I want to go ahead and apologize a little bit in advance because you are going to think that I have absolutely lost my mind as you continue to read through this post. I am going to be jumping all over the place as I report to you exactly where we were as far back as 4 years ago when I got into Real Estate, where we are now, and of course where I think we are going.
As you can see from this first Graph, we have seen a very sharp decline in sales here in Union County progressively over the course of the past 4 years. However, as you will see in later posts, that it is not just Union County that has been seeing numbers like this. Over in Blue Ridge Georgia, and Ellijay Georgia, Mountain Homes For Sale there have also been on the rise because of a decrease in Homes being Sold. I have to say that it is very hard for me to get my head around the fact that there were only 8 Residential Sales in Union County this past December. There are over 200 Licensed Realtors in Blairsville according to our Northeast Georgia Board of Realtors, so let’s say 6 different Realtors sold a Mountain Home or Cabin last month, that means that over 184 Realtors in Union County worked for Free!
So what is going on with the North Georgia Mountain Home Pricing in Union County?
If you have read any of my previous North Georgia Market Reports, then you know it is my first time to took a good hard look at Price Distribution. What is Price Distribution? Good Question, and when you find out please leave me a comment and let me know would you? Actually, Price Distribution is nothing more than taking the number of Homes Listed, the Number of Homes Sold, and the number of Homes For Sale, all within a given period of time at certain price points. These price points are usually within $25,000 to $50,000 in increments, and each increment is then given a number based upon the data in each classifications above. Now you may want to know what the difference is between number of Home Listed and Number of Homes For Sale. Simple, Homes Listed is all the Homes that have been for sale or listed in a given period of time, and Homes For Sale are only those Homes that are currently on the Multiple Listing Service at that time. This is a Great Tool to use while helping a Client Sell their Mountain Home in this Shifting Market. It is an outstanding strategy tool that if used properly can give you things such as a safe but aggressive pricing strategy, it can help you to know exactly where the competition is and where you need to be. Right now the highest concentrated Homes that are being Sold in Union County is in the $160,000 to $180,000 price range.
Union County Average Sales price has dropped 11% since that of December 2007. The Average Sales Price was $213, 381 in December of 2007, In December of 2008 that number dropped to $189, 411. This obviously is caused by many determining factors. In my opinion, the biggest of those are the direct affect that the REO’s have had on the overall market. An REO stands for Real Estate Owned properties that the Lending Institutions have taken back by Foreclosure or possibly even Deed in Lieu of Foreclosure. These Lending Institutions do not necessarily want to be in the Real Estate business, but unfortunately they are being forced to. They have to do what it takes for them to get these Properties moved and off of their books. This unfortunately means that is most cases, they are selling these properties at greatly reduced pricing and being very aggressive in doing so. This is by no means helping with the values of all North Georgia Mountain Properties.
There is some Good news. Our Inventory for the past 3 months has been declining. While it has only been slight decrease, a continuous decline in Inventory is good. However, the number of Homes Sold, and the number of Homes Under Contract have seen a sharp decline year over year. The number of Homes Under Contract have dropped 56%, while the number of Homes Sold experienced a 40% drop. As I had mentioned earlier in this report based on data obtained from the Northeast Georgia Board of Realtors, the number of Homes that was Sold in Union County in December was only 8. Wow!
The last report that I want to share with you gives you our current Absorption Rate. The Absorption Rate is basically the length of time, in this case the number of months at current sales rate that it would take to sell our Inventory. As you can see from the Graph, our MSI (Month Supply of Inventory) dramatically Increased for the Month of December due to the low volume of sales. I have also included in the Graph the National Average so that you can see the comparison of the two. In addition to that, I also included our Average Days on Market (DOM). The Average Days on Market has risen to just shy of 200 days to around 195. This is the average time that a house is on the market before it has actually Closed.
I certainly hope that this North Georgia Market Report for Union County Residential Statistics has been helpful to you. If you have any questions concerning anything that I have mentioned in this Report I am here to answer them for you. You can Contact Me or simply call me at 706.633.8186.
If you are thinking of Buying or Selling a North Georgia Mountain Home, I would be grateful for the opportunity to sit down with you and discuss in more detail about your Real Estate needs and advise you as I see fit. Please drop by My Office if you are in the Blairsville Georgia Area, I would love to meet you.