Coweta New Housing Market Report January 2022

Coweta County Sigle Family New Construction January 2022

Overview:  Nationally and locally new housing is being impacted by shortages of labor, and increasing supply costs.  For instance, lumber prices which peaked last year around this time at about $1,500.00, then dropping over the Summer have climbed back up over $1,000.00 in January and as of 2/2/22 are around $980.00, more than double what it had been prior to the surges of the past several years.  New housing numbers in markets all over the nation arguably have fallen drastically behind year over year over and above basic demand over the past decade and basic supply this year is no exception.  Another thing to keep in mind, is that without a healthy stock of new houses to meet the full demand, there is less available on the market for folks to move from their previous home (adding to more listing inventory and homes for first time buyers) and into a new built home.  Thus the situation is contributing to the run up in prices and the overall housing shortage we see across America and right here in Georgia.   Moreover, we see lots of people moving out of some major markets into other areas such as ours further adding to the demand dynamics in the market.  All this means higher prices and experts predict that it will continue through 2022.

Coweta County New Construction Single Family Homes: JANUARY 2022 (Data Source: Georgia MLS)

44 Sold in 2022, in contrast to 68 for the same month in 2021.

               Jan 2022           Average          Medium   Jan 2021    Average   Medium

                         List            $496,559        $507,830                      

                         Sold          $497,886        $511,613                         $355,141     $326,407

                  Days on Mkt      36                     6                                 79            32

                This represents a 40% increase in average price and 57% increase from                        the same month during the previous year.  Obviously this includes                              increases in cost of supplies, labor and the jump in the overall market.

  53 Active Listings / New Listings (not including active under contract or Pending         Approval)   Average Cost Per Square Foot:  $188.33

                        List           $599,922          $551,186

241 Current Under Contract with a reported average list price of $489,020

Resale Housing January 2022, Coweta County

I like to contrast what's going on in the new housing market with the single family existing pre-owned market.  

130 Sold in month of January with average of 20 days on market and just 5 medium days on market.  Of the homes that sold here is the data:

                                                       Average        Medium

                                   List               $342,796      $312,500

                                   Sold              $339,185       $319,950

123  Active / New Listings  Medium list: $383,000  and Medium DOM 20

234 Under Contract Medium List: $337,950 and Medium DOM 5

Concluding Remarks: New Construction resulted in the consumer paying during January 2022 on average 47% more for a home (60% medium) than going out and buying a resale home on the market.  I want to preface this with the following:  It's only one month worth of data and it's in the Winter, so these numbers would typically differ were we comparing say June numbers.  Also, we must continue to keep in mind that increased building costs have contributed to this.  Typically a person might pay a smaller percentage more for new verses pre owned.  Also, this comparison is looking at all houses all over the county and when we look at re sale homes many may have been built many decades ago, plus it includes in the mix the fixer uppers as well, and so this pulls the resale average and medium numbers down.  Something build over the past 5 years let's say, compared to a similar new built might only be say 10% more.  Also remember that it takes time to get the home built and many builders have experienced delays.  What does this mean?  Well, if you have a home to sell first, it could complicate things and you may need a plan b or c for situations where your current house closes but you can't move into the new built home for several months or more while you wait for it to get it's certificate of occupancy.  Something to think about.

Of course these are all means and averages of the overall market for just one month out of the year in Coweta County.  It's a big County, and there are a variety of sizes, shapes and styles.  Location and type of development will result in variating price points.  If you are considering buying or selling in this market you need to know the facts and you need them on a micro level.  It is incredibly competitive in this market as you can see in the numbers.  If it's a beautiful home with everything you want, chances are good there will be multiple offers (these are the homes that are in that medium of 5 days on the market segment).  If you are looking to sell you want to be in the best position possible to increase your likelihood of selling quicker and for more.  Moreover, there are many different ways to sell in this market.  It's interesting because when you mull over the data the big online mega companies offering so called sweetheart deals end up many times costing the consumer more by the time the smoke clears.  Discount brokers while plenty, save the consumer a little off the top but at what cost?  Some consumers will end up paying $20,000.00 to save $5,000.00.   

I am looking for long term customers.  I want repeat business.  In the past 12 years I've been a REALTOR I have many clients who have done repeat business with me and referred friends and family.  Was it the year end all you can eat client appreciation dinners or regular updates on their real estate interests?  Was it the no nonsense reliable, professional, trust worthy service?  Yes.  Give me a call, I'll come look at your home in person, and let's sit down and go over the numbers together.  Armed with all of the information, you'll be able to make an informed decision that works well with your needs.  

With high construction costs now may not be the right time for you to buy new.  I can help you find resale homes and set the showing appointment times and then help you with making your offer.  If you are totally set on having your dream home built, then it's in your best interest to have representation.  If you work directly with the builder representatives on site you will be working with someone who represents the builder and not you; that means that the deal will almost always end up benefiting who the most?  I'm here to help.