Welcome to Savannah Ga Real Estate Blog Sign in | Help

Savannah Ga Homes for Rent

It seems more and more people are renting in Savannah Ga now that financing has gotten tighter and buyers are unsure which way the market is going. I've talked with several people lately who have called me about rentals and their stories are similar "I'm waiting to see what the market does."

I can understand this but I'm not sure I agree that waiting until prices go up is a good strategy. I manage rentals so I'm busy with property management right now. And, surprisingly, there aren't a lot of rentals on the market. Homes are still selling here, although the market is much slower than in the past 4 ot 5 years.

I think many buyers have been scared by all the news of the housing crisis. It helps to put things in perspective, and I am not a clairvoyant, so I don't know for sure what is going to happen in the Savannah real estate market -- however, if someone is going to buy a home to live in for five years, I'm not certain that waiting another year to buy is a good strategy. There is a strong possibility that after the elections in November, the national news is going to become more positive and the country is going to settle down to take an objective look at our economy.

In the west, home prices rose so quickly that a downturn was inevitable. This downturn has affected the whole country, but the economy here in Savannah is stable and the home prices here in Savannah are not exorbitant. What many people may discover in the coming months is that there is value in the Savannah home market and buyers will start entering the market in large numbers which will cause prices to start rising again. Those people locked into a year lease may be entering the market as prices are on the way up.

The problem is that it's impossible to time the market and buy at exactly the right time. I have a feeling that the buyers who are buying right now and are negotiating 5-10% off the list price are going to be glad they bought when they did, because it's unlikely prices will fall much more -- maybe 2-3%. There's a good chance prices will merely stay flat for a few more months.

If our local enconmy was depressed, I'd say waiting a year might be a good idea, but since we are fairly healthy and diverse economically, I don't see any huge drops in prices. I might be wrong and everyone has to follow what they think is best, but my best guess is that prices are as low as they are going to get. Now, for the would-be buyers who just can't get a loan, there is no option, they must rent -- but for the buyers who can buy, you might want to talk to a finance professional and get some advice rather than rely on news reports.

If you buy now at a low point and live in the home for at least 4 to 5 years, it is highly unlikely you will lose money, and you can start getting the tax break that home ownership offers -- not to mention living in the house you really want to live in rather than having to choose from the limited rentals available and paying for someone else's mortgage.

Published Wednesday, July 23, 2008 3:04 PM by Mike Farmer

Comments

No Comments
Anonymous comments are disabled