over-year. However, price growth has slowed compared to the rapid increases seen in 2022 and early 2023.
Average Days on Market: Homes are staying on the market longer, with the average days on market (DOM) now sitting at 45 days, up from 30 days earlier this year.
Inventory Growth: Housing inventory has grown by 10% year-over-year, providing buyers with more choices and increasing competition among sellers.
Key Housing Market Metrics (October 2024)
| Metric | October 2024 |
|---|---|
| Median Home Price | $416,000 |
| Average Days on Market | 45 days |
| Year-over-Year Price Growth | +2.5% |
| Inventory Growth | +10% |
Median home prices have slowed their growth, making housing more affordable.
Homes are staying on the market longer, increasing negotiating opportunities.
Inventory growth allows buyers more choice in their home search.
The Long-Term Outlook for Buyers
While the current conditions favor value buyers, it's important to consider the long-term outlook for the housing market. Experts predict that mortgage rates will likely rise again in 2025 as inflationary pressures return and the Federal Reserve continues to adjust monetary policy.
Mortgage rates may rise again in 2025, narrowing the window of opportunity.
Inflationary pressures may drive rates and home prices higher next year.
Buyers who act now can lock in favorable rates and avoid increased competition.
"For buyers looking to lock in a lower rate, the window of opportunity may close by early 2025," warns Greene. "We expect rates to rise again as the market stabilizes, so now is the time to act if you're serious about buying."
FAQs About the Value Buyer Opportunity in Q4 2024
Why are mortgage rates lower in October 2024?
Mortgage rates have decreased due to a combination of Federal Reserve actions and economic factors. Lower demand for new loans has also contributed to the dip in rates.
How long will this value buyer opportunity last?
While it's difficult to predict exactly how long the current conditions will last, experts believe that the favorable conditions for buyers may extend through the end of 2024, with potential rate increases in 2025.
Should I wait until 2025 to buy a home?
Waiting until 2025 could mean higher mortgage rates and increased competition for homes. If you're financially ready, buying before the end of 2024 may offer significant advantages.
Can I negotiate a lower price with sellers in late 2024?
Yes, sellers are more likely to negotiate on price, especially if their home has been on the market for a while. You may also be able to negotiate for closing cost assistance or other concessions.
What factors should I consider when choosing a lender?
Look for competitive mortgage rates, low fees, and flexible loan terms. It's also important to choose a lender who can process your loan quickly and efficiently.
What makes Q4 2024 a "value buyer" opportunity?
The combination of increased housing inventory, the lowest mortgage rates in over a year, and motivated sellers creates favorable conditions for buyers in Q4 2024. This alignment offers more negotiating power, better pricing, and competitive financing options.
Are home prices expected to rise in 2025?
While no one can predict market trends with certainty, experts anticipate home prices may increase in 2025 due to rising demand and inflation. Locking in a lower price now may help buyers avoid future price hikes.
What is the best way to approach negotiations with sellers in late 2024?
In a slower market, buyers can negotiate for lower prices or request concessions such as closing cost coverage or home repairs. Work closely with your real estate agent to craft a competitive yet fair offer.
The Bottom Line
The final months of 2024 present a rare and ideal opportunity for value buyers. With increased inventory, the lowest mortgage rates in over a year, and motivated sellers, the conditions are right for securing a great deal. Buyers who act strategically can take advantage of these favorable circumstances before the market potentially shifts in 2025.
Whether you're looking for your first home or planning to upgrade, now is the time to explore your options, lock in a competitive mortgage rate, and negotiate the best deal possible. Don’t miss out on this perfect storm for homebuyers—take the first step by working with an experienced real estate agent and lender to capitalize on this rare opportunity.
LRG agents will help and guide you through all your home needs. Contact us at 210-879-8220 or message us on our website. You can also follow us or message us on Instagram and Facebook! Also, check out our TikTok!
