The San Antonio housing market is seeing a significant shift in 2025, marked by a 3.7% drop in median home prices. With rising inventory, high mortgage rates, and shifting buyer behavior, the city is emerging as a key buyer’s market in Texas. For anyone looking to purchase, sell, or invest, understanding these shifts is critical.

Why Are Home Prices Falling in San Antonio?

San Antonio’s median home price has dipped to approximately $289,995, down from $301,000 last year. This marks the sharpest decline among major U.S. cities, according to recent housing data. Here’s why:

• Increased Inventory: Active listings are up 18% year-over-year, giving buyers more choices and pushing sellers to be more competitive with pricing.
• High Mortgage Rates: With 30-year mortgage rates hovering around 6.5% to 7%, many buyers are sidelined, reducing demand.
• Economic Concerns: Worries about job security and a possible recession are slowing buyer activity, particularly among first-time buyers.
• New Home Construction: Builders started over 4,000 new homes in Q4 2024, adding supply faster than demand can absorb.

How San Antonio Compares to Other Cities

While the national median home price rose by 2.6% year-over-year to $389,400, cities like Austin (-4.6%), Tampa (-4.5%), and Houston (-1.2%) are experiencing similar price declines. San Antonio remains one of the most affordable large metros in Texas, offering greater opportunity for buyers.

What’s Causing Lower Buyer Demand?

The combination of high borrowing costs and economic uncertainty is driving more people to rent rather than buy. A 7% mortgage rate on a median-priced home results in a monthly payment of around $1,545, which exceeds the typical affordability threshold for many households. In turn, pending home sales in the area dropped 7% compared to March 2024.

What This Means for Homebuyers

Now may be one of the best times to buy in San Antonio:

• More Inventory: Active listings are up, and homes are sitting on the market an average of 75 days, giving buyers more negotiating power.
• Lower Prices: Homes are selling for roughly 10.5% below asking price, which creates opportunities for value-driven purchases.
• Budget-Friendly Options: Compared to other Texas cities, San Antonio remains highly affordable, with strong offerings in submarkets like Alamo Ranch and Far West San Antonio.

Tips for Buyers:

• Get preapproved for financing and explore local down payment assistance programs.
• Focus on growing neighborhoods for long-term value.
• Partner with a local expert familiar with price trends in areas like Stone Oak and Alamo Heights.

What This Means for Sellers

Sellers face a slower market, but it’s still possible to succeed with the right strategy:

• Price Competitively: Use recent sales data to stay in line with market expectations.
• Stand Out: Highlight your home’s best features, from energy efficiency to location advantages.
• Time It Right: Aim for the spring and summer months to capture peak buyer interest.

Looking Ahead: Market Predictions

Zillow predicts an additional 4% price decline in San Antonio over the next year. However, the area’s steady population growth, bolstered by job sectors like healthcare, military, and tourism, will help maintain long-term housing demand.

Key Metrics (March 2025):

• Median Home Price: $289,995 (-3.7%)
• Active Listings: 14,716 (+18%)
• Days on Market: 75
• Median Rent (Single-Family): $2,001
• Pending Sales: ~3,000 (-7%)

Comparison with Other Texas Cities:

• Austin: $450,000 (-4.6%)
• Houston: $325,000 (-1.2%)
• Dallas: $350,000 (-0.8%)

Bottom Line

San Antonio’s housing market is transitioning, and both buyers and sellers must adapt to the new landscape. With home prices dropping and inventory rising, buyers can find favorable deals, while sellers should fine-tune their strategies to stay competitive. Stay informed, watch interest rates, and rely on local expertise to make confident decisions in today’s market. For more insights, visit the San Antonio Board of Realtors’ market reports for local data.

Frequently Asked Questions

• Why are home prices dropping in San Antonio in 2025?
Home prices in San Antonio have dropped by 3.7% due to a combination of rising inventory, high mortgage rates, increased new construction, and economic uncertainty. These factors have shifted the market in favor of buyers, resulting in more negotiating power and lower home values.

• How does San Antonio compare to other Texas cities in terms of price drops?
San Antonio’s 3.7% price decline is steep, but not the highest. Austin experienced a 4.6% drop, while Tampa and Houston saw declines of 4.5% and 1.2% respectively. San Antonio remains one of the most affordable metro areas in Texas, with a median price of $289,995.

• Is now a good time to buy a home in San Antonio?
Yes, for many buyers, now is a favorable time to enter the San Antonio market. With more homes available, extended days on market, and price reductions averaging 10.5%, buyers can take advantage of greater choice and leverage. However, high mortgage rates still impact monthly affordability.

• What areas of San Antonio are best for budget-conscious buyers?
Emerging submarkets like Alamo Ranch and Far West San Antonio are seeing growth and offer new construction in the $250,000 to $350,000 range. These areas provide strong long-term value and opportunities for equity.

• What should sellers know about listing in the current market?
Sellers should be prepared for longer days on market (averaging 75 days) and the need for realistic pricing. Highlighting home features like upgrades or proximity to desirable amenities can help a listing stand out. Timing a sale during peak seasons, like late spring and summer, can also improve results.

• How are mortgage rates affecting buyer behavior?
Mortgage rates between 6.5% and 7% have reduced purchasing power and increased monthly payments. This has caused some buyers to wait or turn to renting. For a $289,995 home, monthly payments can consume over 35% of the median household income.

• Is San Antonio still a good place for real estate investment?
Yes. Despite the price dip, San Antonio’s relatively low home prices, growing population, and strong rental demand create a solid foundation for long-term investment. Investors may find favorable cash-flow opportunities compared to higher-priced Texas metros.

• What is the outlook for San Antonio’s housing market?
According to Zillow, San Antonio could see an additional 4% price decline through the rest of 2025. However, strong population growth and a diverse economy are likely to support long-term stability. The market may balance out as construction slows and interest rates adjust.

• How can buyers and sellers stay informed?
Staying updated with local market data, mortgage rate trends, and professional guidance from a local Realtor can help both buyers and sellers navigate current conditions and make well-informed decisions.

Ready to take the next step? Contact the Tami Price Properties Group today to schedule a consultation and find out how we can help you sell or buy your home in San Antonio!