Market Overview: Spring Momentum Builds
As we move deeper into 2025, San Antonio’s real estate market is displaying clear signs of maturation and balance. May’s data from the San Antonio Board of Realtors MLS reveals a market that has successfully navigated the transition from the extreme conditions of recent years to a more sustainable, buyer-friendly environment.
The standout story of May 2025 is the market’s growing momentum. After a subdued start to the year, we’re seeing consistent monthly growth in transaction volume—a 34% increase from February to May—while maintaining relatively stable pricing. This suggests that both buyers and sellers are finding their footing in the current economic climate.
Bottom Line Up Front: May 2025 represents a turning point for San Antonio real estate. We’re seeing increased buyer activity, growing inventory, and pricing that reflects market reality rather than speculation. This is the most balanced market we’ve experienced in years.
The Numbers Tell a Story of Recovery
Sales Volume: Spring Surge Continues
May’s 3,229 single-family home sales represent the strongest monthly performance we’ve seen this year. While down 3% compared to May 2024, this modest year-over-year decline masks the significant improvement in market activity we’ve witnessed since the beginning of 2025.
The progression from February’s 2,407 sales to May’s 3,229 transactions—a 34% increase—demonstrates the market’s return to seasonal patterns. This is particularly encouraging as it suggests buyers are overcoming the affordability challenges that have persisted through much of 2024.
Pricing: Stability with Modest Growth
Perhaps the most encouraging development is the pricing stability we’re observing. May’s median price of $315,000 represents a modest 2% increase year-over-year, while the average price of $378,746 shows similar restraint. This pricing discipline suggests that both buyers and sellers have realistic expectations about current market conditions.
The year-to-date data tells an even more compelling story: with 13,788 closings through May and an average price of $365,716, we’re seeing a market that’s achieving healthy transaction volumes without the unsustainable price appreciation that characterized previous years.
Market Dynamics: A Buyer’s Advantage Emerges
Inventory Growth: More Choices for Buyers
One of the most significant developments in May is the continued growth in active listings. With 16,482 homes available for sale—a 20% increase from last year—buyers finally have the selection they’ve been craving. This 15% growth in inventory since February alone represents thousands of additional options for prospective homeowners.
The surge in new listings (5,635 in May) suggests that homeowners who had been waiting on the sidelines are now confident enough to enter the market. This is creating a virtuous cycle: more inventory leads to more realistic pricing, which attracts more buyers, which encourages more sellers to list their homes.
Market Pace: Efficient but Not Frenzied
May’s 72 average days on market represents a significant improvement from earlier in the year, down from 83 days in February. However, this still provides buyers with adequate time to conduct proper due diligence—a far cry from the bidding wars and waived inspections of previous years.
The price per square foot data ($176 for single-family homes) shows a slight year-over-year decline, indicating that buyers are getting more value for their money. This is particularly important given the elevated interest rate environment that has characterized much of 2024 and early 2025.
Segment Analysis: Different Stories Across Property Types
Single-Family Homes: The Market’s Backbone
Single-family homes remain the cornerstone of San Antonio’s real estate market, representing the vast majority of transactions. The existing home market (2,110 sales in May) continues to outperform new construction (1,119 sales), though both segments are showing signs of stabilization.
Existing homes command higher prices on average ($399,172 vs $340,263 for new construction), reflecting the premium buyers place on established neighborhoods, mature landscaping, and proven communities. However, the $59,000 price differential creates opportunities for value-conscious buyers willing to consider newer developments.
Condominiums and Townhomes: A Challenging Segment
The condominium and townhome market faced headwinds in May, with only 48 closings representing a 36% year-over-year decline. However, the average price of $309,158 has remained relatively stable, suggesting that while demand has softened, value has been preserved for existing owners.
This segment’s challenges likely reflect both the higher interest rate environment’s impact on entry-level buyers and the preference for single-family homes that emerged during the pandemic and has persisted into 2025.
Multifamily Properties: Investment Opportunity
With 30 multifamily transactions in May, this segment continues to attract investors despite the 42% year-over-year decline in volume. The average price of $349,890 suggests that quality investment properties are maintaining their value, even as the overall investment market adjusts to higher financing costs.
Looking Forward: Market Outlook for Summer 2025
Economic Context and Current Events
As we analyze May’s data, it’s important to consider the broader economic context shaping San Antonio’s real estate market. The Federal Reserve’s measured approach to interest rate adjustments throughout 2024 and early 2025 has created a more predictable financing environment, even if rates remain elevated compared to the historic lows of previous years.
San Antonio’s continued population growth—the city added more residents than any other U.S. metropolitan area in 2024—provides fundamental support for housing demand. The ongoing expansion of the technology sector, particularly with the continued development of the Port San Antonio innovation district, is creating high-paying jobs that support the upper-middle segments of the housing market.
