San Antonio's Housing Market Stalls as Sellers Retreat, Listings Plunge 20%

San Antonio’s housing market is grappling with a significant pullback from sellers, recording the most severe year-over-year drop in new listings across the nation’s 50 largest metropolitan areas last month.

Data from Redfin shows the Alamo City had just 2,120 new residential listings in December, a stark 20% decline from the 2,654 listings posted in December of the previous year. This marks the second consecutive month San Antonio has ranked near the top for such decreases, following a 17.8% drop in November. The local trend defies the national average, which saw a more modest 4.9% dip in new listings for the same period.

The retreat is driven by a palpable market imbalance. Redfin reports the San Antonio area had 102.5% more sellers than buyers in December—the fifth-largest gap among top metros. This surplus is cooling seller enthusiasm, with many prospective homeowners opting to delay listing their properties.

"Would-be sellers are looking at the pool of potential buyers and deciding now isn't the right time to plant that 'For Sale' sign," said Daryl Fairweather, Chief Economist at Redfin. "The rental market offers stability, while mortgage rates, despite recent dips, remain a psychological and financial barrier for many, especially first-time buyers and the region's large veteran population who often utilize low-down-payment loans."

The phenomenon isn't isolated to San Antonio. Texas markets are feeling the strain. Austin led the nation with a 128% surplus of sellers over buyers and an 11.4% drop in new listings. Dallas also ranked high for imbalance, a situation some agents attribute to a recent construction boom creating excess supply.

Connie Durnal, a Redfin Premier agent in Dallas, noted the local impact: "Some sellers are underwater. I have a client who bought at the pandemic peak and is now taking a 10% loss because demand simply can't absorb all the new inventory."

Nationally, the seller-buyer gap in December was the widest since Redfin began tracking it in 2013. A key factor is the "rate lock-in" effect: with nearly half of U.S. mortgage holders enjoying rates at or below 4%, the jump to current levels near 6% makes trading up or downsizing financially daunting.

"You have a lot of people stuck at those low rates," explained Ed Zapata, Board Chair of the San Antonio Board of Realtors. "Selling and buying into a 6% or 7% mortgage doesn't make sense for them, which locks up inventory."

The resulting dynamic has shifted power, but not decisively. Homes are lingering longer—99 days on market in San Antonio, up 17 days year-over-year—and only about 10% sell above list price, a far cry from the >50% seen in 2021. Buyers, wary of high costs and economic uncertainty, remain cautious despite having more choices.

Closed sales have suffered, with San Antonio posting a 24.8% annual decline in November. However, a faint silver lining exists: pending sales inched up 1.1% year-over-year in December, and active inventory remains higher than a year ago, offering options for determined buyers.

"Mortgage rates have come down from their peak," Fairweather added. "That should slowly thaw demand and facilitate more sales as we move through the year."

Voices from the Community

Michael Rodriguez, Local Homeowner: "We thought about moving to a bigger place for our growing family, but the math is terrifying. Our current mortgage is at 3.25%. Even with the equity we have, doubling our interest rate would skyrocket our monthly payment. We're staying put and renovating the basement instead."

Lisa Chen, First-Time Buyer: "It's a confusing time. There are more houses to look at, and sellers seem more willing to negotiate, but the monthly payments are still so high. We're renting for another year to save more and hope rates dip just a bit further. It feels like a game of chicken with the market."

David Park, Real Estate Investor (Sharply Critical): "This isn't a 'market adjustment'—it's a stagnation fueled by Federal Reserve policy and pandemic hangover. Artificial low rates created a bubble, and now we're watching it deflate in slow motion. Sellers are in denial about their home's value, and buyers are paralyzed by debt costs. The entire system is gridlocked, and the 'hope' economists are selling is just wishful thinking until we see serious rate cuts."

Maria Garcia, Local Realtor: "The frenzy is over, and that's not entirely bad. It's a return to a more normal, thoughtful market. Deals are happening, but they require realistic pricing, proper staging, and patience. For sellers, it's work. For buyers, it's an opportunity to actually inspect a home and negotiate without 15 competing offers."