Zillow forecasts San Antonio home prices will drop 4% over next 12 months

Prices for single-family homes in the San Antonio area will drop sharply over the next 12 months, online real-estate marketplace Zillow predicts, citing high interest rates, excess inventory and President Trump’s escalating trade war.

Zillow economists project that San Antonio-area home prices will slide by 4% between now and next March — one of the nation’s steepest expected price falloffs during that time. For the first time since October 2023, the company predicts that home prices could decline by 1.7% nationally.

The housing marking in Texas’ other big cities is also in for a price slump, according to Zillow. Austin home prices are expected to slip by 4.1%, Houston by 3.1% and Dallas by 2.9%.

“The rise in [active] listings is fueling softer price growth, as greater supply provides more options and more bargaining power for buyers,” Zillow wrote in its report. “Potential buyers are opting to remain renters for longer as affordability challenges suppress demand for home purchases.” Indeed, the number of active single-family home listings in the San Antonio area has jumped 18% since this time last year, according to the San Antonio Board of Realtors’ latest report.

Houma, Louisiana, is expected to log the biggest decline in home prices over the next 12 months, declining by 10.1% over that period, Zillow data shows. Meanwhile, prices in Atlantic City, New Jersey, will rise by 2.4%, the nation’s highest projected rise.

Other than a rapid increase in available inventory, economists also the expected price declines on rising mortgage interest rates and general economic uncertainty, which leave homes sitting on the market longer.

Since September, 30-year annual fixed mortgage rates have jumped from 5.15% to nearly 7%, according to data from mortgage lender Freddie Mac. The sudden uptick is connected to foreign banks dumping U.S. treasuries in response to Trump’s trade war, reports CNN.

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This article appears in Apr 16-29, 2025.