San Antonio Housing Market Report January 2025

Staying informed about the San Antonio housing market is crucial whether you're looking to buy or sell. With fluctuating mortgage rates, changing inventory levels, and shifting buyer demand, making informed decisions is essential in this dynamic environment. In this blog, we'll dive into the latest trends, analyze key indicators, and discuss what these changes mean for you.

Home sales in San Antonio rose 6% year-over-year last month, while active listings climbed 15%, giving buyers more options. "With more inventory available, buyers have greater flexibility to find the right home at the right price," says Marisa Jackson, Vice President of Sales at Realty San Antonio Compass. "This creates opportunities for strategic negotiations and smarter purchasing decisions." Median home prices increased 2% to $295K, and inventory reached 4.6 months, with homes averaging 83 days on the market—allowing buyers more leverage. Sellers who price competitively will stand out in this shifting market. Let’s take a closer look at the trends:

• Homes Actively for Sale Rise—The number of homes for sale increased 15% yearly and 2% compared to last month, providing buyers with more options.
• Home Prices Steady—Median home prices are $295K, a 2% increase compared to last year but a 7% decrease from last month.
• Time on Market Increases – Average days on the market rise to 83 days, up by 19 days compared to last year and 4 days from last month. 
• Buyer Demand—Pending sales declined 16% yearly; however, increased by 29% compared to last month, showing stronger buyer interest.
• Home Sales Activity—Sales rose 6% yearly; however, decreased by 17% compared to last month, signaling a seasonal cooling following year-end transactions.
• Housing Supply Steady – Supply stands at 4.6 months, a 0.3-month increase from last year and a 0.1 increase from last month.
• Market Snapshot – Over 13,000 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.

Texas Housing Market: Strong Outlook for 2025
A Texas Real Estate Research Center forecast at Texas A&M University predicts a positive year for the state’s real estate market. Despite global uncertainties, regulatory stability and increased investment are expected to support market growth, reducing the likelihood of a recession.

"Texas continues to show resilience, with steady demand and economic factors that support a strong housing market," says Jackson, Vice President of Sales at Realty San Antonio Compass. "While national and global conditions will play a role, the fundamentals in our market remain solid."

Single-family home sales and building permits are projected to rise, with modest price increases in many markets. Rental demand remains strong, offering options for those not yet ready to buy.

Exclusive Inventory: A New Strategy for Sellers and Buyers
Compass agents have built an exclusive inventory nationwide of over 7,700 listings, with over 6,000 classified as Private Exclusives—homes not publicly advertised and only accessible through a Compass agent. This approach allows sellers to test the market before listing on the MLS while providing buyers access to properties that aren't widely available. In February alone, 55% of all new Compass listings started as Private Exclusive or Coming Soon.

"More sellers are using Private Exclusives to gauge buyer interest before going public," says Jackson, Vice President of Sales at Realty San Antonio Compass. "This strategy creates flexibility and can lead to stronger negotiations."

Homeownership as a Hedge Against Inflation
With inflation driving up the costs of goods and services, homeownership remains one of the best ways to safeguard finances. A fixed-rate mortgage stabilizes monthly payments, protecting homeowners from unpredictable rent hikes. Historically, home values have outpaced inflation, making real estate a strong long-term investment.

"Unlike rent, which typically increases over time, a fixed mortgage means your principal and interest payments stay the same," says Jackson. "This stability helps homeowners budget effectively." Experts continue to forecast steady home price appreciation, reinforcing the idea that buying now is a smart financial move.

Signs of a Hopeful Spring Market
The spring housing market is gaining momentum with increased inventory and improved affordability. Home prices have declined 4% year-over-year, giving buyers more negotiating power. Additionally, mortgage credit availability has reached its highest level since June 2022, making it easier for qualified buyers to secure financing.

"With more homes on the market and prices adjusting, buyers are stepping into a more balanced environment," says Jackson, Vice President of Sales at Realty San Antonio Compass. "This shift is bringing new opportunities for those waiting for the right time to buy."

With housing supply at 5.6 months, conditions are moving toward a balanced market, creating opportunities for buyers and sellers.

Preparing to Sell in a Competitive Spring Market
Spring is the busiest time in real estate, with heightened buyer activity often leading to quicker sales and stronger offers. Sellers should prepare to ensure their home stands out in the competitive market. Strategic repairs—such as updating flooring, replacing HVAC systems, and improving energy efficiency—can attract more interest and lead to better offers.

"Buyers today expect move-in-ready homes," says Jackson. "Sellers who invest in key repairs before listing will likely see better results when it comes time to negotiate."

Working with an agent can help sellers identify which upgrades offer the best return on investment and ensure their home is market-ready before buyer demand peaks.

Your Moves Inspire

At Realty San Antonio Compass, we closely monitor the market to provide the most up-to-date insights and strategies. Your moves inspire us to help you navigate market trends, decode pricing dynamics, review contracts, and leverage negotiation skills to secure the best outcome for you. Connect with one of our local agents today to confidently navigate your next move.

For the latest market updates, follow us on social media @realtysanantoniocompass. You can also subscribe to our market newsletter by clicking "sign up" at the top right corner of our website.