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McComb, MS, Residential Real Estate Market Report for August 2009

Thomas (Tom) Morgan Hometown Realty, Inc. GMAC Real Estate: Real Estate Agent in McComb, MS

McComb, MS, Residential Real Estate Market Report for August 2009*

For the period August 1-31, 2009, seven homes were sold in McComb. During this same period there were 28 homes put on the market (four times as many new listings as homes sold!). At the time of this writing there are 138 residential listings. This means that we have a 19.7-month inventory of homes for sale. (Please see my most recent blog about the state of the market in McComb, Pike County, SW MS. Because of the ratio used to figure the number of months of inventory—number of active listings divided by number of homes sold in one month--when only a few houses are being sold, the number of months of inventory can change by several months even when the number of active listings stays the same.) We are aiming for a six months’ supply of homes for a healthy, balanced market. To do this, we need people to buy, buy, buy! Also of note, the average number of days on market of the sold homes was 296 days (about 9.87 months). Note that this statistic is only for homes that have sold during this time period—there are several homes still listed that have been on the market for over a year.

Right now is a great time to buy a home! Why?

1. There are so many homes on the market in our area, you have, as they say, the pick of the litter! With so many homes to choose from, the chances are great that you will find one that very closely meets your needs and desires, whereas in a seller’s market, the pickings are slim, and if you really need to make a move, you may not be satisfied with what you can find!

2. Interest rates are at or near historic lows—visit Bankrate.com. Buy now before the rates rise again, and you may save many thousands of dollars over the life of your loan!

3. Because of the competition among sellers, prices are lower now than in a seller’s market. Buy now before prices rise again!

4. Because so many homes have been on the market for quite a while, many sellers who really need to sell may be willing to offer concessions they wouldn’t normally offer, such as help with closing costs. It never hurts to ask!

5. Regardless of what the stock market has done, home ownership is still the #1 way to build wealth over the long term. Real estate has delivered the most consistent positive return over any investment over the past 40 years. Did you know that 60% of the average homeowner’s total wealth comes from their home equity?!

Make Your Move with Morgan!

*Statistics are based on reports from the Southwest Mississippi Board of Realtors Multiple Listing Service, and are deemed to be correct, but are not guaranteed.

McComb, Pike County, SW MS, Residential Real Estate—State of the Market, August 2009

Thomas (Tom) Morgan Hometown Realty, Inc. GMAC Real Estate: Real Estate Agent in McComb, MS

McComb, Pike County, SW MS, Residential Real Estate—State of the Market, August 2009

Home sales in our area seem to be slowly picking up, but there is still a ways to go before we reach a balanced market. For those with good credit and provable good income, with a comfortable debt to income ratio, now is a great time to buy. Buyers can take advantage of some of the lowest interest rates in decades and they can also choose from among many (136!) homes competing on the market. For first-time home buyers, there is also the $8,000 tax credit advantage (through Nov. 30, 2009—see http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet=7 ). However, buyers who are weak in credit, income, and/or debt requirements are having a difficult time with many lenders.

I would say 75-80 percent of my prospects and clients are Louisiana residents looking for second homes and/or evacuation homes. The majority of these prospective buyers are looking to pay cash for very inexpensive homes and/or lots or land where they can place mobile homes.

To increase the chances of selling in this market, sellers need to make their homes as attractive and as move-in ready as possible. If you can afford to do so, go ahead and put on that new roof if one is needed, add central air and heat if your home doesn't have it, and make all the needed repairs and cosmetic improvements ahead of time, so that your home will stand out against the competition! Because there are so many homes on the market competing against each other, sellers also need to price their homes accordingly (= aggressively). I have seen many recent price reductions on homes, many of them around 10 percent. It is better to enter the market with an attractive price, rather than drop the price every few months. The first month your home is on the market will most likely be the one in which you get the most prospective buyers. If your home is priced too high, some buyers may think it is out of their range and not make an offer, or not even view the house to begin with! Don't let your listing become stale or neglected!

There are currently (as of Aug. 19, 2009) 136 homes on the market in McComb, Mississippi. Based on the number of homes sold (9) in the last month (July 18, 2009-August 18, 2009), there is a 15.1 months’ supply of homes. In other words, if there were no new residential listings, it would take 15.1 months to sell the current inventory at this rate of buying. This is indicative of a slow market, not good for sellers because they have to keep their prices low to compete with so many other listings.

