San Antonio’s housing market spent the final half of 2025 balanced between buyer- and seller-friendly. There was loads of provide, however costs weren’t dropping.
Native specialists say that’s as a result of some elements of the housing market are performing higher than others. Sure neighborhoods or high-value properties have robust demand, whereas lower-income homebuyers may be hesitant about taking over mortgages and placing up cash for down funds.
That additionally means a small push to 1 section of the housing market might disrupt the fragile stability.
San Antonio properties are spending an extended time available on the market. The San Antonio Board of Realtors reported that homes spent a median of 102 days available on the market, 20% greater than the identical time final yr.
However sellers haven’t been inclined to drop costs — SABOR’s studies present that San Antonio’s median house costs have really elevated barely over the past 12 months.
The story is probably going the identical because it was final yr — sellers don’t want to lift costs. Many would-be house sellers have cheaper, pandemic-era mortgages from when the Federal Reserve lowered rates of interest to stimulate the financial system.
“We’re nonetheless in a time the place we’re rebalancing from COVID-19,” mentioned SABOR Chair Ed Zapata.
Sellers don’t have to rush to promote properties, and they also don’t have to decrease costs when demand is flagging or operating out of steam.
Whereas demand is lagging, it’s not down all over the place. Some segments of the housing market are doing higher than others. Whole gross sales are down in comparison with February 2025, Zapata mentioned, however resales of previous properties, for instance, are trending up.
Zapata has seen neighborhoods the place demand is excessive and boosting costs and others the place these costs are literally dropping.
Danny Khalil, director of market evaluation at CoStar Group, which owns Houses.com, Residences.com and Loopnet.com, has seen the identical developments.
“It does range significantly from neighborhood to neighborhood,” he mentioned.
Costs have grown in San Antonio’s north and northwest, Khalil mentioned. However on the other aspect of city, on the east and southeast elements of San Antonio, costs have dropped by greater than 20%.
Khalil and Zapata each see sure segments of homebuyers maintaining demand excessive sufficient to help the present market standstill.
Zapata famous that persons are nonetheless shifting to San Antonio and lots of of these new residents need properties.
The house market may be diverging primarily based on incomes. Each Khalil and Zapata famous that the marketplace for dearer properties is wholesome.
“Extra properties bought at the next worth level,” Zapata mentioned. “That’s why the median [home price] goes up.”
Cheaper properties, however, are getting even cheaper. Demand for these is decrease, Khalil mentioned. Homes which can be priced beneath $300,000 are seeing drops in demand.
That might be as a result of lower-income homebuyers don’t have the flexibleness or capital to purchase properties, Khalil added. They may be struggling to get loans from banks or be ready for curiosity costs to drop.
“Probably the most price-sensitive homebuyers usually tend to be affected by rates of interest,” he mentioned.
Khalil mentioned wealthier homebuyers have extra fairness obtainable and don’t have to be as delicate to rates of interest and mortgage prices. In different phrases: it’s an lively market, you probably have sufficient cash.
That leaves San Antonio’s house market within the center. If rates of interest fall and low-income patrons get extra assured, Zapata mentioned, demand might resurge and costs might climb upwards. On the similar time, if financial uncertainty prevails and the inventory market slows down, fairness for higher center earnings households might decline and demand might fall even additional, Khalil famous.
“It’s confidence in what’s occurring nationally, what’s occurring with the financial outlook,” Zapata mentioned.
