Savannah’s housing market has regained its balance, although that equilibrium is as precarious as a tightrope walker’s.
The inventory of homes for sale across the three-county region in March fell below the eight-month mark for the first time since the housing bust. The month’s supply of inventory reflects the number of months it would take to exhaust the current inventory — the number of homes listed for sale — at the average sales pace over the previous 12 months.
Less than six months is considered a seller’s market; more than eight months a buyer’s market; and between six and eight months a balanced market.
Local real estate professionals do not foresee the shift prompting a “leap” in prices, even with the spring buying season ahead. The median sales price continued its 2013 creep in March, hitting $159,000 after hovering in the high $140,000s for much of 2012.
“I do see (prices) continuing to rise” slowly, said Donna Davis, president of the Savannah Area Board of Realtors. “What I do see is fewer inventory (choices) for buyers.”
Typically, a supply shortage does lead to price appreciation. But the local delinquency rates remain high, with 5.76 percent of homeowners at least three months behind on their mortgage and more than 10 percent at least 30 days late. The notion that more distressed property could come onto the market is expected to hold prices in check.
Much of the recent price appreciation is due to fewer repossessed homes in the sales pipeline, Realtors said. Private sellers aren’t necessarily getting more for their properties.
“We’ve seen a solidifying of the base, with most of the really, really cheap stuff being long gone,” said Vicki Linscott, a Realtor with Keller Williams Coastal Area Partners. “You see prices rising fast in some neighborhoods, but it’s not widespread.”
Sales numbers also prompted caution. Sales were flat in March compared to the same month in 2012, with 379 sales versus 385 a year earlier. Sales haves slowed in Bryan County, particularly on new construction.
Builders are seeing increased activity in West Chatham and Effingham County, however. And like Realtors, builders anticipate prices to remain stable throughout the spring buying season.
“We are definitely seeing increased demand and development of established neighborhoods and subdivisions,” said Mark Konter, president of the Home Builders Association of Greater Savannah. “Material prices are increasing, but we’re trying to keep prices as low as possible to remain competitive and offer good value.”
Buyer interest remains strong across the market. Pending sales, or homes under contract, hit a 12-month high in March. And the U.S. Department of Agriculture’s reversal of its decision to no longer offer rural development loans in Chatham County west of Interstate 95 should help West Chatham sales.
Chatham County properties were scheduled to lose their USDA eligibility on March 27, but the USDA elected to extend the program through September.
“That opens our market to even more buyers,” Davis said.
LOCAL HOME SALES SNAPSHOT
The Savannah-area housing market (Chatham, Bryan and Effingham counties) found balance in March, with fewer new homes listed and inventory dropped to pre-housing bus lows. 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
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 2012 3,477 638 468 223 $191,063
July 2012 3,460 610 444 278 $221,061
June 2012 3,630 649 471 283 $198,998
May 2012 3,584 639 397 331 $169,125
April 2012 3,694 648 363 275 $198,823
March 2013 3,019 542 379 324 $200,578
March 2012 3,748 690 385 298 $172,215
March 2011 4,574 760 353 278 $188,313
March 2010 5,449 918 293 269 $226,802
Source: Savannah Multi-List Corp.