A Strong Summer for Real Estate

After a slow start in 2025, the local real estate market really picked up this summer. Many local real estate agents were discouraged after the start of 2025. Spring is typically the strongest time for a real estate market. However, the first half of 2025 was weak, with closed sales down every month, year-over-year, from 2024 (per Georgia Multiple Listing Service, GAMLS). Things started to pick up in May. Pending sales were up over 20% from last year. As a result, closed sales increased 26% and 11% in June and July, respectively. This is an encouraging sign of things to come. August is looking like it will be a strong month as well, with many contracts in the pipeline to close.

Compared to the last few years, it is actually a good time to purchase and many savvy buyers have noticed this. The selection of homes to buy is significantly up. In fact, new listings have increased every month, year-over-year, in 2025. Pricing has stayed flat all year as well. The months of supply, or the estimated time it would take to sell all the currently available homes for sale, given the current sales pace, has increased also.

Sellers conceding on price, as well as providing closing cost credits to buyers, has been a trend all year long. It is a great time to purchase new construction. Many local builders are offering up to $25,000 in buyer incentives and offering to buy down the buyer's interest rates also. Interest rates have hovered around 6.5% and 7% all summer. Interest rates seem to be the most significant obstacle in people's way to purchase, especially for younger buyers. The average sales price in Coweta County has been between $438,000 and $485,000 each month in 2025. This price, amortized at the current rates, makes purchasing very difficult for buyers with lower incomes.

The battle between President Trump and Federal Reserve Chairman Jerome Powell has been publicly documented all year. The President has put pressure on Chairman Powell to lower the interest rates in hopes that this will lower mortgage rates, among other things, make housing more affordable and jump start the real estate economy. Chairman Powell has yet to do so. Looking at the data for Coweta County this summer, I can see why Powell has not. The numbers look promising, at least locally. If rates drop significantly, we will likely see a large influx of buyers which in my opinion, would shoot prices up very quickly. A slight drop in interest rates over time seems to be the route to take.