The Savannah housing market is a dynamic landscape that has captured the attention of homebuyers, sellers, and real estate enthusiasts alike. In 2023, the market has experienced notable shifts in house prices and trends, making it a pivotal moment for those interested in the city's real estate.
In this blog post, we'll delve into the current state of the Savannah housing market, highlighting key insights and trends that are shaping the industry. By analyzing data sourced from Redfin, we'll provide a comprehensive overview of the house prices, trends, and forecasts that are driving the Savannah real estate scene.
Savannah Housing Market Prices & Trends
According to data by Redfin, the Savannah housing market is experiencing a moderate level of competitiveness. On average, homes in Savannah receive 5 offers and sell within approximately 29 days. The median sale price of a home in Savannah was $332K last month, showing a 5.3% increase compared to the previous year. Additionally, the median sale price per square foot in Savannah is $196, indicating a 12.0% increase since last year.
Current Housing Market in Savannah
The current housing market in Savannah is characterized by its moderate competitiveness. Homes typically sell within 29 days, and there's a considerable demand, leading to an average of 5 offers per home.
The Redfin Compete Score™, which rates the competitiveness of an area on a scale of 0 to 100, is moderate in Savannah. Over the last 3 months, some homes have received multiple offers. On average, homes sell for around list price and go pending in approximately 29 days. Hot homes can sell for about 2% above list price and go pending in around 11 days.
Comparison with National Averages
The median sale price in Savannah is 21% lower than the national average, making it an attractive market for potential homebuyers. Moreover, the overall cost of living in Savannah is 9% lower than the national average, enhancing its appeal for both buyers and residents.
Migration and Relocation Trends in Savannah
Across the nation, 0.22% of homebuyers are searching to move into Savannah from outside metros. Washington, DC, New York, NY, and Atlanta, GA are the top metros contributing to this influx. On the other hand, Gulfport, MS, Asheville, NC, and Charleston, SC are the popular destinations for those leaving Savannah.
Thus, the Savannah housing market presents an intriguing blend of moderate competitiveness and attractive pricing compared to national averages. The migration trends indicate a steady interest in the area, particularly from certain metros. Additionally, the availability of various schools with moderate to good ratings enhances the appeal of Savannah as a potential place for homeownership.
Savannah Housing Market Forecast 2023-2024
The housing market in Savannah is currently showing strong trends, and these patterns play a vital role in shaping the market's forecast for the near future. Its housing market has seen a significant surge in the average home value over the past year.
According to Zillow, the average Savannah home value stands at $293,446, reflecting an impressive 8.6% increase over the previous year. Additionally, homes in Savannah typically go to pending status within approximately 16 days from listing, indicating a brisk market demand. The provided data is accurate up to August 31, 2023.
Market Metrics (as of July 31, 2023):
- Median Sale to List Ratio: 1.000
- Percent of Sales Over List Price: 49.4%
- Percent of Sales Under List Price: 34.1%
- Median Days to Pending: 16
Savannah MSA Housing Market Forecast
Zillow's forecast for the Savannah Metropolitan Statistical Area (MSA) indicates a positive trajectory for the housing market. The expected changes in the Home Price Index (HPI) are as follows:
- 30-09-2023: 0.8%
- 30-11-2023: 2%
- 31-08-2024: 7.1%
Key Questions about the Savannah Housing Market
As potential homebuyers consider entering the Savannah housing market, several crucial questions come to mind:
1. Is it a Good Time to Buy a House in Savannah, GA?
Given the appreciating home values and relatively short time to pending, it may be seen as a good time to buy a house in Savannah. However, it's essential to assess personal financial circumstances and market trends in detail.
2. Will Home Prices Drop in 2023 near Savannah, GA?
Based on the data and forecast, there's no indication of a significant drop in home prices in Savannah for the remainder of 2023. The forecast suggests a continued upward trend in home prices.
3. Is Savannah, GA a Sellers Market?
Yes, with a high median sale to list ratio and a significant percentage of sales over list price, Savannah, GA is indicative of a seller's market. Buyers might face competition and potentially higher prices due to this market dynamic.
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.
Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.