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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 Home Buyers Struggle to Find Homes in Tight Market

The San Antonio housing market has gotten tighter in the last several months as prices are rising and supply of home on the market is getting tighter. For March 2018, there were 2012 homes sold in San Antonio, which was an increase of 3% over last year. The market has gotten stronger and bigger every year since 2012, and is being fueld by the strong local economy and a growing population.

The median home price for San Antonio was $215,000 in February 2018, which was a 6% increase from $202,000 a year ago. There has been a shortage of construction workers and a low supply of affordable homes for sale that have caused prices to rise. Still, prices in the area are still more affordable than many parts of the country, and San Antonio real estate investors can pick up homes in blue collar areas of the city for $70,000 or so that will produce 12% ROI, such as this one:

Excellent investment with tremendous potential. 307 Golodrina Ave., 3 beds 2 bath, 1370 sqft. Lot size: .11 acres, estimated rehab to make new and flip 50K, Max ARV: 169k, asking price: 75K.

Max ARV: $169k
Asking Price: $75,000

Exit strategy: Recommended exit strategy with 20K rehab: 5-10K down payment, sales price: 129K, $1,295.00 PI/TI 30 year amortization, 10% interest or rent $1200 monthly.

The San Antonio area’s inventory of homes on the market, which is measured by the time it takes for a house to be sold if no new homes go on the market, was 3.3 months, which is very tight. The record low was December 2017 at 3.1 months. An inventory of six months shows a balance between sellers and buyers. The last time the San Antonio market was balanced was Nov. 2012.

Interestingly, the San Antonio real estate market has continued to get stronger even as interest rates rise. The national average for a 30 yar loan fixed is around 4.5%, which is nearly 1% higher than early 2017. Still, interest rates are historically low, and the economy is strong, so people’s rising wages may be helping them to deal with the higher debt costs.

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San Antonio Housing Market Was Red Hot in 2016

The housing market in San Antonio in 2016 was hot as home prices went to the highest levels ever. The local paper reported that 29,508 homes were sold, which was more than an eight percent increase from 2015.

The median price for San Antonio real estate increased six percent to $204,300. This was the very first time that the median sales price had been over $200,000 for an entire year, including the real estate boom years of a decade ago.

Also, the inventory of homes that are available dropped in December 2016 to only three months. this indicates there are more buyers than sellers in San Antonio.

So what does this mean for San Antonio real estate investors? Well in my experience, it means that real estate prices are going up, and buying homes for many people in San Antonio is becoming more difficult. For people who earn a good income of course, the homes in San Antonio are very reasonable.

But for people who earn $3000 per month and don’t have credit, buying a home with conventional financing is very difficult. That is the reason I focus my San Antonio investment strategy on owner financing.

Here is a good example of an under market value property that I am selling right now:

  • Finance Your Investment Properties
  • Address: 1319 S Hamilton St., San Antonio, TX 78207
  • Year Built: 1956
  • Description: San Antonio buy and hold investors and real estate investors  – Another Major cash flow opportunity, 30% instant equity under market value, almost cute cottage, needs minor help, booming San Antonio Market West of Downtown,  2 beds, 1 bath, 616 sqft, lot size: .05 acres, estimated repairs: 5K, clean/lawn maintenance/interior paint/front paint. Max After Repair Value: 69K
  • Cash Price on San Antonio Fixer Upper:  $42,000 CASH ONLY
  • Exit Strategy: Owner Finance with 5k in repairs: 5Kdown payment, $695.00 monthly PI/TI, 30 year amortization, 10% interest, Sales Price: 69K, see attached sold/rental comparables.
  • Sold and Rental Comps: Sold Comps 1301 S Hamiltonrental comps 1301 s hamilton

This property is only $42k cash, and with $5k in repairs, you can sell this with owner financing (you’re the bank), to a family with job and income but no credit. The major advantages of this type of deal are that you do not have repair expenses ongoing. Also, you can limit your initial out of pocket costs. If you were to rent this house out, you would have to do $20,000 in repairs, not $5000.

Owner financed homes is the backbone of my real estate investment portfolio in San Antonio. Each home earns at least 10% ROI with no expenses.  This type of buy and hold investing helps to support the working families of San Antonio as well, so it is a win win.