I wish everyone a happy and properous new year. The Savannah real estate market is slow right now but the same potential for growth is present in spite of the national economic downturn. In some areas of the country like Michigan there are fundamental industry problems that cause their situation to linger for awhile, but Savannah is poised for long term growth.

Savannah is attractive to baby boomers looking for a warmer climate to retire and our tourist industry is thriving. The military bases will be thriving again after soldeiers return from the wars. We are steadily attracting new industry and I expect this to continue as the port continues to grow. Savannah is on the verge of landing deals with major manufacturers -- it's only a matter of time.

Savannah has to improve in a few areas -- education being one of them. Savannah needs to offer a better educated and prepared worforce before major industries find us attractive. But Savannah's attracting a much more diverse population and the school systems are working on improvement. With the industry that is coming into Savannah, it also attracts workers from all over, so the make-up of the city is changing fast. I would like to see more attraction of hi-tech companies, because i believe the future health of cities depends on these small businesses.

I expect the housing situation to improve in Savannah this year, starting in the spring then slowly improving. For any buyers who've been sitting on the fence, email me, mike@mikefarmerrealty.com, and I'll give you a complete picture of the housing market and help you make plans to buy.

Have a good one!

December is always a good time to buy a home because the market is slower and you're more likely to get a good deal. Add to that the economy is in a mess and it makes December an even better month to buy. Interest rates are incredibly low right now and sellers are willing to seriously negotiate.

If you are looking to buy a home in Savannah and you've already made the decision then now is a great time. Financing is tight but you can still get a good loan if you have good credit. By all indications, this coming spring should be turn around in housing in Savannah. We've got a lot of military personell coming home and the housing market will likely be moving upward in the next six months.

In this economy no one knows what's going to happen, but real estate is not going to die -- people still need  place to stay. If you are going to being living in your home for five years or more, you should do well from an investment standpoint, but remember, buying a home is more than an investment, it's your place to live and make your own. Savannah, Ga is a great place to plant roots.

So what's happening in real estate? From California to Maine and from Maine to Florida there's a storm of bad news and housing problems. The stock market is churning and the bailout situation is confused and uncertain. We have a new president and no one knows what's going to happen.

What does a home buyer do? What does a seller do? Buyers are caught in the conundrum that if they buy, prices might fall further. Sellers are limited by what they owe on their houses -- you can only go so low in price before you have to start thinking about short sale or paying at closing just to get rid of the house.

No one is sure what the value of a home is at this point. I'm going by sales from the last three months but no one knows if prices will fall significantly. It's doubtful that prices will fall much lower in Savannah because of our economy, but it could happen. There is definitely risk buying right now, but how great is the risk? We have a bunch of soldiers coming back to Savannah shortly and they need a place to live. A banker told me the other day that the word from planners to builders is "Don't stop building!"

Will there be more renters? It's hard to tell, but the one year outlook seems to suggest that Savannah will weather the storm better than some. My prediction is that even if prices fall a little bit lower, it's unlikely they will fall below deals that can be made in the present market. Some sellers are giving up on the wished for prices and taking below the present market value. What this means is that in some cases a buyer can get a home for 10 to 15% below what the last three months sales report as the present market value. Will prices fall over 10 to 15 % in the next year? I don't think so. Even if prices fell, say, 6% over the next six months, if you got a deal that was 10% below the present market value, you've done good.

The trick is to find a home in good condition that you can get at a bargain. There's still risk invloved but the risk is lessened the better deal you get. You might have to search a little longer but it will be worth it.

Also, if you are good with renovation, buying a home that needs cosmetic work is still a good strategy, because you can usually get an even better deal on those, especially in this market. If you have to pay someone to do the work, it might not be such a bargain, but it all depends on how low you can buy.

The only problem is that with bargains it limits your options because not everyone can sell at a low price and many sellers don't have to sell, so they can wait it out. So, you might have to settle for a home that's not the perfect choice, maybe a third or fourth choice.

It also pays to talk with a financial manager to determine what effect the tax break on the mortage plays into the decision. If you can get a bargain, then add in the tax break, then compare that to renting, you'll have a better idea regarding the risk in buying. Another thing to keep in mind is how long you plan on living in the home you buy, because the down market will eventually turn around -- if you are going to live in the house for seven years or so, the market will change a lot during that seven years, and in a growing town like Savannah with a diverse economy, it's very likely prices will go up significantly over seven years.

So, for buyers, do your homework and make a decision based on the level of risk. For sellers, sell low if you have to and buy smart on the other end, but if you don't have to sell, then don't.

I will have the River Street video next week. I'll use my stand for that so it doesn't have the bumpiness these others have where I'm walking along. It's a little cold right now in Savannah -- I hope to have warmer weather next week so I can set things up in comfort and take a better video.

This video is a walk from the bank I use to Jones Street and shows a couple of squares I pass through, a coffee shop I visit and a few grand building and homes.

My website inquiries have been picking up lately so perhaps the market will soon turn around -- for anyone thinking of buying there are some deals in Savannah right now.

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A Downtown Savannah Walk

This a video showing the Ellis Square project which is to the east of City Market. The building you'll see under construction is The Avia Hotel and to the right, wrapped in Tyvex is Studio Homes which will have a roof garden. Ellis Square is the dirt lot -- a beautiful square with trees and benches will be built there soon emulating Savannah's other squares all about town. Since City Market is right next to Ellis Square, I shot footage of a walk through the market to show a better view of the restaurants and art galleries.

I am hoping to show Savannah through my eyes as I post these videos to give out of town buyers a better feel for Savannah. I will be posting footage of River Street next and then the Victorian District.

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Ellis Square Project and a Walk Through City Market