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So, You Want To Buy A San Antonio Fixer Upper!

If you’re a San Antonio investment property buyer, you know prices are falling in 2025. This is a fine time to pick up your next San Antonio fixer upper. Many San Antonio distressed property investors have been out of the market in recent times because of higher prices.

If you are getting back into the market and want to buy your next San Antonio fixer upper, we want to give you a refresher. You should keep several points in mind when you buy a San Antonio fixer upper and get ready to renovate it:

Keep The End Game Top of Mind!

A common issue I have seen with investors who have been out of the fixer-upper market for a few years is scope creep. Scope creep occurs when your investment property goals expand, resulting in a cost that is significantly more than you initially planned.

Experienced investors know that scope creep can be deadly to your profits and cash flow. What could have begun as a ‘simple’ sheetrock and paint job on that 2 BR/1 bath in 78228 could turn into a massive renovation, including fixing things that don’t need to be to rent it. If you fall victim to scope creep, you could exceed your repair budget by several thousand dollars.

If you want to flip that San Antonio investment property, overspending $20,000 on the rehab could torpedo your profits. Alternatively, if you want to buy and hold in San Antonio, you may be forced to raise the rent, which could result in the property sitting vacant for months.

Never Overpay

I remember the first investment properties I bought in Virginia. Three-bedroom, two-bath houses. I was young, inexperienced, and head strong. I overpaid for my houses, and this mistake made it challenging to make them positive cash flow deals.

It is common to become too excited about a certain fixer upper. You might manipulate the numbers to convince yourself that they work when they don’t. Overpaying for a distressed property is the #1 reason people suffer losses in real estate investing.

So, always approach property comps like a boring, crusty accountant (or the stereotype of one!). Only look at the numbers on paper or the screen. Keep emotion out of it. There’s nothing wrong with passing on a San Antonio fixer upper and waiting for a better deal. Better to wait than pay to much and suffer losses each month!

Pay Plenty For Inspections

Discovering that the ‘perfect’ property you bought has a profit-killing flaw doesn’t feel great. I’ve seen many local investors discover a problem with a property’s pier and beam foundation a day after they bought the home. That problem can increase your repair costs by 100% or more.

Always tour any property you want to buy, and it’s best to invest in a professional inspection. Inspect the foundation, look for signs of water damage, cracks in the walls, roof damage, discolored ceiling tiles from leaks, and issues with plumbing, electricity, etc. Always listen to the inspector’s report and advice. Take their experience and findings seriously. They could save you from buying a money pit.

Don’t Be Cheap On Repairs

Take all repairs seriously. If you go cheap, the price of the home will be lower, and the inspector will notice that you have done minimal, inexpensive maintenance. If you want to rent the house, going cheap on repairs always comes back to haunt you in the long term. Poor-quality repairs always lower the tenant’s quality of life, which usually leads to more vacancies as well.

Don’t Overrepair the Fixer Upper

It’s essential to prioritize the necessary repairs to maximize the ARV or monthly rent. Don’t do more than that. Overspending will cost you on your flip, or make you demand above-market rent. Also, overimproving the home may make it a bad fit for your neighborhood. You may end up with a house that costs too much for the people in that neighborhood, and the home is also not desirable to people who can afford it because of the neighborhood.

We will have another San Antonio investment property coming this month, so stay tuned!

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Can You Repair A Pier And Beam Foundation Yourself?

You bought a San Antonio investment property in 78228 for $75,000 cash. It’s a 2/1, 1400 square feet, and needs $50,000 of repairs. ARV is $170,000. But a problem surfaces: The pier and beam foundation is in rough shape, and the kitchen floor slopes. What do you do?

Many would call a professional foundation company. However, buying a distressed property in San Antonio often means doing some repairs yourself to cut costs. Repairing your pier and beam foundation yourself can be difficult, but it is possible. You need construction skills, the right tools, and a patient approach. Here are the steps to fix your San Antonio investment property pier and beam foundation.

