October Market Update for San Angelo, Texas
The interest rates, home prices and home sales in San Angelo, Texas, have been a topic of keen interest for residents and investors alike. In October 2023, broker Ryan Newlin takes a closer look at the latest trends and developments. If you’d rather listen, visit his podcast page.
The San Angelo real estate market in October 2023 remains robust, offering a mix of opportunities for both buyers and sellers. Let’s get started with some stats:
For the first two weeks of fall, September-October, the average sales price was $277,000. This is higher than the average for last year by around $20,000. Sellers are also getting very close to asking price: average asking was $285,000. The average sales price per foot was $151/foot, and we’re seeing closing times typical for San Angelo, around 70 days, which is about a month on the market and a month to close. The median sales price was $245,000: the median is typically lower because it looks at the price in the exact middle rather than taking an average.
Here is a breakdown of homes sold by price:
- Under 100k: 18. There are not many homes for sale under 100k in this market, and we’re seeing a lot of cash offers or conventional loans. This suggests investors are active: investors prefer to buy at times when the market is slower to get better deals.
- 100-200k: 57
- 200-300k: 57
- 300-400k: 39
- 400-500k: 14. At the end of October, there were 36 available at this range, so they are not selling as fast.
- 500+: 17. There were quite a few cash sales at the higher end of the market, which suggests buyers are using proceeds from a previous home sale, savings or retirement rather than taking a loan. At the end of October, there were 54 available in this price range.
The bottom line of this market is: people that need to move are moving, people that just want to move are waiting. That will change: there are a lot of folks wanting another bedroom or a different area of town that are ready to make a move.
We can’t talk about home sales without talking about interest rates. Rates inched up again this week. Over the summer, rates were falling until July, then they began inching up again. The national average is around 7.9%, but we’re seeing many loans with lower interest rates locally. Rates are tied to the buyer’s credit, but other factors as well. Our military are taking advantage of lower interest rates with VA loans. Others are putting down larger down payments, taking advantage of buyer assistance programs, and buying down their interest rate.
Everyone is wondering if rates will fall in 2024, and the truth is that nobody knows. There were a lot of predictions that rates will fall back to 5-6% in 2023 and that has yet to happen. What we always come back to is that home prices have tend to rise every year, and in retrospect, every year has been a good year to buy for a long term investment.
- Steady Price Growth: San Angelo has experienced steady price growth in 2023. While the market isn’t as competitive as some major metropolitan areas, the city’s affordability continues to attract new residents.
- Inventory Levels: The city has maintained a healthy balance of housing inventory. Buyers have a variety of options to choose from, ranging from single-family homes to condominiums and apartments. This variety is particularly appealing for first-time buyers and those looking to downsize or upgrade.
- Strong Rental Market: The rental market in San Angelo is thriving, making it a desirable destination for real estate investors. With a growing number of renters in the city, properties are in high demand, which can yield steady and reliable rental income for landlords. There are currently only 60 rental units available, which is quite a bit lower than what we were seeing over the summer.
- New Developments: The city continues to experience steady growth, with new developments in various areas. These developments include both residential and commercial properties, catering to the city’s expanding population and local businesses.
- Interest Rates: In October 2023, interest rates have remained relatively low, making it an attractive time for buyers to secure financing for their new homes or investments.
In October 2023, the real estate market in San Angelo, Texas, is a dynamic and promising environment for both buyers and investors. With steady price growth, a balanced inventory, and a strong rental market, the city continues to be an attractive destination for those looking for an affordable and thriving community. As San Angelo’s popularity grows, so do the opportunities for those interested in real estate in this charming West Texas city. Whether you’re a homeowner or an investor, San Angelo’s real estate market offers something for everyone.
If you’re looking for a real estate professional, our office sales are move than double any other company in town. We have over 90 agents which is a win-win for both buyers and sellers: our agents bring buyers as well as first-look access to upcoming listings. We also offer property management services for rental properties. Give us a call today at 325-481-0500.