NEWSLETTER | The Alton Group 2

DECEMBER 2025 NEWSLETTER

Happy New Year!

We have been busy getting ready for Christmas and then New Years. The boys had a fun filled last week of school before winter break and they love waking up every morning to find our elf, Buddy (Ryan and Alui not so much ha!). They are excited for Santa and have been trying extra hard to behave.

We have loved seeing most of our clients the last couple of weeks, reconnecting and catching up and we wish ALL of you a Merry Christmas and a Wonderful Holiday season!

SAN ANTONIO REAL ESTATE UPDATE:

The November data from the San Antonio Board of Realtors (SABOR) is in, and it continues the year-long trend of higher inventory, lower demand, and longer days on market.

Compared to November 2024, active listings are up 14%, closed sales are down 19%, and homes are spending 18% more time on the market. Overall pricing remains relatively stable, with slight variations depending on location and property characteristics. With Months of Inventory now at 5.9 months, the market is firmly in balanced territory for both buyers and sellers.

That said, we are seeing a degree of hesitation on both sides. Some buyers are waiting for prices or interest rates to come down, while some sellers are holding firm on pricing and are unwilling to make the adjustments needed to motivate a sale. This has created what feels like a slow-moving game of “chicken,” where buyers wait on the sidelines and sellers either stay put, pull their listings, or pivot to the rental market—contributing to a 19% increase in rental listings compared to last November.

At the same time, sellers who need to sell are making meaningful price reductions, and those homes are attracting buyers. As this dynamic continues, average home values remain largely flat across the market. Some areas are seeing slight declines, most are holding steady, and a few are still experiencing modest appreciation. It is more important than ever to know what is going on in the specific neighborhood(s) of interest when it comes to pricing real estate in San Antonio.

The reported 5% increase in average home price this month is largely driven by a higher share of sales in the upper price ranges (above $600,000) and fewer transactions in the $250,000–$500,000 range. Notably, the average price per square foot remains unchanged from November 2024, reinforcing the overall theme of price stability in today’s market.

INTEREST RATE UPDATE:

On December 10th, the Federal Reserve lowered its key overnight borrowing rate by a quarter point. Because this move was widely anticipated, it did not result in an immediate change to 30-year mortgage rates. As of December 11th, the average interest rate for a 30-year conventional loan stood at 6.22%.

One encouraging sign for real estate activity is the broader downward trend in interest rates throughout 2025. The average 30-year mortgage rate peaked at 7.04% in January 2025 and has gradually declined to a low of approximately 6.19% in early December and as of January 2026 it is at 6.16%.

Many analysts expect rates to hover in the 6.0%–6.3% range in the near term, with the potential for modest declines in 2026. That said, all rate forecasts remain speculative. It’s also important to remember that buyers have options: interest rates can often be reduced through temporary buydowns (such as the first year, or first and second years of the loan) or through permanent buydowns for the life of the mortgage. As a result, securing an effective mortgage rate below 6% is very achievable in today’s market.

Please don’t hesitate to reach out with any real estate questions, or if you’d like referrals to trusted mortgage brokers or contractors. We’re happy to help with anything real estate–related.

All The Best,

Alui and Ryan Alton