About Pike County, MS

McComb, MS, Residential Real Estate Market Report for February 2010*

For the period Feb. 1-28, 2010, ten homes were sold in McComb. During this same period there were 20 homes put on the market (twice as many new listings as homes sold). At the time of this writing there are 176 residential listings. This means that we have a 17.6-month inventory of homes for sale. (Please see my 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 four to six months’ supply of homes for a healthy, balanced market. To do this, we need consumers to buy, buy, buy! Also of note, the average number of days on market of the sold homes was 211 days (about seven 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. We are seeing a good number of price reductions across the market.

Here is a chart comparing residential sales activity for the last several months in McComb, MS:

It’s good to see we sold more homes in February than we did monthly during the previous four months. It’s too early to tell yet, but let’s hope it is the beginning of a powerful upward trend.

Is the lower than usual sold price to list price during the last two months a cause for concern? It could be a reflection of desperate sellers doing what it takes to get their home sold. Or possibly sellers realized that the market simply didn’t support their asking price. Whatever the case, it’s too early to know whether it is a trend.

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 completely 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 (as they are beginning to do in several major markets across the country)!

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 or redecorating allowances. It never hurts to ask!

5. Buyers still have time (although the clock is rapidly ticking!) to take advantage of the extended and expanded homebuyer tax credit. Remember, it’s not just for first-time homebuyers now! See the deadlines and learn all about the new tax credit at http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit .

6. 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!

And become a fan at http://www.facebook.com/tmorganrealtor

*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.

Buyers and Sellers Benefit from REALTOR^® Expertise in Distressed Sales

Thomas Morgan with Hometown Realty, Inc. GMAC Real Estate in McComb, Pike County, Mississippi, has earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS^® offers the SFR certification to REALTORS^® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new "traditional" transaction. REALTORS^® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

"As leading advocates for homeownership, REALTORS^® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results," said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. "Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it's extremely important to have the help of a real estate professional like a REALTOR^® who has earned the SFR certification for these kinds of purchases."

The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS^® stay current on national and state-specific information as the market for these distressed properties evolves. To earn the SFR certification, REALTORS^Ò are required to take one core course and three Webinars. For more information about the SFR certification, visit www.REALTORSFR.org or call 1-877-510-7855.

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

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!

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