How is The Savannah Real Estate Market 2019?
If you’re keen to invest in the Savannah real estate market in 2019 and buy before prices become out of reach, you must read till the end. Savannah, Georgia is one of the oldest cities in the Southeastern U.S. It is generally considered a small historic town and the epitome of Southern charm but not much else.
However, this city has started to blossom in its own right. Savannah, Georgia is separated from South Carolina by the namesake Savannah River. This means the Savannah housing market includes quite a few people living in South Carolina. The Savannah real estate market includes roughly 350,000 people.
This makes it the third largest metropolitan area in Georgia. If you take the de facto suburbs on Carolina side, these small towns put half a million people in the larger Savannah metro area. Is Savannah going to be one of the hottest real estate markets for investors in 2019 & 2020? Let’s take a deep look at the latest Savannah housing market trends to come to a conclusion.
Savannah Real Estate Market Forecasts 2019 & 2020
The real estate data from Zillow shows that the median home value in Savannah is $136,400. Savannah home values have gone up 5.6% over the past year and their Savannah real estate market prediction is that the prices will rise 1.7% within the next year. The median list price per square foot in Savannah is $118, which is lower than the Savannah Metro average of $122.
The median price of homes currently listed in Savannah is $229,900 while the median price of homes that sold is $173,700. The median rent price in Savannah is $1,400, which is lower than the Savannah Metro median of $1,450.
Here is the Savannah, GA real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 3.9% till July 2020.
Savannah Housing Market Forecast 2019 – 2021
The Savannah housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The Accuracy of the Trend Prediction for Savannah is 84%. Accordingly, LittleBigHomes.com estimates that the probability for rising house prices in Savannah, GA is 84% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Savannah, Georgia Real Estate Market Forecast.
Savannah Real Estate Market Trends
On Trulia, the median sales price in Savannah is $225,500. Homes are selling for about $131/sqft. At present, Trulia has 2,191 resale and new homes for sale in Savannah, GA, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
There are 1,988 homes for sale in Savannah, GA on Realtor.com. 93 of which were newly listed within the last week. Additionally, there are 347 Savannah rentals for sale, with a range of $318 to $10K per month. As per Realtor.com, in July 2019, the Savannah housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
In July 2019, the median list price of homes in Savannah, GA was $249K, trending up 6% year-over-year. The median listing price per square foot was $124. The median sale price was $228,000. On average, homes in Savannah, GA sell after 73 days on the market. The trend for median days on market in Savannah, GA has gone up since last month, and slightly down since last year.
The median list price in Savannah, GA is $269,950 on Movoto.com. The median list price in Savannah went down 1% from August to September. Savannah’s home resale inventories is 78, which decreased 1 percent since August 2019. The median list price per square foot in Savannah is $133. August 2019 was $136. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in September.
Savannah, GA Single Family And Multi-Family Homes
Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Savanna, GA is $165,996, which indicates that home prices in Savannah are near the national average for all cities and towns in the United States. Single-family detached homes are the single most common housing type in Savannah, accounting for 57.08% of the city’s housing units.
Three and four bedroom single-family detached homes are the most common housing units in Savannah housing market. Other types of housing that are prevalent in Savannah include large apartment complexes, duplexes, homes converted to apartments and a few row houses. The city has a mixture of owners and renters, with 40.40% owning and 59.60% renting.
Currently, there are 753 single family homes for sale in Savannah, GA on Zillow. Additionally, there are 188 single family homes for rent in Savannah, GA. Under potential listings, there are about 13 Foreclosed and 224 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Savannah, GA Foreclosures And Bank Owned Homes 2019
As per the Savannah foreclosure data by Zillow, the percent of delinquent mortgages in Savannah is 1.3%, which is higher than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Savannah homeowners underwater on their mortgage is 13.9%.
|Foreclosures in Savannah||92|
|Homes for Sale in Savannah||1,468 (RealtyTrac)|
|Median List Price||$248,500 (0% ⇓ vs Jun 2018)|
There are currently 92 properties in Savannah, GA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 1,468. In August 2019, the number of properties that received a foreclosure filing in Savannah, GA was 24% lower than the previous month and 51% lower than the same time last year.
Best Neighborhoods To Buy Savannah Rentals
If you are looking to buy Savannah rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Savannah rental real estate and you should be able flip it for a lump sum profit.
