Dear Friends,

What a refreshing beautiful spring/early summer we have enjoyed locally! Of course, this came after the February tornadoes and the loss of 560 of our local homes. For now, the magnificent magnolias, daylilies, gardenias, and hydrangeas are a daily delight. 

Our family enjoyed our BIG graduation event in Vancouver where my daughter DeLisa was awarded a doctorate in soil sciences from the University of British Columbia. She has gained respect from her professional peer group for her research and practical application in sustainable, regional food resources. Grandson Andrew, a senior agri-econ major at Mississippi State, is involved this summer in a fascinating work/research project related to solutions for the diminishing water resources in the Mississippi Delta. It is encouraging to see our younger generations involved in these important issues of feeding future generations. 

Opportunities abound in the housing market but challenges remain! The shape of home ownership and housing markets has changed dramatically and will continue to change. This fact is locally obvious and it was highlighted recently at the Realtors 2013 Mid Year Legislative Meeting and Expo. 

Pine Belt Real Estate Snapshot

  • Our average team home sale is $181,258, the lowest is 5 years. The local MLS Average is $138,874 currently. 
  • Homebuyer expectations are high -  
  • • unwilling to compromise for a home that does not accomodate their personal lifestyle choices
  • • exceptional value often including neighborhood amenities
  • • almost always immaculate condition with no deferred maintenance. 
  • The $150,000-$299,000 has returned to a significantly higher market demand. The $150,000 and below has consistantly been at higher demand; but, the $300,000 and above demand remains soft.
  • Nearly all of the speculative new construction is below $250,000.
  • Fewer move-up buyers; increase in move-down buyers.
  • Slightly higher interest rates and higher PMI costs.
  • Price sensitivity for both buyers and sellers.

“Residential mobility has been falling since the 1990s from 20% then to 12% now. In the future, proposed regulations requiring larger down payments could also significantly impact mobility.” - NAR Chief Economist Lawrence Yun. 

“Homes, on the whole, remain very affordable. Only 13% of medium family income is being consumed by mortgage payments versus 24% in 2006.” - Kiplenger Letter

The majority of current home owners will have new record-low interest rates. They are unlikely to give their low rates up to buy a new home. 

Homeownership continues to help build wealth especially for lower to middle income families, despite the recent housing crisis.

Right now is a special “moment in time” to buy a home or invest in rental property. Our buyer specialists stand ready to help your family locate a new home for your family or an investment to help you hedge against inflation. 

Looking forward to seeing you and your families at our 14th Annual July 4th Celebration! 

Your Grateful Realtors,

 

DeLois & Team