The Institute for Luxury Home Marketing recently released charts showing how luxury real estate is performing across the nation.
The charts are a snapshot of all luxury markets across the US are performing. You can see the 7-day and 90-day rolling averages for median list price, days on market, and inventory.
In Q2, Nearly 19% More Homes Sold Than in Q2 of 2014. For 2015, 19.6% More Homes Have Sold.
Median Sales Price Climbed 9.7% in Q2 2015. For the Year Median Sales Price Is Up 11.7%.
In Q2, the Median Sales Price for Savannah Home Was Nearly 97% of Original List Price. So Far This Year It’s 96.7%.
Savannah Homes Took an Average of 70 Days to Sale in Q2 of 2014, Which is the Same as Q2 of 2014. For the year, homes have stayed on the market 77 days, one more day than in 2014.
A Quick Summary:
Savannah homes are staying on the market for the same length of time as in 2014, but almost 20% more homes have sold at a median price nearly 12% above 2014.
Savannah has a vast array of million-dollar homes for every taste. It has the Downtown area for those who seek historic homes, many waterfront beauties perched on the shores of its many islands, as well as those resting beside world-renowned golf courses.
So far in 2015 seven of those million-dollar-plus mansions have sold. Downtown Savannah saw three historic homes change hands, while Savannah’s renowned planned community The Landings on Skidaway island had two million dollar properties sell. The remaining two were waterfront palaces — one on Isle of Hope and other on Wilmington Island.
More Savannah Million Dollar Mansions Set to Sell
As of the end of the first quarter of 2015, another seven million-dollars properties were under contract, while four more were set up on contingent contracts. Contingent means the sale has been approved by the the seller, but will not become finalized until certain criteria are met. Usually this means an appraisal, home inspection or mortgage approval.
The High, the Low and the Averages
The most expensive home, listed for $3.45 million and sold for $3.36 million (97% of its list price). The least expensive one listed for $1.98 million, but changed hands for $1.055 million (88% of list price).
Here is a quick look at some of the averages:
- Bedrooms/baths – 5/4
- Square Feet – 4,979
- List Price – $1,814,134.00
- List Price Per Square Foot – $408.40
- Sales Price – $1,565,357
- Sales Price Per Square Foot – $321.92
Average and Median Days on the Market
Homes costing a million or more averaged a 359-day stay on the market before selling. The median was 219 days.
For those who haven’t thought about median since high school, let me explain the distinction. The median of a set of numbers is that number where half the numbers are lower and half the numbers are higher. In this case , that means that half the million dollar homes sold faster than 219 days, while the other half took longer.
The average of a set of numbers is the total of those numbers divided by the number of items in that set. So in this case, you divide all the houses that sold by the total number of days they were on the market to get the average.
Million Dollar Homes Sold for 91% of List Price
Overall the pricey homes also sold for 91 percent of their listed price.
If we take the number of quarterly sales and divide it by the number of months in the quarter (3), we see that around 2.33 houses in the million-plus range sold per month. With 112 active listing on the market as of March 31 that means there is about 48 months of supply or inventory remaining.
By tracking this percentage in the coming months, you can see if homes are selling above 91% of list price or below it. This is a quick way to gauge demand. Typically a rising sales-to-list price percentage indicates a seller’s market, while a decreasing one means more of a buyer’s market.
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Savannah is an enchanting and charming city filled with a diverse mix of luxury homes. No matter what you desire — history, the ocean, city life, or a relaxing golf course village — I can help you find it in this the Hostess City.
Also don’t forget to visit our website, www.myhomesavannah.com, and view all the beautiful homes in Savannah.
Here’s a look at a chart that shows monthly home sales compared to previous years.
Savannah Home Monthly Sales 2014
In 2014, more Savannah homes sold in eight of the twelve months compared to 2013 and 2012 numbers. Sales were down slightly in July and October, the same in August, and over 50 units short in April.
Fourth quarter sales improved by 2.3% over 4Q sales in 2013 — 11.2% higher than 4Q 2012.
Savannah Luxury Home Sales priced from $500K to $1M+
If you look at the chart below, you’ll notice that two of the three luxury price tiers saw increase number of homes sold. Only one — $500K-$749K — saw decreases.
The $1M+ price range rose 300 percent, as 9 homes sold for $1 million dollars or more compared to 3 in 2013.
Sales in the $750K to $999K tier climbed 30 percent, as 13 homes sold compared to 10 in 2013.
Savannnah Luxury Homes — Days on the Market (DOM)
All three luxury price tiers saw declines in the number of days the homes were on the market before they sold.
The $500K to $749K segment was cut in half — from 199 days (2013) to 98 days (2014), while the $1M+ range reduced its DOM by nearly 150 days.
The $750K to $999K held steady — decreasing slightly from 225 days to 224.
Savannah Luxury Homes — Price Reductions
In the top three price ranges, only Savannah homes selling for a million dollars or more saw a greater need to reduce prices than in 2013.