Seasonal Expectations
Based on the February through May progression, we anticipate continued strength through the traditional summer selling season. The 34% increase in sales volume from February to May suggests the market has successfully shaken off the winter doldrums and is operating with renewed energy.
Key factors supporting continued growth include:
- Inventory availability: The 20% year-over-year increase in active listings provides buyers with meaningful choice
- Pricing stability: Modest appreciation rates make homeownership more attainable
- Seasonal momentum: Traditional summer buying patterns are reasserting themselves
- Economic fundamentals: Job growth and population increases continue to support demand
Strategic Insights for Market Participants
For Homebuyers: A Window of Opportunity
May 2025 presents perhaps the best buying environment San Antonio has seen in several years. The combination of increased inventory, stable pricing, and reasonable market timing creates multiple advantages:
Negotiating Power: With 72 days on market and growing inventory, buyers can take time to find the right property and negotiate favorable terms. The days of bidding wars and waived contingencies are largely behind us.
Price Appreciation: The modest 2% year-over-year price growth suggests buyers aren’t competing against runaway appreciation. This creates a more rational environment for long-term homeownership decisions.
Selection: The 16,482 active listings represent the largest selection of homes buyers have had to choose from in recent years, increasing the likelihood of finding a property that truly meets their needs.
For Sellers: Adaptation Strategies
Sellers in May 2025 must adjust their strategies for a more balanced market. Success requires understanding that the extreme seller advantages of recent years have moderated:
Realistic Pricing: With homes taking an average of 72 days to sell, pricing strategy becomes crucial. The data suggests that properly priced homes continue to sell, but overpriced properties face extended market times.
Property Presentation: In a market with over 16,000 active listings, making a strong first impression is essential. Professional staging, high-quality photography, and addressing obvious maintenance issues before listing can significantly impact results.
Market Timing: The seasonal momentum from February through May suggests that summer 2025 will continue to favor sellers who price appropriately and present their homes well.
The Bigger Picture: Market Maturation
May 2025’s data represents more than just monthly statistics—it illustrates a real estate market that’s successfully maturing. After years of extreme conditions, from the pandemic-era boom to the subsequent adjustment period, San Antonio’s housing market is finding its natural equilibrium.
This maturation is evident in several key ways:
Sustainable Growth: The modest 2% price appreciation suggests the market is growing at a pace that supports long-term affordability rather than speculative investment.
Rational Behavior: Both buyers and sellers are making decisions based on market fundamentals rather than fear of missing out or unrealistic expectations about future appreciation.
Seasonal Patterns: The return to traditional seasonal buying patterns—with spring and summer showing increased activity—indicates the market is operating normally again.
Balanced Dynamics: Neither buyers nor sellers hold overwhelming advantages, creating an environment where transactions can occur based on mutual benefit rather than market extremes.
Implications for the Future
The trends established in May 2025 suggest that San Antonio’s real estate market is positioning itself for sustained, healthy growth. The combination of population growth, economic diversification, and reasonable housing costs relative to many other major metropolitan areas creates a strong foundation for continued demand.
However, the market’s new maturity also means that success will increasingly depend on understanding local conditions, pricing strategies, and buyer behavior rather than simply relying on broad market appreciation to drive results.
Conclusion: A Market Hitting Its Stride
May 2025 represents a pivotal moment in San Antonio’s real estate evolution. The data reveals a market that has successfully transitioned from the extreme conditions of recent years to a more balanced, sustainable environment. With 3,229 homes sold, stable pricing around $315,000 median, and growing inventory providing buyer choice, we’re witnessing the emergence of a mature, well-functioning market.
The 34% increase in sales volume from February to May demonstrates that both buyers and sellers are adapting to current conditions and finding ways to transact successfully. The 72-day average time to sell provides adequate opportunity for due diligence while maintaining market momentum.
For buyers, this environment offers the best combination of choice, reasonable pricing, and negotiating power we’ve seen in years. For sellers, success remains achievable through proper pricing and presentation strategies. For the market as a whole, May 2025 suggests that San Antonio real estate has found its rhythm—one that supports both transaction volume and long-term affordability.
As we move into summer 2025, the fundamentals supporting San Antonio’s real estate market—population growth, economic diversification, and relative affordability—remain strong. The question is no longer whether the market will stabilize, but how participants will adapt their strategies to succeed in this new, more balanced environment.
Data Source: This analysis is based on data from the San Antonio Board of Realtors MLS Summary Report for May 2025, produced by the Texas Real Estate Research Center at Texas A&M University. All statistics represent the San Antonio MLS area unless otherwise noted. Market conditions can change rapidly; consult with a qualified real estate professional for current information
