Considering the competitive nature of the Savannah housing market, it leans slightly towards being a seller's market. The lower median sale price compared to the national average, coupled with the quick turnaround time for home sales, indicates favorable conditions for sellers. However, buyers still wield influence, with properties selling below the list price on average. The delicate balance between supply and demand suggests a market where both buyers and sellers can find opportunities.
Savannah Housing Market Prices & Trends in 2024
According to Redfin, in February 2024, Savannah witnessed a surge in home prices, marking an impressive 8.1% increase compared to the previous year. The median price for homes soared to $335,000, painting a picture of a market gaining momentum.
Current Market Performance in Savannah
The data reveals that homes in Savannah are spending an average of 51 days on the market, slightly longer than the 44 days recorded last year. Despite this, the number of homes sold in February rose to 216, up from 159 the year before, indicating a healthy level of activity within the market.
Comparatively, Savannah's median sale price sits 15% below the national average, rendering it a somewhat competitive arena for buyers. However, some homes in the region are witnessing fierce competition, with multiple offers being commonplace.
Competitiveness and Offer Trends
In the current climate, homes in Savannah are fetching, on average, about 2% below their list price. However, certain properties, particularly those deemed ‘hot,' are commanding premiums of 1% above list price. These hot properties are swiftly snapped up, typically going pending in a mere 17 days.
Furthermore, the sale-to-list price ratio has seen a 0.4 percentage point increase year-over-year, reaching 98.8%. Additionally, 25% of homes are now sold above their list price, indicating a growing trend of competitive bidding.
Migration and Relocation Trends
Understanding migration patterns is crucial in deciphering the housing market's dynamics. From January to March 2024, 32% of homebuyers in Savannah expressed interest in relocating out of the area, while 68% sought to remain within the metropolitan region.
Interestingly, only 0.28% of homebuyers nationwide sought to move into Savannah from outside metropolitan areas. Among those relocating to Savannah, buyers from Atlanta showed the highest interest, followed by New York and Washington.
Future Market Outlook
As we ponder the future trajectory of the Savannah housing market, it's essential to consider various factors influencing its dynamics. While the current landscape favors both buyers and sellers to some extent, the market's competitiveness suggests a need for a balanced approach.
With prices on the rise and homes spending slightly longer on the market, it remains imperative for both buyers and sellers to stay informed and adaptable. While sellers may benefit from the current trend of properties selling above list price, buyers should be prepared to act swiftly in securing their desired homes.
Savannah Housing Market Forecast for 2024 and 2025
According to Zillow, the average home value in Savannah stands at $307,925, reflecting a 10.5% increase over the past year. Properties in Savannah typically go pending in approximately 27 days, showcasing a robust demand. As of February 29, 2024, the city boasts 750 homes listed for sale, with 223 new listings surfacing during the same period.
The median sale to list ratio as of January 31, 2024, stands at 0.997, indicating a balanced market where prices align closely with listing values. The median sale price in January was $298,567, slightly below the median list price of $362,117, suggesting a potential room for negotiation. Notably, 28.3% of sales occurred above list price, while 48.7% were under list price, showcasing a varied market landscape.
Savannah MSA Housing Market Forecast
Delving into the Savannah Metropolitan Statistical Area (MSA) housing forecast, projections indicate a positive trajectory. The MSA encompasses Savannah, GA, along with surrounding counties, constituting a significant portion of Georgia's real estate market. The MSA forecast anticipates a steady growth in home values and market activity.
By March 31, 2024, a 0.5% increase is projected, followed by a 1.1% rise by May 31, 2024. Looking further ahead, by February 28, 2025, the forecast suggests a notable 3% growth, underscoring the region's resilience and attractiveness to homebuyers and investors alike.
Are Home Prices Dropping in Savannah?
As of the most recent data available, there is no indication of home prices dropping in the Savannah housing market. On the contrary, the average home value has seen a steady increase over the past year, suggesting a stable or appreciating market. Evaluating the current conditions in the Savannah housing market, it leans slightly towards being a seller's market. With a relatively low inventory of available homes and a median sale price hovering above the list price, sellers have the upper hand in negotiations. Additionally, the high percentage of sales occurring above list price further supports this notion, indicating strong competition among buyers.