The chart below* gives the number of residential units sold in McComb, MS, during a one-month time period, going several years back. Prices should rise as the inventory gets closer to a much healthier four to six months’ supply, so that sellers are not competing so much with each other. That will be the best time for sellers to enter the market. I will plan to post the months’ supply every month if I can. Please subscribe to my blog (see the right margin) so that you can be in the know!

One Month Time Period

Number of Units Sold

Average Days on Market of Sold Units

This month so far--July 18, 2009-August 18, 2009

9

155

Last month--June 18, 2009-July 18, 2009

9

149

Two months ago--May 18, 2009-June 18, 2009

7

115

Three months ago-April 18, 2009-May 18, 2009

5

122

Four months ago--March 18, 2009- April 18, 2009

10

157

Five months ago—February 18, 2009-March 18, 2009

10

129

One year ago—July 18, 2008-August 18, 2008

9

117

One and a half years ago--Feb. 18, 2008-March 18, 2008

8

95

Two years ago—July 18, 2007-Aug. 18, 2007

24

106

Two and a half years ago—February 18, 2007-March 18, 2007

15

144

Three years ago-- July 18, 2006-August 18, 2006

23

90

Three and a half years ago—February 18, 2006-March 18, 2006

22

167

Four years ago (PRE-KATRINA)-- July 18, 2005-August 18, 2005

13

167

Four and a half years ago (PRE-KATRINA)—February 18, 2005-March 18, 2005

11

136

*Statistics are based on reports from the Southwest Mississippi Board of Realtors Multiple Listing Service, and are deemed to be correct, but are not guaranteed.

McComb, MS, Named One of Top 20 Retirement Neighborhoods in America

Thomas (Tom) Morgan Hometown Realty, Inc. GMAC Real Estate: Real Estate Agent in McComb, MS

McComb, MS, was recently named by NeighborhoodScout as Number 9 in top neighborhoods to retire in. Click for more info.

McComb, MS: Special Blood Drive March 7, 2009, for Tommy Morgan (That's Me!)

Thomas (Tom) Morgan Hometown Realty, Inc. GMAC Real Estate: Real Estate Agent in McComb, MS

I want to let everyone know about a special blood drive that will be held for me soon. It will take place in the "old" fellowship hall (Ewell Martin Room) at J.J. White Memorial Presbyterian Church, 110 Third Street, McComb, MS, on Saturday, March 7, 2009, from 9 AM until 2 PM. Please support this blood drive if you can, either by donating blood or offering to help out. If you can't be here to donate this time, please try to donate at another blood drive, if you are able!

During the first part of January I experienced a bleeding colon due to diverticulosis. During my five days in ICU I received twelve pints of blood. That's a good bit, as I understand the average human body contains eight to twelve pints! I am much better now, and don't require new blood at this time, but for every pint of blood donated in my name, I will receive credit on my blood bill at the hospital. Patients are charged several hundred dollars per pint of blood transfused (unless they are part of a blood assurance program--see my previous blog on our Kiwanis meeting with Katie Swinney of United Blood Services ). In addition to helping me with my bill, and more importantly, this drive will help supply the blood bank for future needs of people with various blood types.


Me when I was in ICU. I actually look good here. When I presented at the ER, my wife said I was white as a ghost. My BP was 79/40!

Here are a few facts about the need for people to donate blood:

1. Every day, about 40,000 units of blood will be needed nationwide.

2.Every thirty seconds, ten people (perhaps one of your loved ones) will need blood.

3. About sixty percent of the population will need blood or blood components at some point in their lives.

Every donor will receive a free T-shirt and cholesterol check. To be given priority at donation time, you can make an appointment online at www.bloodhero.com (sponsor code jjwpm). To learn more about blood donation, visit United Blood Services . You may want to visit their frequently asked questions page, which answers questions about age and weight requirements, waiting time between donations, how to prepare for donating, among other things. See also the donor qualifications page. For questions regarding health, medications, or travel deferrals, call United Blood Services at 1-800-880-0743.