First, inspect the foundation to determine the extent of the damage. Crawl under the home with a level, flashlight, and tape measure. Look for cracked beams, uneven piers, and signs of insect or rot damage. Check for sagging floors in your house. Look for stuck doors and windows. The soil may shift with changes in moisture, so look for poor drainage around the foundation. Note the problem areas and measure the height differences where the foundation has settled.

Second, improve drainage to prevent more foundation problems. Remove leaves from gutters. Ensure your downspouts are positioned at least five feet away from the foundation. Grade the soil around the home to slope away from the building. Try for a six-inch drop for 10 feet. If standing water persists, consider installing a French drain or consult a professional plumber for more advanced options.

Third, you need to jack up the San Antonio distressed property to level it. Purchase 20-ton capacity jacks and place them under the main beams, close to the damaged piers. You need solid, level ground. Or, use concrete blocks as a jack base. Do not move the San Antonio investment property more than 1/4 inch daily. This caution avoids damaged plumbing or cracked walls. Install temporary supports, such as steel posts, as you lift the house. Check the level often; you need to raise the home evenly to ensure stability. If you’re unsure about jacking, hire a structural engineer, as jacking up the house incorrectly can cause damage.

Fourth, after leveling the house, repair or replace the damaged piers and beams. If piers are settling, dig near the affected pier to the base, perhaps 18 inches deep. If the pier’s intact but sinking, add a concrete footing (12x12x12) reinforced with rebar. It needs to cure for at least a week. Then, place concrete blocks or steel shims to lift the pier to the right height.

If the beams or posts are rotted, remove the damaged areas with a saw and replace them with pressure-treated lumber. Secure any new beams with galvanized brackets or bolts. Make sure every connection is tight!

Last, after the repairs, lower the home slowly with your jacks. Take out any temporary supports as you proceed. Recheck your level to ensure the foundation is even. You may want to reinforce your crawl space with ventilation to reduce moisture. We recommend installing vents to provide one square foot of ventilation for every 150 square feet of crawlspace.

Keep watch on your foundation over time. Walk through the San Antonio distressed property monthly to look for any movement, such as sticking windows or creaky floors. Ensure drainage systems are clear and moving water away from your repaired foundation. DIY pier and beam foundation repairs are affordable, but doing them right requires proper tools, skill, and patience. Doing these repairs yourself will boost the ROI of your San Antonio under market value property – well done!

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Choose A Shady Contractor Suffer, Ye Shall

My blog readers might notice that I committed many real estate investing sins. I have learned lessons. Today, I travel the path of a reformed terrible real estate investor. I’m not half bad. I’ve had many successes after many failures. Here is another early failure.

I bought a distressed two-bedroom San Antonio investment property for $40,000 in 2008. It needed a new roof, siding, and major plumbing work, including a new plumbing line to the main line at the street. I chose a contracting company for the $25,000 rehab that a friend recommended.

A mistake, and one I made multiple times in my early distressed property investing career. Haste. I wanted to become a successful real estate investor, but I cut corners to reach my dream. I was impatient.

A sad fact about the real estate business is that many scammers are attracted to it like flies to…well, you know. The FTC reports 83,000 complaints about home renovations and improvements every year.

My contractor’s rehab work was subpar. After he completed the work, the ‘new’ roof leaked, the ‘new’ siding started to peel off after five weeks, and the ‘new’ plumbing system stopped up under the pier and beam foundation. A smelly mess ensued.

I knew one of the laborers the contractor hired on my house. He called me a month after they completed the work. Sad news, he told me. I paid over $10,000 for new materials for the roof and siding. But my friend told me the contractor had the workers grab old materials off piles of scrap in the alley. They used old shingles and older siding to rehab my San Antonio distressed property.

I don’t know what the contractor did with my $25,000, but it didn’t go toward new materials for my San Antonio investment property.

I had to pay another contractor $20,000 to redo the renovations. Eventually, the house became successful and provided steady rent to me for almost 10 years. However, it took five years to turn cash positive.

Lesson – Choose your San Antonio investment property contractors carefully. I recommend driving by the property every week during renovations. Watch your contractors and the quality of work they perform. Vet your contractors carefully. Check online reviews and call their references.