Both the $500K-$749K and $750K-$999K segments saw the percentage of price reductions drop compared to 2013 numbers.
Luxury Homes — Buyer’s or Seller’s Market?
A buyers market exists when the inventory of homes on the market is above 7 months, while a seller’s market exists when the inventory is less than 6 months.
A balanced market exists when inventory is 6 to 7 months.
If you plan to buy a luxury home in the Savannah area conditions are currently in your favor. The $500K-$749K price segment has 21 months of inventory , the $750K-$999K range has 25.5, and the $1M+ price tier stands at 29 months of inventory.
Looking for a Savannah Luxury Home?
I’d love to work with you. I am well-versed in the ins and outs of the Savannah luxury market and can provide you the attention and expertise you need to find a local luxury home that your unique needs and wants.
Call me today at my personal number — 912-844-9000 — or email me at [email protected] and we’ll get started.
You can also view all our luxury home listings myhomesavannah.com.
To stay updated on the Savannah Luxury Home Market subscribe to the Savannah Luxury Home Report.
Savannah Home Sales Increase in First Six Months of 2014
So far 2014 has been a slightly better year for Savannah real estate sales than 2013, even though April and June sales numbers dipped below 2013 levels. Here’s a quick breakdown of some of the data:
- YTD 2014 (through June) sales were higher than in 2013 by +1.7%
- YTD 2014 sales improved +11.3% over those in 2012
- Home sales beat 2013 in first 3 months of 2014, but fell below them in two of three months (April and June) in Q2 of 2014
- Q2 2014 sales fell by -3.7% compared to Q2 2013, but were +6.5% higher when compared to Q2 2012
- Most of the drop in quarterly sales occurred in the <$100K price range (-25.5%), while sales in the $100K-299K ranges rose by +5.5%
- 2148 single family detached houses sold in first 6 months of 2014 versus 2139 in first 6 months of 2013 (January-through-June)
- 307 condos/townhomes sold in 2014 compared to 284 in 2013 (January-through-June)
- Monthly median sales price ($179,000) is almost back to 2007 levels ($185,000) after bottoming in February 2012
- The Q2 2014 median sales price rose +5.3% (to 179,000 from 170,000) compared to that of Q2 2013
- The Q2 2014 median sales price jumped +14.0% (from $157,000 to $179,000) above that of Q2 2012
Distressed Property Sales Continue Decline
The impact of distressed properties (short sales and foreclosure sales) on the Savannah real estate market is continuing to decrease. The percentage of Q2 2014 distressed sale transactions was nearly 10 percentage points lower than in Q2 2013, and 3.6 points below last quarter’s numbers.
Distressed sales still represented nearly 20% of Savannah real estate transactions during the second quarter. Short and foreclosure sales also took place in every price range below $750,000. The heaviest hit price range was under $100,000, where 60% of sales involved distressed properties.
Savannah Homes Median Sales Price
As distressed sales continue to clear out of the Savannah real estate market, median home prices should keep rising. This is good news for sellers, as median sales price increased for nine consecutive quarters. The simple law of supply and demand is in play here, as the inventory of homes decreases, home sellers gain an advantage and can price homes higher.
Savannah New Home Sales Versus Resales
The median sales price for new construction has also increased steadily over the last three years. In addition, resale property prices have moved up since Q2 of 2012. During 2013, resale prices climbed at a faster rate than new home prices, but the trend has shifted in 2014.
Savannah Single Family Homes Hold Value Best
Since 2007, single family detached properties have held onto their value better than condos and town homes. Condos hit their lowest median sale price in 2012. At the time, they were 32.9% below their 2007 price, while single family detached units dropped 19.5% at their lowest point in 2012. However, both have regained some footing, as the monthly median price range for detached homes has climbed to levels near 2007 market highs. As of June 2014, the median price stood at $179,000 — just $6,000 (or -3.2%) below 2007 highs after bottoming in 2012. Condos and town homes still lag behind their high of $170,000 in 2007. as of June 2014, the median sales price stood at $136,000 or 20% below the high.
Savannah Sales to Listing Price Percentage Over 94%
The percentage of sales price to listing price also increased. In 2011, Savannah home sellers received about 83% of their list price, on average. In Q2 of 2014, they averaged between 94% and 96% of their listing price.
In part two, I’ll highlight more details and trends from Q2 2014 real estate sales in Savannah. I’ll let you know as soon as it’s released. Sign up here to receive the email notification.
501 homes sold in Savannah in July of 2014
523 homes sold last July
546 sold in July of 2014
Median home prices rose 1.2% month-over-month.
662 newly constructed Savannah Metro Homes under contract so far in 2014.
Savannah home sales continued to top the 500 mark in July, even though unit sales were down over 4% year over year and over 8% month over month.
