McComb, MS, Residential Real Estate Market Report for February 2010*

McComb, MS, Residential Real Estate Market Report for February 2010*

For the period Feb. 1-28, 2010, ten homes were sold in McComb. During this same period there were 20 homes put on the market (twice as many new listings as homes sold). At the time of this writing there are 176 residential listings. This means that we have a 17.6-month inventory of homes for sale. (Please see my recent blog about the state of the market in McComb, Pike County, SW MS. Because of the ratio used to figure the number of months of inventory—number of active listings divided by number of homes sold in one month--when only a few houses are being sold, the number of months of inventory can change by several months even when the number of active listings stays the same.) We are aiming for a four to six months’ supply of homes for a healthy, balanced market. To do this, we need consumers to buy, buy, buy! Also of note, the average number of days on market of the sold homes was 211 days (about seven months). Note that this statistic is only for homes that have sold during this time period—there are several homes still listed that have been on the market for over a year.  We are seeing a good number of price reductions across the market.

Here is a chart comparing residential sales activity for the last several months in McComb, MS:

It’s good to see we sold more homes in February than we did monthly during the previous four months.  It’s too early to tell yet, but let’s hope it is the beginning of a powerful upward trend. 

Is the lower than usual sold price to list price during the last two months a cause for concern? It could be a reflection of desperate sellers doing what it takes to get their home sold.  Or possibly sellers realized that the market simply didn’t support their asking price.  Whatever the case, it’s too early to know whether it is a trend. 

Right now is a great time to buy a home! Why?

1. There are so many homes on the market in our area, you have, as they say, the pick of the litter! With so many homes to choose from, the chances are great that you will find one that very closely meets your needs and desires, whereas in a seller’s market, the pickings are slim, and if you really need to make a move, you may not be completely satisfied with what you can find!

2. Interest rates are at or near historic lows—visit Bankrate.com. Buy now before the rates rise again, and you may save many thousands of dollars over the life of your loan!

3. Because of the competition among sellers, prices are lower now than in a seller’s market. Buy now before prices rise again (as they are beginning to do in several major markets across the country)!

4. Because so many homes have been on the market for quite a while, many sellers who really need to sell may be willing to offer concessions they wouldn’t normally offer, such as help with closing costs or redecorating allowances. It never hurts to ask!

5. Buyers still have time (although the clock is rapidly ticking!) to take advantage of the extended and expanded homebuyer tax credit.  Remember, it’s not just for first-time homebuyers now! See the deadlines and learn all about the new tax credit at http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit .

6. Regardless of what the stock market has done, home ownership is still the #1 way to build wealth over the long term. Real estate has delivered the most consistent positive return over any investment over the past 40 years. Did you know that 60% of the average homeowner’s total wealth comes from their home equity?!

Make Your Move with Morgan!

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*Statistics are based on reports from the Southwest Mississippi Board of Realtors Multiple Listing Service, and are deemed to be correct, but are not guaranteed.