The Cherokee County and metro Atlanta real estate markets ended the year strong. New construction starts have exploded throughout the area. It is still a seller’s market, especially in the Towne Lake and Cherokee County real estate markets. This is not just the opinion of an experienced Realtor who lives where she sells, it’s in the statistics.
A market that is considered balanced—neither a seller nor a buyer’s market—contains a six month supply of listings. In the 2017 fourth quarter, only 2.7 months supply of listings existed, which is less than half that of a balanced market. This seriously skews the Cherokee County real estate market to be a seller’s market. Further evidence from last quarter’s sales shows that homes were on the market for an average of 60 days, which was a decrease of a whopping 31 percent.
What does this means for home buyers? They need to be ready to make a decision quickly when they embark on the home search process. Homes in the Cherokee County real estate market go under contract quickly, so buyers can’t wait too long to make an offer. Going in with a strong initial offer is also something we frequently advise our home-buying clients to do in the current market.
Fortunately, the median sales price for the South Cherokee real estate market is currently $243,495. The median sales price vs. list price % is still at 97.6% if a home is priced correctly for the market. That number drops to 92.4% if a price reduction was needed. The median days on market are 27 days, but that number increases to 90 days for homes that required a price reduction.
Distress sales and foreclosures are now only 1 percent of the Cherokee County real estate market. Mortgage interest rates remain around 4 percent or slightly above, depending on the day.
Rates have remained near this level for some time, but as the saying goes, all good things must come to an end. Some have predicted a half to a full percentage point increase by the end of 2018. For anyone with a goal of changing from a renter to a homeowner in 2018 would do well to keep an eye on these rates. A full percentage point increase could reduce your home-buying power by several thousand dollars.
As everyone has turned their focus to the new year, a handful of publications posted their predictions for the hottest real estate markets for 2018. We are happy to say the metro Atlanta real estate market placed No. 6 on the Business Insider list of the top 8 markets to watch in 2017. RealtyBiz posted an article in December including Atlanta as a housing market to watch.
One important thing to note is that 2018 is predicted to be a year with a huge housing shortage due to the lack of entry level new construction. What this means for home sellers is that their homes will be very attractive to first time buyers, as these buyers do not have to option to buy new construction.
Pricing your home correctly to begin with is still extremely important, as buyers are beginning to reject the rapid price increases. This is supported by the fact that 40.5% of all 4th quarter sales in South Cherokee County required a price reduction. As you can see outlined below in the Metro area report, sellers have become a little over-confident when it comes to pricing their homes.
So what are you waiting for? Let’s find a new place for you to call home. Contact Ursula & Associates today!
Ursula & Associates at Keller Williams Realty Partners is a residential real estate team specializing in South Cherokee and East Cobb Counties and are the number 1 home sellers in zip code 30189.
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