Community Marketing & Real Estate Update
Is the Housing Market Starting to Normalize?
To answer that question, let’s define “a normal market”. A balanced/normal housing market is commonly considered to be an inventory of available homes that corresponds to a four-month supply based on the demand or the rate of homes sold. The old economic rule of supply and demand could not be more on display than what we’ve seen in residential real estate nationally and in The Landings over the last 28 months.
Here’s what our supply of Landings homes has been at several intervals since December 2019:
- 12/2019 4.1 months, with 323 homes sold in 2019, a record of at least 10 years
- 12/2020 0.8 months, or 24 days, with 396 homes sold during the year
- 12/2021 0.2 months, or 6 days, with 349 homes sold given the reduced inventory
- 6/2022 1.0 month, or 30 days, with 150 homes sold year to date
And our average home values have reflected the supply/demand imbalance:
- 12/2019 $502,350
- 12/2020 $540,936 or +7.7%
- 12/2021 $669,220 or +23.7%
- 6/2022 $856,634 or +28% from the end of 2021 (+34.5% from 6/2021)
As always, you can rest assured that change is underway. Although mortgage rates are still historically low, they are up substantially. For those looking to finance their home purchase, this represents substantial added cost -- about $1,200 per month when financing 80%, or a $685,000 mortgage on our average-priced home of $857,000.
These cost increases also can make it more difficult for buyers to sell a home in their departure market before being able to complete their purchase in The Landings.
That said, the voracious appetite to buy, what seemed to be almost anything, has cooled slightly as prices have risen. Buyers are more particular and exercising a bit more caution given these housings costs.
What’s the good news? Because The Landings Company markets The Landings nationally, we completed sales to 91 buyers, with 75 of those from outside of Savannah and representing 28 states in the first half of 2022. We have many more “orders to fill”, with numerous buyers searching for just the right Landings home for them.
And we still have a very low inventory, which is keeping positive pressure on our values given the demand.
If you’re considering a move, The Landings Company can guide you to properly position your home for this changing market. We have large numbers of buyers visiting every month and many working with us in The Landings every day. Proper preparation, pricing, and promotion are the keys to success to maximizing your value and decreasing your home’s time on the market.
If you are interested in selling your home and want to learn more, please call one of us today (912-598-0500).
The Landings Company is 100% self-funded and can only continue with your support when selling your home, referring friends and family, or renting your home. Thank you again for your support this year!
Your Company, The Landings Company!
This article was originally published by The Landings Association on their website. Visit landings.org to read the original article. https://landings.org/news/2022/08/10/community-marketing-real-estate-update