Local Insights
Should You Buy or Sell a home in Savannah During an Election Year?
Should You Buy or Sell in Savannah During an Election Year? No matter how many elections you’ve seen, every time November rolls around, it can feel like a bit of a gamble when you're deciding whether to make a move in real estate or wait for things to settle. The truth is, presidential elections usually have a small and temporary effect on the housing market. But it's natural to wonder how this year's election might impact your plans to buy or sell a home in Savannah. So, let's break down what typically happens in election years and what that might mean for you here in the Coastal Empire. How Do Elections Affect the Housing Market? Home Sales Historically, there's been a slight dip in U.S. home sales during November of election years. Ali Wolf, Chief Economist at Zonda, notes that while the housing market remains steady overall, November usually slows down a bit. That slowdown is often because buyers and sellers hesitate, feeling uncertain about how the election's outcome might impact their finances or future plans. But here’s the good news: it's a short-lived pause. In most cases, home sales bounce right back in December and pick up steam going into the next year. In fact, after nine of the last eleven presidential elections, home sales increased the following year, according to data from Department of Housing and Urban Development (HUD) and the National Association of Realtors® (NAR). So, while there might be a brief slowdown in Savannah’s market, it's typically nothing to lose sleep over. Home Prices According to Bankrate, home price growth during election years often outpaces non-election years. A study of Case-Shiller data shows that home prices grew by an average of 4.84% during election years since 1987, compared to 4.44% in other years.   Based on that, you might think presidential elections are good for the housing market. The reality is a bit more complicated. In recent history, 2008 stands out as the toughest election year for the U.S. housing market. Home values took a nosedive, dropping 12% as the housing bubble of 2004-2007 burst. But this crash wasn’t tied to the election itself—it was the result of some pretty awful economic timing, with the global economy in freefall. On the bright side, the market had a lot of room to rebound after such a sharp decline. That year is also the only election year in recent memory where home price appreciation dropped significantly from the previous year, going from -5.4% to a staggering -12%. On the flip side, the best year for home price growth since 1987 was 2021, when values soared by 18.9% due to record-low mortgage rates during the pandemic. Again, these wild market swings had more to do with unique economic factors than the election itself. Mortgage Rates Mortgage rates are always a hot topic, especially when you’re trying to lock in that dream home. Historically, mortgage rates tend to decline in the months leading up to a presidential election. According to Freddie Mac, rates dropped between July and November in eight of the last eleven elections. Looking ahead, most housing forecasts expect rates to ease up a bit through 2024 and into 2025. This could mean lower monthly payments, but remember—lower rates can also drive more buyers into the market, which may lead to increased competition and higher home prices. The Bottom Line While political candidates love to tout their economic plans, the reality is that presidential elections usually have little influence over the housing market in the short term. What matters more is keeping an eye on local trends here in Savannah. So if you’re considering making a move, whether it’s buying or selling, don’t let the election cycle hold you back. Real estate is about timing that works for you, not just what's happening in Washington. Curious about how your neighborhood is doing? I’ve got personalized data and insights just for you. Reach out and let’s chat about your next move in Savannah's ever-evolving market.Â
Do You Really Need a Real Estate Agent? Let's Get Real
Do You Really Need a Real Estate Agent? Let's Get Real Let’s cut to the chase: Do you absolutely need a real estate agent when buying or selling a home? The straightforward answer is no—you can go solo if you want. Plenty of folks do it every year. With the internet at your fingertips, you can search for homes, check property values, and even negotiate deals on your own. But here’s the kicker: Even with all that info at hand, a whopping 89% of people still choose to work with a professional, according to this report from the National Association of Realtors. There’s been a lot of buzz about changes in the real estate industry, but let’s hit pause on that and get back to basics—understanding what a buyer’s agent and a seller’s agent actually do for you here in Savannah. Buyer’s Agents: Your Personal Guide in the Home Buying Process Sure, sites like Zillow can help you browse listings and even give you a heads-up on open houses. They can also connect you with a local real estate pro if you’re flying solo. But let’s be real—a buyer’s agent does a lot more than just feed you information. They’re your advocate, laser-focused on your needs and interests throughout the entire home buying process. Realtor.com compiled 111 things buyer’s agents do throughout the real estate transaction, but here, we’ll just focus on some of the key elements of their work: Finding the Perfect Home You can spend hours online searching for homes, but can you really spot the difference between a property that’s priced right and one that’s hiding a laundry list of problems? According to the 2023 Profile of Home Buyers and Sellers, 89% of buyers used an agent, with 50% saying the most valuable service was helping them find the right property. Our buyer’s agents in Savannah knows the local market inside and out, helping you find homes that meet your criteria. They’ll arrange showings, offer insights, and help you weigh the pros and cons of each option. Negotiating Price and Terms Think you can haggle your way to a better deal on your own? Maybe, but without an agent, you’re missing out on the fine art of negotiation. Negotiations happen at several stages—getting an offer accepted, post-inspection, and after