If you work in San Antonio real estate, you know that the market is slowing down as of mid 2025. This could be the year to pick up more under market value San Antonio investment properties. Here’s what we know about the San Antonio real estate market as of May 2025:
Price Trends
San Antonio home prices are declining slightly from the year before. The average home price is between $263,000 and $288,000, down roughly 2% from 2024. Forecasts predict another 1% drop through the end of 2025. Median sale prices are between $256,000 and $311,000. Interestingly, smaller homes with one or two bedrooms are seeing more declining prices than larger homes.
Inventory Rising
San Antonio home inventories have increased, with up to 15,000 listings reported in 2025, an 11% rise over last year. This increase includes a 25% jump from pre-COVID levels and 10,600 homes listed last year. This increase in inventory is the highest since 2017. The home oversupply means buyers have more choices and power to negotiate. You could see a lower asking price if you are hunting for your next San Antonio investment property.
Market Dynamics
Redfin terms the San Antonio housing market as ‘somewhat competitive’ with homes selling in 50 to 80 days. San Antonio houses often sell 2% or 3% under the list price. About 34% of buyers are considering leaving San Antonio, which suggests cooling demand.
Interest Rates
Interest rates continue to pressure home and investment property buyers. As of May 2025, they were still near 7%, affecting affordability and decreasing buyer interest. The Fed has continued to resist lowering rates, and many think there won’t be significant changes in interest rates through 2025.
Sales Down
Close real estate sales are down, with 2,800 single-family houses sold in March, down 8% from the year before. However, existing-home sales across the US are forecast to rise 8% to 12% in 2025 as buyers digest the higher rates.
San Antonio Economic Factors
San Antonio’s relative affordability, 1.6% annual population growth, and job market strength are still driving demand. The city continues to appeal to families and professionals, but new construction is slowing. Only 8,600 single-family permits were issued in 2023, down 15% from the year before.
San Antonio Investment Property Opportunities
West San Antonio, Southtown, Tobin Hill, and Harlandale have strong rent yields of 6% to 8%. The median home price of $297,000 or so positions San Antonio as a more affordable option than Austin, Houston, and Dallas. Be sure to review our current San Antonio investment property located at 5222 Lark 78228.
Overall, the San Antonio real estate market in 2025 is cooling, with home prices slightly declining, surging inventory, and properties sitting unsold longer. For San Antonio under market value property buyers, this means more negotiating power, and potentially higher rent yields.