San Antonio, Texas, experienced a notable slowdown in its real estate market in July 2025, as the city saw a record 22.7% of home purchase agreements canceled. This figure represents the highest cancellation rate among major U.S. metropolitan areas, according to a recent report from Redfin. The national cancellation rate for home purchases during the same period was approximately 58,000, with Texas and Florida leading in cancellations.
The primary factors contributing to this trend are persistently high mortgage rates, which were averaging 6.35% for a 30-year fixed loan in July, as well as ongoing economic uncertainties. These factors have led potential buyers to rethink their home purchase decisions, particularly in markets like San Antonio, where housing inventory levels have increased. Although more inventory provides buyers with more options, it has also made them more cautious, as they take the time to weigh their decisions against the backdrop of high financing costs and the broader economic environment.
Despite the increased housing inventory, the median home price in Texas metropolitan areas, including San Antonio, has risen to $450,000. This marks an increase of over $10,000 compared to the previous year, adding to the financial burden on prospective buyers. The combination of rising home prices and elevated mortgage rates has made it harder for many buyers to move forward with their purchases, contributing to the record number of canceled contracts.
Real estate professionals suggest that, given the current market conditions, buyers are in a stronger negotiating position. With more homes available and a higher level of caution among buyers, they have more room to negotiate on price and terms. However, industry experts also advise sellers to adjust their expectations and pricing strategies in order to remain competitive in an evolving market. With potential buyers taking a more cautious approach and the overall market slowing down, sellers may need to become more flexible to close deals.
As the market continues to adjust to the challenges posed by high mortgage rates and fluctuating inventory levels, both buyers and sellers will need to remain agile. While the current conditions may favor buyers, real estate professionals expect the market to stabilize over time, as both sides adapt to the changing economic landscape.
