AUGUST 2025 NEWSLETTER
Back to School time! The Alton Group snuck down to Port A for a quick break before the first day of school for our little ones. Due to the close proximity and the ease of beach vacations, we have found Port A to be one of the least stressful vacation spots for us, and therefore, one of our favorite places for relaxing and memorable family moments.
SAN ANTONIO MARKET UPDATE The July San Antonio Real Estate numbers are in, and they reinforce the same trend we’ve seen all year: The 2025 market remains slow. Compared to last year: Sales are down 10%, Inventory is up 14%, and Days on Market are up 16%. Prices are more mixed. Values are holding or rising in some areas, while dipping in others, depending on location and property type. Overall, well-priced, move-in-ready homes are still selling quickly, but buyers are finding more opportunities—and more deals—at every price point.
Why is the Average Price Higher? You may be asking: Why do the July stats show the Average Price up 7% compared to lastyear? With supply high and demand relatively low, it would be reasonable to expectprices to soften. There are few reasons for this:
1) Shifts in the price of homes sold. While overall sales volume is down, a larger share of higher-priced homes are selling compared to last year, while sales of lower-priced homes have declined. This shift in distribution of sales skews the average upward. (Chart below)
2.) More sellers are pulling their listings off the market compared to past years. We have about 45% more listings that have been canceled, withdrawn, or expired this year compared to last. If sellers cannot get the price they want for their property, some are choosing to rent them out, or stay in the home (if those options are available to them).
3.) Some current homeowners purchased their properties within the last 3 to 4 years and are now looking to sell. For many, selling at or near their original purchase price feels like a financial loss, especially once closing costs, agent commissions, and other expenses are factored in. As a result, many sellers are listing their homes above their original purchase price—even in today’s market where demand is softer than when they bought.
These factors, along with some smaller influences, help explain why the Average Price has risen year over year despite higher supply and softer demand. However, even with the reported increase in average and median prices, we are seeing more attractive opportunities for buyers across all price points. As the summer—the traditionally busiest season for home sales—comes to a close, we could see more buying opportunities emerge, even if those “deals” are not reflected in the reported Average Price.
The Months of Inventory metric has now risen above six months, reaching 6.12 months in July. Traditionally, a balanced market is defined as having 4–6 months of inventory. This marks the first time in at least five years that San Antonio has exceeded that threshold. By this measure, the market has shifted into a buyer’s market—a dynamic that often puts downward pressure on prices and gives buyers greater leverage in negotiations. (Picture to the right)
We are seeing about the same amount of price reductions in home prices as we did last year. 30.5% of all listed homes in San Antonio reduce their price after the initial listing. San Antonio ranks 10th in the nation in price reductions (amongst the 50 largest metro areas).
(Picture to the right)
Market Summary
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From January through July 2025, In San Antonio New Listings increased 2.5% compared to the same period in 2024, while Home Sales declined 7.65%. This imbalance has pushed the Months of Inventory above six months—a threshold that typically signals a buyer’s market. As we move out of the peak summer selling season, this dynamic could result in fewer sales and additional downward price adjustments in the months ahead.
Market trends in San Antonio have become increasingly segmented, with outcomes differing based on location, property type, and home features. For buyers, it is important to clearly define what you want, where you want it, and be ready to act quickly when the right home becomes available. While overall inventory is high, the selection of homes that meet your specific needs can still be limited. For sellers, understanding local conditions and how they apply to your particular home is critical in order to price and market effectively.
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As always, if you have questions about your neighborhood or would like a detailed report tailored to your situation, we are here to help!
INTEREST RATE UPDATE
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As of 8.21.25, the average interest rate on a 30 year Fixed Rate Mortgage is 6.58%. This is the lowest it has been since October 2024 (Per Freddie Mac, Picture below). Forecasting future interest rates is speculative, The Federal Reserve was widely expected to cut its key rate by a quarter-point at its next policymaking meeting in September, but the odds of that happening fell to 71% on 8.22.25 (per Barrons), the move could bring buyers some relief.
One lender stated that opportunistic buyers should be ready for any possible little dips in the interest rates like we saw in the Fall of 2024. During this time in 2024, the interest rates went from 6.73% on August 1st, down to 6.08%on September 26th, and then back up to 6.72% on October 31st (Pictured below). Buyers who purchased during that brief window secured the most favorable rates since 2022.
If you are considering purchasing a home within the next three months, it is a smart strategy to get prequalified with a reputable lender. This enables you to move quicklywhen the right property, or unique opportunity arises.
When exploring a new mortgage, it is worth considering both permanent and temporary buydown options, which can help reduce your interest rate. Many lenders are also offering special, low-cost refinance programs that allow you to take advantage of lower rates in the future (if / when the rates decline) when you finance through them initially. We work with a network of excellent lenders who are happy to answer your questions and provide guidance, with no obligation.