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.
Current Savannah Housing Market Prices & Trends
According to Redfin, in October 2023, Savannah's housing market exhibited robust growth with home prices experiencing a significant surge. The median sale price stood at $338K, marking a remarkable 14.5% increase compared to the previous year. Homes in Savannah sold, on average, after 36 days on the market, a trend consistent with the previous year. However, the total number of homes sold in October decreased slightly, from 223 to 196.
Competitiveness in Savannah
Savannah's housing market is classified as somewhat competitive, with homes selling in 32 days on average. The Redfin Compete Score, a measure of competitiveness, rates the area on a scale of 0 to 100, with 100 being the most competitive. Some homes receive multiple offers, and the average homes sell for about 1% below the list price, going pending in approximately 32 days. Hot homes, in contrast, may sell for about 2% above the list price and go pending in around 13 days.
Sale-to-List Price Ratio
The sale-to-list price ratio for all home types in Savannah stands at 99.6%. This indicates that, on average, homes are selling for nearly the full list price. It's noteworthy that the ratio was 80.0% in 2022, demonstrating a significant increase in seller advantage in the current market.
Migration & Relocation Trends
Examining migration trends in Savannah, approximately 0.24% of homebuyers searched to move into Savannah from outside metros. Atlanta, GA, leads in the number of homebuyers searching to move into Savannah, followed by Washington, DC, and New York. Meanwhile, Gulfport, MS, emerges as the most popular destination among Savannah homebuyers.
Savannah Housing Market Forecast 2023-202
The Savannah housing market has experienced significant growth, with the average home value reaching $296,777, reflecting a notable 9.5% increase over the past year. Homes in Savannah typically go pending in a swift 19 days, indicating a high demand for real estate in the area. According to Redfin, Zillow, as of October 31, 2023, the market inventory includes 753 homes for sale, with 259 new listings, suggesting a dynamic and active market.
Key Metrics and Prices
- Median Sale to List Ratio (Sep 30, 2023): 1.001
- Median Sale Price (Sep 30, 2023): $304,083
- Median List Price (Oct 31, 2023): $371,633
- Percent of Sales Over List Price (Sep 30, 2023): 43.9%
- Percent of Sales Under List Price (Sep 30, 2023): 37.3%
These figures highlight the competitiveness and growth in the Savannah housing market, making it an attractive option for both buyers and sellers.
Savannah MSA Housing Market Forecast (2023-2024)
The Savannah Metropolitan Statistical Area (MSA) is poised for continued growth, as indicated by the housing market forecast. The forecast for November 30, 2023, predicts a 0.4% increase, with further growth anticipated in January 31, 2024 (0.5%) and October 31, 2024 (1.8%). This positive trajectory suggests a robust and flourishing real estate market in the Savannah MSA.
The Savannah Metropolitan Statistical Area (MSA) encompasses a region that includes multiple counties. In this context, MSA stands for a geographical area with a relatively high population density and close economic ties throughout the area. For Savannah, the MSA is located in Georgia (GA). The key counties contributing to this MSA are integral to understanding the housing market dynamics.
The Savannah MSA includes various counties, each playing a crucial role in shaping the overall housing market. These counties collectively contribute to the MSA's housing market size, making it a significant economic and residential hub. Understanding the unique attributes of each county provides valuable insights into the diversity and scale of the real estate landscape within the Savannah Metropolitan Statistical Area.
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.