6 Reasons Why San Antonio Housing Prices Might Fall in 2025

San Antonio’s housing market is shifting, and if current trends continue, homeowners and buyers could see prices decline in 2025. With increasing inventory, longer days on the market, and falling rent prices, the market correction that began in 2024 may stretch into the coming year.

Using seven key data points, let’s break down why housing prices in San Antonio may continue to drop and what this could mean for buyers and sellers.

1) San Antonio’s Median Home Price Has Dropped to $290,000

San Antonio’s median home price has fallen 2.4% from last year, bringing the median to $290,000.

A decline in home prices often signals a market correction, where values adjust after years of rising costs. These corrections don’t happen overnight—historically, they can take multiple years to stabilize.

This means home prices could continue to drop through 2025 as the market finds its new balance.

2) Homes Are Sitting on the Market for 80+ Days—Demand Is Slowing

In 2024, homes in San Antonio were selling much faster. Now, the average home stays on the market for 83 days, compared to just 43 days last year.

For perspective, the national average for days on the market is only 33 days, which means San Antonio’s market is moving at a much slower pace than most of the country.

Longer selling times mean fewer buyers are actively purchasing homes, forcing sellers to make price cuts to attract offers.

If this trend continues, home prices are likely to fall further in 2025 as sellers compete for limited buyers.

3) Buyers Are Negotiating Harder—And Winning

San Antonio buyers are currently paying 2.21% below list price on average, and 31.7% of listings have had price reductions.

This shift indicates that buyers have more power in the market, negotiating better deals and forcing sellers to drop prices.

As this trend continues, sellers may struggle to hold firm on asking prices, leading to more price reductions in 2025.

4) Rent Prices Dropped by 7-8%—Making Buying Less Attractive for Investors

San Antonio’s rental market has also cooled, with rent prices dropping 7% from 2024.

• February 2025 Average Rent: $1,793
• June 2024 Average Rent: $1,913

Lower rent prices mean investors may be less willing to purchase homes at high prices, as rental income potential weakens.

If fewer investors are buying properties, demand will continue to slow, pushing home prices lower.

5) San Antonio’s Housing Inventory Is Up 25.2%—Giving Buyers More Choices

San Antonio’s housing inventory has increased by 25.2% from pre-pandemic levels, with a 28% year-over-year inventory increase by the end of 2024.

Currently, there are 10,602 homes for sale—the highest inventory since 2017.

With more homes available, buyers have more choices and less urgency to buy quickly. This typically puts downward pressure on home prices, as sellers are forced to compete by lowering their asking prices.

6) Zillow Predicts a 1.7% Price Drop in San Antonio by Mid-2025

Zillow forecasts that San Antonio’s housing prices will decline by 1.7% by July 2025.

Housing market forecasts like this are based on deep market analysis, and when experts predict a steady price drop, it typically means key indicators point to further cooling.

What This Means for Buyers and Sellers in 2025

📉 For Buyers: If you’ve been waiting for a better time to buy, 2025 may offer more affordable options as inventory grows and prices decline. Keep an eye on mortgage rates, as they will also impact affordability.

📉 For Sellers: Be prepared for longer selling times and potential price reductions. If you need to sell quickly, pricing competitively will be crucial to attracting buyers in a cooling market.

📉 For Investors: With rents falling and home prices declining, consider waiting for further price drops before investing or negotiating harder for below-market deals.

Final Thoughts

San Antonio’s real estate market is showing strong signs of cooling, with longer days on the market, increasing inventory, and declining rent prices. If these trends continue, home prices could drop further throughout 2025.

For buyers, this could be the best opportunity in years to purchase a home at a lower price. For sellers, it’s important to stay informed and adjust pricing strategies to remain competitive.

No matter your real estate goals, staying ahead of the market shifts will help you make the best financial decision in 2025.

Kristen Smith, Realtor best san antonio realtor