San Antonio Housing Market Update – February 2025
The San Antonio housing market is experiencing some interesting shifts, and in this update, we’ll explore key factors that could impact both homebuyers and sellers. We’ll start by discussing recent economic developments that may influence the market, and then we’ll dive into the latest San Antonio real estate data.
Tariffs and Workforce Shortages: Potential Market Disruptors
Two significant factors could shape the housing market in the coming months: tariffs on building materials and a continued labor shortage in the construction industry.
Tariffs on Key Building Materials
A recent CNBC article by Diana Olick highlights concerns over potential tariffs on essential building materials from Canada and Mexico. These tariffs could increase home prices and limit affordability for buyers. Key takeaways from the article include:
- The U.S. relies on Canada for a large portion of its lumber and on Mexico for materials like sheetrock and gypsum.
- New tariffs may make home construction more expensive, potentially freezing out buyers who are already struggling with affordability.
- The labor force may shrink further due to mass deportation plans, potentially reducing the number of available construction workers.
If these tariffs are implemented, we could see higher costs passed on to consumers, making new home construction even more expensive.
Addressing the Construction Labor Shortage
Meanwhile, the National Association of Home Builders (NAHB) is supporting a bipartisan bill aimed at strengthening the construction workforce. The bill, titled the Bipartisan Construction Act, seeks to expand training opportunities in residential construction through community colleges and technical schools.
According to the NAHB:
- The U.S. faces a shortage of 200,000 to 400,000 construction workers at any given time.
- To keep up with housing demand, home builders need to add 2.2 million new workers over the next three years.
- By supporting vocational training, the bill aims to address the skilled labor gap and help stabilize the housing supply.
If you’re considering a career in construction, now might be an opportune time, given the increasing demand for skilled labor and potential job security in this field.
San Antonio Housing Market Data – February 2025
Now, let’s examine the latest data for the San Antonio housing market. All figures are as of February 11, 2025, and reflect market activity from January.
Inventory and Pricing Trends
- Months of inventory: 4.2 months (-1.18% from the previous month)
- Sold price-to-list price ratio: 97.3% (indicating a typical 3% discount on listings)
- Median days on market: 59 days
- Median sold price: $287,500 (-2.87% month-over-month)
- Median estimated property value: $290,820 (+0.5% month-over-month, -0.8% year-over-year)
While property values have remained relatively stable, the market has been trending flat for the past 12 months. Home prices are adjusting, and buyers are becoming more selective.
New Listings and Buyer Preferences
One key takeaway is the shift in the types of homes being listed:
- Median list price of new listings: Up 8.4% month-over-month
- Median square footage of new listings: Up 7.1% (1,837 sq. ft.)
This suggests that sellers entering the market in January were pricing their homes higher, but they were also offering larger homes. However, long-term trends indicate a preference for smaller homes:
- May 2022 median home size: 1,940 sq. ft.
- May 2023 median home size: 1,910 sq. ft.
- May 2024 median home size: 1,850 sq. ft.
The data suggests that more homeowners are listing smaller properties, as they tend to sell faster than larger homes in today’s market.
Active and Pending Listings
- Active listing median price: $305,000
- Active listing median square footage: 1,833 sq. ft.
- Pending home median price: $289,990
- Pending home median size: 1,896 sq. ft.
- Sold price per square foot: $157
- Median days on market for sold homes: 59 days
The declining square footage of homes on the market indicates that buyers are prioritizing affordability over size. The demand for smaller homes is stronger, while larger homes are sitting on the market longer.
Key Takeaways for Buyers and Sellers
- Sellers with larger homes may face longer time on market. The data suggests that smaller homes are in higher demand, and larger homes could see reduced interest unless priced competitively.
- Buyers seeking affordability are driving the trend toward smaller homes. If you’re considering purchasing a home, downsizing could be a smart move, particularly as overall homeownership costs remain a concern.
- The market remains stable, but new policies could create shifts. Tariffs and labor shortages could impact construction costs and inventory levels. Keep an eye on these developments as they unfold.
If you’re considering buying or selling in San Antonio, understanding these trends can help you make informed decisions. If you have questions about the market or need assistance, feel free to call me at 210-260-6617.
Stay tuned for next month’s market update!