Here is our September 14th, 2021, email Update about Real Estate in Northwest Atlanta!
You should raise your rent!
Let’s look at what average rents have been historically in Atlanta:
Year Average Rent
So that property that you may have rented for $1000 a month a few years ago… should be bringing in $1645 or $7656 more a year in income!
This article has a lot of statistics but it shows the areas we service have seen some rents rise about 9% per year on average the last 2 years. That is 18% since 2019.
One of the benefits of hiring a Professional Property Management team like Northwest Atlanta Property Management is that we can accurately project what rent you should be getting (all areas are different and some of the rise is directly related to Brand New home and TH rentals.) We can help you formulate a plan that will maximize your income and profit. We offer a no-obligation consultation by request. When would be convenient to chat about your situation? Email firstname.lastname@example.org or call 770-726-1454.
Price values are also expected to continue to rise in our Areas.
This article goes into detail as to why experts expect an 18% increase in median price after seeing a 16.5% rise from June 2020 to June 2021.
More information can be found here. All in all, this is terrific news for owners with houses at or near the median sales price!
Real Estate Stats and Thoughts
Our primary areas of service are below, and it continues to be an unusually strong Sellers’ Market. Average appreciation is just over 15% year over year, but the rate of appreciation is slowing. Number of sales in July of 2021 dropped a bit by over 7% compared to August of 2020. Median Days on market creeped up a day over July of 2021, not a lot but it shows we probably hit about the maximum on pace for now.
Interesting observation for last month’s number – the number of sales declining has more to do with a lack of inventory than buyer disinterest. It is all Supply and Demand. Until we see supply rise and not be immediately purchased, we will not decline in prices.
Here we can look at the past 10 years of data for Active listings (each year is averaged.) You can see that the number of listings is about 35% of what we had for sale 10 years ago.
Cobb County History
With about 800,000 people Cobb County is an area we love and do a lot of business in. It’s the third most populous county in Georgia and is the most educated county (12th in the country) and least obese county in Georgia. It is comprised of 8 cities: Acworth, Austell, Kennesaw, Mableton, Marietta, Powder Springs, parts of Roswell, and Smyrna.
Founded in 1832 from the large and disputed Cherokee Nation Territory, Cobb County was one of nine counties formed. Initially the land was home to Native Americans who had settled Sweet Water Town on Sweetwater Creek (southwest of Marietta), Big Shanty on Noonday Creek (Kennesaw), and Buffalo Fish (southeast of Marietta).
Named after congressman and senator Thomas Wills Cobb, one of the larger cities is Marietta believed to be named after his wife Mary. Marietta was settled in 1833 and became the county seat in 1834.
There is a lot of Civil War history in Cobb with most of it devastating. With training occurring at Big Shanty (now Kennesaw), and many battles including Andrews Raid, The Great Locomotive Chase, New Hope Church, Pickets Mill, Dallas, Marietta, Noonday Creek, Kennesaw Mountain, and Allatoona Pass. Many lives were lost.
After the war, cotton farming was the main source of revenue but ceased during the Great Depression. In 1942 Bell Aircraft started a plant manufacturing B-29 Bombers and is still home to Dobbins AFB and Lockheed. Military Transport planes and defense spending fueled much of Cobb County’s growth.
White flight fueled much of the growth in the 1960’s and 70s with growth coming from all ethnicities and cultures since then. Today, Cobb County is a preferred place to live, with top schools, great dining and shopping, tons of parks and amenities, and is now considered “close to Atlanta.”
Fun Fact of the Month about 1031 Exchanges
You MAY be able to pull equity out tax-free after conducting a 1031 Exchange by refinancing, but not too fast…
One of the primary advantages of a 1031 exchange is not having to pay tax that otherwise might be due. One disadvantage is that all the proceeds must be reinvested in the new property to defer all taxes.
Investors can convert their equity into cash by completing the exchange – using little or no leverage on the replacement acquisition – and then may subsequently be able to refinance the property, with refinancing proceeds that may not be taxable. Consult your tax advisor for more information on how long before or after an exchange you can do this without raising red flags to the IRS.