appraisals. A savvy buyer’s agent knows how to sweeten the deal in ways you might not consider, like securing repairs or getting the seller to cover closing costs. According to the NAR, agents are essential in negotiating better contract terms and navigating the complexities of the sale. Navigating the Paperwork Buying a home comes with a mountain of paperwork, filled with legal jargon that can make your head spin. That’s why 90% of buyers found their agent to be an invaluable resource throughout the process, ensuring every “i” is dotted and every “t” is crossed. Plus your dedicated agent works for you. In Georgia, real estate attorney's technically work for the lender, so having a dedicated agent with your best interests in mind makes all the difference. Seller’s Agents: Your Key to a Successful Sale On the flip side, a seller’s agent is all about helping homeowners sell their property quickly and for top dollar. They’re the ones who market your home, negotiate with buyers, and handle all the logistics from start to finish. Pricing the Home Right Pricing a home is part science, part art. Get it wrong, and you could either scare off potential buyers or leave money on the table. Even in a hot market, for sale by owner (FSBO) homes sold for a median price of $310,000 compared to $405,000 for agent-assisted sales in 2022, according to NAR. A seller’s agent uses data, experience, and local market insights to price your home just right—something an online calculator simply can’t do. Marketing the Property A seller’s agent doesn’t just list your home—they create a comprehensive marketing plan to showcase it in the best possible light. This includes professional photos, videos, an online strategy, open houses, and sometimes even staging to make your home more appealing. Curious about what our marketing plan looks like? Check it out here or shoot me a message to learn more. Handling Offers and Negotiations Without an agent, you’re the one juggling offers, counter-offers, and everything in between. It might sound empowering until you’re dealing with a buyer who’s playing hardball. That’s why 87% of sellers said they’d recommend their agent for future services. A seller’s agent handles the back-and-forth, ensuring you don’t buckle under pressure or get shortchanged. Plus, they manage everything from inspections to appraisals to closing, making sure the sale goes smoothly. Bottom Line: Is a Real Estate Agent Worth It? It’s easy to think you’ll save money by skipping the agent, but when it comes to buying or selling a property in Savannah, the stakes are high. A skilled real estate agent isn’t just another expense; they bring expertise, market knowledge, and negotiation skills that can save you time, stress, and—most importantly—money. And that’s an investment that can make all the difference. Ready to talk? Let’s make your next move the best one yet.
Zillow’s July Report: A Game-Changer for Savannah Homebuyers?
Is the Housing Market Shifting in Savannah? Here’s What You Need to Know You might not feel it just yet, but the housing market is shifting gears. According to Zillow’s latest report, July marked a noticeable shift from a strong seller’s market to a more balanced, neutral territory. So, what does this mean for you, when you’re buying or selling a home in Savannah? Let’s dive into the details. The Shift to a Neutral Market For the first time this year—and the first July since 2019—the national housing market has entered neutral territory. This means that neither buyers nor sellers hold a distinct advantage, a significant change from the red-hot seller’s market we’ve seen in recent years. In this more balanced market, homes are staying on the market a bit longer. Nationally, the average time for a property to go under contract was 18 days in July. I know what you’re thinking: “That’s still pretty quick!” And you’re right, but it’s nearly a week longer than this time last year. We’ve also seen a 25% increase in housing inventory compared to 2023, giving buyers more options to choose from. Plus, about 26% of homes on Zillow saw a price reduction in July—the highest percentage for any July since 2018. Savannah Housing Trends: July 2024 Now that we’ve covered the national trends, let’s zoom in on Savannah’s market. Days on Market: On average, homes in Savannah went under contract in 53 days in July, marking a 23% increase compared to last year. Active Listings: The number of homes for sale in July rose to 2413, showing a 56% increase year over year. Price Reductions: We saw 1076 properties in Savannah reduce their asking prices this July, which is a 3% increase from last year. What Buyers Should Know If you’re a buyer in Savannah, this market shift offers you a moment to breathe. With more inventory and homes staying on the market a bit longer, you’ve got the flexibility to make a well-informed decision. And here’s a tip: Mortgage rates dipped in early August, which might bring more buyers back into the market, sparking some competition. So, keep that in mind as you navigate your home search. Another key update for buyers: As of August 17, 2024, new industry mandates require buyer’s agents to enter into a written agreement with you before showing any properties. This change is all about transparency in buyer-agent compensation. Learn more about it here, or schedule a call with me and I’ll walk you through it. What Sellers Should Know For sellers, there’s no need to panic, but it’s time to adjust expectations. Gone are the days of properties flying off the market in hours. With more inventory available, pricing your home correctly is more critical than ever. As the market becomes more competitive for sellers, consider sweetening the deal for buyers. Covering some closing costs or offering compensation for the buyer’s agent could make your home stand out. Even though new industry rules mean this compensation can’t be listed on the MLS, you can still offer it off the MLS. Final Thoughts Whether you’re buying or selling in Savannah, staying informed and being prepared to adapt is key. The housing market is always in flux, and changes in mortgage rates can influence buyer and seller activity. Don’t hesitate to reach out for personalized market insights or advice tailored to your situation. Let’s chat—schedule a time with me today!