When looking to invest in Savannah real estate, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Savannah investment property should be low. The neighborhoods in Savannah must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties. There are 34 elementary schools, 20 middle schools, 12 high schools and 35 private & charter schools. There are 103 neighborhoods in Savannah.
Some of the best neighborhoods in Savannah, Georgia are Wilmington Island, Georgetown and The Landings. South Historic District has a median listing price of $675K, making it the most expensive neighborhood. Windsor Forest is the most affordable neighborhood in Savannah, with a median listing price of $125,000.
Here are the best neighborhoods to invest in Savannah rentals because they have the highest appreciation rates (List by Neigborhoodscout.com).
W Lathrop Ave / W Bay St
Wheaton St / E Gwinnett St
E Broad St / E 37th St
Resort Dr / Savannah Harbor Pky
Abercorn St / E Anderson St
E Broad St / E Henry St
Montgomery St / W Victory Dr
Waters Ave / E Henry St
Is Savannah a Good Place to Invest in Real Estate?
Now that you know where Savannah is, you probably want to know why we’re recommending it to real estate investors. Is it worth buying a house in Savannah, GA? Investing in real estate is touted as a great way to become wealthy. Should you invest in Savannah rental real estate?
Many real estate investors have asked themselves if buying a rental property in Savannah is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Savannah housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Savannah but we have collected ten evidence based positive things for those who are keen to invest in the Savannah rentals in 2019.
Investing in Savannah rentals will fetch you good returns in the long term as the home prices in Savannah have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Savannah real estate market which can help investors who are keen to buy an investment property in this city.
1. The Fast Population Growth
The Savannah housing market is one of the fastest growing ones in the state. It grew by nearly 20 percent between 2000 and 2010. That made it the fifth fastest growing metro area in Georgia. More importantly, growth has accelerated.
The city was the fastest growing metro area in Georgia according to statistics tracking growth between 2010 and 2016. It grew 11 percent in just six years. Part of the growth is the city’s rapidly expanding job market.
2. The Strong Job Market
Why are so many people moving to the Savannah housing market? One reason is the rapidly expanding Savannah port; it is handling a massive amount of cargo container traffic. The Savannah international airport attracts budget airlines that want to serve the southeastern U.S.
The city has long been an aerospace manufacturing center in addition to a paper and wood pulp manufacturing hub. It is also seeing massive domestic migration as people move to the city from surrounding small towns.
This is partially due to people moving closer to the diversified local economy and retirees who want to be close to healthcare providers. Savannah is the regional hub for healthcare and educational services. For example, there are three major hospitals in Savannah.
3. The Geographic Constraints
The Savannah real estate market has room to grow, but it is constrained by geography. The national parks on the Carolina border are off-limits to development.
The massive wetlands along the river and the coastline can’t be built on. This results in the city slowly growing inland and the price of properties along the water commanding a premium.
4. The Savannah Vacation Market
The Savannah real estate market has become a hot market for vacation properties. The city is within a two hour drive of beaches and golf courses at Hilton Head in South Carolina and St. Simons Island off Georgia. There are local golf courses and horse farms in the area. The climate is almost as warm as Florida, but property prices are much lower.
5. The Attractiveness to Millennials
The Savannah housing market is unusual in the sheer affordability it offers from the walkable historic district to the waterfront. This is an area where you can buy a historic home on a middle class income and afford a waterfront condo with great views for less than a million dollars.
Some of these properties are bought as future retirement homes, while others are attracting Millennials coming to work in the ports or aerospace. The Millennials coming here to work will likely have their families here, creating long term demand in the Savannah real estate market for single family homes.
6. The Generally Cheap Real Estate in Savannah
One point in favor of the Savannah real estate market is the generally cheap property prices at all levels of the market. The median home price in the Savannah housing market is roughly 135,000 dollars. Luxury homes cost between 400,000 and 800,000.
This means a luxury home in the Savannah housing market costs less than the average home in San Francisco or New York City. You could buy several Savannah real estate investment properties for half a million dollars, the median price of a home in a number of hotter markets.
This helps explain why the Savannah cost of living is 87.9 while the national average is 100, and thousands of people move here every year to enjoy that lower cost of living. In fact, the cost of living in Savannah is much lower than other Georgia metro areas.
