The housing market in Cobb County continues to boom in the second quarter of 2021, consistent with trends seen last quarter. As the country recovers from the economic devastation left behind from the pandemic, rising markets should continue to improve through the rest of 2021.
The growth of the market does not signal good things for everyone, however. An increased demand for housing in Cobb County has resulted in demand-side inflation, causing housing prices to increase significantly over the last few months. While existing owners of properties in the area and investment opportunities might revel at the improving market, this does mean that affordability in the area is diminishing.
Nonetheless, if you can afford to purchase a stake in the real estate market in Cobb County right now, the statistics suggest that now is the time to do so. To prove it, we’ve analyzed three key statistics in the Cobb County housing market for Q2 of 2021.
Median Closing Price
Through the second quarter of 2021, the median closing price of homes sold in Cobb County has consistently gone up over the months, with an aggregate median closing price of $364,463. Compared to the median closing price during Q1 2021 of $331,337, housing prices have risen by about 9% during the second quarter of this year, a significant increase for a single quarter.
The driving forces behind this price increase are largely due to shifts in consumer preferences during the course of the pandemic. The unemployment and rising costs that occurred during the pandemic due to a collapse of global infrastructure and lockdown resulted in many house buyers shifting away from luxury housing markets to more affordable real estate.
As a relatively affordable area, Cobb County saw a drastic increase in demand for housing that has paradoxically resulted in increased prices since houses have a more fixed supply compared to other commodities. House buyers in the area are willing to pay more for a house in Cobb County since the supply is limited, resulting in bidding wars and increased closing prices.
House buyers can expect housing prices in Cobb County to continue rising for a while, before reaching an equilibrium. As the price of housing in Cobb County rises, more existing homeowners will want to sell their houses, leading to additional supply, allowing housing prices to normalize.
Number of Houses Sold and Listed
In a signal that supply is beginning to shift to keep up with demand, the number of houses sold in Cobb County during Q2 of 2021 has also risen drastically compared to Q1. Through the course of Q2, 3822 houses were sold in the county, a 22% increase from Q1 of this year, during which only 2961 houses were sold. These sales are commensurate with an increase in houses listed during Q2 of 2021; 4,867, up from 3,661 during Q1 of the same year.
The increased number of house sales and listings suggests that the real estate market remains at a level of healthy growth, with more existing homeowners in the county willing to sell their homes in order to take advantage of heightened prices. These numbers also indicate a level of sustainable growth in the market, as the value of houses continues to increase despite rising supply.
Median Days on Market
The amount of time houses spend listed on the market before being sold can be taken as a measure of consumer interest in the real estate market. In Q2 of 2021, consumer interest in the real estate market of Cobb County continues to rise, with houses spending an average of only five days listed on the market before being sold, down from the average of 9 median days on market in Q2.
With houses being sold almost twice as quickly in Cobb County in Q2, there is no doubt that the desirability of real estate in Cobb County is higher than ever and should continue to rise as we go into Q3 of the year.
Analysis of Statistics
Through the second quarter of 2021, prices continue to rise in Cobb County. While this growth may seem fantastic for sellers and prospective investors, it’s important to recognize that the increase in property value in the county is no doubt at least in part due to artificially heightened consumer demand. Whether or not this increased value is sustainable remains to be seen.
However, in the short run at least, growth in the Cobb County real estate market shows no signs of slowing down any time soon. With rising sales and faster sale times even as the supply of houses being listed increases in number, demand for housing in Cobb County is certainly strong and is still growing. Potential buyers may want to take advantage of the increasing supply of houses in Cobb County being listed for sale or else risk even higher prices down the line.
Despite the growing real estate market, however, buyers should be aware that as supply increases due to more homeowners selling their houses and additional construction of new housing, supply could very well return to equilibrium with demand for housing, slowing price increases.
Statistical indicators of the real estate market in Cobb County suggest that housing prices should continue to rise in the short run, although whether or not this will translate into sustained growth over the long run remains to be seen. As always, potential buyers should take into consideration the amount of risk they are prepared to take on before making any investments in a new property.