McComb, Pike County, SW MS, Residential Real Estate—State of the Market, August 2009

Home sales in our area seem to be slowly picking up, but there is still a ways to go before we reach a balanced market.  For those with good credit and provable good income, with a comfortable debt to income ratio, now is a great time to buy.  Buyers can take advantage of some of the lowest interest rates in decades and they can also choose from among many (136!) homes competing on the market.  For first-time home buyers, there is also the $8,000 tax credit advantage (through Nov. 30, 2009—see http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet=7 ).  However, buyers who are weak in credit, income, and/or debt requirements are having a difficult time with many lenders. 

I would say 75-80 percent of my prospects and clients are Louisiana residents looking for second homes and/or evacuation homes.  The majority of these prospective buyers are looking to pay cash for very inexpensive homes and/or lots or land where they can place mobile homes.

To increase the chances of selling in this market, sellers need to make their homes as attractive and as move-in ready as possible.  If you can afford to do so, go ahead and put on that new roof if one is needed, add central air and heat if your home doesn't have it, and make all the needed repairs and cosmetic improvements ahead of time, so that your home will stand out against the competition! Because there are so many homes on the market competing against each other, sellers also need to price their homes accordingly (= aggressively).   I have seen many recent price reductions on homes, many of them around 10 percent.  It is better to enter the market with an attractive price, rather than drop the price every few months.  The first month your home is on the market will most likely be the one in which you get the most prospective buyers.  If your home is priced too high, some buyers may think it is out of their range and not make an offer, or not even view the house to begin with! Don't let your listing become stale or neglected!

There are currently (as of Aug. 19, 2009) 136 homes on the market in McComb, Mississippi.  Based on the number of homes sold (9) in the last month (July 18, 2009-August 18, 2009), there is a 15.1 months’ supply of homes.  In other words, if there were no new residential listings, it would take 15.1 months to sell the current inventory at this rate of buying.  This is indicative of a slow market, not good for sellers because they have to keep their prices low to compete with so many other listings.   

The chart below* gives the number of residential units sold in McComb, MS, during a one-month time period, going several years back.  Prices should rise as the inventory gets closer to a much healthier four to six months’ supply, so that sellers are not competing so much with each other.  That will be the best time for sellers to enter the market.  I will plan to post the months’ supply every month if I can.  Please subscribe to my blog (see the right margin) so that you can be in the know!

*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.