For example, homes in the Savannah real estate market are 40,000 less than the Georgia state average and nearly 100,000 dollars below the national average. If you were looking for a Savannah real estate investment property to rent, rents are roughly 1400 dollars a month.
This is actually a better than average ROI on rental real estate. It also contributes to the relatively poor rankings Savannah receives in terms of housing costs relative to average income.
7. The Strong and Steady Real Estate Appreciation Rates in Savannah
The Savannah real estate market is seeing significant appreciation due to strong demand and slower growing inventory. Property prices increased more than five percent in 2019. Prices are projected to increase nearly two percent in 2020.
An interesting side effect of the second home market is how it bolsters property values, since many people buying vacation homes here plan on eventually retiring in them. This means you can sell homes to people who aren’t going to move into them immediately, and it prevents a decline in tourism from undermining property values overall.
8. The Landlord Friendly State
One point in favor of Savannah real estate investment is how landlord friendly the state is. You don’t have to provide receipts for rent or deposits. You don’t have to pay interest on deposits. There are reasonable limits on late fees.
There are no state laws on notice before entry. More importantly, you could potentially file a lawsuit to evict someone as soon as 48 hours after they failed to pay rent on a Savannah real estate investment property. The notice can be verbal. They’ll have to make payment within seven days or have to leave.
You can also begin evictions if someone fails to comply or correct an issue in violation of the lease such as having pets or criminal on the property. You can file a dispossessory warranty in this case. If the eviction goes to court, the Georgia courts almost always side with landlords.
9. The Low Income Taxes
If you compare states based on overall tax burden, South Carolina seems to win. This is deceptive for those considering Savannah real estate investment, since you really aren’t affected by alcohol and other “sin” taxes.
South Carolina may have a lower sales tax, but Georgia has lower income taxes. Better yet, the state has been working on lowering its income taxes. This results in an overall tax burden that’s around thirtieth in the country, somewhat below average.
10. The Low Property Taxes
Property tax rates hover around the national average. However, the roughly 1.1 percent property tax rate you’d pay on Savannah real estate investment results in a much lower than average property tax bill due to the state’s relatively cheap property.
As a Savannah real estate investment property owner, you wouldn’t be eligible for the generous deductions and exemptions that result in residents paying less than 0.9 percent on average.
Savannah Real Estate Investment
Maybe you have done a bit of real estate investing in Savannah, GA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold.
A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt.
Therefore, finding a good Savannah real estate investment opportunity would be a key to your success. If you invest wisely in Savannah rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Savannah rentals are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Savannah, you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Savannah, GA. The Savannah area is evolving from a small town to a regional services hub with a diversified economy.
It is never going to be a booming metropolis like Atlanta, but that won’t prevent it from being a great real estate investment. In fact, many people are moving here for the ideal balance between the small-town feel and great amenities like a world-class hospital and international airport.
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.
The aim of this article was to educate investors who are keen to invest in Savannah real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
The other best place to invest in real estate is Knoxville, Tennessee. Forget Nashville and the lure of tourist rental income. Consider investing in an affordable, stable real estate market offering relatively high rates of return like the Knoxville real estate market.
The Knoxville real estate market has a larger than expected number of renters because of McGhee Tyson Air National Guard Base. The military base is home to thousands of service men and women. Those who choose to live off base have to rent, driving up rental rates and, indirectly, property values.
Several thousand more people flood into the area for national guard and reserve training or to attend officer school. Demand is so great that there are hotels right by the base to house them, though others rent houses or stay at other hotels in the Knoxville area.
Another sizzling market to choose for investment is Manhattan, NY. Manhattan offers incredibly dense housing, incentives for more of the same, and a large, loyal renting population. If you can afford to invest in the Manhattan real estate, it can be worth the effort.
The Manhattan housing market is famous for an average one bedroom apartment surpassing 3000 dollars a month in rent. However, you don’t have to have millions of dollars of cash on hand to consider Manhattan real estate investment.
There are cheaper properties in the boroughs, and they’ll command 1500 dollars a month in rent for a one bedroom and much more for a two bedroom or three bedroom apartment. And rents in the Manhattan housing market are going up at faster than the rate of inflation.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
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