Some of the month-to-month decline can be attributed to July being a heavy vacation month due to the summer break and July 4th celebrations.
Savannah Home Inventory Levels
Inventory levels held steady near the six-month mark. The Savannah area had 3,296 active listings according to the MLS.
Search all listings below.
Last year, there were fewer houses on the market, which usually gives the seller the upper hand. However, spring through fall is typically the best time to sell a house, so don’t be surprised if more sellers list houses in the next few months.
Savannah Home Prices Increase
Home sellers also saw the median prices of homes go up as the median home prices increased 1.2 percent above last month’s mark of $187,000. This is always a welcome trend among sellers as it indicates the values of homes are continuing to improve and may bring more hesitant sellers into the market.
New Construction Picking Back Up
Also, 662 newly constructed homes have gone under contract in 2014. This new construction is taking place all over the metro area (Bryan, Chatham and Effingham counties). This is a 28 percent increase over 2013 numbers and should give builders more confidence to keep developing new projects.
Mortgage applications declined 2.7 percent last week even though mortgage rates were low and national home prices increased less than last year.
Refinance applications also dropped 4 percent. This means refinance volume has declined almost 28 percent from a year ago.
Mortgages applications for home purchases also fell 1 percent to the lowest mark since February. Applications are down 10 percent year to year. This is holding back home sales as many buyers are having a tougher time qualifying for mortgages than in the past, but there are signs that may ease up over the next few months. Go her for details.
Nationally, home sales are off 4.5 percent from last year, according to the National Association of Realtors report from August 12.
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Savannah Island home values are moving in the right direction. Over the next few posts, I’ll look at specific areas in Savannah that are seeing encouraging increases. I’ll start with the top four areas measured by median sales price, but first; let’s look at the median value for all Savannah area homes.
Savannah Metro Home Values
The median (or midpoint) value of a Savannah Metro home is $144,000 as of April 30, 2014. That’s an increase in price of about O.2% quarter over quarter and 0.4% year over year. However most of Savannah’s higher-valued neighborhoods have increased by larger percentage year over year.
Why Use Median Value Instead of Average Price
The reason most realtors use median value instead of an average value is it’s a more reliable reflection of a group of home values. It removes outliers — like million dollar homes with acreage or a distressed property sold at a very low price, which can skew home values in the area. So instead of just taking the value of all sales and dividing it by the number of houses sold, you simply list the prices and take the value in the middle or at the midpoint. So let’s look at the 5-year median price trends for four of Savannah’s highest valued communties. (If you want to view current luxury listings in the areas, simply click on the links.)
Skidaway Island has a median sales price of $418,000 as of April 30. Tybee Island has a median sales price of $344,300 as of April 30, 2014.
Isle of Hope has a median sales price of $260,200 as of April 30, 2014.
Wilmington Island has a median sales price of $218,200 as of April 30, 2014.
As you’ll notice, all of these areas — except for Isle of Hope — lost value from July of 2009 until April 30, 2014, but have started to trend back up somewhat over the last two years or so. Now let’s look at the value trend over the last 12 months as housing has started to recover.
Here’s a breakdown of month over month (M/M), quarter over quarter (Q/Q) and year over year (Y/Y) changes.
Skidaway Island — M/M: -O.4%; Q/Q: +0.1%; Y/Y +3.5%
Tybee Island — M/M: -O.3%; Q/Q: -0.1%; Y/Y -0.2%
Isle of Hope — M/M: -0.6%; Q/Q: -0.1%; Y/Y +8.6%
Wilmington Island — M/M: -0.2%; Q/Q: -0.1%; Y/Y +3.4%
As the graph shows, all of these areas, except Tybee Island, increased in value during the last 12 months. Isle of Hope led the way with a 8.6% gain, followed by Skidaway Island up 3.5%, and Wilmington Island higher by 3.4%. If you look at dollars instead of percentages, you’ll see that the median home on Isle of Hope climbed by $13,200 from May of 2013 to April of 2014. Skidaway Island and the Landings rose by $10,000, Wilmington Island increased by $7,000 and Tybee Island declined by $4,700 during the same period.
The trend over the last few years shows that the housing market is gradually improving and some areas, like Isle of Hope, are almost at double digit returns from a year ago. Prices did drop slightly across the board during April, but the the longer-term trend is clearly positive. This should continue throughout the summer of 2014 and hopefully beyond. If I notice any significant changes in the trend, I’ll let you know immediately. Simply subscribe below to get my Savannah Luxury Home Report alerts.
(All statistics are provided by Savannah MLS and Zillow)
Ed and LIsa Yannett Savannah Real Estate ReportNext week, I’ll overview four more communities: Richmond Hill, Whitmarsh Island, Pooler and Guyton, which also have home values that exceed the Savannah metro median sales price. In the meantime, if you want to know the specific value on your house, go here to get a detailed assessment of your property’s value. If you have any questions, contact me at [email protected] or 912-844-9000.”