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November Real Estate Sales in Cobb and Cherokee County

December 1, 2010
Push Ball Scrimmage, Columbia (LOC)

Image by The Library of Congress via Flickr

 Below are general sales statistics in Cherokee and Cobb Counties for sales activity in November- here are my thoughts:

Cherokee Countiers, 77 people sold their homes in November– the month that everyone decides to take their home OFF the market. Well guess what, when you did that, one of those 77 homes just sold, and it wasnt yours!  Now, if you are one of the smart ones that decided to put keep your house on the market and it wasnt one of those 77 that sold, you are probably one of the homeowners “chasing down the market” 

Picture a little kid chasing a ball rolling down the hill.  Now picture your original listing $$, your first $$ reduction, your second $$ reduction, your (GULP) third $$ reduction…is that ball, and the buyers that would be, SHOULD be looking at or buying YOUR house are running just in front of that ball, just ahead and out of reach of your home, your price, your sale, chasing the homes that are priced right..  What these numbers tell us when you compare the ORIGINAL average list price to the average sales price is this

  • Homeowners in Cherokee County are putting their homes on the market an average of almost 25% ABOVE market value!  (SP/OLP% is the sales price to original list price ratio)
  • The average total days on the market is 138- almost 4 months – 4 months chasing the ball down the hill 25%. 

Calculate months of mortgage payments, carrying costs, utility bills, stress of having your home open- then ending up where you should have started anyway- is it worth it? 

Cobb Countiers– you are pricing a little better, closer to 12% above market value on average and selling in closer to a bit over 3 months.  See the correlation here?  As homes are priced more competitively, they sell quicker.  Of course, we cant discount a little thing called supply and demand.  Notice the difference between West Cobb and East Cobb numbers (West Cobb is area 71-75, East Cobb area 81-83)

  • East Cobb, with its lower recent history of new construction resulting in less “supply” constitutes higher demand which means higher sales price to original list price ratio and fewer days on the market. 
  • West Cobb has a bit 1.) lower sales price to original list price ratio,2.) higher overall days on the market due to higher supply (much higher new construction in the early 2000’s) and 3.) lower demand as the fewer number of buyers had to be spread out over a much higher supply of homes- very similar to Cherokee County which saw an explosion of new construction growth in the early 2000’s.

Now that Ive taken you back to economics 101, how are you going to price your home when you need to sell?   If I learned one thing from my high school Econ 101 teacher, it was “there’s no such thing as a free lunch”.  It doesnt apply here but its the one thing I remember from that class.  🙂

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