Last tip: Don’t be hasty in real estate investing. Success will come, but only with patience and discipline.

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3 Disastrous Real Estate Investment Mistakes I Made

Here’s how to avoid them!

I went from being a terrible real estate investor to a good one. I’ll tell you what I did wrong so you don’t waste time and money.

It was Virginia 2005. The real estate market boomed. Remember? Everyone was investing in real estate. Why not me, I thought? My wife and I snatched up a 20-unit commercial property for weekly renters in West Virginia. The cost—$500,000.

Four years later, we lost our asses, including our house, in the market crash. Like many first-time real estate investors, we made several critical blunders.

Inadequate Due Diligence

I should have investigated each property’s market, neighborhood, and condition.

For example, due diligence on the 3-acre West Virginia commercial property would have revealed a red flag: The septic system clogged when foolish tenants flushed tampons, garbage, and toys down the toilet. Each clogging episode stopped up the entire building’s plumbing system. Unclogging the septic system cost several hundred dollars per event. Plus clogged toilets and an ugly mess in multiple rooms. Disaster.

Bonus disaster: The septic system drainage field ran down the property’s back hill to the neighbor’s property below. I shall assume the neighbor below called the West Virginia Environmental Quality Dept. The WV government warned me that the system wasn’t up to code, and I needed to upgrade it for several thousand dollars.

Lesson: Analyze any San Antonio investment property you want to buy. Hire an inspector you trust to check for critical, costly problems.

Underestimating Expenses

I failed to consider repair and vacancy costs. When I bought the West Virginia property in 2005, it had 18 tenants. Cash poured into our bank account monthly. I was excited.

The market crashes of 2008 and 2009 pummeled the US, and unemployment skyrocketed. Weekly renters are the first to lose their jobs in a tanking economy.

I had 12 vacant units, and my cash flow disappeared. Instead, I had to dig money out of my sweaty pocket to pay the mortgage and keep the lights on.

Lesson: Study the area’s vacancy rate when buying a San Antonio investment property. Expect a 10-15% vacancy rate in Texas. Adjust your offer accordingly.

Poor Property Management

Our West Virginia nightmare was 45 minutes from our house. I drove the winding roads through the NW Virginia hills weekly to reach our property. I relied on a live-in property manager to handle the place. Hoss, he was called. He had face tattoos.

I relied on an unreliable person to keep the property rented. Money disappeared, and repairs weren’t completed. Six months in, Hoss bailed and disappeared. I was left with a 20-room commercial property without a competent property manager, almost an hour from my house. The next property manager turned out to have a criminal record. He was arrested. I lost more money.

Lesson: Consider a San Antonio investment property near your home. The closer, the better. Always hire reliable property management without face tattoos.

Summary

Looking back, we were passionate about buying real estate and making money. Warning! Warning! Passion made us move too quickly and think too little about our properties.

Passionate people are often poor bets for buying a business or investing in real estate. Passion is okay, but it can blind. Besides, passion is transactional; after a year, my passion for West Virginia real estate drained like my bank account. Passion follows success and prosperity.

A better situation: Have zero passion for what you are purchasing. Investment properties are business transactions. Nothing more. Your business decision should be: Do the numbers work on paper before you? If so, buy. If not, move on.

Did you find this essay informative? I hope so! My mistakes might help someone find faster success with San Antonio under market value investing.

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Real Estate Market Slowdown Affecting San Antonio

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.

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San Antonio Neighborhood Profile – Culebra Park Area, 78228

San Antonio under-market-value property investors have many tempting choices when investing in our growing city! One of the areas we see as up and coming for San Antonio investment property buyers is the Culebra Park area in 78228. I’ve identified several aspects of this area contributing to its profitability for under-market-value buyers. These attributes attract potential home buyers and renters with good income and families. Let’s take a look!

And don’t forget: Check out our new under market value investment property at 5222 Lark for only $69,900 cash or hard money!

