About Lee County, MS

Recent changes concerning the Tax Credit for first time homebuyers has been modified in the new stimulus pacakge signed by President Obama this week. The major change is that this money DOES NOT have to be paid back. I urge anyone who is in the market to buy to seriously look at the benefits of this credit.

If you are currently in the market for a home, you should contact your REALTOR, mortgage professonal, or tax preparer, to help you determine whether this Tax Credit is applicable to you and your family. If you do not have a REALTOR, you can feel free to contact me at any of my listed numbers.

Randy Landis, EXiT Realty Premier (662) 842-7653

Information downloaded as provided by the National Association of Realtors.

Tupelo/Lee County Area MS Market Report - Jan 09

by Randy Landis, GRI, ABR, RFS

Northeast Mississippi Real Estate

The following is a market and sales breakdown for the Tupelo/Lee County and the surrounding region for Jan 2009.

Because reported sales activity comes from a minimum of a 10 county area, these numbers will be divided into two catagories: 1) Lee County and 2) All Areas.

Lee County is a regional market and employment center comprised of the following major communities: Tupelo, Belden, Saltillo, Guntown, Baldwyn, Mooreville, Plantersville, and Verona.

All Areas include include the Lee County area and other population centers such as Pontotoc, Fulton, Booneville, New Albany, Amory, Baldwyn, Okalona, Corinth, Ripley, and many other smaller communities, located across the surrounding nine county area.

TUPELO/LEE COUNTY

There were 28 residential sales in Tupelo and surrounding Lee County for the month of January 2009. The average sales price was $124,707 and the average days on market (DOM) was 124. The sale prices ranged from a low of $23,000 to a high of $415,000 with the median at $119,000.

There are currently 684 Active residential listings in Lee Co/Tupelo. Using a 60-day average, that represents a 13.1 month supply of inventory.

All AREAS

There were a total of 49 residential sales reported for January 2009. The average sales price was $105,871 and the average days on market (DOM) was 151. The median sales price was calculated at $82,000 for January.

There are currently (as of today's date) 1,333 Active residential listings across the area and based on a 60-day average, that represents a 9.5 month inventory.

4.8% of all listings are HUD, REO or other foreclosures. A 8.3% drop in sales in Dec 2008 compared to Dec 2007, and a 52.8% decline was noted for Jan 09 compared to one year earlier.

Some parts of our region qualifies for USDA loans and there are a couple of lenders that provide this money. Smartly priced homes are moving more quickly than normal and do draw multiple offers.

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About the author:

Randy Landis is a Broker with EXiT Realty Premier in Tupelo, MS. and specializes in residential real estate. Visit www.exitpreview.com for a complete list of area real estate for sale.

Disclaimer; All information provided by this author may be based on information, all or in part, collected from multiple sources, including from the Northeast Mississippi Board of REALTORS, and is believed to be accurate but not guaranteed.

Posted 2/11/2009

ATTENTION BUYERS!!! Buy Now! - this is the message industry experts are attempting to convey. And not just because someone needs that extra sale or needed commission. With mortgage rates at historical lows, and property values at or near bottom, industry insiders are scratching their heads wondering why more people aren't taking advantage of this great buying opportunity.

As the renowned real estate trainer and mentor David Knox quotes:

"Some get it, some don't!

Some will, some won't!

Those who do, do! Those who don't, don't!"

The message is really simple from a different perspective. REALTORS and agents across the country know how trying it has been to find good qualified buyers. They are out there! Finding Buyers hasn't been my problem - it's getting them to move. Those that are eligible to buy it seems are fence-sitting waiting for the bottom of the market. "My Uncle Ned told me I should wait for the bottom of the market!" Uncle Ned, the meatcutter, pipefitter, airline pilot, etc. Everybody has an Uncle Ned, right? Uncle Ned's advice isn't close to the same advice a local REALTOR or Mortgage Professional would give.

