How the San Antonio Condo Market is Changing to Reflect Today’s Economic Challenges

Article Written By: richardsoto001

The downturn in the national housing market is the first hurdle to jump. Add to that the fact that many lenders just aren t willing to provide financing for condos, and it becomes increasingly clear that the San Antonio is in for a bumpy ride.

One of the most obvious changes to San Antonio condos is that many builders and developers are changing their properties into rentals. Many of the new condominium projects have turned to apartment rentals, while others are simply crossing their fingers and hoping the condo market will soon improve.

San Antonio condo developers that have chosen to keep their properties instead of renting them out are finding that they must consider all of their options because of today s tough lending standards. This seemed to be the sentiment at the Downtown Alliance of San Antonio s State of Downtown Luncheon that was held recently as the Hyatt Regency. Centro Properties President Debra Maltz further confirmed what everyone was already thinking: that purchasing San Antonio condos in today s market can be downright difficult.

In particular, builders are faced with new lending standards that require 70 percent of a property s units to be sold before they can obtain financing for a new project. Because of this, many condo developers in San Antonio have abandoned condo sales in exchange for leasing apartment units. A prime example of this is St. Benedict s on South Alamo Street. The developers of this project have switched gears from a condo building to leasable apartment units. The proposed Clay Street Flats and the Steel House Lofts have also followed suit. The Clay Street Flats project is currently on hold until the developer can secure financing.

Even those home buyers with excellent credit and a solid 20 percent down are finding it nearly impossible to secure financing in a new condominium project. Many of the condo loans are considered jumbo” loans, as well, thereby requiring a much higher down payment. However, some developers are finding ways to squeeze past the tight lending standards and secure financing for their buyers through private bankers. Private bankers, either through the developer or the buyer, are common in many luxury condo developments, thereby enabling home buyers to avoid the hassle of securing financing through a bank lender.

Perhaps the only exception to the rule is downtown San Antonio condos. The demand for downtown San Antonio condos remains strong, thereby keeping this sector of the condo market healthy. The newly constructed Vistana, for example, is currently more than 70 percent leased. The challenges in the residential market have a ripple effect on other markets, particularly on the retail market.

Because of this, changes must be made to the struggling condo market of San Antonio so that growth in San Antonio can remain strong and the economy can remain dynamic.

About the Author

Whether you are a buyer or seller, stay ahead of the market trends by reading VIP Realty’s informative analysis, which encompasses San Antonio real estate San Antonio condos.

You Can Link Directly to "How the San Antonio Condo Market is Changing to Reflect Today’s Economic Challenges" by using the url:
http://www.allbestarticles.com//finance/real-estate/how-the-san-antonio-condo-market-is-changing-to-reflect-todaya%2580%2599s-economic-challenges.html

This Article Has Been Published on Wed, 11 Nov 2009 and Read 105 Times

Find All Best Articles at http://www.allbestarticles.com

Rating: Not yet rated

Comments

No comments posted.

Add Comment

You do not have permission to comment. If you log in, you may be able to comment.

Related information on Real Estate

Why do I need a conveyancing solicitor when buying or selling real estate?
London Living: The Best in the World
Real Estate Toronto Neighborhoods and Property Hunting for Leases
The Affordable Secret of Mayfair Office Space
10 Ideas To Follow When Selling Your House
Property in Belgravia - London's Centre of Architectural Splendour
Is Abu Dhabi facing Dubai-like property slump?
Chesire England Serviced Offices.
Find out About Relevant Ideas To Choose Horse Stables
Pros and Cons of locating an office in Mayfair
Things to keep in mind when choosing where to locate an office in London
Guide To Buying A 2 To 5 Million Dollar Home In The Dell In Hollywood
When Selling A Home On Sunset Plaza, Point Out The Exclusiveness For The Fastest Sell
An In-Depth Look At The Toronto Home Market
What a Phoenix Real Estate Listing Will not Show That A Neighbor May
Which are the prime areas for office space in London?
Tips to make the most of your office space
How have commercial property prices in London been affected by the recession?
Benefits of working in Covent Garden
Investment opportunities in Pakistan Real Estate sector
Quit Claim Deed Basics
Dubai The Place To Be In Terms Of Property
Buy House in Philippines
Best way to write professional advertisement for Dubai properties
Things to consider while getting a house on rent