Amenities

First, the Culebra Park area in 78228 boasts several parks, including Acme Park, Rosedale Park, and Woodlawn Lake Park. Families have ample green spaces for themselves and the kids to jog, walk, play sports, and picnic. Woodlawn Park has playgrounds, a lake, and many walking trails. This area is easily walkable, and parks and green spaces help the family-focused feeling.

Bonus: The San Antonio River Walk is a short drive away!

Shopping and Dining

Home buyers and renters in San Antonio want ample shopping and dining without needing to drive far in our hectic traffic. In Culebra Park 78228, we have Ingram Park Mall and Alamo Ranch Shopping Center, so there’s a variety of highly rated restaurants, retail stores, movie theaters, etc. Plus, Walmart and Walgreens are easily accessible.

Cultural And Education

Education is important to parents, and St. Mary’s University and Our Lady of the Lake University are only a few minutes’ drive away. Also, community colleges are affordable in Texas, and this area offers Northwest Vista College and UT San Antonio.

Community And Lifestyle

Culebra Park enjoys a great reputation as family-friendly, peaceful, and welcoming. Residents have a strong sense of community ties, and many comment on the safety, quiet streets, and dog-friendly vibe. Also, this area is served by the Northside Independent School District, which is well regarded for its teacher quality and student experience.

Benefits For Homebuyers And Investors

The median real estate price in 78228 is $148,500, which is lower than 75% of other neighborhoods in Texas. So, the Culebra Park area is a good possibility for first-time buyers and under-market-value San Antonio investors who want affordable properties that appeal to growing families. Be sure to check out our current under market value property available at 5222 Lark, 78228!

Robust Marketing Demand

Real estate vacancies in the Culebra area are only 5.3%, so there is a significant desire for rental properties and lower-priced homes for purchase. This area is close to Highway 151 and Loop 1604, and Kelly Air Force Base and Lackland Air Force Base are just five or six miles away, which is good for many military workers. The average rent in 78228 is $1,430 per month, with three-bedroom apartments starting at $1,030.

To summarize, the Culebra Park area in 78228 in San Antonio is a growing area that is still affordable, making it an appealing option for San Antonio investment property buyers!

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Forney TX’s Convenient Location: Proximity to Dallas and Beyond

I have heard from several real estate friends and advisors that Forney TX is rapidly becoming a hot spot for buyers looking for value and high quality of life in the Dallas area. Also, its proximity to downtown Dallas is important, because we all know how wild traffic and construction are in the big D!

Many people I know in the Dallas region say that Forney is fantastic for Dallas commuters because of its convenient location and great transport connections. A 25-30 minute commute via I-20 and US-80 will get you to Forney, only 21 miles east of downtown Dallas.

This is a pretty reasonable commute to work, considering the quality of life you enjoy in Forney. I know a software developer who moved to Forney to enjoy a quieter life after work. He’s been able to maintain a 30 minute or less commute, while avoiding the high prices in Dallas. He told me he saves a few hundred a month on his mortgage, compared to if he bought a similar home closer to downtown. He loves is work/life balance and the lower costs of Forney.

My friends living in Forney also love suburban life while easily accessing Dallas’s jobs, culture, and entertainment. Forney is super close to Dallas but it offers a cheaper alternative to city housing, with more affordable homes and bigger lots, appealing to families and professionals.

Forney’s proximity to Dallas isn’t the end of it. The community is developing infrastructure catering to commuters. The town boasts excellent connectivity, featuring expanding road networks and convenient access to public transport, such as nearby DART stations, offering a car-free alternative.

Forney’s location provides you a rare mix of small-town appeal and city advantages, including local shops, eateries, and schools, minimizing the need for frequent Dallas commutes. Its affordability, accessibility, and community make it attractive to those commuting to the Dallas metroplex. So, consider moving to Forney TX if you want it all and plan on buying a house in Forney!

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Home Buying Tips for First-Time Homebuyers in University Park

Are you tempted to move to University Park, just a few miles north of Downtown Dallas? First-time home buyers in Dallas seeking luxury, safety, and a lively community are drawn to this neighborhood, known for its tree-lined streets, top-rated schools, and proximity to SMU. The area’s diverse architecture ranges from historic Tudor and Mediterranean homes to contemporary custom designs. Professionals, families, and academics will appreciate its prime location and easy access to Dallas’ cultural, dining, and business centers.