The other day, I asked a friend of mine who plays the stock market, whether he has ever successfully timed the bottom of a market swing. His reply - "No." If market timing were that simple, there would be many more rich people in this world. Everything we were ever taught, while in school and during the course of our entire lives, was to always Buy Low and Sell High! If most buyers would concentrate more on just buying low with historically low interest rates, then market timing isn't really that important. Waiting for prices to drop another 5-10% means nothing when interest rates climb three quarters to a point above where they currently are.

Consumers will lead us out of this recession and when it's all in the rear-view mirror, there will be a big collective sigh of relief and two catagories of post recession comments: 1) "I'm sure glad we bought when we did!" and 2) "I sure wish I would have bought when the market was at the bottom."

You see, nobody knows what the bottom looks like when you are there. It's only when your on the way up that you recognize it. By then, you missed it!

Hello Johnny Public! Thinking about buying? JUST DO IT!!!

A letter received from a local mortgage company by my office on Sep 3rd, 2008, containing the following excerpt:

In October 2007 we sent out a letter talking about the changes that were happening across the country and how it might affect us. At the time of the first letter the biggest problems were coming from seven states. That is still the case. Adjustable rates and Option Arms were causing most of the problems and again that is still true. Today, however, the falling values of homes across the country are causing the issue to deepen and broaden. Coupled with high-energy costs the consumer in the US is under tremendous strain. Most experts believe that nationally the real estate market will bottom out sometime in the next 6 months if it has not already. Certainly we all hope this to be true. Our market locally is in a good position to move forward but if the picture is too negative nationally it will continue to slow our recovery locally. Last October we stated, "Locally we are going to have to deal with tighter guidelines, higher interest rates on riskier loans, and some program discontinuations." This has proved to be very true. We have seen programs completely discontinued and are about to experience another round of this. On thing that we did not foresee at all was the total disintegration of FNMA and FMAC. These companies are on the verge of bankruptcy. While most believe the Fed will step in to "save" these companies, no one knows what impact that will have on the market. The next 6 months will hold significant change in our industry."

In addition to the above comments Mr. Shirley also pointed out that Down Payment Assistance (DPA) programs could go away October 1st, 2008. Most lenders are adopting guidelines that will end these programs. Also on Jan 1st, 2009, the minimum down payment for FHA is going up to 3.5% from 2.5%, and Up-Front PMI is going to change, however, the new rates are unknown at this time.

This all equates into two main delema's: First, fewer buyers period! (expecially in the entry level market) Second, an added responsibility on the REALTOR. We must all learn to re-educate our buyers of times past, when money was needed to buy a home.

In the words of the old beekeeper: "No Money - No Honey!"

Portions Printed with permission from Mr. Jim Shirley of Gum Tree Mortgage, Tupelo, MS

Can you believe it? What this market has done for luxury living! In one of Tupelo's golf course communities, there are homes for sale that just aren't moving. Moving quickly that is. Homes from $299,000 to $600,000. Bargains compared to like properties in other parts of the country. It's not that they are viewed as over priced...just that they are viewed as pricey! I believe the difference herein lies between affordability, consumer confidence, and perceived risk.

Some lots are elevated, and with a view of the golf course and water, they are some of the most enjoyable views real estate has to offer in this area. It's not that nobody wants to live here...just unable.

A couple of years ago, some of these homes would not be on the market but for a short time.Now the opposite is true. When higher priced homes for sale saturate the market, there is just too much competion from would-be move-up buyers trying to sell their moderatly priced homes. With out the desire (or the ability) of the young consumer to enter the real estate market, the domino effect in reverse is realized.

Once the economy begins it's positive treck again, first time buyers will begin showing up with good enough credit, money, and the desire for home ownership. And the the move-up buyers will move up. And then we will progress. Question is: where is the big kick start going to come from? Surely not from another $600 tax rebate that, for the most part will go into my gas tank, and ultimately to the big oil companies in the form of profits. I think we will need something bigger.

Maybe a new president and a new round of tax cuts can do it!

For those who have the means and the desire, you should consider buying now!!! This buying opportunity will not be around very long and it will be years before a similar opportunity presents itself. If you plan on living until you reach, say 300, then ok....WAIT!

This Cub Fan thinks this is the year (or maybe next) it will all turn around! It's going to happen. I Believe!