[av_section min_height='' min_height_pc='25' min_height_px='500px' padding='default' margin='' custom_margin='0px' color='main_color' background='bg_color' custom_bg='' background_gradient_color1='' background_gradient_color2='' background_gradient_direction='vertical' src='' attach='scroll' position='top left' repeat='no-repeat' video='' video_ratio='16:9' video_mobile_disabled='' overlay_enable='' overlay_opacity='0.5' overlay_color='' overlay_pattern='' overlay_custom_pattern='' shadow='no-border-styling' bottom_border='no-border-styling' bottom_border_diagonal_color='#333333' bottom_border_diagonal_direction='' bottom_border_style='' scroll_down='' custom_arrow_bg='' av-desktop-hide='' av-medium-hide='' av-small-hide='' av-mini-hide='' id='' custom_class='' template_class='' aria_label='' av_element_hidden_in_editor='0' av_uid='av-3ay0ui' sc_version='1.0']
[av_textblock size='' av-medium-font-size='' av-small-font-size='' av-mini-font-size='' font_color='' color='' id='' custom_class='' template_class='' av_uid='av-l2ulkjdv' sc_version='1.0' admin_preview_bg='']
Happy May! It's time for another market update - let's take a look at what April brought to the real estate market. While many have been waiting for a major slow-down in the real estate market, we’re still seeing homes fly off the shelves, especially in the $100-200k price range. Inventory is continually staying low, keeping the market hot.
General Market Trends
For the month of April in the entire Savannah MLS (which covers all of Chatham, Effingham, Bryan, and parts of Long and Liberty Counties), we have seen the following:
1,333 new listings, compared to 1,402 new listings in March & 1,404 new listings in April of 2021
967 homes sold, compared to 1,070 homes sold in March & 1,202 homes sold in April of 2021
There are 1,285 homes total on the market. This brings us to a total of 1.77 months of inventory, compared to 1.91 months of inventory in February, and 1.85 months worth in March. In a balanced market, we expect to see 6 months of inventory, so we are still very much in a seller’s market.Here, we can see the trends from the last 5 years of months of inventory (in green - remember, the balanced market is right around 6 months) & average home sale prices (in blue).And this chart shows us the trends, also over the last 5 years, of the number of new listings (green) & number of houses sold (blue).
Another interesting trend we can see from this graph is the number of homes selling for under $250k around Savannah from the last 5 years.
For those interested in multifamily homes, here are a few tidbits to look at:
Savannah's number of multifamily listings was up to 27 properties in April 2022, compared with 30 active in March 2022 and 22 last April (2021).
This chart shows us trends over 5 years of number of new listings (in green) compared with the number of closings (in blue) for multifamily properties.
And this will show the number of new listings (in green) compared with closings (in blue) over the last year.
The fact that months of inventory continues to decrease even though the number of new listings is roughly in line with historic trends can point to only one thing - there are a lot of people moving to Savannah, and supply is not keeping up. This is great news if you’re a seller of course, not so much if you’re a buyer. The good news for buyers is this: population forecasts for the next five years point to a continued trend of migration to Savannah. We do not believe that prices will decline as long as folks are still moving here faster than they’re building houses; that’s basic economics.Interest rates rising have so far had little to no effect on the market. Some buyers are beginning to bow out of the market, but most are simply looking at lower price points. The other harsh truth for those in need of housing is this - rents have risen sharply over the past two years as well, and supply of available rentals is very tight. For example, on May the 2nd of this year we ran a search to see how many 3-bedroom rentals are available in Chatham county for less than $1600/mo. I counted five. Two years ago, I would have been able to find 30 or more.If interest rates continue to climb, then they will eventually reach a point where they cool the market. When and if we get there is hard to say. We'll be posting a blog within the next few weeks to share more information on these rising rates.If you’re interested in seeing some trends in individual neighborhoods or areas of the market, please keep scrolling. As always, we love to answer your questions - please don’t hesitate to reach out if you’d like to pick our brains about any of the information you see here today!Here is our index of neighborhoods: