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West Cobb Real Estate Recovery

By
Real Estate Agent with Prudential Georgia Realty

Statistical evidence indicates that a recovery in West Cobb single family sales may be underway! But, it must be noted that there are still areas of concern that may limit the degree and time frame of the recovery.

Positive factors are found in the 4th quarter 2009 sales data which include:

Sales were higher than 4th quarter 2008. This is the 1st time in 3 years that year-to-year sales comparisons showed an improvement.

The total number of homes sold in 2009 equals that of 2008. The 1st quarter had a decreased number of home sales which was made up in the 4th quarter.

A recovery will likely start within the lower price points. Sales under $200,000 were 29.8% higher than the same quarter the previous year. This is either a sign of recovery or a result of government homebuyer incentives – or both.

Foreclosures represent a smaller (but still significant) percentage of total sales. The rate at which this foreclosure percentage decreases will determine the pace of recovery.

The supply of homes on the market is down to 9.4 months and is moving towards the balanced amount of 6 months.

To no surprise, there are negative factors in the 4th quarter 2009 sales data that must be considered as well:

The 4th quarter sales data was compared to the severely depressed 4th quarter of 2008. Future comparisons will not have this advantage.

The average number of days from listing to contract is still very high although nearly equal to the previous year.

Distressed sales (foreclosures and short sales) still represent 25% of all sales and are partially responsible for keeping prices down.

87% of properties are initially overpriced for current conditions resulting in longer days on the market.