San Antonio Housing Market Report February 2025

Staying informed about the San Antonio housing market is crucial whether you're looking to buy or sell. With inventory reaching new highs and mortgage activity picking up, the spring market is already offering new opportunities for both buyers and sellers. See what’s happening in the San Antonio housing market and how broader economic trends and local activity are creating a more balanced and confident real estate environment.

The San Antonio housing market continued its shift toward balance in February, with active listings reaching over 14,000—up 20% from the same time last year. While the median price dipped slightly to $289,995, homes are still holding value and are spending about 83 days on the market. Buyers are gaining more flexibility, and sellers who adapt to today’s conditions are staying competitive.

Let’s take a closer look at the trends:

• Homes for Sale Continue to Rise—The number of homes for sale increased 20% yearly and 4% compared to last month, providing buyers with more options.
• Home Prices Hold—Median home prices are $289,995K, a 2% decrease compared to last year and a 1% decrease from last month.
• Time on Market Steadies– Average days on the market rise to 83 days, up by 3 days compared to last year with no change from last month. 
• Buyer Demand—Pending sales declined 17% yearly, but increased by 3% compared to last month, showing stronger buyer interest.
• Home Sales Activity—Sales fell 8% year-over-year but rose 11% month-over-month, indicating a pickup in activity.
• Housing Supply Climbs– Supply stands at 4.9 months, a 13% increase from last year and a 5% increase from last month.
• Market Snapshot – Over 14,000 homes are on the market, selling for an average of 93% of their original list price. Realty San Antonio Compass listings excel, achieving 96% of their original list price and selling 15 days faster than the market average.

Mortgage Rates and Economic Outlook
The Federal Reserve has paused rate hikes, and mortgage rates are holding around 6.7% to 7.0%, with local conforming loans trending between 6.375% and 6.625%. Fannie Mae projects rates could ease to 6.5% by year-end. Recent drops in the 10-Year Treasury yield and a jump in mortgage applications—up 11.2% in early March—suggest buyer confidence is building. If rates continue to trend down, affordability could improve further this spring.

"Affordability is top of mind right now, but that doesn’t mean buyers are out of the game," says John Coake, Senior Vice President at Realty San Antonio Compass. "We’re seeing more buyers revisit the market as they adjust expectations and explore financing strategies like rate buydowns or down payment and closing cost assistance.”

Inflation and Labor Market Signals
The latest Consumer Price Index (CPI) report showed inflation rising 2.8% year-over-year in March, slightly below the 2.9% estimate. While the Federal Reserve remains cautious, San Antonio’s job market continues to show resilience. The local unemployment rate was 3.8% in January 2025, and Texas added nearly 188,000 jobs over the past year. This steady employment growth is helping support buyer and seller confidence this spring.

San Antonio Construction Activity and Tariff Pressures
A report from FRED Economic Data shows that new private housing permits decreased from 1,364 in January 2024 to 876 in January 2025. With increased tariffs on materials like gypsum and lumber, the cost of building a new home is estimated to increase by $9,200, according to the National Association of Home Builders. Since housing starts are slowing, we may see more builders offering incentives while sourcing materials more efficiently to keep projects moving forward.

Return-to-Office Mandate and Its Local Impact

The recent federal order requiring employees to return to in-office work may influence San Antonio’s housing market. With multiple federal agencies located in the area, housing demand may rise near central offices and key transit corridors. As workers shorten their commutes, certain neighborhoods could see increased buyer activity.

A Positive Outlook for the Spring Market

As inventory grows and buyer activity begins to pick up, the spring market is showing signs of renewed momentum. Buyers are gaining more negotiating power thanks to increased housing supply and flexible seller incentives. Meanwhile, sellers who price strategically and prepare their homes thoughtfully are still seeing strong interest. While mortgage rates remain elevated, recent economic signals have fueled hope for improved affordability in the months ahead.

Why Buyers Should Feel Encouraged
The market is offering buyers the breathing room they’ve been waiting for. A steady flow of new listings means less urgency and more opportunity to find the right fit. While prices are holding fairly steady, the broader selection and seller incentives are making homeownership more accessible. With fewer bidding wars and more room to negotiate, buyers entering the spring market can approach their search with confidence and a clearer sense of value.

Strategic Selling Pays Off with Exclusive Inventory Access
With more homes hitting the market this spring, sellers need a smart marketing plan to stand out. One proven advantage is Compass’s 3-Phased Marketing strategy, which allows listings to test the market before going public by listing it as a Private Exclusive or Coming Soon. In February, 55% of new Compass listings launched in one of these categories, helping sellers build interest and keep their options flexible.. Paired with strong curb appeal, thoughtful pricing, and expert marketing, this approach can lead to faster sales and stronger offers.

“This strategy gives sellers more control over their entire listing process and s. It allows sellers to generate early interest, gather feedback, and fine-tune their approach before going public — making their listing even more competitive when it hits the market,” explains Coake.

Your Moves Inspire
With more inventory, shifting market conditions, and new opportunities on the horizon, navigating the spring housing season takes strategy and expert guidance. At Realty San Antonio Compass, we provide the latest insights and strategies to help you make informed decisions. Connect with a local agent today and move forward with confidence.

For the latest market updates, follow us on social media @realtysanantoniocompass. Subscribe to our market newsletter by clicking "sign up" in the top right corner of our website.