At least once a quarter, I’ll use my blog to give you a quick summary of the Savannah Area real estate market. If you’d like to see the full report, sign up below. Enjoy the first edition. – Ed www.myhomesavannah.com
In the first quarter of 2014, more houses sold in the Savannah area (6.8%) than in the first quarter of 2013. Each of the first three months had an increase in monthly sales. This shows the market is consistently improving and hopefully the increases will continue throughout the rest of 2014.
First quarter prices also increased 4.4% compared to 2013, which is an improvement of $4,400 for every $100,000 of home value. The sales to listing (S/L) percent also improved to nearly 94%. This means, on average, a house sells for 93.8% of its list price. If you’re selling a $250,000 house, you should end up getting at least $235,000.
Days on Market
On average, houses stayed on the market around 112 days, a 6.7% increase from the first 3 months of 2013. This means sellers had to wait an extra week to make a deal. This is not a huge issue, but a trend to keep and eye on.
Distressed sales were lower than last year, but higher than normal at 21.8%. This indicates foreclosures and banked-owned properties are clearing out of the market, but will still exert some downward pressure on selling prices, particularly at the under $100,000 range. Nearly 57.8% of houses selling in that range were distressed. Sellers should take heart that the supply of underpriced houses is clearing out of the market, which is good for overall pricing. Investors should take note that the window for finding bargain properties is tightening and the time to find deals is now.
Buyer or Seller Market?
Supply for non-distressed housing is still leaning toward the buyer at 8.3 months of supply, but distressed property supply is below the 6 month level, indicating a seller’s market. Houses selling for $100k to $199k (7.3 months) and $200k to $299k (8.9 months) are pulling toward the balanced range (6 to 7 months) and may reach the seller range (less than 6 months) soon.
The Bottom Line
Market trends should encourage sellers, as the market is gradually moving in their favor and the necessity to lower prices is lessening, while buyers should realize the days of bargain shopping may be coming to an end. Also, investors need to act now to tie up any available distressed properties as supplies dwindle quickly.
Real estate trends can change quickly, so sign up to receive market alerts and I’ll keep you updated on any significant shifts in the Savannah Area real estate market. Also, put report in comment field and I’ll send you the full real estate report.