San Antonio Rates & Prices--Why so low??
I have been looking at new builds of duplex and fourplex properties in San Antonio and I am surprised by how low the prices are ($225k-$250k/door) and the rates being funded by sellers/builders (3.5%-$.25%). I live in Utah (where everything is high) and I am surprised by these SA prices/rates...why are they so low? The law of Supply/Demand suggests that San Antonio is overbuilt. Is this what is driving this? Other factors involved?
Can someone shed some "truth" on this? I like the prices and rates, but I am very hesitant to move forward if there is a huge inventory of homes and high vacancies.
Most Popular Reply
Brett,
In many cases that rate is a Temporary rate meaning it is a "Buy-Down" or a ARM usually fixed for 3-5 years. Builders use their over inflated prices to set the market and that is what allows them to offer such ridiculous "Builder Credits" same as a Seller credit which can go toward closing costs or buying the rate down.
Home prices are starting to look promising in many states not just San Antonio for example Indiana, Ohio, Florida, TN, NC, SC, GA Oregon and a few more. I do a lot of business in Indiana, Ohio and Florida and these states offer some great price points. You can look in or around Indianapolis and still find a Duplex for under $150K. May need some TLC but will pass an appraisal and not be "Subject to" in most cases.