Understanding the Real Estate Market Trends in Savannah

As Georgia’s oldest city, Savannah draws in millions of visitors every year to see its historic sights. It also has a diverse, fast-growing local economy that attracts more people looking for work with major manufacturers like Georgia Pacific and International Paper.

With the huge, steady influx of tourists and workers interested in renting or buying, you may wonder if investing in Savannah real estate is worth it. Keep reading for a comprehensive guide to Savannah’s real estate market trends below so you can understand current market conditions and if it makes sense to invest there in the future.

Savannah Real Estate Predictions & Market Prices In 2024

The Savannah real estate market has grown steadily over the past year, with the average home value increasing by 10.5% to $307,925. Savannah properties have been selling fast, with homes typically going pending in around 27 days.

Key Savannah Housing Market Metrics

• Average Home Value: $307,925 (up 10.5% year-over-year)
• Median Sale Price: $298,567 (slightly below median list price of $362,117)
• Median Sale to List Ratio: 0.997 (indicating a balanced market)
• Homes Sold Above List Price: 28.3%
• Homes Sold Below List Price: 48.7%
• Average Days On The Market: 27 days

What Is The Current Real Estate Market Performance In Savannah?

The Savannah housing market is very competitive, with homes receiving an average of 2 offers and selling in around 36 days. The median sale price of a Savannah home was $346,000 in May 2024, up 5.9% from the previous year.

On average, homes in Savannah sell 1% below list price but sell quickly in just 34 days. The hottest properties sell for their list price in just six days – faster than most markets.

Savannah Migration & Relocation Trends

Savannah is attracting homebuyers from across the country, with 0.26% of nationwide homebuyers searching to move into the city. These are the top cities for Savannah’s inbound migration:

Meanwhile, 66% of Savannah homebuyers are searching to stay within the Savannah metropolitan area. Here’s a second table showing Savannah’s top destinations for outbound migration:

What’s The Future Real Estate Market Like For Savannah?

The Savannah housing market has steady forecasts for consistent growth in home values and market activity in the coming months. The Savannah Metropolitan Statistical Area (MSA), which includes Savannah and the counties of Bryan, Chatham, and Effingham, is expected to have 3% growth in home prices by February 28, 2025. This increase shows that the area continues to be attractive for homebuyers and real estate investors regionally.

Are House Prices Increasing Or Dropping In Savannah?

There are currently no signs of home prices going down in Savannah’s real estate market in the coming months. In fact, the average home value in the city has steadily increased to 10.5% from 2023 to 2024 – a strong sign that the market is continuing to appreciate.

The current housing market is leaning slightly towards sellers because of a relatively low inventory of available homes and a median sale price currently above the list price, causing strong competition between buyers.

Is It A Good Time To Buy A House In Savannah?

Deciding the right time to buy a house in Savannah depends on your unique preferences and circumstances. While it’s still a seller’s market right now, there are still opportunities for buyers to find great properties. These are some factors you should consider when deciding when you should buy a home for sale in Savannah:

• Availability of homes in your budget
• Market competitiveness (ex: number of competing offers, days the property has been on the market)
• Your long-term plans and financial situation
• Potential for future appreciation in home values

Talk to a local real estate agent for a closer look at the Savannah market and to get advice about potential developments. With their help, you’ll be able to find the right property to invest in.

Is Savannah A Good Place For Real Estate Investment?

Currently, Savannah is a good place for real estate investment. Because Savannah has a relatively low cost of living compared to other major U.S. cities, it’s an attractive area for prospective residents and investors.

The future looks bright for its real estate market, thanks to its rich history and multiple cultural attractions that increase demand for short-term vacation rentals. Its thriving economy across industries like manufacturing and logistics continues to drive job opportunities too, which increases local housing demand.

What Are The Best Neighborhoods In Savannah For Buying Investment Property?

Based on sale prices, rents, and growth, these are some of the best Savannah neighborhoods and suburbs that may be attractive for real estate investors:

1. Savannah: Over 50% of residents rent, with a median sale price of $259,000 and median rent of $1,109.
2. Henderson: A suburb with 53% renter-occupied households, median sale price of $215,000, and median rent of $1,101.
3. Pooler: A fast-growing suburb with a mix of residential and commercial development, making it a potential investment hotspot.
4. Tybee Island: A beach community near Savannah that could appeal to investors targeting the vacation rental market.
5. Port Wentworth: Another Savannah suburb with a large renter population, median sale price around $250,000.

Overall, Savannah appears to be a promising real estate investment market, with a stable housing landscape, strong rental demand, and several neighborhoods that could offer attractive opportunities for both long-term and short-term rental investments.

What Upcoming Developments In Savannah Could Affect Property Investment?

Because of Savannah’s dynamic, bustling economy and robust tourism, these developments may affect property investment in the coming years:

• Emerging industrial markets: Savannah is experiencing significant growth in its industrial sector because of its strategic location and booming port activities – and this growth is expected to continue.
• Tourism and short-term rentals: Savannah’s rich history means it continues to appeal to tourists, continuing to drive demand for vacation properties and short-term rentals – especially in scenic areas or areas near historic sights where there are plenty of things to do.
• Population and job growth: Savannah is one of the fastest-growing regions in Georgia, with a growing population and increasing job opportunities. This is expected to sustain the demand for both long-term and short-term rentals, making it an attractive market for real estate investors.
• Diverse property options: Savannah has a wide range of properties, from historic homes to modern developments. Because of its vibrant cultural scene that mingles the old and new, it’s an attractive destination for both residents and investors. The diversity in property types ensures that there are investment opportunities for different preferences and budgets.
• Suburban growth: Suburbs like Pooler, Henderson, and Tybee Island are experiencing significant growth because of their proximity to Savannah’s expanding economy. These areas are likely to see increased demand for housing, making them attractive for real estate investors.

Opportunities Abound In Savannah’s Real Estate Market

Savannah is an exciting real estate market for investors. Home prices have been on a consistent upward trajectory, offering the potential for solid long-term appreciation. The rental market is particularly enticing, with high occupancy rates and rising rents.

Do your due diligence and work closely with local brokers to find the best neighborhoods and property types to invest in. Whether you’re looking to buy and hold for the long haul or targeting more immediate rental income, Savannah has a lot to offer savvy real estate investors for the near future.