San Antonio’s real estate market is showing a shift that has not been seen in some time. According to Axios San Antonio, about 10 percent of homes sold in May 2025 closed for less than their original purchase price. This is notably higher than the national average of 6 percent, as reported by Redfin.

If local prices drop just one percent more, the share of loss-making sales could climb to 12 percent.

Why Are Losses Increasing?

Several factors are influencing this change in the market:

• Higher mortgage rates over the past year and a half have slowed buyer activity.
• Overbuilding in certain neighborhoods has increased inventory and competition among sellers.
• Pandemic-era purchases made during bidding wars may have led some buyers to overpay, creating challenges when reselling.

What Sellers Should Know

In this environment, pricing your home correctly is critical. Overpricing can cause a home to sit on the market longer, which often leads to accepting an offer lower than expected. Working with a realtor who understands neighborhood-level trends can help position your home competitively from day one.

What Buyers Should Know

For buyers, the current market could offer new advantages. With slightly less competition, you may have more negotiating power, the potential for seller concessions, and a better chance of securing a home below the asking price in certain areas.

Source: Axios San Antonio

Frequently Asked Questions

Q: Is the entire San Antonio market in decline?
A: No. Many neighborhoods are still appreciating, especially those in desirable school districts or with limited available inventory.

Q: Will this trend continue?
A: It depends on broader economic factors. If interest rates decrease and job growth stays strong, buyer demand could rebound quickly.

Want to learn more about how projects can affect your home’s value or buying decisions?
Text Tami at 210-620-6681 or follow @tamisellssanantonio for the latest real estate and community updates in Greater San Antonio.
Tami Price, Realtor® | Broker Associate | Real Broker, LLC