The end of the year is right around the corner, so we thought we would take this time to recap what we saw in Savannah real estate this year, as well as make our predictions for 2015.
Overall, 2014 was a fantastic year for real estate in our area. Sales rose in all but one price point, with the $250,000-$500,000 price range leading the way with a 10% increase in sales! The only price point that saw a loss in sales was the $0-$100,000 range, which saw a drop in sales of 7.4% in 2014.
As far as interest rates are concerned, we’ve been hovering just under 4% all year long, which is fantastically low. According to Fannie Mae, Freddie Mac, the Mortgage Banker Association, and the National Association of Realtors, interest rates are predicted to rise to anywhere from 4.7% to 5.4% by the fourth quarter of next year. That increase in rates may seem small, but it will make a significant difference in your mortgage payments and your ability to qualify for a loan.
Another topic worth discussing is distressed property sales. Back in 2011, 35% of sales in our market were distressed properties. As of September of 2014, we’re down to 10%! It’s great that the number of distressed properties is falling, as they adversely affect varying price points. We expect that percentage to drop even lower next year.
Foot traffic rose substantially in 2014, when compared to the same time period in 2013. We’re expecting yet another increase in 2015, which is a great indicator of how active the market is going to be. Let’s just say we’re excited for what the new year is going to bring us!
If you have any questions about market conditions, or would like real estate advice of any kind, don’t hesitate to reach out to us. We would love to help you solve your real estate problems!
We hope you have a safe and happy Christmas and New Year! We look forward to talking to you soon!