Top 5 Real Estate Trends to Watch in 2025: A Guide for Savannah Homebuyers and Sellers
As the real estate market settles into a "new normal" after years of volatility, buyers and sellers in Savannah can expect significant changes in 2025. With insights from industry experts, including Jeff Tucker, Principal Economist at Windermere Real Estate, let’s break down the top five trends shaping the market and what they mean for you here in Savannah.
1. Mortgage Rates Will Decline
The rollercoaster ride of interest rates in recent years may finally be smoothing out. Experts predict mortgage rates will dip below 6.5% in 2025, offering buyers in Savannah a much-needed reprieve. While rates won’t drop overnight—election cycles and economic factors will likely cause some zigzags—the overall trend points downward.
What This Means for You:
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If you’re a buyer, the gradual decline could mean more affordable monthly payments.
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If you’re a seller, lower rates might bring more buyers into the market, increasing demand for homes in Savannah's beautiful historic districts and surrounding areas.
2. Existing Home Sales Will Rebound
After years of low inventory and hesitant sellers, home sales are expected to increase by 10% year over year in 2025. Many sellers who waited on the sidelines are feeling more confident as the market stabilizes.
Savannah Insight: With its growing appeal as a relocation and investment destination, Savannah is poised to see increased buyer activity. Sellers in Savannah’s historic neighborhoods, like the Victorian District or Ardsley Park, may benefit from renewed interest, especially as more buyers look to escape the high costs of other markets.
3. Home Prices Will Stabilize
While the days of extreme price hikes may be behind us, experts anticipate modest price growth of 2%-4% nationwide. Savannah’s market, however, remains uniquely positioned. As a Southern city with balanced inventory levels, home prices in our area are likely to remain steady, attracting both locals and out-of-state buyers.
Key Takeaway: Savannah continues to offer a unique mix of historic charm, coastal living, and affordability compared to larger markets. Buyers should feel confident that prices won’t spiral, while sellers can trust the market’s stability.
4. Improved Affordability for Buyers
It’s no secret that affordability has been a major challenge for many buyers. However, 2025 brings some good news: declining mortgage rates and rising household incomes will help make homeownership more attainable. Nationwide, median household income climbed $10,000 over the past two years, and that trend is expected to continue.
For Savannah Buyers: This shift is especially promising for first-time buyers and young families. If you’ve been holding out due to high prices or interest rates, 2025 may be the perfect time to explore homeownership in Savannah’s vibrant communities.
5. Parents Will Play a Bigger Role in Home Purchases
A growing trend in 2025 is parents helping their adult children with down payments. High home prices may still feel out of reach for some first-time buyers, but many parents—especially baby boomers with significant home equity—are stepping in to provide financial support.
Savannah Spotlight: For families with students at SCAD (Savannah College of Art and Design) or young professionals drawn to Savannah’s growing economy, this trend could make a major difference. Whether it’s funding a down payment or co-investing in property, this dynamic is opening doors for younger generations to plant roots in Savannah.
The Takeaway: A Market Finding Its Balance
After years of unpredictability, 2025 marks a turning point for real estate. For buyers, lower interest rates and improving affordability signal opportunity. For sellers, a more stable market and growing demand make this a great time to list.
Savannah, with its rich history, Southern charm, and thriving economy, remains a top destination for buyers seeking a high quality of life and long-term investment value.
Ready to Make a Move?
If you’re considering buying or selling in Savannah, now is the time to prepare. As a top-selling Realtor with 17 years of experience in Savannah’s historic and downtown markets, I’m here to guide you through every step of the process.
Whether you’re looking for a historic gem, a coastal retreat, or an investment property, I’ll help you navigate the market with confidence.
Contact Dave Wright today to explore your options and seize the opportunities that 2025 has to offer.
Dave Wright, Realtor
Savannah’s Historic and Downtown Real Estate Expert
Licensed Mortgage Officer | Mutual of Omaha Mortgage
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