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Hey everyone. Are you interested in finding out what is going on in the current real estate market? Hey, let’s talk about what the market is doing right here in Cherokee County. I’m going to go over the Cherokee County Real Estate Market Update for August 2020. And once again, these numbers are primarily for Cherokee County, Georgia. Cobb County actually kind of parallels exactly what Cherokee is doing, so if you’re in Cobb County wondering what’s goin’ on, these numbers are pretty much true across the board. Actually it’s kind of true across the whole north side of Atlanta.
Home Value Index
One of the first things we’re going to look at is the home value index. That’s basically how much appreciation each home in the area is actually benefiting from. What are they noticing? And that index is going up. Currently, we’re at 3.4%, an increase. That’s a one year change. So whatever the last year, the typical home in Cherokee County has increased in value by 3.4%. That is a great trend.
The next thing is, is we have a little indicator here as far as how hot is the market right now in Cherokee County, and we are still a VERY HOT market. Basically that means that homes are flying off the market. Not anything is really lasting very long. As long as the condition is good and it’s priced right, things are not lasting very long on the market. So if you’re a seller, it’s a great time to sell a home right now.
Average Days on Market
The other thing that we look at is days on market. These are the average days that property’s going to be on the market. In August, it was actually at 81. It’s a little bit higher than what we typically have seen. It’s usually been around in the ’60s. A little bit higher, however, it’s still in that range where we’re going to say, “It’s pretty stable.” So the average house is on the market for 81 days.
Now the next couple of the indicators that I want to talk about are some of those that we really look at as far as forward-looking. What is going on and how is this market going to continue on, especially with everything that’s goin’ on in the market? So the first thing that we take a look at is negative equity. These are the folks that, or homes that have, they owe more than what the house is worth, and right now in Cherokee County, it’s at 3.4%. So 3.4% of the homes that have a mortgage on it actually owes more than what the house is actually worth. That is versus regionally, and when I say regionally, that’s pretty much the Atlanta market at 7.6. So Cherokee County and Cobb County are doing really well as far as equity in the homes themselves. That’s a key indicator that we want to keep our eye on.
The other two that we really want to take a look at and we’re watchin’ these really closely, especially with everything that’s goin’ on with the economy. The employment rate is still something that we’re really watching, and that is delinquencies. These are homes that have mortgages on them that are delinquent, not necessarily in foreclosure, but in delinquent. They’re behind on their payments. Cherokee County is 0.6%. Nationally we’re at 1.1%. That doesn’t look like a big difference, but that’s a big difference. That means that we’re really healthy right here in Cherokee County. Cobb County is very much the same way, so that’s a really good number, however, we’re really going to be watchin’ this thing as we move forward over the next few months.
Another number that we took a look at is the forbearance. Just as a reminder what forbearance is, is when COVID hit, the federal government came in and gave relief, and they allowed homeowners that had been laid off from work or couldn’t make their home payments, their mortgage payments, to contact their lender and ask for a pass basically or forbearance, so they don’t have to make their mortgage payments. So, the federal government came in, they had a six-month forbearance period. Then they get to apply again, which is going to be up in another couple months, for an additional six months. So right now in Cherokee County, we have 4.2% of the mortgages with homes that have mortgages on ’em are in forbearance. Nationally we’re at 7.2%. These numbers are going up. However, in Cherokee County, that’s a really good number compared to what we’re at nationally. So if you’re listenin’ to the news or anything like that, they’re going to usually focus on this national number. We’re pretty much isolated and really healthy compared to the rest of the nation. We’re very healthy right here in Cherokee County. Cobb County is the same kind of a story. Once again, moving forward, we’re really going to be watchin’ this number. When that federal government, if they don’t extend the forbearance period or they end it and people aren’t back to work and making the same money they were when they were possibly lost their job, this number’s going to be really important to watch.
So anyway, overall it’s still a very hot market. You’re looking to get into real estate, buying, selling, this is a great time to get that taken care of. Interest rates are historical lows. We’re below 3% now, believe it or not. Just had a client that just sealed the deal and she’s at a rate of 2.8 I think, somethin’ like that. So, really good rates are out there right now. So, if you’re lookin’ to move, this is a great time to do it ’cause you can use those low rates to actually buy up, trade up, use the equity that you have currently in your home, and actually get into a home that you want to be in for a long period of time. I’ve talked to a lot of folks that are looking to buy or they say, “Ah no, it’s not a good time. “I’m going to give it a year or two.” Don’t wait until, you know, this possibly goes away. This 3.4 is not going to continue forever, and ever, and ever. It’s going to come down and I don’t want yOU to get stuck with higher rates, less equity before you get into the house that you really want to be in for longer-term. So that’s a key point. So if you’re thinkin’ about movin’ soon, this is a great time to do it. Obviously we’ll be more than happy to talk to ya about it.
Anyways, that is the Cherokee County Real Estate Market Update for August 2020. Make sure you subscribe to us, give me a thumbs up if you thought this was helpful. If you want to drill down any more than what I’ve already given you, give me a call. I love goin’ through the numbers, but other than that, hopefully, everybody’s havin’ a good day, and we’ll talk to everybody soon. Thanks.