However, the high cost of living in this luxurious area means homes typically start at over $1.2 million and can cost more than $10 million in exclusive neighborhoods such as Volk Estates. You need to be financially savvy and prepared to move into this thriving community.

University Park’s housing options for first-time buyers and those interested in new construction are limited, but growing. Modern, energy-efficient homes in new developments boast customizable finishes and often include warranties. These communities might offer pools and trails, however, buyers must check HOA regulations and plans for suitability.

Buyers need significant financial resources to purchase a $2.75 million home here, given the area’s high cost of living—an estimated $591,000 annual income is required for a 25% down payment. Partnering with a local real estate professional who knows University Park well, including its builders and zoning, can help you buy a dream home in this upscale Dallas neighborhood.

As you think about your real estate options in University Park, consider these first-time buyer tips:

Understand Your Budget and Financing Options

The high cost of living in University Park, with a median home price around $2.19 million in January 2025, presents affordability issues for first-time homebuyers.

To buy a typical home, I suggest you start with a budget that includes a 20-25% down payment ($400,000-$550,000) and an annual income of at least $500,000 to comfortably cover mortgage payments, property taxes (1.8-2% of home value), and insurance. Explore financing options like FHA loans (if eligible for lower-priced condos starting at $500,000) or conventional loans with competitive rates. Pre-approval from a lender is critical to strengthen your offer in this competitive market, where homes often sell within 26-57 days.

Target Entry-Level Properties and New Developments

Near SMU, smaller homes like condos and townhouses ($500,000-$800,000) are ideal for first-time buyers because of lower maintenance. New University Park communities offer energy-efficient, modern homes under warranty, and may include pools or green spaces.

Start your research early, as these homes sell fast; check HOA fees and restrictions to see if they suit you. To find University Park homes in your budget (like those under 2,000 sq ft or slightly below market value), work with a local realtor familiar with the area’s inventory.

Leverage Local Expertise and Market Trends

The University Park market is complex, reflecting high demand from the HPISD and its central Dallas location. Collaborate with a seasoned real estate agent to avoid bidding wars and find homes to sell quickly in the Park Cities.

Market trend analysis reveals a 21.9% inventory jump from December 2024 to January 2025, implying more buyer choices. Negotiate better deals by considering homes needing minor improvements; perfect homes cost more. Check out open houses around Snider Plaza and SMU to get a sense of the market.

Plan for Long-Term Costs and Risks

Beyond the buy price, account for ongoing costs like property taxes (approximately $39,000 annually for a $2.19 million home), homeowners’ insurance, and potential HOA fees. University Park has environmental risks, including moderate flood risk (9% of properties over 30 years) and severe wind risk (100% of properties), which may increase insurance premiums.

Older homes, especially those from the 1920s-1950s, common in areas such as Volk Estates, require significant maintenance budgets. Research HPISD zoning to ensure your home aligns with preferred schools, as this affects resale value. A financial advisor can help you plan for these costs and ensure University Park’s high cost of living aligns with your long-term goals.

Keep these important tips in mind as a first-time buyer in University Park.

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More About San Antonio’s Cooling Market in 2025

Many San Antonio under market value investors in San Antonio are watching prices, waiting to pick up their next deal at a lower price. We think that the San Antonio distressed property market will pick up dramatically this year, as prices continue to fall. Below is more information.

The San Antonio real estate market in 2025 is expected to experience a cooling trend, characterized by modest declines in home prices, increased inventory, and shifting market dynamics that favor buyers. Several factors, including rising interest rates, economic uncertainties, and a surplus of listings, are contributing to this slowdown. While the market is not projected to crash, a correction is anticipated following years of rapid price increases. This cooling is likely to manifest through lower home values, longer days on the market, and increased negotiating power for buyers, though the extent of the cooldown varies across different analyses.

