We are in unprecedented times in today’s current market here in San Antonio. At first we were just struggling with labor due to COVID-19 and the health concerns and restrictions. It was difficult to get new homes and projects started and built with the labor shortage in every single trade and company. This led to a huge supply drop that put us so far behind the demand for homes.
On top of this labor challenge construction prices skyrocketed and we were paying unheard of amounts of money for lumber, concrete, sheathing and paint. Things that had once been fairly priced, and easy to obtain were outrageously priced and not readily available.
These challenges and obstacles deterred many people from New Construction Homes because of the unknown timeline for completion, and the uncertainty of the final cost for the home.
Families started to turn to and look at existing homes which seemed like a simpler and “easier” option. However this side of real estate was not much better, homes are constantly getting bid up 5-15% over asking price, with buyers having to wave contingencies and pay for almost everything.
Many families were getting beat out multiple times by LLC’s or cash buyers coming in and paying 50k+ over the asking price. Most families simply just can’t compete and this left many people feeling hopeless and defeated after they get 10+ offers denied.
Although new construction is shifting and not as predictable as some would like it to be, it has been one of the best returns on investment since the beginning of the COVID pandemic. Many families that got in early, while others were scared to buy or turned off by the perceived negatives on new construction, have gained 20%+ equity in their homes.
One great example is our downtown lofts here in San Antonio. These are conveniently located off Broadway between Alamo Heights and The Pearl, all having 3 bedrooms / 3.5 bathrooms and a covered garage!
We were starting our Ira Ave Condo Community in the heart of downtown San Antonio at 300k. This was a fair price back in 2019 for a 3 bedroom condo in the quiet suburban neighborhood of Mahncke Park. Now those same condominiums are starting at 469k…. An increase in almost 200k in 3 years. This is not only due to the supply shortage, but also the sheer fact that in order to build that same building with the current construction costs, it would easily cost 10% more to do so.
We truly believe that our new construction downtown urban communities are unmatched and the best that money can buy. Not only do families get a great project with the amazing modern upgraded finishes, a thoughtful and practical floor plan, but they also get the best new home warranties thanks to Center City’s amazing team. This leaves them with the peace of mind knowing that if anything goes wrong, needs to be repaired, or isn’t working we have them covered 100%.
If you are interested in any of our downtown new construction communities check out our website! www.centercitysa.com. As of now we still have limited availability at our Ira Ave Lofts in Mahncke Park, and at our Brazos Commons Community in Five Points by San Antonio College.
Both of these communities offer unique finishes, amazing quality and 3 bedrooms with a covered garage!
We would love to help you find your future home, build your future home, or help with any of your downtown San Antonio needs! Give us a call today and let’s see what we can accomplish together!
– Michael Guzik