If I had to summarize the Savannah real estate market in one sentence, I would say it's taking a breather. Home prices have slightly decreased compared to last year, and rental rates are remaining stable.

However, the official statistics for the month of October have not yet been fully released as of early November. Therefore, this article will summarize the confirmed figures up to September, along with the actual interest rate trends and local issues that occurred in October.

First, let's look at home sales. According to Zillow, the typical home value in Savannah as of September is $318,893.

This is down 0.3% from the previous month and 3.0% from a year ago. While it's not a drastic drop, it's certainly different from a few years ago when homes would sell almost immediately after being listed.

In terms of actual transaction prices, the numbers are a bit higher. Data from the real estate analytics firm ATTOM shows that there were 4,880 residential transactions in Savannah over the past year, with a median sale price of $350,000.

The reason for the discrepancy of over $30,000 between Zillow's figures and ATTOM's is due to the different bases of measurement. Zillow provides an estimated value for all homes, while ATTOM reflects the actual sale prices, which can be skewed higher if more new or larger homes are sold.

The statistics from the Savannah Area REALTORS for August are also interesting. In this data, which combines Chatham, Bryan, and Effingham counties, the median sale price increased by 1.1%, but inventory rose by 15.8%.

Conversely, new listings decreased by 15.8%. This suggests that while fewer new homes are coming onto the market, existing homes are not selling as quickly as they used to.

Looking at the state as a whole, the trend is similar. According to Georgia REALTORS, the housing inventory in Georgia as of September was 55,422 homes, which is 4% higher than a year ago.

For buyers, this means more options and room for price negotiation, which is advantageous. However, for sellers, holding out for their desired price could lead to longer selling times.

Interest rates are a crucial factor in this trend. According to Freddie Mac's weekly survey, the average rate for a 30-year fixed mortgage was 7.28% on October 1, rising to 7.4% a week later.

As the month progressed, it dipped slightly to 7.32%, and the most recent announcement recorded it at 7.24%. Although there have been two consecutive weeks of decline, it remains high compared to the low 6% range at the beginning of the year.

This is why, despite a slight decrease in home prices, the perceived burden has not lessened. If you are considering buying, it's advisable to calculate based on monthly payments rather than just the price.

Now, let's move on to rental rates. Rental prices vary significantly across different sites, so I look at multiple sources side by side.

RentCafe reported that the average rent for apartments in Savannah as of April was $1,710, which is down 1.34% from a year ago. Trulia, as of May, reported an average of $2,000 for all housing types, and $1,726 specifically for apartments.

RentHop, which released October data, estimated the overall average rent at around $1,595. Depending on whether you're looking at apartments alone or including single-family home rentals, the differences can be several hundred dollars.

One commonality is clear: none of the data shows a sharp increase in rental prices.

The background to this is supply. The Atlanta Journal-Constitution reported in August that over the past three years, more than 7,000 new rental units have opened in Savannah, easing some of the housing shortages.

The same article noted that Savannah Metro is a tenant-heavy area, and that building single-family homes under $300,000 is not economically viable according to industry analysis.

The Hyundai Metaplant continues to be a variable as well. Hyundai has promised over 15,000 jobs in the area by 2031, and how quickly these positions are filled will likely influence future rental demand.

For tenants, now is not a bad time to negotiate. Be sure to compare the market rates and move-in incentives of nearby new developments before renewing your lease.

From an investor's perspective, the situation is a bit different. With increased supply, vacancy periods may lengthen, so calculating returns based on expected rent increases as in the past could lead to miscalculations.

There are also two notable local issues to highlight. First, in September, the Savannah City Council failed to pass two ordinances aimed at increasing so-called missing middle housing.

These ordinances aimed to consolidate housing permit processes and allow for the construction of medium-density housing between single-family homes and large apartments. Supporters argued it would help alleviate supply shortages, while opponents raised concerns about benefits being concentrated in specific districts.

The second issue involves short-term rentals. Chatham County imposed a 120-day moratorium on new short-term rental applications in July, and on September 25, commissioners unanimously passed amendments to the short-term rental ordinance.

The key point is that when HOAs enforce their own regulations, the county enforcement department will back them up. However, this ordinance applies to unincorporated areas outside city limits, while Savannah city follows its own separate regulations.

In Savannah, short-term rental permits for properties where the owner does not reside are limited to 20% in the downtown and Victorian historic districts. If you're considering investing in Airbnb, it's essential to check the STVR regulations on the city's website and the permit status for the area before making a purchase.

In summary, October in Savannah has become slightly more favorable for buyers and renters, while sellers and investors need to exercise caution in this market. Personally, I would recommend taking a couple of months to observe interest rate trends and carefully select properties that appeal to you rather than rushing into a decision.