Happy New Year from all of us at Savannah River Realty!
What a year we’ve had. The end of year market report is our favorite to write as we unpack the information for you from start to finish, showing the climate and condition of the real estate market here in Savannah Lakes Village for 2019 and looking forward to 2020. Looking back at the numbers for the year gives us insight into trends and statistics that help us anticipate and prepare for the following year. If you’re considering buying or selling a home in Savannah Lakes Village, this information may help you to determine timing, give you an idea of prices in the area, and perhaps give you a glimpse at what to expect for the year ahead in 2020.
Before we get started we would like to thank James Vincent, our marketing director, for creating the software, charts, and programs that allow Savannah River Realty to be able to bring you this information. Without his talent and dedication, this would not be possible.
2019 by the Numbers
Real Estate Market Year in Review
2019 has topped all previous years in Savannah Lakes Village, with a record-breaking $22.84 million total volume of resale homes sold for the year.
In total, 87 homes went under contract and closed in 2019. The median sale price for 2019 for all resale homes was $245,000, rising 17.4% from the $209k median sale price of the previous year. The strong rise of the median sale price along with a median discount of just 4% given off list to sale price tells us this has been an excellent market for sellers. We expect this to continue into 2020 as the inventory of resale homes is still low.
The median price per square foot for all resale homes sold in 2019 was $112, up more than 10% from last year’s median price per square foot of $102.
The median price of Waterfront homes rose to $363,000, up 12.7% from last year’s of $322,000. The price per square foot for Waterfront homes is a bit skewed due to several large homes with heated workshop/storage spaces that were included in the square footage.
The median price per square foot for Golf homes rose to $126, up an incredible 16.3% compared to the previous year’s median price per square foot of $108.
The break down of homes sold by lot type for 2019 is 28 Waterfront, 18 Golf, and 41 Interior homes. Volume was highest for Waterfront homes with $9.89 million in sales.
More In-depth Analysis for each Month
May was the top-performing month of the year, with 12 homes going under contract and $3.26 million in volume. April with 12 sales and March, September and August with 10 sales each were not far behind.
The slowest month of the year was December with only 1 sale, and November followed closely with only 2.
Savannah River Realty is proud to say we are still the number one real estate company for resale homes in the Savannah Lakes Village area. It was an amazing year for our homeowners and sellers with $7.68 million worth of Savannah River Realty listings sold at only 3.56% discount given on average. Once again, our resale home listings have outperformed all other real estate agencies in the area.
Sales by Savannah River Realty were also strong with $6.92 million in volume as selling agency, a chart-topping 30.32% market share by volume out of 11 agencies operating in the area.
2019 Lot Sales
Lot sales for 2019 produced $940k in volume with 45 sales. There were 7 Waterfront, 12 Golf, and 26 Interior lots sold. This is about on par with the previous year in 2018 where we had just over $1 million in volume with 47 lots sold. This does not include lots that the developer has taken out of the land bank.
The median sale prices for lots were $76,000 for Waterfront, $21,000 for Golf, and $4,250 for Interior.
Tara subdivision had the highest lot sales and volume 2019 with 18 lots sold and $343,300 in volume. Savannah Point had the highest lot sale price with a sale of $120,000, followed by Southwind with a sale at $98,000. The average discount given off list price for all lots was 32.95% for the year.
Since we have not seen substantial growth in lot sales for several years, we are hoping that the strength and growth of the economy, as well as low inventory of resale homes in SLV may act as a catalyst for lot sales in the near future.
2019 New Construction
53 new homes were started in 2019, up 29% from the previous year with 41 starts. 34 of the new homes started were spec homes and 19 were custom. 41 new homes went under contract in 2019. Capital Homes led the top of the new construction list by a huge margin. Building in the village since 2005, it is impressive how they consistently deliver what clients want when building new homes. Their reputation as the most successful builder in our community has been well earned. Congratulations Capital Homes!
Other Market Factors
The housing market in SLV has been one of low rates, high demand and very limited supply in Savannah Lakes Village. Will 2020 be more of the same?
Here’s what we believe is in store for the year to come and the reasons behind our forecast.
We Predict Prices will Keep on Rising.
Savannah River Realty predicts home prices will continue their climb upward, largely due to tight inventory and high demand.
