How’s the market you ask? Examining the Savannah housing market reveals a landscape that slightly favors sellers due to its competitive nature. Despite a median sale price lower than the national average, homes in Savannah sell quickly, indicating advantageous conditions for sellers. Nevertheless, buyers still hold still, with properties often selling below the listed price. This delicate equilibrium between supply and demand suggests opportunities exist for both buyers and sellers!
Current Trends in the Savannah Housing Market
As of January 2024, the Savannah housing market has shown tremendous growth, marked by a significant surge in home prices. Compared to the previous year, Savannah experienced a remarkable 14.3% increase in home prices, with the median price reaching $335K, reflecting the city’s promising prospects for real estate investors.
Additionally, the average time homes spend on the market has decreased a tremendous amount. Homes in Savannah now sell in an average of 47 days, down from 53 days the previous year, indicating heightened buyer interest and a more dynamic market environment even with higher interest rates.
January witnessed a substantial uptick in the number of homes sold, totaling 193, compared to 137 in the same period last year, showcasing the resilience and appeal of the Savannah housing market.
Competitiveness of the Savannah Housing Market
Savannah’s housing market is characterized by competitiveness, with the median sale price standing 16% below the national average. Homes typically sell in a mere 42 days, underscoring a sense of urgency among buyers. Some properties even attract multiple offers, highlighting the market’s high demand and competitive nature.
Furthermore, homes in Savannah tend to sell for about 2% below the list price on average, suggesting buyers’ eagerness while still expecting reasonable pricing. In-demand homes can sell for around the list price and enter pending status swiftly within 18 days.
Supply and Demand Dynamics
While competitive, the Savannah housing market grapples with a balance between supply and demand. The sale-to-list price ratio, standing at 98.3%, has increased by 0.7 percentage points year-over-year, indicating sellers have some negotiating leverage. However, the percentage of homes sold above the list price has decreased by 6.6 percentage points year-over-year, suggesting buyers are less inclined to exceed listing prices compared to the past.
Future Market Outlook
Migration and relocation trends provide insights into Savannah’s future market outlook. From December ’23 to February ’24, 33% of homebuyers explored options outside Savannah, while 67% preferred to stay within the metropolitan area, indicating potential shifts in neighborhood preferences.
Nationally, Savannah’s relocation prospects are promising, with 0.28% of homebuyers across the nation considering a move to Savannah from outside metros, with Atlanta, New York, and Washington being the top contributors to this influx.
Forecast for 2024 and 2025
Zillow predicts remarkable growth in the Savannah housing market, with the average home value reaching $305,618, a 10.3% increase over the past year. Homes in Savannah go pending in approximately 27 days, highlighting the market’s vitality and demand.
Key Metrics:
– For Sale Inventory (January 31, 2024): 745
– New Listings (January 31, 2024): 208
– Median Sale to List Ratio (December 31, 2023): 1.000
– Median Sale Price (December 31, 2023): $308,750
– Median List Price (January 31, 2024): $364,767
– Percent of Sales Over List Price (December 31, 2023): 33.0%
– Percent of Sales Under List Price (December 31, 2023): 42.4%
The Savannah housing market maintains a healthy balance between inventory and demand, with new listings contributing to its vibrancy. The median sale to list ratio indicates a fair and competitive pricing landscape, and the stability of median sale and list prices demonstrates attractiveness to both buyers and sellers. Notably, a significant percentage of sales occur above the list price, indicating a competitive environment.
Savannah MSA Housing Market Forecast
The Savannah Metropolitan Statistical Area (MSA) is poised for substantial growth, with forecasts predicting a 0.5% increase in the housing market by January 31, 2024, reaching 1.8% by April 30, 2024, and an impressive 7% by January 31, 2025, highlighting the region’s attractiveness and real estate investment potential.
Savannah: Buyer’s or Seller’s Market?
Currently, the Savannah housing market reflects a balanced scenario, not distinctly favoring either buyers or sellers. With a commendable 10.3% year-over-year increase in average home values and homes spending an average of 27 days on the market, buyers have ample opportunity to explore options. Sellers benefit from a competitive landscape, with a notable percentage of sales occurring above the list price.
Price Trends and Market Stability
Contrary to a downward trend, home prices in Savannah show consistent upward movement, reflecting sustained growth and a resilient real estate market. There are no indicators suggesting an imminent market crash; rather, the market exhibits steady growth in home values, a reasonable inventory, and a healthy balance between supply and demand.
Is Now a Good Time to Buy in Savannah?
Given the balanced state of the Savannah housing market and its healthy growth trajectory, it appears to be a favorable time for prospective buyers. With homes spending an average of 27 days on the market, buyers have a reasonable window to explore options. However, individual circumstances and preferences should be considered before making a decision.
