http://money.cnn.com/2011/08/30/real_estate/home_prices/index.htm?iid=SF_M_River
Like the rest of the country, the real estate market in Savannah is a mixture of good and bad news. There's some evidence that prices are stabilizing, but, then, after a short moratorium on foreclosures, because banks had such a backlog, foreclosures are now picking up, which could lead to downward pressure on prices. This is good for buyers, but bad for sellers.
Although prices have been falling, most owners are now pricing their homes at more reasonable starting points, and the amount they will negotiate off the asking price is significantly less than at the beginning of the housing crash. Buyers sometimes get the wrong idea that all sellers are willing to take much less than advertised. Many sellers are simply holding off selling unless they absolutely have to sell. A lot of sellers are renting their homes. There are short sales on the market, but they are a nightmare, so if you are trying to buy a home where the bank has agreed to a short sale, have patience, because it can take months to get an answer. Foreclosures can be attractive because they are usually priced low enough to make financial sense, but most foreclosures need repair work, so make sure you get an estimate on repairs.
Some experts believe that the market is too risky and that now is not a good time to buy. I'm not sure anyone knows what will eventually happen in this market, but it's not the end of real estate, and people will still buy and sell homes. It's my opinion, always being a contrarian, or most of the time, anyway, that now is the time to buy the right home. What is the right home? Well, one you want to live in for a long time, or one you believe is a good investment if you want to sell in a few years. The right home for someone who's looking for the comfort and freedom of owning their own home is as it's always been -- the home that you feel good about going to everyday and perhaps raising a family or entertaining in or just having your special, private getaway from the world which you can make-up to fit your personality and spirit -- and hopefully build equity in.
As for investments, buying a foreclosure or distressed property which doesn't require a lot of money to fix up is a good idea in this market, because we'll probably not see prices like this for a very long time. It takes speculative courage to invest in this market, but with Savannah being a popular place with a diverse economy, when recovery begins, Savannah ought to fare better than most places. I don't think prices are going to fall much more than they already have in Savannah, but no one can promise anything nowadays except things will change -- I'm hoping the change will be for the better, and all the evidence I see points to the worst being over.
Friday, January 13, 2012 at 11:28AM 
