Any home buyers out there? I need your opinoin (Savannah: sale, renting)

[Padgett2]

Originally Posted by bellhead

We all agree there was a bubble in Savannah which hit it´s peek in late 2006 early 2007. Just how much of a bubble was there.. I know this is not Miami or LA. but it seems like a lot of people bought in this bubble and they are unwilling to realize they are now screwed and are going to take a loss.

That's about the way it is. The asking price on many homes is simply too, too, much. The owners still owe so much on their loans that they cannot hope to get enough to pay it off. Especially if they haven't had the house long or if they didn't make a down payment.

There is still a lot of new construction going on. Many people would prefer a brand new house, with a choice of paint colors, etc. to an older house.

The Stephens-Day Bill, was a measure passed into law in our area that freezes the taxable amount on the home. It will stay the same, (a discount is given each year to offset milliage rate increases, or a rise in valuation) until the house is sold. Then, the new amount charged to the new owners will not have that discount. That can mean a huge jump in the tax amount. It has kept many of the elderly on fixed incomes from having to sell the home that they have had for decades because they can't pay the taxes. It has been a welcome relief for many retirees.

[bellhead]

Yea, but at the same time the Stephens Day unfairly puts a higher tax burden on new home buyers as local government has to balance their budgets. Property taxes are some of the most unfair type taxes around.

[ellie]

Originally Posted by bellhead

We all agree there was a bubble in Savannah which hit it´s peek in late 2006 early 2007. Just how much of a bubble was there.. I know this is not Miami or LA. but it seems like a lot of people bought in this bubble and they are unwilling to realize they are now screwed and are going to take a loss.

The bubble appears to be nationwide. Savannah's run-up started in the early 90's and yes, hit its max about the time you said. There are plenty of guesstimates on how much prices will decrease before the market stabilizes.

Average sales prices in Savannah are down by between 13%-40% depending on the area, right now, with a 50% reduction in sales for single family homes for the month of May compared to those in 2006.

Home sales appear to be fairly steady for those in the less expensive end of the market. That probably means that people are unwilling or unable to buy more expensive homes, not that home prices have substantially dropped.

People who bought high are being advised not to sell now, at all. That's the only way they can possibly get through without a substantial loss.

[gamecock43]

Thanks for the explanation. We have the same property tax method here in FL. You buy in at a certain tax price and can count on paying those same tax prices for years to come.
I did read a recent article saying Savannah is the 20th most overpriced city in the US, but really, half those articles have no data at all to back it up.

[gamecock43]

Where I live in FL the bubble burst big and it seems like people were going into foreclosure within a year. I moved into a new construction housing community as it was being built. It finished construction in Dec 05. In the community of 200 houses, there have been about 10 that have gone into foreclosure already.
Many of my neighbors discussed carrying two mortgages, or buying this house for investment purposes during the boom. No one talks like that anymore. House prices were slashed early and quickly in my neighborhood. The mentality is now, "you cant get a free lunch", or "it was risky to invest in real estate anyways" so people were just trying to unload houses with their shirts still on their back.

But it seems that mentalities in other cities are more of a "If I wait it out another 6 months, the market will turn around" and I assume thats why the houses I have been eyeing online have not dropped their prices.

[PiperFlys]

I will be moving to Savannah from Florida and have been looking for the last several months to buy.....Sellers in Savannah seem to be unaware of reality in todays market...To sell my home in Florida I had to drop the price 80k, my home was in an exclusive area of South Tampa, a renovated 40's home in flawless condition...Homes that I have looked at in Savannah that are so called renovations..LOOK LIKE CRAP..Plaster walls with caked on plaster repairs, settlement issues in the foundation. Slapping paint on and raising the price $100,000 stopped in 05 in Florida. So it will doubtful that I would make a full price offer.

[gamecock43]

Piper- I live by Tarpon Springs and am looking to move to Savannah too! LOL small world. Are you looking for newer construction or older homes? If you mentioned plaster repairs I'm assuming you are looking for an older house like me.
Have you looked at any of the places in person? I havnt been able to get up there yet and have created a list to look at based off online research.

[PiperFlys]

I have been many times to Savannah....I looked at one house that the staircase had a 45% list because of a rotted beam....It was billed as a total renovation, I looked at another where there had been so many plaster repairs over the years that the surface of the wall looked like minnie mogules. Many homes I looked at on the west side which were considered to be renovated had just awful paneling, you know the wood grain you would find in a double-wide in Florida....Anyway, Savannah is beautiful, I hope you find what your looking for, try and get up there look.

[bgnzsavnh]

Originally Posted by gamecock43

Wait Bgnzsavnh-
I am hoping to soon be a resident in Savannah, and 1st time home buyer. I read your recent post but it kind of went over my head. Could you explain the CPI and Stephens-Day bill in a little more plain talk for me? Thanks!

In the unincorporated county and the small cities (Tybee Island, Pooler, Bloomingdale, Garden City, Port Wentworth, Thunderbolt, and Vernonburg), as the value of a owner occupied residential property increases, the homestead exemption increases to cover all increase in value. BUT in the Incorporated Limits of the City of Savannah and for the school board, the exemption is lowered by the CPI, resulting in a steady increase in taxes paid to them without a raise in millage.
The Islands are unincorporated but there are areas of West and South Chatham that are in the City of Savannah and some new residents find their suburban home is "in" Savannah
The outer counties have no such limits at this time. Taxes and Gas prices are killing them.

[bgnzsavnh]

Originally Posted by PiperFlys

I have been many times to Savannah....I looked at one house that the staircase had a 45% list because of a rotted beam....It was billed as a total renovation, I looked at another where there had been so many plaster repairs over the years that the surface of the wall looked like minnie mogules. Many homes I looked at on the west side which were considered to be renovated had just awful paneling, you know the wood grain you would find in a double-wide in Florida....Anyway, Savannah is beautiful, I hope you find what your looking for, try and get up there look.

I live West of I-95. When we moved here, the 140 year old house had been updated with that paneling over the tung in groove walls and ceilings. we removed it and it took 45 tubes of caulk in each room to seal the cracks....................