February 2011 Sales Statistics - Tupelo Area, NE Mississippi
Total Closed Sales: 69 (this is a 15.9% decrease from Feb 2010 and a decline from 73 the month prior)
Total Foreclosures Sold: 21 (compared to 24 the month prior)
Average Sold Price: $132,008 ($102,516 Jan)
Lowest Sold Price: $9,900
Average List/Sell Price Ratio
Average Days on Market 165 (solds) (increase from 123 one month earlier)
Total Homes on Market as of 1/1/2011 1,220 This is a slight decrease in available residential inventory from the month prior but does not reflect total homes for sale. My best guess is that there are nearly 200 homes on the market for sale but not listed through the Multiple listing service. We continue to see many homes languish on the market with many homes being extended past their original list contract period and is reflected as an increase in the days-on-market number. A significant decrease in the ratio between Original List Price to Actual Sale Price was noted for February. This is indicative of a continued deterioration of a weak bottom. Closer inspection of this number is suggested in order to determine whether this weakness is confined to a certain segment of the overall market. Overall, Buyer's remain in control of the selling side of our market. Our market continues to experience targeted home selling difficulties with a continued lack of consumer confidence in the overall housing industry outlook.
Technically our market remains steady, but sluggish, with some homes selling and others not being shown. Sales continues to be driven by the factors of location, condition, and price. Buyers remain cautious but recognize good pricing and overall value and are picking up the "deals". February trended away from lower priced, smaller homes and moved slightly up the scale to a slightly higher price range as indicated by higher "average" and "median" sales prices. Larger expensive homes are still being picked out of the larger mix of available properties, but still at a cautious pace.
Overall, our market shows signs of weakness with a yearly high of 19.17 months of inventory (Feb), compared to 12.05 months of inventory last March (steady upward trend). This is also reflected in the national trend of inventory.
Interest rates continued to be pressured upward through the month, with a sharp downtick noted by month end. 30 yr fixed rates at the beginning of February hovered around 5.15% and dropped to around 4 7/8 by months end. Widespread opinions continue from within and outside the housing industry and a that there appears to be some more downside risk to home prices, mainly in certain regions and large cap markets in Cal, Fla, Ariz, and Nev. NE MS real estate pricing appeared stable coming into February but languished with a significant drop in list/sell price ratio.
Even so, there still appears to be little downside risk going forward. Homes purchased now with a long term investment outlook offers that same good long term return on investment potential. With looming inflation concerns related to recent spikes in oil prices, the consumer should remained tuned in to mortgage interest rates as higher rates decrease home affordability. Any anticipated decline in local home prices when calculated along with higher interest rates will actually cost the new homeowner a great deal of money in the long run. The time to buy is still now, not later!
Numbers compiled from Northeast Mississipi Board of Realtor MLS statistics on 3/3/2011 and may be within a slight margin of error based on totals and timely reporting. This compilation does not include private or other sourced sales activity.
For more detailed information about our market or neighborhood specific reporting, please contact Randy Landis at EXIT Realty Premier, Tupelo. Randy is an Accredited Consultant in Real Estate.