Home price declines are a key indicator of the cooling market. Forecasts suggest a modest drop in home values, with estimates ranging from a 1.3% decrease by October 2024 to an additional 1.7% by July 2025, according to local real estate experts cited in market analyses. As of late 2024, the median home price in San Antonio was reported around $263,040 to $320,000, with some sources noting a year-over-year decline of 2.1% to 3.9%. For example, Zillow reported a typical home value of $263,040, down 2.1% from the previous year, while Redfin noted a median sale price of $250,000, down 3.9%. This downward trend is attributed to an oversupply of homes, with inventory levels rising significantly—up 28% year-over-year by the end of 2024, reaching the highest since 2017 with 10,602 homes listed. This surplus reduces seller leverage, leading to price reductions, with 31.7% of listings experiencing cuts and homes selling for about 2.21% below asking price on average.

The cooling is also evident in longer market times and reduced demand. Homes in San Antonio are taking longer to sell, averaging 60 to 85 days on the market in early 2025, compared to 59 days the previous year. This slowdown reflects cautious buyer behavior, driven by high mortgage rates, which have risen to around 6.43% for a 30-year fixed loan as of October 2024. Elevated rates increase borrowing costs, limiting purchasing power and dampening demand, particularly in a market accustomed to low rates during the pandemic boom. Additionally, economic factors such as potential tariffs and labor market shifts under new federal policies could further suppress construction and buyer activity, contributing to the cooling trend.

Despite the cooldown, San Antonio’s market remains resilient due to its affordability relative to other major U.S. cities and steady population growth. The city’s median home price is 38% lower than the national average, making it attractive for buyers and investors. However, the rental market is also cooling, with median rents dropping 7% to $1,503 by November 2024, reflecting reduced demand and an influx of new rental units. While some experts predict modest price appreciation in desirable neighborhoods like Alamo Heights, the overall outlook leans toward a buyer’s market with stable but slower growth. Investors may find opportunities in rental properties or revitalization projects, but the cooling market suggests a need for cautious, well-researched decisions in 2025.

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April 2025 San Antonio TX Real Estate Market Cooling

We are seeing signs in the local market that home prices are declining. For example, in 78258, my home only increased in value by $8,000 from the previous year. If I were selling, I wouldn’t be thrilled! However, I recognize that for the benefit of younger buyers, it would be beneficial for home prices to drop. Plus, dropping home values will help San Antoniio investors to pick, up more under market value San Antonio properties, always a plus! Below is more information about the San Antonio real estate market for April 2025.

The San Antonio real estate market in April 2025 shows signs of shifting toward a buyer’s market, driven by rising inventory and slower price growth. Here are the key trends based on available data and reports:

Market Dynamics

Data from the San Antonio Board of Realtors (SABOR) for March 2025 indicates a transition from a seller-dominated market to one favoring buyers. Inventory levels are increasing, with a 30% rise in homes listed compared to the previous year, aligning with national trends where unsold single-family homes are up 33% year-over-year. This suggests more options for buyers and less pressure to bid aggressively.

Price Trends

Home values in San Antonio experienced a notable decline, with Zillow reporting a 2% year-over-year drop in March 2025, making it one of the top U.S. markets for price decreases. This softening is attributed to increased supply outpacing demand, which remains tempered by high mortgage rates.


Mortgage Rates and Affordability

Mortgage rates are a significant factor, hovering around 6.5% to 7% for a 30-year fixed loan, with Fannie Mae forecasting rates averaging 6.5% by year-end 2025. These elevated rates, coupled with economic uncertainty from trade policies and tariffs, are cooling buyer enthusiasm, leading to fewer home sales when rates exceed 7%.

New Construction and Inventory

Social media posts on X highlight a surge in both new construction and existing home inventory, with prices correcting downward. This is particularly evident in new developments, where supply is described as “skyrocketing.” However, well-located, high-quality properties continue to attract competitive bids, indicating a disparity between property types.

Sales Outlook

The National Association of Realtors predicts a 7-12% increase in existing-home sales nationwide for 2025 as buyers adjust to higher rates. San Antonio is expected to follow this trend, though local sales remain sensitive to rate fluctuation