Home Sales Tick Up Another Notch

As regular readers know, we keep track of the national media spin on real estate matters because our Savannah home sales often reflects the tone we all pick up from the feel of the wider market. So let’s not beat around the bush: again in July, the residential real estate picture continued its rise. It has been sensible to remain cautiously optimistic about the direction of things for a good long while, but at this juncture, it’s finally beginning to look like a trend has taken shape.

“For the fifth consecutive month,” the Wall Street Journal reported in its news pages, “sales of previously owned homes notched another rise.” Savannah homeowners who have gone through literally years of sinking prices and moribund home sales must be worried as they read this –worried that someone will snap them out of this pleasant daydream. But it’s real: despite most of the other national economic news that remains considerably less encouraging, the real estate picture is heartening.   

The National Association of REALTORS^® agrees. They report that single family homes, condominiums and townhomes increased sales. Single family home sales rose 9.9% over last year, with condo sales jumping a full 14%.

A low inventory of homes for sale is believed to be at least partially responsible for strong new homes sales numbers. The nation’s biggest builder of luxury homes, Toll Brothers, reported a sales leap of 57% from last year. Meanwhile, the price picture showed the kind of growth you would expect: median prices were up over 9% from a year ago.

 

The median sale price in July for single family homes in 31405 was $187,200.
The sales prices increased by 1.18% from the previous month.
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Supporting trends were also interesting. Distressed sales (foreclosures and short sales) were down markedly, reflecting a tightening supply. This is probably an indication that the glut of such properties has finally worked its way through the market; certainly an encouraging sign for homeowners who have been waiting to list until the home sales market strengthens. The WSJ news story would likely provide some encouragement: they feature one would-be buyer who bid on a home, but lost it to a higher bidder. He and his wife had been viewing homes all summer before finally making their offer. “Maybe I stepped in a month too late,” he’s quoted as saying.

For Savannah homeowners who have been biding their time, that kind of quote will surely be music to their ears. If you have been watching and waiting for your own entry into the Savannah real estate market, I hope you will give us a call to investigate the latest comparables in your own neighborhood.  

MLS Listings Tell Shift in Area Homebuyer Values

The latest indications that we have seen the end of the sagging real estate market have started some Savannah homeowners thinking it may be time to sell. For those who are wondering if the long recession has altered how people look for homes – and if so, in what ways  – we’ve noticed a couple of new trends.

As before, the first stop for most potential buyers is the Savannah MLS listings. When you compare the language and features most prominent there, huge changes do not leap out. But a comparison with former language does reveal something of a shift in emphasis: many details that highlight opulence (to some, excess) are being replaced by features much more in tune with practicality and efficiency (to some, frugality). You would expect that, since consumer confidence is still less than robust.

The trend to open floor plans is nothing new: fewer walls; more living is an idea many buyers embrace. The more casual “great room” is almost always more desirable to today’s buyer than the formal living and dining rooms of 30 years ago. 

As the baby-boomer generation grows older, issues of accessibility and mobility become more important.  Savannah MLS listings that boast easy-access showers, baths, bedrooms and kitchens are highly desired and sought after by buyers in that populous group. Such listings signal a home already equipped for easy access -- meaning no extra dollars will be needed for retrofitting the property. Even for those who have no immediate need for those features, eliminating a future expense (even if it seems a distant concern) can be attractive.

Prominence is growing for features that relate to extra living space. The demographic reasons are clear: in-law apartments or bachelor studios have added value for families whose children may have to move back in with them (the “boomerang” effect).  Since such units may be rented for extra income in tough times, they bring an added element of financial security.  Large garages fall into this category as well (but no longer for that brand-new Hummer!)  Today’s MLS listings featuring an extra large garage are viewed as desirable by Savannah buyers looking to convert it into extra useable space: man-cave, gym, extra storage, or, increasingly, home office space.

Today’s homebuyer seems considerably more environmentally conscious than heretofore. Homes that feature solar panels, green toilets or other water-efficient plumbing, and radiant light windows are increasingly desirable. This may be due to growing social responsibility -- but I’d bet that reduced utility bills can’t be far behind. As a result, green technology features are working their way up in Savannah MLS listings. 

If you are looking to buy or sell a home in the Savannah area and would like to review where the latest trends point, give us a call!  As always, we’re here for all your real estate needs!