by Tim Stout – Compass Real Estate
The real estate market has always been a very tumultuous market.
The strength of the overall economy can usually be tracked through the real estate market. Over the last year, you may have noticed more and more houses going up for sale. So what does this mean?
Let’s take a look at how the local real estate market has changed in the last year by looking at some numbers provided by the Georgia MLS. Overall, the real estate market for Coweta county has seen good improvements over the last year.
Compared to month over month statistics of 2018 (January – September), Coweta county has seen an average 12.31% increase in the number of new listings to the market.
This number shows us that more homes have been made available for sale in 2019 compared to 2018. The county has also seen a 2.08% increase in the average sales price for the county.
Over the last few years, we would classify the real estate market as a “Seller’s Market”. What this means is that we have seen more buyers looking to purchase a home than there are homes available.
This imbalance usually results in multiple offer situations that can drive the prices of homes up. Think of it as the traditional economics principle of supply and demand. As the supply decreases, the demand increases and vice versa. Interest rates are typically a big factor in whether or not buyers are looking to purchase a home at the time.
The average interest rate for a 30-year Conventional Loan in September 2018 was 4.75%.
For September 2019 that number dropped to 3.99%. Lower interest rates mean that buyers have more buying power where they can afford more home for the payment.
While prices appear to continue to rise compared to 2018, the number of sold homes has essentially stayed the same at a -0.66% decrease. More homes are coming to the market but compared to 2018, the same number of homes have sold so far for the year. This shift if usually an indicator of a “shifting market”.
The market appears to be leveling out at this time. Home values are still up and there are still many buyers looking for homes. But we are starting to see early signs of the real estate market slowing down. Should this concern homeowners? The answer is, no.
The economy is doing well, interest rates are still incredibly low, and there is still an abundance of buyers looking to take advantage of these interest rates and the influx of 100% financing options.
It’s still a great time for homeowners to cash in on the potential equity they have in their home. The market has to hit a plateau at some point in time and it appears we are approaching that time. The shift in the real estate market that we are starting to see should not worry homeowners in the area.
The real estate market for Coweta county is still going strong and homeowners are continuing to get top dollar for their homes.