Market at a Crossroads
The San Antonio real estate market in July 2025 presents a tale of two stories. While home prices continue their upward trajectory with single-family homes hitting a median price of $330,000—up 4% year-over-year—sales volume tells a different narrative. Total single-family home sales dropped 10% compared to July 2024, signaling a market grappling with affordability challenges and shifting buyer behavior.
Single-Family Home Market: Price Growth Amid Volume Decline
The Numbers That Matter
July 2025 saw 2,915 single-family home closings, representing a 10% decrease from the previous year. However, the story becomes more nuanced when we examine the price dynamics:
- Median Price: $330,000 (up 4% year-over-year)
- Average Price: $401,703 (up 7% year-over-year)
- Dollar Volume: $1.17 billion (down 4% year-over-year)
Market Segmentation Reveals Key Trends
The existing home market showed resilience with 2,098 closings (up 6% year-over-year), while new construction bore the brunt of the slowdown with only 817 closings (down 36% year-over-year). This stark contrast highlights the challenges facing builders and developers in the current economic environment.
Days on Market (DOM) averaged 74 days for all single-family homes, representing a 16% increase from July 2024. This uptick in DOM suggests buyers are becoming more selective, taking additional time to evaluate properties in a price-sensitive market.
Inventory Levels Signal Market Rebalancing
One of the most significant developments in July 2025 was the substantial increase in active listings. Single-family home inventory reached 17,131 active listings, marking a 14% increase year-over-year. This represents approximately 6.0 months of inventory, moving the market closer to balanced conditions after years of severe supply constraints.
Price Tier Analysis Reveals Opportunity Zones
Breaking down sales by price tiers shows where opportunities lie:
- Under $300K: 1,175 sales (40.3% of market) – Strong demand in affordable segments
- $300K-$500K: 1,124 sales (38.6% of market) – The sweet spot for most buyers
- $500K+: 616 sales (21.1% of market) – Luxury market showing resilience
The sub-$200K market showed particular strength with 261 total sales, indicating continued demand for entry-level properties despite overall market softening.
Condominium and Townhome Sector Faces Headwinds
The attached housing market experienced more pronounced challenges in July 2025:
- Total Sales: 47 units (up 7% year-over-year)
- Median Price: $190,000 (down 21% year-over-year)
- Average Price: $236,838 (down 20% year-over-year)
This sector’s struggles reflect broader affordability concerns and changing buyer preferences in the post-pandemic era.
Multifamily Investment Market Shows Volatility
The multifamily sector presents a mixed picture with 41 closings (down 15% year-over-year):
- Median Price: $377,500 (down 23% year-over-year)
- Average Price: $370,409 (down 21% year-over-year)
This decline in multifamily pricing may present opportunities for investors, though financing challenges and economic uncertainty continue to impact this sector.
Commercial Real Estate Maintains Stability
The commercial sector demonstrated relative stability with 29 transactions and notable price increases:
- Median Price: $205,000 (up 80% year-over-year)
- Average Price: $393,555 (up 19% year-over-year)
However, the 24% decrease in transaction volume suggests investors are being more selective in their commercial property acquisitions.
Rental Market Remains Robust
San Antonio’s rental market continues to show strength with 1,577 rental transactions in July 2025:
- Median Rent: $1,795 (flat year-over-year)
- Average Rent: $1,914 (flat year-over-year)
The stability in rental pricing, combined with steady transaction volume, indicates a healthy rental market supporting the area’s growing population.
Geographic and Demographic Insights
Suburban Growth Patterns
The data suggests continued strength in suburban markets, with new construction primarily concentrated in developing areas outside the urban core. The 36% decline in new construction sales reflects broader economic headwinds but also indicates a market correction from previously unsustainable growth rates.
Price Per Square Foot Trends
At $181 per square foot for single-family homes (up 1% year-over-year), San Antonio continues to offer value compared to other major Texas markets, though affordability pressures are mounting.
Economic Factors Driving Market Dynamics
Interest Rate Impact
While not directly captured in the MLS data, the current interest rate environment is clearly influencing buyer behavior. The 16% increase in days on market and 10% decline in overall sales volume reflect the challenges buyers face with higher financing costs.
Employment and Population Growth
San Antonio’s continued population growth and diverse economic base provide fundamental support for housing demand, even as market conditions moderate from peak levels.
Looking Ahead: Market Predictions for Late 2025 and Beyond
Short-Term Outlook (Next 6 Months)
Based on current trends, we anticipate:
- Inventory Normalization: Expect continued growth in active listings, potentially reaching 7-8 months of inventory by year-end
- Price Moderation: Median price growth likely to slow to 1-3% annually as affordability constraints intensify
- New Construction Recovery: A gradual recovery in new home sales as builders adjust pricing and incentives
Medium-Term Projections (2026-2027)
Looking beyond 2025, several factors will shape the market:
- Market Rebalancing: A return to more normalized buyer-seller dynamics
- Selective Growth: Continued strength in affordable housing segments and strategic suburban locations
- Commercial Opportunity: Potential for increased commercial investment as pricing stabilizes
Strategic Recommendations for Market Participants
For Buyers
- Timing Advantage: Increased inventory and longer DOM provide more negotiating power
- Focus on Value: Look for properties that have been on the market 60+ days for potential concessions
- Consider Emerging Areas: New construction communities may offer incentives as builders adapt to market conditions
For Sellers
- Realistic Pricing: Price competitively from the start; the days of automatic price appreciation are moderating
- Property Preparation: In a more balanced market, home condition and presentation become critical differentiators
- Timing Considerations: List during peak season months and avoid competing with new construction in the same price range
For Investors
- Rental Opportunities: Stable rental market provides steady cash flow opportunities
- Multifamily Value: Price reductions in multifamily properties may present entry points for long-term investors
- Commercial Selective Strategy: Focus on well-located commercial properties in growth corridors
A Market Still in Transition
Much like the real estate market in June 2025, the July 2025 San Antonio real estate market reflects a sector in transition from the pandemic-era boom to a more sustainable, balanced environment. While price growth continues, the moderation in sales volume and increase in inventory signals a market returning to historical norms.
For consumers, this represents an opportunity to make more informed decisions without the pressure of extreme competition. For real estate professionals, success will increasingly depend on market knowledge, strategic pricing, and exceptional service as margins normalize.
The fundamental drivers of San Antonio’s growth—job creation, population influx, and relative affordability compared to other major metros—remain intact. However, the market’s evolution requires all participants to adapt strategies for a new reality where sustained growth replaces explosive appreciation.
As we move through the remainder of 2025, monitoring key indicators like inventory levels, new construction permits, and employment data will provide crucial insights into the market’s trajectory. The current data suggests a market finding its equilibrium—a positive development for long-term sustainability, even if it requires short-term adjustments from all market participants.
This analysis is based on preliminary data from the San Antonio Board of Realtors MLS for July 2025. Market conditions can change rapidly, and readers should consult with qualified real estate professionals for specific investment or purchase decisions.
