Dear Clients, Friends, Colleagues, and Partners,
Some of you may remember the infamous Seaport Paper we produced for years in the mid – late 2000’s. Through the pandemic, we found that communicating through video added a more personal feel and added a more human touch to our data we were providing. This year, we felt we wanted to provide a more in depth dive into the real estate market, the U.S. Economic Market, Technology trends, and Seaport as a whole.
The past few years have felt uncertain for the real estate market, but today Seaport among others are experiencing a fast-correcting market. Seaport has seen an 11% increase in overall sale volume year-over-year, out preforming the “COVID Market” in 2022. We are trending another increase year-over-year in 2023 as a company. I started Seaport in 2010 with a mission to do real estate differently. The last few years had the odds stacked against us, but I must say that through all of that, we have succeeded and experienced growth that surpassed all of my expectations. I am extremely thankful for each and every person that trusts us to handle their real estate, and our agents who have chosen to align with a brand that I believe is one of the best in the industry. I thank you in advance to take the time to read this letter, and learn something new! I wish you a continued year of health and fulfillment!
SAVANNAH HOUSING MARKET
Savannah has always been a very popular housing market. We are seeing more and more consumers flow here from the coasts. You can see that most are coming to us from Washington, New York, and Georgia’s very own Atlanta. I think consumers will continue to purchase homes on southeastern coast as the prices are lower than what they are used to seeing in the western states they come from.
In March 2023, Savannah home prices were up 21.3% compared to last year, selling for a median price of $340K. On average, homes in Savannah sell after 42 days on the market compared to 32 days last year. There were 247 homes sold in March this year, down from 317 last year. These numbers reflect the “fast-correcting market” I mentioned earlier in the letter.
U.s. Housing Market & ECONOMIC OUTLOOK
Could a housing recovery possibly be underway? In March, mortgage rates ended the month over 30 basis points lower than where they started as more buyers returned to the market. Home sale prices also fell year over year in February, the first time in nearly 11 years. For one, the nations housing supply remains limited. Those who purchased homes in recent years at record-low interest rates are staying put. Home prices remain high year-over-year, they’re not as astronomical as they were in early 2022.
As we move into “homeowner season” the federal housing experts are keeping a close eye on the economy which continues to be pulled in all directions by things like high inflation, interest rates, and recession fears, to name a few of the big hitters. According to FORBES Advisor, some promising rends are developing in the U.S. “The median existing-home sales price was down 0.2% to $363,000 in February compared to a year ago, according to the National Association of Realtors (NAR). This ends a record streak of 131 consecutive months of year-over-year increases. Total existing-home sales jumped 14.5% from January to February—ending a run of 12 consecutive months of declining sales—but were still down 22.6% from a year ago, per NAR. “ – FORBES Advisor.
I get asked all the time “IS THE HOUSING MARKET GOING TO CRASH?!” My opinion is – the inventory issues we’ve seen will keep home prices elevated. I believe the market is more likely to correct itself instead of crashing. I think for our area in the Low Country, we could potentially see growth as our western state friends continue to relocate here. I would consider a “crash” to be something like a 30% drop in home prices and sales. Thats still very far away from where we are.
I will also advise that purchasing a home is an extremely personal decision. Homes represent one of the largest purchases you will ever make. Trying to predict what might happen this year is a job that I will leave for our economic analysts, everything I mentioned above is of course, my opinion based on my experience in this region of the U.S.
TECHNOLOGY AND AI IN REAL ESTATE
If you know anything about Seaport, you know we work hard to always be on the front line of technology and integrate cutting edge tech into our business. I do believe that the future of real estate will lean on technology. I am confident that technology will increase our brand, our media, the service and products we provide our clients, and the education we provide our agents.
I have just as many questions about these alternate universes, and digital real estate opportunities as the next real estate professional. We know that we are seeing an influx of consumers relocating here, could they view a space here in Savannah while sitting in their New York high rise? Could we meet with a remote client in a fully equipped virtual space? Could we help our agents, and clients with quicker, and more informed interactions? I believe technology will only advance what we are able to offer our clients and agents.
As the future unfolds I think we will use these spaces to work, play, socialize and learn – anything we can do in the real world will have a “digital twin” in the metaverse that we can interact with without leaving our homes. This includes investing and making money, and just like in the real world, one of the most popular ways to do this will be investing in property in the metaverse.
It is my hope that our team at Seaport would become more educated and embrace these emerging technologies. It feels like not long ago, we were all hesitant of cell phones, and Facebook. I can’t promise that our internal team at Seaport isn’t working on something top secret in the technology space, but for now – here’s a sneak peak.
SEAPORT’S GROWTH + LOOKING AHEAD
In the last few years, Seaport has truly become a pillar in the South East’s real estate market. The opening of SEAPORT HOUSE in 2022 was an overwhelming success, allowing us to advance our position in Savannah. I believe that the culture we have at Seaport speaks into everything that SEAPORT HOUSE is; a space for real estate agents to grow, learn, develop, and sell houses. We continue to sell properties of all sizes, shapes, and prices through all content channels, and we remain the #1 Real Estate Marketing Firm in the Low Country.
We were lucky enough to be spotlighted by South Magazine where they specifically address our ability to attract and acquire market leading agents. “With a culture of innovation, learning, and support, this company is offering hungry professionals the space they need to succeed in real estate.” – South Magazine. I know it sounds like I am listing off our triumphs, but this truly has been an amazing year for our team, our agents, and our clients as a whole. We were able to add 23 agents to our team over 2022-Q1 of 2023, and feel honored that they all have trusted us with their business. For us – it’s never been about having the largest agent count, but building the southeast’s most productive, and talented agent base. We want to help our agents grow themselves as real estate professionals, and build their business and brand. We know that our agents make our business go, and we will always look to partner with the best there is.
In closing, we know that our success has come from our competitive advantage as we forge new pathways in the industry. We will stay committed to our clients, agents, and team to be the relentlessly committed to one thing: Doing real estate differently. If you’ve never seen, read, or heard our mission, vision, and values I’d like to share them with you to remind you why we operate the way we do, and show you the lens through which we view the real estate industry.
Our Mission: Seaport is on a mission to sell real estate in a modern way.
Our Vision: Through the power of media, technology, and education we will shape the future of the real estate industry. By marrying a marketing firm and a real estate firm we look ahead to change the way a real estate transaction is done, forever. We do it all—together—as one team, one support system, following one mission, and always with our clients at the top of our focus.
Our Core Values:
- Clients FIRST, Transactions Second. Our clients always come first. Clients are relationships, not just a transaction.
- Create For The Future. We are future obsessed and always look ahead to forge new pathways for the real estate industry.
- Relentless Support. When one of us succeeds, we ALL do. This is the foundation for our internal support system.
- Play Hard, Work Harder. Nothing comes easy, so we are ready to put in the work, but if you have fun and build relationships while you work, it’s just better.
Thank your for continuing to support us.
Ben Bluemle
