As temperatures are beginning to rise in the Savannah area, so too home sales and home prices, a positive sign in a recovering market.
Home sales in March were up 5 percent over the year for a total of 411 units sold in Bryan, Chatham and Effingham County, according to data from the Savannah Multi-List Corporation.
Median home sale prices continued to tick upward as well, rising to $170,000 from $160,000 last month, and showing a 1.5 percent increase over the year.
“Upper price ranges of $300,000 and above have really picked up,” said Ben Farmer of Ben Farmer Realty. “The Landings had a banner month last month and Wilmington Island activity has been very strong.”
Farmer said prices are starting to go back up as bank-owned properties and foreclosures, which depress prices, are being absorbed.
Lyn McCuen, a realtor with Coldwell Banker Platinum Partners, said average appreciation of homes had returned to pre-recession levels.
“Average appreciation used to be 5 to 6 percent in this area, and that was significantly lower with the economic and housing market issues, but what we’re seeing now is it’s about that same 6 percent again,” said McCuen.
Meanwhile, inventory went down slightly to seven and half months, though still a month higher than the previous year. Despite the appearance of higher inventory, many realtors say there is simply not enough so-called “good” inventory in the places and price ranges that people are looking.
“We do have a much lower inventory in areas that have increased sales. For example, there’s much lower inventory in Pooler,” said McCuen.
She said she’s seen a large decrease in inventory of homes in the $250,000 to $500,000 range, usually the price range for families moving up to their second home or corporate workers relocating to the region.
“I have some clients looking on Wilmington Island, and I can’t find anything for them,” said McCuen.
Overall, new homes under contract in the first three months in the region did increase, though Chatham was flagging over the previous March. Since January there have been 218 new homes put under contract in the region compared to 190 over the same period last year.
“The good news is home prices are going back up. The bad news is prices are starting to go back up and interest rates are creeping back,” said Farmer, adding that the rates were still extremely low for buyers.
Farmer said people in the lower price ranges can’t get out of their homes just yet until they recoop their value, but he expects that to change if prices continue trending up.
Meanwhile, several realtors, including McCuen, say they’ve been swamped.
“I haven’t been this busy in 17 years,” said McCuen. “Lots of showings, things are going under contract a lot quicker, houses are spending a lot less days on the market and are closer to asking prices.”
BREAKOUT
The Savannah-area housing market (Chatham, Bryan and Effingham counties) began to pick up in March with 411 home sales, while median sale prices also increased. A look at median home price sales in the local residential market, including single-family homes, modulars, mobile homes, townhomes and condominiums.
Jan. 2013 Jan. 2014 % Change
$154,450 $160,000 3.6% +
Feb. 2013 Feb. 2014 % Change
$167,500 $160,000 -4.5% -
March 2013 March 2014 %Change
$167,500 $170,000 1.5% +