Lennar slashes quick move-in prices by $30K

Prospective home buyers in San Antonio have a chance at a smoking deal if they act fast.

Lennar, one of the most prolific homebuilders in Texas, is offering discounts up to $30,000 and reduced interest rates for its quick move-in homes, as rising interest rates have caused a number of deals to fall through, the San Antonio Business Journal reported. 

Buyers must sign an agreement the first week of April and close, or fully fund the purchase, before May 16 in order for the deal to apply.

Quick move-in homes are nearly or fully constructed. Lennar experienced a 21 percent cancellation rate among this class of inventory in the first quarter of this year — up from 11 percent a year ago but down from the previous quarter’s 28 percent, the outlet said.

Interest rates for these discounted homes were cut to 4.25 percent, which is about 2 percent lower than the current average rate. For Lennar, adjusting prices on the fly to avoid stale inventory is nothing new. 

“This is exactly the kind of volatility we are built to endure,” Lennar executive chairman Stuart Miller told the outlet in a conference call. “If market conditions deteriorate, we will compromise [profit] margins through price cuts or incentives but still generate strong cash flow.”

The Miami-based firm sold 3,120 homes in San Antonio last year, and has established a strong footprint in the Austin area as well. Lennar recently solidified plans for a 1,600-home community in San Marcos, a potential boom town 30 minutes south of Austin. It will be the firm’s second major development in Caldwell County, along with three more in the neighboring Hays County. 

Lennar sold over $627 million in the Austin metro in 2021. 

—Quinn Donoghue