What neighborhoods are affordable for Savannah's first-time homebuyers? Here's some advice

This article is the third and final in a three-part series examining the challenges for entry-level homebuyers.

"When COVID initially hit, we were like, 'Oh, my gosh, this is the end of real estate,' and then we did 70 hours a week for two years straight?" recalled Michael Caputo, mortgage advisor with First Coast Mortgage.

Alison Harris, leader of the Harris Home Team at Keller Williams Realty Coastal Area Partners, often built spreadsheets for each home on her list to manage the multiple offers coming in, most of which were all-cash and driven by transplants to the area who were pulling equity out of properties in Chicago, New York and elsewhere and plowing it into houses with more land, more square footage and bathed in more sunlight.

"People were all, 'Hey, you can have my first born, have $20,000' ― whatever it took to win. Those that didn't have that kept losing to a lot of people with cash." Harris sees a shift back to normalcy occurring, however, and that's good for those folks who are just entering the housing market.

According to Harris' own calculations, housing prices have soared about 44% across the Savannah-area since January 2020. So, neighborhoods once considered entry-level may be out of reach, and neighborhoods not always considered desirable are getting a second look.

"There's definitely a premium put on convenience," she said.

Harris used her own experience as a resident of the midtown, midcentury Kensington Park as an example. "We're just so centrally located in the center of Savannah. There alone, the pricing has increased significantly. It used to be such a great entry neighborhood, but we used to be able to get into something under $200,000. In Chatham County in 2019, that was not a problem. That is pretty much impossible at this point."

She said now, "$300,000 to $275,000 is pretty much the bottom, and you're not gonna see much under three."

A search on the real estate website Zillow revealed fewer than 200 homes listed for sale in Savannah for $300,000 and under. Many of those properties are condos or townhomes or in the southwestern reaches of Chatham County. But a number of older, near-town neighborhoods on Savannah's east side ― Victory Heights, Pine Gardens, Avondale, Live Oak ― offer first-time homebuyers opportunities if they employ patience and manage their expectations.

"I think the real solution for folks who want to use a government loan [FHA, VA, USDA] is... they need to find a true real estate professional, someone who does it full time, who has a great track record for getting offers accepted, who knows how to write a strong offer, and then need to rely on that individual to guide them through the process.

"And sometimes you have to write three or four offers and lose three or four houses before you truly can accept what it's going to take to get into a home, and that can be a daunting and upsetting experience. And discouraging."

Harris still believes "the best way to build wealth is through real estate. I can't find a better way to do it. I just can't. I think with the appreciation that we expect to see on homes, it's not a bad time to buy. I think you just have to manage what you want."

PART I:'Mortgage-lockup effect' impacts availability of homes on the market

PART II:Government-backed loans for first-time homebuyers harder to secure