Northwest Mississippi Foreclosure Market Report - Jan. 2009
by Pam Simpson
The Kudzu Vine
For the week ending 1/16/2009, there were 24 homes added to the foreclosure inventory in Northwest Mississippi. There were 31 price reductions this past week, and 11 went under contract.
Here is a chart showing the foreclosure activity in the 4-county area from mid-March 2008 to the present.
After remaining fairly stable from November through the holidays, the number of homes added to the market jumped over the past 2 weeks. On the flip side, the number of pending sales has dropped off steadily since mid-November. Keep in mind this graph represents the 4-county Northwest Mississippi market. There are many "pockets" where the sales activity has remained very active.
About 8.2% of the active listings in Northwest Mississippi are foreclosures (including VA, HUD, Fannie Mae, and REO). That is a jump from 6.8% around mid-November and 5.4% in mid-September. Here is a breakdown of the foreclosure market by community:
As with other areas of the country, a good percentage of the homes sold over the past 3-6 months have been foreclosures as opposed to non-distressed resales. However, homes that are priced true to our market are seeing rapid sales, regardless of whether they are resales or foreclosures.
We are seeing an increase in the number of builder (new home) foreclosures. This trend is expected to continue as some builders are unable to weather the weaker housing market. Some parts of our 4-county area saw a tremendous increase in speculative building over the past 5 years which has contributed to the bloated inventory.
This is proving to be a fantastic opportunity for qualified buyers. Many are taking advantage of the low interest rates and great home prices.
If you are considering purchasing a HUD home in Northwest Mississippi, please read this HUD Home FAQ.
5 Surefire Ways To Let That Foreclosure Slip Through Your Hands
Disclaimer: All information provided by this author may be based on information collected from several sources and is believed accurate but not guaranteed.