Savannah Area Monthly Real Estate Market Update July 2023
Local Market Statistics
The median home price in the Savannah Metro maintained an all time high in June of $315,000, while the days it took the median home to sell remained low at just under 30 days on market. The fact that home prices locally continue to rise despite 7%+ interest rates is a strong indication that our local economy and housing market remains incredibly strong, even though some other housing markets around the country are showing signs of weakness.
May is typically the month of the year that sees the most new listings, and 2023 was no exception as the number of new listings decreased slightly from May to June. The total number of active listings increased slightly over the same time period from 2,569 to 2,653, indicating that June brought more sellers to market than buyers. This is understandable – interest rates hovered near 7% the entire month, but were closer to 6.5% most of May. For perspective, in June of 2019 there were 5,020 active listings in the Savanna metro area, which means that we have roughly 50% of available housing inventory than we normally expect to see.
Monthly Savannah sub-market report
This will be a new section of each monthly email where we analyze a specific sub-market in our area. This month we will analyze available starter home inventory in Chatham County, Richmond Hill, and Rincon. We will define a starter home as a home that a household would be able to afford at current interest rates with a combined income of $85,000 – which means a house available for $326,000 or less. We will also only include houses that are move in ready.
Each green house on the map to the right (below) is one house for sale that meets our criteria for a starter home. There are just 75 homes available in the entire area: four of which below $200k, 18 below $250k, and 32 below $275k. Eleven of these 75 are condos or townhouses. In Richmond Hill there are seven with the cheapest being a 994 square foot home listed for $241k. Rincon has similar numbers as Richmond Hill. The average size of these 75 houses is 1,344 square feet. For some perspective, there are currently 404 total active move-in ready listings in this area at all price points
The key takeaway of the analysis here is that there’s just not much inventory for “average” folks to buy right now. Looking forward to new inventory that may hit the market also doesn’t present much encouragement – if we narrow the search in that same area down to new construction only, we will see 120 total new construction listings. Out of those 120, only eight of them are priced below $326k. Our advice to someone looking to buy in the sub-325k price point is this: buy whatever you can get your hands on and afford. They’re not making new starter homes, and with the Hyundai plant opening soon and other manufacturing jobs coming to the area competition for existing inventory is sure to increase.
307 W 36th St, Savannah, GA 31401
Multifamily – six units – 11 beds, 8 baths, 4,616 SF
Offered at $2,200,000
This is a rare opportunity to purchase a fully stabilized core plus multifamily asset in the heart of Savannah’s Stalrand/Thomas square neighborhood. The Starland district is the new place to be: young professionals, art students, military officers, and all manner of local Savannians come to Starland to live, work, and play – and they pay a premium to do so. 307 W 36th was totally renovated in 2018 and went through a management value-add over the past year: rents were stabilized to market with well-qualified 12+ month tenants, unnecessary expenses cut, and deferred maintenance performed. Now the owners are ready to deliver this asset to the discerning buyer seeking headache free flow and appreciation over the next few years as the Starland district and the Savannah MSA in general continues to grow well in excess of the rest of the nation. Offered at a 6.5% going-in capitalization rate and pro forma unlevered IRR/EM at year 7 of 13.8%/2.2x, clean Phase II ESA in hand.
Local Real Estate News
- Demolition plans for a group of buildings at the southwest corner of Forsyth park were denied by the Historic Preservation Commission. The developers state that they would like to demolish the buildings to make way for an underground parking garage and low-rise office complex. More here.
- Local citizens have petitioned to change the zoning ordinances in order to ban the construction of hotels with more than 16 rooms in the Victorian and Streetcar Historic Districts (the area generally around Forsyth Park south through Victory Drive). This proposal will be considered by the MPC on their July 11th meeting. More here.
- A Washington D.C. based developer has submitted plans to build a 181-unit apartment complex on 45th and Bull, which is the current location of Bull Street Estate Sales. More here.
- A new restaurant is planned at 143 Houston St, and an underground bowling alley slated for development at the former Woolworth’s building at 131 E Broughton. More here.
- Our neighborhood party that was planned for July 15th has been POSTPONED – new date to be published soon!
- On Thursday July 20th we will be hosting a homeowners seminar at our office from 6-7:30 PM. This will be a great event event for new and seasoned homeowners alike where we will talk about topics like protesting property taxes, recommended home maintenance schedules and average prices to expect from contractors, estate planning considerations, recommended improvements to increase the sale price of a home, and other tips and tricks to make your home owning and selling experience better.
- To RSVP to any of these events simply reply to this email and let us know you plan on coming out!
If you made it to the bottom, thank you! We hope you learned something valuable today. You may have some more questions about the market in general or the specific neighborhood in which you own real estate or hope to buy and we encourage you to reach out to your Trophy Point agent with any of your questions or comments! Have a great month and don’t forget to connect us with your friends and family who may be in need of our services!