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