“How’s the market?”
This is probably the most often asked question of any real estate agent in the world. Everyone wants to know what’s happening in their market, and understandably so!
In the last two years, since February 2020, the average sales price in Savannah has gone up considerably. In fact, in Savannah alone the median home price has increased 22.85% in the last 24 months. And that doesn’t include Bryan and Effingham Counties, or even Pooler.
Savannah GA Home Prices
The Savannah GA real estate market saw home prices go up for numerous reasons.
1: Since mid 2020, people realized they could work from home. That meant they could work remotely, not just 10 miles from the office. So people left cold weather, densely populated areas and flocked to the south. In 2021 Savannah was #8 on the list of cities people moved to to escape the weather and… well, you know.
2: Buyer demand. With interests rate still ridiculously low, buyers decided that if they were going to be stuck in their homes for extended periods of time, they should at least love where they live. That’s what my family and I decided. We loved our new construction home with a neighborhood pool and tons of kids for ours to play with. But we wanted to park our RV on the property, have chickens, and have fewer rules regarding what we were and were not allowed to do to our home. So we moved a few miles away out into the country and now we have a little urban farm that we adore!
The average home price has jumped to $294,000 and the Savannah, GA real estate market is loving the increased home prices. If your home is in Bryan or Effingham Counties, we’d be happy to tell you what’s happening in these areas too. Just ask.
3: Overall cost of living. Savannah is still very affordable compared to other small cities, and especially compared to coastal areas. You want to live in Ft. Lauderdale, Naples, San Diego, or Myrtle Beach? You’re going to pay a LOT more for the same house as you would in Savannah. This, along with jobs from major employers such as the Port Authority, SCAD, and Gulfstream attracted a lot of new residents to the Savannah GA real estate market.
But interest rates have finally started to go up. After years and years of having historically low interest rates, we have finally seen them in the 4% range for the first time in ages. Which means buyer activity will probably start to slow down.
Will it come to a screeching halt? I doubt it. I was a working REALTOR® in 2006 – 2012 and the only homes I sold were bank foreclosures. I do NOT expect that to happen again because the softening of the market is not due to people who can’t pay their mortgage, or got into subprime loans. But a buyer who was on the fence about buying at a 3.5% interest rate may decide to keep renting at a 4.5% rate.
This is not necessarily a bad thing. This means that as a home seller, you might get 10 offers instead of 37. And the buyers may be more solid than the ones who got preapproved but only have $1000 in reserves.
But I do expect the market to slow down. So if you have thought about selling your home, this may be exactly the right time. It’s February 2022 and buyers come out of the woodwork in the spring, but by fall of 2022 who knows where the interest rates will be? I’ve heard rumblings of the Feds raising rates four times this year alone.
We have so many great resources to help you sell your home quickly and for the biggest profit possible. Schedule a time to talk to one of our experienced agents and let’s sell your home while it’s still easy!
About the Author: The article above was provided by Karin Carr, an authority on Savannah area real estate and a leader in the field of real estate blogging and vlogging. Karin has helped literally helped hundreds of families buy and sell homes since 2005.
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We help people buy and sell real estate in the following Savannah areas: Rincon, Guyton, Pooler, Richmond Hill, Savannah, Tybee Island, and the islands. We also service Hilton Head, Bluffton, and Beaufort SC.