Tupelo, MS

Yesterday, Ben Bernanke, Fed Chaiman, announced while taking questions after a speech that the recession was over. Although unemployment levels are alarmingly high, his stance was that on most technical levels, the recession has ended, but that it would be a long painful recovery, well into next year.

Recently, Standard & Poor's reported that its S&P/Case-Shiller U.S. National Home Price index of real-estate values increased during the second quarter over the first quarter of 2009, the first quarter-on-quarter increase in three years. Its index of 20 major cities also rose for the three months ended June 30 over the three months ended May 31, with only hard-hit Detroit and Las Vegas experiencing declines. The week before that, the National Association of Realtors reported that sales volume of existing homes was up 7.2% in July from June.

In short, does this data suggest that real-estate prices hit a bottom some time during the second quarter, and have now begun to rise? There's no way to be certain that this marks the end of the long, painful correction that followed the real-estate bubble, but clearly prices are no longer in free-fall. That means if you've been sitting on the fence, it's time to act.

As a real estate agent, broker, homeowner and investor, I can understand why buyers have been cautious. Few want to buy in down markets, just as stock buyers avoid bear markets. And for most people, of course, buying a house is a much bigger decision than buying a stock. But with real-estate prices nationally now down about 30% from their 2006 peak and showing signs of turning up, the prices aren't likely to go much lower. Every real-estate market is local, and so there may be a few exceptions. Overall, though, I can't imagine a better time to buy than now

The real attraction compared to bargain prices is the cost of obtaining a mortgage. Rates since Labor Day have dropped to some of the lowest levels of the last two years. 15 year rates were the most attractive however, there are some reports that lenders are moving loan closing costs upward.

In addition to bargain prices and great rates, buyers also should find plenty of homes to choose from. The national inventory of unsold homes was 4.09 million units in July, up 7.3% from June, according to the National Association of Realtors. Even the stricter appraisal process is working to the advantage of buyers. Appraisals are coming in far lower than most sellers have been expecting, forcing them to face the new reality of sharply lower prices. And with stricter standards, lenders aren't going to let buyers borrow more than they can afford, which protects buyers and helps to keep prices down.

Unless you're really prepared to accept the demands (and headaches) of being a landlord, direct ownership of real estate as an investment is not recommended. The days of buyers lining up to flip Miami Beach and Las Vegas condos are mercifully gone.

There are much easier ways to make money in real estate, such as real-estate investment trusts or buying shares in home builders and other housing-related businesses (such as Home Depot). Historically, the mean rate of return on real estate has been around 3%, according to research from Yale economist Robert Shiller, who co-developed the Case-Shiller index. Shares in REITs and other stocks have often done much better.

But there's a good reason homeownership has been such a central part of the American dream. It delivers security, pride of ownership, a sense of community and decent investment returns as a bonus. On the other side of the foreclosure crisis is another story. For every hardship story, and no doubt there are many, others are realizing their dreams of home ownership and getting what may well turn out to be the deals of their lives.

Partial content courtesy of Jeremy Less, Community Mortgage, Memphis, TN

I posted information in January about market timing and today I was reminded how tough it is, or isn't to do so. Watching the news over and over has been verifiably disheartening and recently, the few positive things thrown in the press mix are starting to have a positive effect on me.

I believe my mind has choosen to ignore the "bad" and pay strict attention to the "good". When the good news hits the airwaves, it is resounding to me. Am I re-programmed? I believe that one can be so tired of hearing nothing but negative, that subconciously, it's all tuned-out and then tuned-back automatically when we hear positive things. Can somebody please launch a "good-news" channel? Just think of the people that would tune in. Now, there is a whole new untapped market just waiting to be had!

Last January I wrote:

"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!"

There are some good things happening and maybe timing this market bottom is not as hard as it seemed it would be. I keep hearing that we are here and we very well could be. Then again, it may take a little while while longer but one thing's for sure, when the ride up comes, it will be a good ride to catch. As we all tune-in to the good stuff, good things will happen!

And if you are in the market to buy...then get in already and buy something!

All The Bad News of recent months and the toughness of this market has caused me to reflect on myself, my business and the past. When things seem bad, one rarly or can accurately sense that it can get worse, much worse.

To put things in perspective, when things are worse than bad, is it real or perceived? As "Seemingly" would have it, all the media "hype" does play on the public and entreprenureal psyche and contributes more to the degredation of business, mind and spirit, than bad business itself.

My reflection takes me back a couple of years ago (May '07) when business was starting to decline and the housing bubble started to leak. Just when our local market began to realized that business was in decline, and that there were definately strong external factors causing this downward trend, my business was stopped dead in the tracks of FATE ? (or, more accurately, the tracks of an automobile).

I was in my office at 4:59 pm on the Friday leading into the Memorial Day weekend. The last thing I remember was that my mouse pointer was over the 'shutdown' button on my laptop and my almost 'completed' thought was "I am going to take the entire 3 days off, relax, drink a fews beers, bratwurst on the grill, movie, etc., come back on Tuesday morning refreshed, replenished, and Hit It Hard!!!

and then .........

BANG!!!!

I felt the building shake before I actually heard the noise. I looked up from my computer and seen the ceiling tiles crash to the floor just outside my office door. A plume of white sheetrock dust seemed to roll up from the floor like that of a large bomb blast. Initially thinking that something came down on top of the roof of the building, I managed to stand and move to my office door where the first thing I recognized was a shiney chrome bumper. The front end of a car! In My Office! Yikes!!!

Right through the glass front of the building, through the conference room, and into the copy and work center of the back of the office. Everything that was between the front glass wall and the copy machine was ...er...well...rearranged...crushed...fodder.

So much for looking forward to a relaxing three-day weekend with friends and family. So much for all those prevailing last cognizant thoughts.

It took hours into the evening to secure the building, and weeks to get the mess cleaned and the office rebuilt.

As luck would have it, nobody was injured in the accident (funny how luck works - inches to the right, car would have hit brick and little penetration. A foot to the left, car would have penetrated my office and I would have been pinned behind my desk.)

Three Great Things (and one inevitable) came of all this. First, I learned how to survive in the face of adversity. When it seems like all the chips are down, it can get worse. It doesn't make any sense to dwell or worry about what could or might happen. I've learned to stay focused on the NOW and into the future! Deal with the bad when the bad happens. It wasn't easy to see my office in shambles and know that I had to keep going, but sometimes it's these type of events that make us all dig deep down for that little extra strength. We all have it in us, some of just fail to realize how to discover or access it.

All aside, I guess the moral of this story is that in the face of adversity, we can all discover ways to keep it all going. Finding ways to stay motivated should be a high priority to anyone associated with the real estate industry and/or everyone who might be affected by this country's current economic condition.

The Second thing was that when it was all over, I had a somewhat newly remodeled office. Yea, I lost some favorite pieces of furniture and other stuff was damaged, but the new office inspired me daily and provided me a visual reminder of my resiliance and determination to succeed. My new toughness was born this day and me made me ready for anything, even a down market (it's just unfortunate that for some of us, there is a price for discovery).

Never just give up withoug a fight!

I've since purchased another franchise and business is okay (a new franchise going into a down market was a questionable and gutsy decision in itself). Working harder and longer, and with more technology, keeps me in this new balance. The founder and CEO of EXiT Realty, Steve Morris, sums it all up this way:

"You never really lose until you quit trying."

The Third thing, and the one that bugs me the most is that deep down inside, something tells me that the concept of drive-thru real estate will someday work and, I'll be the last to realize it!

Oh yeah, the inevitable; Uninsured Driver!

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