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.