There are a few factors involved in the surge of growth. One is that employers have added over three million workers in the last year. As a result, unemployment has slipped down to about 5.5 percent instead of the previous 6.3 percent. More paychecks mean more Americans feeling better about their finances. A first in the most severe recession since the 1930. The recession was, of course, sparked by the housing collapse in 2006, so it almost makes sense that a housing climb could be the thing to reverse the economy now in 2015.
The second factor is that mortgage rates have remained consistently low in efforts to start just this kind of spark. However, they’re also slowly rising as the Federal Reserve prepares to raise a key interest rate after about a decade. The average rate for a 30-year fixed was four percent recently, which was a slight increase from the previous low of 3.59 percent. That low had been in effect for 52 weeks. This has made buyers eager to close on their purchases quickly to get in on the lower rates. For Savannah real estate and markets all over the country, it means houses selling faster and faster. Nearly 30 percent of homes are sold within two weeks of being listed, which is a huge jump from the previous 19 percent. Savannah homes for sale are dwindling quickly because of this, leaving inventory low. The gains also seem to be fueled by buyers looking for value, unlike the previous increase in prices, which was fueled by debt. That gilded increase is what caused the bubble to burst.
It’s a great time for those considering selling to jump in before the buyers cool down. Rising prices indicate that many homeowners are recovering lost equity and selling may become more attractive as a result.