Savannah Housing Market: Prices, Trends, Forecast 2024

by thebestworldevents.com 9 March 2024 · Property Investment

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Considering the competitive nature of the Savannah housing market, it leans slightly towards being a seller’s market. The lower median sale price compared to the national average, coupled with the quick turnaround time for home sales, indicates favorable conditions for sellers. However, buyers still wield influence, with properties selling below the list price on average. The delicate balance between supply and demand suggests a market where both buyers and sellers can find opportunities.

Savannah Housing Market Prices & Trends in 2024

How is the Housing Market Doing Currently?

In January 2024, the Savannah housing market exhibited robust growth, with home prices experiencing a significant surge. According to Redfin, compared to the previous year, home prices in Savannah saw a remarkable increase of 14.3%, reaching a median price of $335K. This surge not only reflects the city’s attractiveness but also indicates a positive trajectory for real estate investment.

Additionally, the average time homes spend on the market has witnessed a noteworthy decrease. Homes in Savannah now sell after an average of 47 days, compared to 53 days the previous year. This accelerated pace suggests heightened buyer interest and a more dynamic marketplace.

Furthermore, January saw a substantial increase in the number of homes sold, totaling 193, up from 137 in the same period last year. This surge in sales highlights the resilience and appeal of the Savannah housing market.

How Competitive is the Savannah Housing Market?

Savannah’s housing market is marked by competitiveness, with the median sale price standing at 16% below the national average. The average time it takes for homes to sell is a mere 42 days, showcasing a sense of urgency among buyers. Some properties even attract multiple offers, emphasizing the high demand and competitive nature of the market.

Moreover, the average homes in Savannah tend to sell for about 2% below the list price, reinforcing the notion of a market where buyers are eager but still expect reasonable pricing. In the case of sought-after homes, they can sell for around the list price and enter pending status in a swift 18 days.

Are There Enough Homes for Sale in Savannah to Meet Buyer Demand?

The Savannah housing market, while competitive, is grappling with a balance between supply and demand. The sale-to-list price ratio, standing at 98.3%, has experienced a +0.7 pt increase year-over-year, indicating sellers have some leverage in negotiations.

However, the percentage of homes sold above the list price has seen a -6.6 pt year-over-year decrease, suggesting that while the market is competitive, buyers are not as inclined to exceed listing prices as they were in the past.

What is the Future Market Outlook for Savannah?

The migration and relocation trends in Savannah provide insights into the future market outlook. From December ’23 to February ’24, 33% of homebuyers explored options outside of Savannah, while 67% preferred to stay within the metropolitan area. This trend suggests a degree of mobility within the city and indicates potential shifts in neighborhood preferences.

Notably, the national perspective on relocating to Savannah shows promise. 0.28% of homebuyers across the nation considered moving into Savannah from outside metros. The top contributors to this influx were Atlanta, New York, and Washington, underlining Savannah’s appeal on a national scale.

Savannah Housing Market Forecast for 2024 and 2025

According to Zillow, the Savannah housing market is displaying remarkable resilience and growth. The average home value in Savannah stands at $305,618, witnessing a substantial 10.3% increase over the past year. Impressively, homes in Savannah go pending in approximately 27 days, showcasing the market’s vitality and demand.

Key Housing 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 is marked by a healthy balance between inventory and demand, with new listings contributing to the market’s vibrancy. The median sale to list ratio indicates a fair and competitive pricing landscape. The median sale price of $308,750 and a median list price of $364,767 showcase the market’s stability and attractiveness to both buyers and sellers. Notably, a significant percentage of sales (33.0%) are recorded above the list price, indicating a competitive environment.

Savannah MSA Housing Market Forecast

The Savannah Metropolitan Statistical Area (MSA) is poised for substantial growth, according to the forecast. As of January 31, 2024, the forecast predicts a 0.5% increase in the housing market, reaching 1.8% by April 30, 2024, and an impressive 7% by January 31, 2025. This projection underscores the region’s attractiveness and potential for real estate investment.

The Savannah Metropolitan Statistical Area (MSA) encompasses various counties in Georgia. MSA is an acronym for Metropolitan Statistical Area, a geographical region with a high degree of economic and social integration. In the context of Savannah, the MSA includes multiple counties, contributing to the region’s expansive and diverse housing market. The growth forecast emphasizes the significant size and economic potential of the Savannah MSA, making it an area of interest for both local and prospective real estate investors.

Is Savannah a Buyer’s or Seller’s Housing Market?

The current dynamics of the Savannah housing market suggest a balanced scenario, making it neither exclusively a buyer’s nor a seller’s market. The average home value has seen a commendable 10.3% increase over the past year, indicating a growing demand. However, with homes spending an average of 27 days on the market, there is still a reasonable window for buyers to explore and make informed decisions. Sellers, on the other hand, benefit from a competitive landscape, especially with a notable percentage of sales occurring above the list price.

Are Home Prices Dropping in Savannah?

Contrary to a downward trend, home prices in Savannah have shown a consistent upward trajectory. The median sale price at $308,750 (as of December 31, 2023) reflects sustained growth, with the average home value experiencing a substantial 10.3% year-over-year increase. This upward movement in prices signifies a robust and resilient real estate market in Savannah.

Will the Savannah Housing Market Crash?

The data and forecasts for the Savannah housing market do not indicate any imminent crash. The market is characterized by steady growth in home values, a reasonable inventory, and a healthy balance between supply and demand. While real estate markets are subject to fluctuations, the current indicators point towards a stable and sustainable environment. Monitoring market trends and staying informed about potential shifts is always advisable, but as of now, there are no alarming signals of a housing market crash in Savannah.

Is Now a Good Time to Buy a House in Savannah?

Considering the current state of the Savannah housing market, it appears to be a favorable time for prospective buyers. The market’s balance, coupled with the 10.3% year-over-year increase in average home values, indicates a healthy and growing real estate landscape. With homes spending an average of 27 days on the market, buyers have a reasonable window to explore options and make informed decisions. However, individual circumstances and preferences play a crucial role, and potential buyers should assess their specific needs and financial situations before making a decision.

Savannah Housing Market Forecast for 2024 and 2025 — Source: Zillow

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.

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