Also, to avoid having to go to the hospital like I did, be sure you include plenty of fiber (fruits, vegetables, nuts, etc.) in your diet, even if you don't really want to eat them! And if you do notice unexplained bleeding, please get to an urgent care facility as soon as you can!

Best wishes, and thank you!

McComb, MS: McComb School District Faring Well with State Education Budget Cuts

Thomas (Tom) Morgan Hometown Realty, Inc. GMAC Real Estate: Real Estate Agent in McComb, MS

Recent education budget cuts handed down by Mississippi Governor Haley Barbour have led many parents to wonder: "How will this affect the education of my child?" Both parents and taxpayers do not really need to be concerned, according to both McComb School District (MSD) Finance Director Cathy Jones and Superintendent Therese Palmertree. Jones said MSD is "well in the black" financially. Palmertree emphasized that the district will not cut items that directly affect the quality of education for the students. Changes to the budget would include such things as the possible non-renewal of certain "non-essential" positions, reduction in travel, and greater fuel conservation.


MSD Superintendent Therese Palmertree, left, with Finance Director Cathy Jones

In order to compensate for a state revenue shortfall, Governor Barbour cut expenditures to state agencies by about $158,000,000. Of that amount, reductions of state monies to public elementary and secondary schools totaled about $85,000,000, the majority of which included cuts in the Mississippi Adequate Education Program (MAEP). MAEP is "the state formula used to establish adequate current operation funding levels necessary for the programs of each school district to meet a successful level of student performance as established by the State Board of Education using current statistically relevant state assessment data."

Based on a memo from Wanda Cummins, Director of the Office of School Financial Services, Mississippi Department of Education, the MAEP reduction amount for MSD is $425,486.00, leaving $12,765,890.00 in MAEP funds for the district. This is about a 3.23% reduction for fiscal year 2009. The 2009 fiscal year runs from July 2008 to June 2009.

The first area of possible reduced spending is that of positions, whether teaching or clerical, that could be considered non-essential to the instructional process. When asked whether teacher positions would be affected by the budget cuts, Jones said, "We are looking at each position--if someone leaves--whether or not we'll fill it. We'll leave positions open as we can. But it will certainly be on a case-by-case basis." Palmertree added, "We have what we call a RIF policy (Reduction in Force), and we are making every effort not to have to utilize that board-approved policy. So instead of doing that, we have chosen to go the route of looking at those who are leaving and looking at those positions on an individual basis, as to whether it is an essential position that directly impacts children. What we're trying to do is for those positions and programs that directly impact the quality of the educational experience for children, we're trying to leave those alone. And by that we mean the teachers and assistant teachers, extracurricular activities, and sports, because we believe all of those are positives that directly impact children."

As far as vocational courses, Jones said that is strictly state-funded, and she does not anticipate any reductions in spending in this area. Palmertree added, "As a matter of fact, we're actually strengthening the vocational programs, because we are a pilot site for the high school re-design through a grant that involves strengthening those programs." Jones said the vocational curriculum has been updated for today's world of work, and the state has recently "pumped in hundreds of thousands of dollars" into Mississippi's vocational programs.

National Board Certified Teachers receive salary supplements of $6,000 to recognize them for their rigorous training to become board-certified. Although the program received 5% ($300.00) cuts per person in their supplements, MSD is absorbing the cuts so that the teachers can still be paid the full amount of their supplements.

There will not be any spending reductions in instructional supplies, as textbooks and other supplies were already purchased at the beginning of the year. "A lot of those are accreditation requirements, and we're certainly going to meet all those standards," Jones said.

The second area that will be reduced is travel. "We're going to look at prioritizing travel, and if it's travel that's essential to the quality of teaching and learning . . . we're going to approve that," Palmertree said. On the other hand, an example of possible restricted travel would be in athletics; travel to tournaments outside the conference will be curtailed.

The third area of reduced spending is utilities. The district has already begun reducing its heating and cooling expenses. Each of the principals is working on an energy conservation plan, and reasonable measures are being taken to adjust thermostats to save money.

Although some districts in the state are facing dire consequences with the budget cuts, MSD is not one of them. Jones said, "We have held a fairly conservative budget. We monitor it quite closely-every transaction is scrutinized here, and our budget is strictly followed. We've had perfect audits for the past twelve years."