According to the latest home price forecast from CoreLogic, home prices nationally should “tick up by 5.4% by next September” – up from just a 3.5% jump the nation saw in 2019. Remember, local home price growth will deviate widely from a national index. As mentioned, Savannah Lakes Village’s average home price jumped 17.4% in the year 2019.
Without more listings coming on the market, Savannah River Realty believes this shortage in resale inventory will contribute to higher home prices as long as the demand continues.
If you are considering selling your home, we are now in a seller’s market and it’s a perfect time to list your home.
Higher End Resale Homes will see Growth
Fannie Mae and Freddie Mac will let mortgage borrowers nationwide take out home loans over $500,000 in 2020. Mortgages that adhere to the standards imposed by Fannie Mae and Freddie Mac will increase to $510,400 nationwide including McCormick County, SC.
New Home Growth will Continue to Rise
If last year’s figures are any indicator of what’s to come, the new homes market should explode. With increasing construction, those visiting our village will have more choices in spec homes and may find some relief from the lack of inventory in the resale department.
S&P 500 and Nasdaq end 2019 as Best Year Since 2013
Most retirees have a stake in the markets, and in the last few years have gained back what they had lost in previous years. Many will decide it is time to make their move to the retirement location they have been holding out for. Florida and South Carolina represent two of the top four retirement relocation destinations, lucky us!
Mortgage Rates Will have an Impact on Home Sales
Currently, mortgage rates sit at 3.75%, according to the Banking Association. There’s “emerging consensus” that rates will continue to remain low this year—likely somewhere between 3.7% and 3.9% according to the experts.
For homebuyers, they will be able to afford more house than they would have otherwise. This is very good news for our community as we already have a median price value lower than most major cities, making our village even more desirable for relocation.
Baby Boomers are Still Retiring
Only 47% of all Baby Boomers have already retired. Those born between 1946 and 1964 are retiring at a rate of 10,000 a day. Some will find their way to South Carolina and most importantly, Savannah Lakes Village.
With extensive marketing going on in the village, a digitized real estate environment where listings can be found by anyone, anywhere in the US, the likelihood of someone finding Savannah Lakes Village has grown exponentially in the last few years. Many years ago Savannah River Realty realized this was the new frontier in marketing and we took action to make sure Savannah Lakes Village had the best exposure possible. Fast forward and you will see how Savannah River Realty has progressed in the digitized marketing area. Just to mention a few: Vimeo, Youtube videos of listed homes as well as community living, Facebook, Twitter, digital brochures and maps, Instagram, Zillow, Trulia, Docusign, Live video tours, the list goes on.
From affordability, weather, activities, and culture, there’s a range of issues those approaching retirees will take into consideration when deciding whether to retire in place or make their move to another state. Those who decide to leave, often do so to settle in locations that have favorable taxes, better weather, and plenty of recreational opportunities. Many are looking for smaller, suburban and rural towns on the outskirts of major cities. We believe our community offers all of the above and another reason to see continued growth.
Considering listing your home for sale?
If you have been sitting back waiting for the right time, as you can see from the reports above, this could be a great time to get your home on the market. Feel free to call us anytime for a free comprehensive analysis of your home.
Savannah River Realty keeps detailed records on all sales in Savannah Lakes Village, which is important to know when pricing a home in order to get the best possible value for a seller. We have the experience needed to get your home priced correctly and sold. Our undeniable knowledge of the village and expertise in presenting the village and homes to prospective buyers is one of the secrets to our success. Our 30 years of marketing and selling in SLV can not be undervalued, it’s what gives us an advantage over the new companies that are coming into the village.
Thanks to those of you who have already chosen to work with Savannah River Realty. Let us know if there is anything we can ever do to assist you further. Please remember some of the free services we offer at our office are: Notary, faxing, and copies, stop in anytime.
Thank you for reading Savannah River Realty’s SLV Talks newsletter.
Whether you’re thinking of buying, selling or financing real estate, or just want to stop by and say “Hi,” we’d love to hear from you or see you at our office.
Savannah River Realty Team
4503 US Hiwghway 378, McCormick SC 29835
Bob Bryan – Broker in Charge
James Vincent – Data and Marketing
Savannah River Realty Inc.