Savannah home sales posted a comeback summer.
And the rally may not be over.
More than 500 homes sold in the Savannah area for the second straight month in August. The 511 sales in Chatham, Bryan and Effingham counties contributed to a Memorial Day to Labor Day total of 1,487 sales, up 7.5 percent from summer 2012, 23.7 percent from the same period in 2011 and 58.7 percent from 2010.
Realtors note the pace has yet to abate since the start of September, and 682 homes were under contract to be sold as of Monday. The activity promises what one agent calls an “Indian summer of real estate.”
“We’re still moving ahead,” said Donna Davis, president of the Savannah Area Board of Realtors. “I don’t believe we’ll see a slowdown in this market in September. Prices are holding, and sales are happening.”
Realtors cited a number of factors for the extended summer buying season. Interest rates continue to climb, broaching 5 percent in some instances and prompting movement from indecisive buyers worried about additional rate increases.
Inventory is another issue: the number of homes listed for sale as of August’s end was at the lowest level since March. Given the average pace of sales over the last 12 months, the Savannah area has less than eight months supply of inventory. That supply is the lowest since the housing bust.
“People are realizing we’ve passed the bottom of the market, and if they don’t buy now, they will be buying in a seller’s market,” said Tommy Danos, a Realtor with ERA Southeast Coastal real estate. “Inventory is way down, and that will have an impact on prices at some point.”
The average sales price has hovered in the same range since March. But the August price — $204,412 — did mark a 7 percent increase from August 2012. The area’s busiest home-buying locales, Pooler and Effingham County, have seen marked price increases due to a supply shortage.
The month’s supply is under three months in many Pooler neighborhoods and under six months in Effingham County.
Interest rates will likely play a significant role in 2013’s final months.
The pending leadership change at the Federal Reserve and the group’s approach to its mortgage-bond buying program is already resulting in rate volatility. A buyer who closed on a deal Monday noted rates had moved by a full point from when he put his home under contract.
“If we start seeing rates up to 5.5 percent, anybody even considering getting in is going to get in,” said Vickie Linscott, a Realtor with Keller Williams Coastal Area Partners. “That will help us sustain a little bit of volume, at least in the near term.”
BREAKOUT
LOCAL HOME SALES SNAPSHOT
The Savannah-area housing market (Chatham, Bryan and Effingham counties) eclipse the 500-sales mark in August for the second straight month. A look at the local market (numbers include residential real estate, including single-family homes, modulars, townhomes and condominiums):
Month |Inventory |New |Sales |Pending |Price
August 2013 |3,159 |631 |511 |267 |$204,412
July 2013 |3,833 |677 |507 |257 |$201,086
June 2013 |3,897 |710 |469 |298 |$213,723
May 2013 |3,586 |711 |447 |290 |$223,917
April 2013 |3,893 |739 |447 |350 |$201,881
March 2013 |3,019 |542 |379 |324 |$200,578
February 2013 |3,668 |555 |290 |234 |$186,014
January 2013 |3,871 |641 |302 |274 |$176,276
December 2012 |3,139 |380 |372 |163 |$171,651
November 2012 |3,272 |481 |383 |220 |$209,104
October 2012 |3,424 |710 |388 |242 |$188,796
September 2012 |3,298 |509 |333 |242 |$188,600
August 2013 |3,159 |631 |511 |267 |$204,412
August 2012 |3,477 |638 |468 |223 |$191,063
April 2011 |4,480 |663 |324 |295 |$186,350
August 2010 |5,286 |706 |263 |195 |$196,760
August 2009 |5,387 |732 |302 |223 |$202,249
Source: Savannah Multi-List Corp.