A Promising Spring: Why Savannah’s Housing Market Could See a Boost in 2025
As we move into spring, Savannah’s real estate market is brimming with potential. While mortgage rates remain a key factor, recent trends suggest that buyers are adjusting to the new norm, which could lead to a strong selling season.
According to a recent article in Barron’s, economists expect existing-home sales to increase this year after a period of historic lows. While the extent of the rebound is debated—ranging from Fannie Mae’s modest 2.3% projection to the National Association of Realtors’ more optimistic 12%—there is a consensus that market conditions are improving.
Mortgage Rates: The Defining Factor
Mortgage rates have hovered near 7% this year, well above the sub-3% levels of 2020 and 2021, but buyers appear to be acclimating. Real estate professionals nationwide are reporting increased activity, with many buyers no longer waiting for rates to drop before making their move. As noted in the Barron’s article, "Last year, even our serious buyers wanted to ‘wait and see’ if rates would go down, which isn’t the case now."
In Savannah, this shift in mindset could be a game-changer. Buyers who were previously hesitant may now be more inclined to act, recognizing that waiting for significantly lower rates may not be a viable strategy.
The Spring Surge in Home Sales
Historically, spring marks a surge in home-buying activity, and 2025 appears to be no different. According to the National Association of Realtors, home sale activity typically increases by more than a third between February and March. If this trend holds true, Savannah’s real estate market could experience a much-needed boost as the weather warms up.
Furthermore, mortgage rate stability—if not outright declines—could provide additional confidence for prospective buyers. Freddie Mac’s chief economist, Sam Khater, recently pointed out that "recent mortgage rate stability is benefiting potential buyers, as purchase demand is stronger than this time last year."
Savannah’s Unique Appeal
Beyond national trends, Savannah remains a sought-after destination for homebuyers, thanks to its historic charm, coastal beauty, and vibrant community. Whether it’s young professionals, retirees, or families looking to relocate, Savannah continues to attract a diverse array of buyers.
For sellers, this means an opportunity to capitalize on renewed demand. Pricing homes competitively and preparing properties for the spring market could yield strong results in what may be an increasingly active marketplace.
Looking Ahead
The next six to eight weeks will set the tone for the remainder of the year, as early indicators suggest that homebuyers are becoming more confident in their purchasing decisions. As a Realtor and Mortgage Loan Officer in Savannah, I’m here to help both buyers and sellers navigate these evolving market conditions.
If you’re considering buying or selling a home this spring, now is the time to start the conversation. Reach out today to discuss how we can position you for success in Savannah’s promising 2025 housing market.
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Dave Wright
Realtor & Mortgage Loan Officer
SavannahSouthernHomes.com