Will the Savannah Housing Market Crash?
While no one can predict the future of the housing market with certainty, there are currently no indicators pointing towards a housing market crash in Savannah. The market has shown resilience amid various economic conditions, and experts believe that factors such as population growth and job opportunities contribute to its stability. Nonetheless, it's crucial for both buyers and sellers to remain informed and adaptable to any changes in the market.
Is Now a Good Time to Buy a House in Savannah?
Given the current dynamics of the Savannah housing market, many may wonder if it's an opportune time to buy a house. While individual circumstances vary, several factors suggest that it could indeed be a favorable time for buyers. These include relatively low mortgage rates, which enhance affordability, and the potential for property values to appreciate over time. However, buyers should conduct thorough research and consider factors such as their financial stability and long-term housing needs before making a decision.
Is Savannah a Good Place to Invest in Real Estate?
Are you considering investing in the Savannah real estate market? Look no further! Savannah is a beautiful city in Georgia that offers a variety of benefits for real estate investors. Whether you are a seasoned investor or just getting started, there are many reasons to consider investing in this charming city. We will discuss the top reasons why Savannah is a great place to invest in real estate for the long term.
- Strong and Stable Market: Savannah's real estate market is known for its stability and consistency. The market has shown steady growth over the years, and experts predict that it will continue to do so in the future. This means that your investment in Savannah is likely to appreciate in value over time, providing a solid return on your investment.
- Historic Charm: Savannah is known for its historic charm, which draws tourists from around the world. The city has a rich history that is reflected in its architecture and culture, making it a unique and appealing destination for visitors. This appeal helps drive demand for short-term rentals and vacation properties, making it an ideal location for real estate investors.
- Thriving Economy: Savannah's economy is diverse and thriving, with a variety of industries including manufacturing, tourism, and logistics. This means that there is a strong demand for rental properties, as people move to the city for job opportunities.
- Low Cost of Living: Compared to other major cities in the United States, Savannah has a relatively low cost of living. This makes it an attractive location for people looking to relocate, which further drives demand for rental properties.
- Strong Rental Market: Savannah has a strong rental market, with a high occupancy rate and relatively low vacancy rates. This makes it a great location for buy-and-hold investors looking to generate passive income from rental properties.
In conclusion, Savannah is a great place to invest in real estate for the long term. Its strong and stable market, historic charm, thriving economy, low cost of living, and strong rental market make it an ideal location for real estate investors. The strong rental market in Savannah is a major draw for real estate investors. With a high occupancy rate and relatively low vacancy rates, rental properties in Savannah are in high demand. This is due to several factors, including the city's growing economy, tourism industry, and job opportunities.
The growing economy in Savannah has attracted many new residents to the city in search of job opportunities. This has resulted in an increase in demand for rental properties as these new residents need a place to live while they establish themselves in the city. Additionally, the city's thriving tourism industry has created a steady demand for short-term rental properties, such as vacation rentals and Airbnb listings.
Another factor contributing to the strong rental market in Savannah is the city's relatively low cost of living. Compared to other major cities in the United States, Savannah is more affordable, which makes it an attractive location for people looking to relocate. As a result, the demand for rental properties is high as people look for a place to live while they get settled in the city.
Real estate investors looking for a passive income stream can benefit greatly from the strong rental market in Savannah. Properties that are rented out long-term can generate consistent rental income, providing investors with a steady cash flow. Additionally, investors who purchase short-term rental properties can take advantage of the city's strong tourism industry to generate additional income.
Overall, the strong rental market in Savannah is a major benefit for real estate investors. With high demand for rental properties, investors have the opportunity to generate consistent rental income and take advantage of the city's growing economy and tourism industry.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market area, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Sources:
- https://www.zillow.com/Savannah-ga/home-values
- https://www.realtor.com/realestateandhomes-search/Savannah_GA/overview
- https://www.redfin.com/city/17651/GA/Savannah/housing-market
- https://www.neighborhoodscout.com/ga/savannah/real-estate