Pearl River County has seen a huge market correction over the past few months with 87 homes dropping in price since September 15th, 2007. This market correction is well overdue since Hurricane Katrina sparked a high demand in real estate, and created a false sense of property values with sellers.
As I stated on my blog back in March, sellers had become unrealistic in the expectations of the value of their properties, and the average days on the market for most properties has lagged on over the summer, proving this assumption.
Other factors do play a part in our lagging market. Home owner's insurance at the beginning of this year was so high that many people, despite being able to afford the monthly house note, were dropped from qualifying because they could not afford the added expense of the high insurance rates. The excruciatingly slow recovery of the New Orleans area has also affected Pearl River County, because many businesses that were a supply of employees living and commuting from our area have not returned.
The good news is that home owner's insurance has now become more affordable here, and Pearl River County offers a lower insurance rate than the Coastal MS Counties and St. Tammany Parish, Louisiana. Comparatively speaking, Pearl River County is about 1/3 the insurance cost of Louisiana properties, and roughly ½ of the costs in Hancock County, MS. These figures are based on my experience while working with buyers and with closing properties over the past few months. This definitely offers buyers a more affordable home.
More good news for home buyers is the overabundance of properties to choose from. As of today, there are currently 488 houses for sale in Pearl River County alone, with over 1,000 properties total for sale, according to the Pearl River Board MLS system. A buyer has a better negotiating stance in this market than ever before, with many buyers asking sellers to pay closing costs, and other concessions.
Ad to this the fact that interest rates are now lingering in the low 6%'s, and you will see that now truly is the best time to buy a home in Pearl River County, MS.