Each year we take a minute to do a deep dive into the Savannah MLS and study what the heck happened so to speak. As we all know, the real estate market is hot pretty much across the country, but what do our local numbers mean?
We’re going to look at three important factors: inventory, sales price, and number of homes sold.
We all felt it. Two words: Multiple Offers. What was once unheard of, became common place. As the number of available homes continued to dwindle for the second year in a row, the rise of multiple offers became common place. In fact, we had one property that received TWENTY-ONE offers. Yes, you read that correctly.
Buyers began waiving previously common contingencies and escalation clauses became the name of the game. Appraisers and appraised value could not keep up with demand and so we saw the “appraisal gap” work it’s way into certain contracts. This is where the buyer writes in the contract they are willing to pay a certain dollar amount above appraised value should the appraisal come in above list price and below contract price.
Spring and Summer brought peak competition and peak home prices. An interesting trend, and one we are keeping an eye on for 2022 is the 4th quarter stabilization of home prices. For three out of the last four months in 2021, the median home price in Chatham County stayed the same: $275,000.
At the end of the day, real estate is much like any other sales industry; it’s a tale of supply and demand. With almost half the number of homes available plus a 14.6% increase in home sales, competition is likely to remain strong throughout this year.
