The Real Estate: Report on New Construction in Coweta
By Jess Barron, Lindsey’s Inc. Realtors
It is difficult to drive through Coweta County right now without seeing some residential new construction in progress.
Coweta County experienced a 19.4 percent increase in pending new construction sales and a 31.9 percent increase in closed new construction sales from January 2019 to January 2020 (per Georgia Multiple Listing Service). In the same time period, the total new volume increased 56.2 percent from $35,000,000 to over $55,000,000.
The average sales price, on new builds, increased 18.4 percent from over $255,000 to $303,045. The new construction listings are closing quicker also. The average days on market decreased from 88 to 79 days from January 2019 to January 2020.
According to Georgia MLS, of the 604 active single-family detached listings in the county, 245 were constructed after 2019. That is nearly half the market.
Here is a breakdown of the new construction for sale by city:
• Newnan – 118 Listings For Sale
• Senoia – 67 Listings For Sale
• Sharpsburg – 24 Listings For Sale
• Grantville – 14 Listings For Sale
• Turin – 13 Listings For Sale
• Moreland – 8 Listings For Sale
Here is what I am seeing day-to-day on new construction in the marketplace:
Builders are still providing incentives like closing cost credits, through both themselves and preferred lenders, as well as allowances on upgrades and appliances. I am seeing fewer builders considering contingency sales though. The new construction sales are moving so quickly that builders are not willing to wait on the buyers’ current home to sell. I am seeing more and more closing dates missed as a small supply of workers and contractors are hurting builders to meet deadlines. Other factors slowing down construction time are weather and the permit processes with the cities and county.
The increases discussed above reflect that we are in a strong seller’s market, especially new construction. The strong data above is great for developers and builders, but not necessarily good for the average buyer as the cost of home ownership has increased. You have to wonder how long the substantial increases in value will last and if it will all burst at some point.
That is an article for another time.
Jess Barron is an Associate Broker with Lindsey’s Inc. Realtors and former President of the Newnan-Coweta Board of Realtors.