Olive Branch, Mississippi Real Estate Market Update

Olive Branch, Mississippi

Real Estate Market Update

March 28, 2008

Residential properties in Olive Branch can be found in a wide array of price ranges.  There are currently 828 homes listed for sale with prices ranging from just below $100,000 up to over $500,000 . . . with just a few over the $1,000,000 mark.  The pricing breaks down as follows:

< $100,000 = 15 homes

$100,000-$149,999 = 125 homes

$150,000-$199,999 = 193 homes

$200,000-$299,999 = 332 homes

$300,000-$400,000 = 125 homes

> $400,000 = 38 homes

The average days on market for these listed homes is 165 days.  The average list price is $259,062.  The median list price is $235,505.

In the previous six months in Olive Branch there have been a total of 346 listed homes sell.  The sold homes for the last six months break down as follows:

< $100,000 = 35 homes

$100,000-$149,999 = 77 homes

$150,000-$199,999 = 97 homes

$200,000-$299,999 = 81 homes

$300,000-$400,000 = 43 homes

> $400,000 = 13 homes

The average days on market for these sold homes was 129 days.  The average sold price was $204,176.  The median sold price was $179,950.

Based upon the information above there appears to currently be a 14.3 month overall supply of homes in Olive Branch IF no other homes come on the market.  This is Absorption Rate . . . the rate at which the current inventory of homes would be expected to sell.  The breakdown regarding supply in the price ranges is as follows:

< $100,000 = 2.6 month supply

$100,000-$149,999 = 9.7 month supply

$150,000-$199,999 = 11.9 month supply

$200,000-$299,999 = 24.6 month supply

$300,000-$400,000 = 17.4 month supply

> $400,000 = 17.5 month supply

OK!  That is a lot of information and a whole lot of numbers to absorb, so what the heck  does it all mean for the average buyer or seller???  Well, here are my thoughts:

BUYERS

Buyers, your best bets for getting the best deals are going to be for homes $200,000 and above.  These sellers are in heavy competition, especially with the builders . . . because this is where the majority of the new construction exists.  So, does that mean that you should find a house that you like and then lowball it?  The answer to that question lies in what the market analysis says for that house . . . this is something your Realtor can prepare for you once you find a house that you like.  It is very possible that the seller has priced their home to sell . . . which means they may have it already priced below what the market indicates it should sell for.  If this is the case, even in this market, you may still need to act fast and make a reasonable offer, or someone else may buy the house out from under you.  However, if the market analysis shows that the home is priced above the market, then get advice from your agent on how low you should offer . . . and be sure that when presenting the offer on your behalf, your agent provides supporting information for why you offered what you did.  The seller may still feel insulted with the low offer, but if there is a supporting CMA, it could lessen the sting for them.  Also, keep in mind that nearly any time you make a "lowball offer" you run the risk of making the seller mad, which could make them much tougher to negotiate with in the long run.  Talk to your agent about this.  Also keep in mind that this is NOT the market to overpay for a house . . . unless you can find nothing else you like and you plan on being in the house for a very long time . . . if that is the case, then buy the house you want.

Deals will also present themselves below the $200,000 mark . . . but you will be in tighter competition for those deals, so be sure to act fast!  If you are looking for a home below $100,000, you may be in a situation of "take what you can find" because those are in very short supply in Olive Branch.

SELLERS

Sellers, first, if you have a home in the $200,000+ price range in Olive Branch, let me apologize to you . . . just in case I made you mad by what you may have read above in my comments to the buyers.  However, remember "it is what it is" . . . and the numbers "are what they are".  So, how, as sellers do you deal with it.  Like this:

First and foremost, get a great Realtor, who is backed by a great company and lots of support.  This is NOT the time to be looking for "cheap" when it comes to who helps you get your home sold . . . especially if you are in a position that you HAVE TO sell.  The agent you hire needs to have a top notch marketing plan and be able to show you that they can get results.  Ask the tough questions about their average days on market, what support they get from their company, what they absorption rate is for homes in your price range (if they can't tell you this, then they have not done their home work . . . or they don't know what it is).  Hire your agent based upon their marketing plan, their knowledge of the business, if you feel they can be trusted, etc . . . DO NOT hire an agent based solely upon what they tell you they can get for your home.  An agent cannot determine a selling price . . . the market does that.  The agent can only render their opinion based upon the market's recent history, the current market competition, the absorption rate, etc.

Second, DO NOT overprice your home.  There are many reasons for this.  In a highly competitive market, overpriced listings stay on the market much longer . . . even if you do reduce your price throughout the life of the listing.  Homes that have a longer than average days on market get "shop worn".  In other words, folks don't get as excited about them and wonder what is wrong with the house, since it has just been "sitting".  Your prime time for attracting buyers is within the first 3-4 weeks . . . so it is imperative that your home is priced right from the beginning.  After the first few weeks, all of the "pent up" buyers go away, and then all you have are new buyers coming into the market place.  "Pent up" buyers are those who have been looking and haven't found yet what they want . . . so when a new home comes on the market, it is like fresh meat and all of the "pent up" buyers go rushing to it.

Third, BE SURE your home is in tip-top condition.  This means that it should be in good repair, squeaky clean (inside and out), and free of clutter.  You may also want to consider having a professional stager assist with staging the home to sell.  However, if you have hired a great Realtor and you listen to AND do the things that they suggest, you should be in a good position with this regard.

Fourth, focus on the features of your home that set it apart from others.  For instance, if in your price range all homes have tile floors in the kitchen and baths, don't focus on that.  Instead, focus on the fact that your is in a quiet cul-de-sac and has panoramic views of the countryside . . . or whatever the special features of your home are.

Sellers who see the market for what it is and poise themselves to be one step in front of the competition (whether by marketing, price, condition, features, or all of the above) will see the best results.

Good luck to you all, whether you are buying or selling.  Opportunities exist for everyone if you know what your are doing and hire a great Realtor.

For additional information, don't hesitate to contact me at 662-895-8300 or 901-210-8045.

Tracy

P.S. The information regarding homes listed and sold was compiled from the MLS system of the Northwest MS Assoc of Realtors.  It is deemed reliable, but not guaranteed.