Over the last three years, the real estate market in and around Savannah, Georgia, has mirrored the volatility of the national trends. One key statistic to measure market recovery, or lack thereof, is the "months' supply of inventory." According to the National Association of Realtors (NAR), the U.S. housing inventory stands at 8.5 months, based on its 10/20/11 press release. This means that the top twenty metro markets studied have shown considerable improvement and stand poised for recovery. In fact, NAR cites that price stabilization occurs at around 7 months' supply. Nationally, the news is promising. However, as any Realtor will comment, "all real estate is local." So, how is Savannah performing?The last three years have been the most volatile in real estate. Looking at local statistics sourced from Savannah Multi-List Corporation data, the local Savannah real estate market areas continue to show a high degree of variability. In this recent past, both the Historic District and The Landings on Skidaway Island were hit hardest in terms of standing iinventory (and price). Significant changes in price and market timing for new listings have resulted in improvement in those sub-markets, but both areas remain at over twice the "stabilization" target. What does this mean for sellers? For the foreseeable future, there needs to be a continuing focus on pricing strategy. Only 16 to 18 homes are selling per month at The Landings and Historic District, respectively. Therefore, understanding what it takes to be in that number will be incredibly important. Certainly, that's what a good Realtor will bring to the table.
The perimeter sub-markets of Savannah (Pooler, Bryan, and Effingham) are outperforming all other market segments. All have standing inventory of less than 10 months. Certainly, Bryan County has benefitted from changes in military personnel. Pooler has experienced the benefit of having the highest concentration of new homes available. Key drivers of the reduction of inventory in Effingham County are less discernible. The major result for all areas, though, is clear. Prices will continue to stabilize as these sub-markets lead the way to an overall real estate recovery for Savannah. What does that mean for buyers? For those who want to live in the Savannah suburbs, a sense of urgency should govern home shopping. Home bidding will be more competitive and buyers will pay closer to list price for their selections.
The remaining sub-markets of Savannah, i.e., Midtown, Southside, and Islands, still have a way to go, but the statistics are promising. "Deals" remain abundant on the Southside. A good percentage of Midtown homes are being purchased with cash, a sure sign that investors recognize the overall attractiveness of the real estate market, and perhaps more importantly, realize that now is the time to buy. Islands sales are relatively strong, with more than 30 homes selling each month, but more improvement is needed. Negotiations in this sub-market remain more intensive.
For more information about the Savannah real estate market, visit www.affordablesavannahhomes.com.
