Rate of discounted homes on the market reaches highest level since the pandemic

The data offers a striking look at fluctuations in the housing market over the past two years.

FILE - (AP Photo/Matt Rourke, File) (Matt Rourke, Copyright 2018 The Associated Press. All rights reserved)

SAN ANTONIO – More than a third of homes for sale in the San Antonio area are being discounted, according to new data from Zillow.

That rate — 34.2% — is the highest the area has recorded since the Seattle real estate company began tracking the figure in 2018. It’s a massive transition from March 2021, when that rate was at 9.9% – its lowest point.

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Notably, data from Zonda, another housing market analytics firm, shows that the buying frenzy reached fever pitch in March 2021. The company recorded 1,933 new home sales contracts, an all-time record for San Antonio.

By contrast, Zonda recorded 561 new home sales contracts in September – the latest figure posted by the company.

The dramatic turn in the market began when the Federal Reserve raised interest rates.

“I have one family looking to move into a new home, who purchased their home at a 3.3% interest rate,” Danny Charbel, a real estate agent with Keller Williams City View told the Business Journal in October. “Right now, if they bought their home for the exact same price but with an interest rate of 6.8%, they wouldn’t be able to afford it.”

To read about how some homebuilders are trying to combat the slump in home sales with discounts, click here to continue reading this story in the San Antonio Business Journal.

Editor’s note: This story was published through a partnership between KSAT and the San Antonio Business Journal.

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