San Antonio, October 25, 2025
News Summary
San Antonio’s real estate market is facing significant challenges due to a federal government shutdown affecting loan processing and federal assistance programs. With limited staffing at USDA and VA loan offices, many buyers are experiencing delays that complicate transactions. A growing backlog for necessary documentation from the IRS has added to buyer apprehension. Sales in San Antonio have dropped nearly 10% compared to last year, while median home prices continue to rise. Buyers are increasingly cautious as economic uncertainty looms, emphasizing the need to assess personal circumstances before entering the market.
San Antonio is currently experiencing significant challenges in its real estate market, primarily due to a federal government shutdown and ongoing economic uncertainty. The shutdown has caused disruptions in loan processing and federal assistance programs, impacting buyers and the overall housing market.
With the government shutdown in effect, the USDA and VA loan offices are functioning with limited staffing. This situation has hampered the assistance available for rural housing and veterans, creating a backlog in processing and approvals. Federal employees seeking to purchase or refinance homes are facing halted loan processes, complicating their transactions, especially those nearing the closing phase.
Documentation delays have also become a significant issue for buyers. The IRS shutdown has led to a backlog of necessary transcripts, resulting in essential documentation for buyers taking longer to obtain. Currently, the timeframe for IRS transcripts has stretched to months instead of days, adding to the uncertainty that is causing many to hesitate with their purchasing decisions.
As a result of these challenges, buyers are increasingly apprehensive about closing dates and the potential for rising interest rates. Delays in funding can lead to properties being relisted, which may incur substantial financial losses for those who have already invested in inspections, appraisals, and earnest money. For many families, approaching lease deadlines create precarious housing situations, with the potential for further disruptions due to the ongoing shutdown.
The real estate market in San Antonio has reflected these difficulties, reporting a nearly 10% drop in sales compared to the same time last year. This decline is partly attributed to higher interest rates, which have also compelled potential buyers to remain cautious despite currently favorable conditions that include a wider selection of homes and greater negotiation power. Local realtor chair notes that there are approximately 3,000 more homes on the market compared to last year, offering buyers more options.
In this context, while home prices have continued on an upward trend, reaching a median sale price of $436,000—a 1.7% increase year-over-year—many buyers are seeking out concessions or price adjustments from sellers motivated by the rising inventory. Meanwhile, mortgage rates have recently dropped to 6.17%, as economic volatility has prompted expectations of future cuts from the federal reserve.
The current buying climate is often referred to as a strong buyer’s market, yet significant supply issues persist in parts of the Midwest and East Coast. Younger generations, particularly Gen-Z and Millennials, are increasingly relying on family support for down payments, highlighting the shifting dynamics in financial readiness among buyers. Experts indicate that consumers should carefully assess their unique circumstances before entering the market, especially amid the ongoing changes brought about by the shutdown.
What impact has the government shutdown had on the real estate market in San Antonio?
The government shutdown has introduced multiple obstacles, including limited staffing at USDA and VA loan offices, causing a delay in processing for rural housing and veteran assistance.
How are the delays affecting homebuyers?
Homebuyers are experiencing significant delays in documentation and funding, leading to heightened apprehension about closing dates and potential increases in interest rates.
What are the current trends in the San Antonio real estate market?
The San Antonio market has seen a nearly 10% drop in sales compared to last year, yet with a larger selection of homes available, buyers are gaining negotiation power, and mortgage rates have recently decreased.
How are home prices affected in the current market?
Median sale prices have continued to rise, currently at $436,000, influenced by the ongoing economic conditions and changes in buyer sentiment.
| Feature | Details |
|---|---|
| Sales Drop | Nearly 10% drop in sales compared to last year. |
| Home Inventory | Approximately 3,000 more homes on the market than last year. |
| Median Home Price | $436,000, a 1.7% increase year-over-year. |
| Mortgage Rate | Currently at 6.17%. |
| Date/Time | Event | Status/Source |
|---|---|---|
| Current | Federal Government Shutdown | Ongoing, impacting loan processing and market conditions. |
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Additional Resources
- Spectrum Local News: San Antonio Shutdown Impact
- Wikipedia: Real Estate
- Redfin Blog: Buying a House
- Google Search: San Antonio Housing Market
- News 4 San Antonio: Shifts in Housing Market
- Google Scholar: San Antonio Real Estate
- CultureMap San Antonio: July 2025 Sales
- Encyclopedia Britannica: Government Shutdown
- KSAT News: Price Decrease in April
- Google News: US Real Estate Updates
Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
