By any measure, 2021 was a record-breaking year for residential real estate in Savannah.
According to data from the Savannah Multi-list Service (MLS), sales volume in Chatham County hit a record high last year, with 6,995 residential real estate transactions closing in 2021. This figure marks a dramatic 21 percent increase over 5,743 residential closings in 2020 and underscores how just hot Savannah’s real estate market was last year.
Locally, the median sale price for a home in Chatham County in 2021 was $266,024, marking a 10% increase over the median sale price of $242,000 in 2020, according to 2021 MLS data. The S& P/Case-Shiller Home Price Index reports that Georgia experienced the tenth largest home price increases in the U.S. in 2021. Between October 2020 and October 2021, Georgia home prices were up 22.4 percent year-over-year.
At the same time, local residential real estate inventory was at all-time low in 2021, creating a strong seller’s market. The Savannah MLS had an average of 1.22 months of inventory for the year. Some neighborhoods even had less than one month of inventory, including the 31419 Southside Zip code, the 31322 Southside Zip code and the 31410 islands Zip code. A balanced market should have five to six months of inventory, but it will take some time for our area to build back up to that level.
OVERALL TRENDS
In 2021, Savannah’s real estate market was defined by low interest rates, low inventory and record sales volume. A growing number of people have been moving to Savannah from other cities, including New York, Los Angeles, Boston, Seattle, Portland, Austin and Chicago. Last year, a growing number of buyers decided to move to Savannah because it has an urban center, great quality of life, stunning beaches, incredible natural beauty, a strong cultural scene and an airport with direct flights to major cities across the United States.
Driven by the pandemic, 2021’s outof- town buyers decided that they can live and work wherever they choose and were extremely impressed by the quality of life and the range of real estate options that Savannah offers. Some buyers who were planning to move to Savannah in five or 10 years decided to accelerate their timeline and to “take the leap” to relocate to the Hostess City in 2021. In today’s environment, newcomers are looking for neighborhood amenities, walkability, home offices, outdoor spaces and swimming pools, and have contributed to rising home prices in Savannah.
Multiple bids and escalation clauses were surprisingly common in 2021, which led to bidding wars and homes selling for as much as $100,000 over the listing price. Savannah’s real estate market currently has a lot of pent-up demand and not enough inventory. It will take some time for inventory levels to be restored in 2022.
LUXURY MARKET AND HOT NEIGHBORHOODS
The luxury market in particular was especially hot in Chatham County in 2021. Last year, 31 residential homes sold in Chatham County for over $2 million, marking a significant increase over previous years. In 2020, nine home sold over $2 million and, in 2019, four homes sold over $2 million, compared to eight in 2018 and seven in 2017, Of the top 20 highest residential home sales in Chatham County for 2021, 13 were located in the downtown 31401 zip code, three were located in the islands 31410 zip code and two were located in the Tybee Island 3128 zip code. When analyzed by price per square foot, the top three homes sold in Chatham County in 2021 were all located on Tybee Island, with prices nearing or exceeding $1,000 per square foot.
The hottest neighborhoods last year were located in downtown Savannah, on Skidaway Island and on Tybee Island, all of which saw significant increases in median sale prices in 2021. In the 31401 zip code, the median sale price for residential property increased from $400,000 in 2020 to $420,000 in 2021, with a record number of multi-million dollar transactions closing in the Landmark District last year. In the Skidaway Island 31411 zip code, which includes The Landings, the median sale price skyrocketed from $483,000 in 2020 to $612,250 in 2021, demonstrating the continuing appeal of this popular residential community with exceptional amenities, including golf, tennis, boating and nature trails. In Tybee Island’s 31328 zip code, the median residential sale price increased from $239,900 in 2020 to $270,000 in 2021, underscoring the enduring appeal of living on or near the beach.
LOOKING AHEAD
No one can predict where Savannah’s real estate market is headed in 2022, but it will be interesting to see where Savannah’s real estate market goes in the future. I expect that coastal Georgia will continue to be discovered by buyers from near and far and that our market will continue to offer exceptional options for homeowners at every price point.
If you’re looking to buy or sell a home in 2022, be sure to work with a real estate professional who understands Savannah’s changing residential real estate market. We are extremely fortunate to have such a wide range of housing options, from historic homes in the Landmark District to oceanfront cottages on Tybee Island, to suit every lifestyle.
