Tupelo/Lee County Area MS Market Report - April 09
by Randy Landis, GRI, ABR, RFS
Northeast Mississippi Real Estate
The following is a market and sales breakdown for the Tupelo/Lee County and the surrounding region for April 2009.
Because reported sales activity comes from a minimum of a 10 county area, these numbers are divided into two catagories: 1) Tupelo/Lee County and 2) All Other Areas.
Lee County is a regional market and employment center comprised of the following major communities: Tupelo, Belden, Saltillo, Guntown, Baldwyn, Mooreville, Plantersville, and Verona.
All Other Areas inlude the reported MLS market outside the Tupelo/Lee County market area and include other population centers such as Pontotoc, Fulton, Booneville, New Albany, Amory, Baldwyn, Okalona, Corinth, Ripley, and many other smaller communities.
TUPELO/LEE COUNTY
There were 46 residential sales in Tupelo and surrounding Lee County for the month of April 2009. This is down by 10 closings. After two consecutive months of increased sales, this is the first down month in 3 months. The average sales price was $140,261, an increase of over $14,000 compared to last month. The average Days on Market (DOM) was 127, up from 108 one month earlier. A nominal increase was seen in sales in the upper end market with a maximum sale price of $475,000 reported and contributed to the overall increase in the average sale price.
As of May 1st, there were 626 Active residential listings in Lee Co/Tupelo. Up slightly by 11 homes, it represents some stability in the number of homes on the market for sale. An increase in inventory can be considered typical for our spring real estate market. Using a 90 day moving average, this represents a 13.9 month supply of inventory, an increase of .2 months compared to March. Overall, the demand for Tupelo area housing remains stable with below average demand for homes. Some buyers though are taking advantage of historical low interest rates and lower prices. A slowing of declining property values is assumed with sellers doing fewer price reductions and receiving an average of 95% of their asking price.
All OTHER AREAS
There were a total of 44 reported residential sales outside the Tupelo/Lee Co area. Sales reported for April 2009 compared to 42 one month earlier, remaining steady. The average sales price was $75,887 and did represents a decline of just over 9% compared to one month earlier. The highest priced sale reported was $249,000. Sellers list to sales price ratio improved by 2% to .93, lagging slighty behind the Tupelo/Lee market (.95). The average Days on Market (DOM) increased by one week to 153 and using a 60 day moving average, represents 13.0 month inventory. Outside Lee County, there were 559 Active listings for sale.
OVERALL as of May 1st, 2009, there were 1,185 Active residential listings for sale in the NE MS MLS. This is an increase of 21 properties compared to one month earlier. An increase in the number of homes on market is typical for this areas spring real estate market. Based on a 90 day moving average, that represents a 14.48 month inventory compared to 14.8 for March, indicating a slight improvement in total inventory. Last months (Mar) inventory was down approximately 5.0% compared to one month earlier (Feb).
4.5% of all listings are HUD, REO or other foreclosures, and indicates no change from one month earlier.
Although only 4 fewer sales were reported in our market compared to one month earlier, this represents some stability in the overall market. Compared to the same month 1 year earlier, only a 7.5% decline in sales was realized. Our local market appears to be significantly stronger than that of larger regional markets and the national real estate market as a whole.
Days on Market for our area was slightly longer, as it remains closely related to the stagnant upper end market. Qualified buyers are beginning to take advantage of low rates and good home values. Increases in sales for this time of year are considered a normal buying trend of a spring market. The demand for Tupelo area housing remains favorable and the willingness to secure housing not been significantly curtailed by recent economic activity. Any decline in local sales can be directly attributed to the non-availability of loan programs of the recent past, having a big effect on numbers of qualified buyers under altogether different lender's guidelines.
Some parts of our region qualifiy for USDA (Rural Development) loans and there are local lenders that provide this loan program. USDA loans are NO MONEY DOWN, low interest loans. Income limits were increased recently and more buyers should qualify for this great program.
Smartly priced homes continue to become the normal in our market and indicate the willingness of seller's to conform and compete in a buyers market. Attractively priced homes are selling much earlier than the competition and do draw multiple offers.
Showing activity remains steady and can be related to various factors. Buyers are definately looking longer and at more homes before making their decision. Homes that are well kept and marketed well are showing steadily and selling faster.
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About the author:
Randy Landis is a Broker with EXiT Realty Premier in Tupelo, MS. and specializes in residential real estate. Visit www.exitpreview.com for a complete list of area real estate for sale.
Disclaimer; All information provided by this author may be based on information, all or in part, collected from multiple sources, including from the Northeast Mississippi Board of REALTORS, and is believed to be accurate but not guaranteed.
Posted 5/12/2009
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