So, How is the Real Estate Market in Mississippi?
Slower than usual, but to be expected! Values of homes in Mississippi increased by 28 percent in the past 5 years.
However, home sales fell by 16.5 percent for September 2023 YoY. It could be due to the mortgage interest rate rising to a new record of 8 percent! The number of homes available on the market in MS was at 6,000 in March, 6.4 percent more than in 2022. The Mississippi housing market is favorable.
Mississippi Real Estate Market Statistics
- Average home prices: The average median home price for homes in Mississippi is $258,000, up 1.6 percent over the past year. The median sales price is expected to increase only marginally because of MS’s tight supply of homes.
- Home sales: According to statistics from September 2023, home sales fell by 16.5 percent YoY! As of September 20th, 1,497 houses were sold, down from 1,792 sold in September 2022.
- average rent prices: Rental costs vary across the state. A typical tenant in Oxford costs $1,535 for a room, while a tenant who lives in Biloxi costs 1,510 dollars.
- Median Days on the Market: The median days of houses for sale is 35 days, up to six days YoY.
- Pending sales: The number of homes on the market was up 6.4 percent YoY compared to 2022. There are currently 7700 homes available for purchase across Mississippi.
- Months of supply: The average supply is three months. MS’s demand needs to be satisfied by the limited supply. The housing shortage in MS is more than that of the general housing market.
Mississippi Housing Market Predictions 2024
Mississippians have escaped the shockwaves of skyrocketing mortgage rates and increasing home prices in 2023. Here’s what we expect for the housing market in Mississippi:
- Home Sellers will return to the market from 2024 onwards: Buyers that stayed on to stay off the market in 2023 will be back. Particularly those who cannot stay away from new jobs or wish to relocate to an affordable location. Whitney is an analyst of 2008’s economic crisis with accurate forecasts that the baby boomers seeking to move down could also create at least 30 million homes. Yowaza!
- Mortgage interest rates are to stabilize by the second half of 2024. The mortgage rate reached 7.79 percent in October of 2023. This was the highest in the past 23 years. But, it fell to 7.35 7 % in November due to the weakening employment market and a slowing economy. The annual rate of inflation increased from 3.7 percent to 3.2 percent. The rates will stay higher than 6 percent but remain stable through the year’s second half.
- The number of home buyers is expected to increase: The historically high-interest rates have slowed the number of buyers in 2023. However, the demand for mortgages increased when the interest rates were lowered to 7.35 percent in November. The slowing of inflation and stabilizing rates are expected to bring back house hunters.
- Home prices will continue to Increase: Home prices rose steadily in the highest cities all across MS YoY, reaching $250K in September 2023. Experts say home costs will keep increasing until the supply-low demand dynamic shifts.
- New home construction sales are expected to increase: 12.3% of the homes sold in September were brand new homes, the highest level since 2022. Builders of homes have offered $30,000 in concessions to lure buyers in 2023. Sellers and builders will be competing to attract buyers in 2024.
- iBuyers Continue to Offer Lowballs:iBuyers offered 104.1 percent on market values in 2021. They provided 86 percent in 2022 and 70 percent in 2023. Opendoor and Offerpad have suffered losses of millions of dollars between 2022 and 2023. In their struggle to survive and survive, they’ll make low-ball offers.
Bonus Prediction: Buyer Broker Commissions Will Be Negotiable!
In a surprising sequence of events, the court in Missouri handed out over $5 billion of damages to the plaintiffs of Sitzer-Burnett. This prompted nationwide home sellers to lodge grievances with NAR over its Clear Cooperative Compensation Rule.
The cooperative compensation Rule (also known as the Participation Rule stipulates that listing brokers must provide the buyer agent a competitive amount of compensation when they wish to sell their properties on an NAR-affiliated MLS.
Lawsuits such as Moehrl, Gibson, Batton, Nosalek, and Batton 2 contest Batton 2, and Nosalek challenge the participation Rule. They charge NAR and other prominent real estate firms of colluding and colluding to keep commissions for agents in the high range.
The buyer agent’s compensation could be altered if the jury finds the defendants guilty in the abovementioned cases. Buyer agents could be obsolete in 2025! Phew.
Although buyer agents aren’t likely to become obsolete by 2024, they might be willing to negotiate commissions. This is probably the way they’ll remain in the game.
When Will the Housing Market Crash in Mississippi?
A market crash for housing within the Natural State is unlikely.
Mississippi’s strong economy, wide range of job opportunities, and low living costs will surely draw people and businesses looking for new opportunities.
Leakesville’s population has grown by 474.2 percent from 2010 and will reach approximately 5,598 in 2023. Oxford is the second fastest-growing town in Mississippi, and the population growing by 43%, bringing it to close to 25,859.
Mississippi is a paradise for a variety of businesses and tourism. Many cities provide a range of fun activities, including exploring beaches, sampling local cuisine, and absorbing the arts and entertainment.
The job market in Mississippi is good. Its unemployment is 3.3 percent. The cost of living for Mississippi can be 16 percent less than the nation’s average. Living in the hills rolling down and lush forest of Indiana is affordable. It’s unlikely that the housing market in Mississippi will crash anytime soon.
2024: Is it a Buyer’s or Seller’s Market?
2024 is an excellent opportunity for vendors. (And buyers, too!)
The prices of homes in Mississippi are increasing as they continue to grow until the dynamic of supply-demand alters. The number of houses available to be sold in MS was just 4,000 as of September 2023. There needs to be more supply to satisfy the needs of home buyers. This makes it the ideal time to sell a home located in Mississippi.
In reality, after the mortgage rate dropped from a high of two decades, 8.5%, up to 7.35% on November 1st, the number and quality of listings increased. This indicates that homeowners who could not sell because of the mortgage rate lock are now adjusting to rates of 7. By the time Spring 2024 arrives, many homeowners will follow the same pattern and post their homes on the Mississippi MLS.
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As the number of homes for sale in Mississippi rises, home buyers sitting on the sidelines will return. Indeed, the recent increase in mortgage applications indicates that buyers are returning.
House hunters who cannot find affordable houses in 2023 can also begin looking in 2024. The need for Mississippi homes will rise, so sellers might successfully dominate this market.
However, new constructions are expected to compete with existing homes for buyers’ attention. Builders have convinced buyers to purchase new homes by offering mortgage buy-downs that will cost $30K by 2023! Builders will continue to provide concessions until 2024, and sellers of homes may need to fight them.
New construction listings, baby boomers who want to downsize, and desperate home buyers are expected to flood the market by 2024. The homes to be sold within Mississippi will rise. Therefore, whether you’re seeking the perfect condominium in Oxford or looking to move into the Biloxi cooperative, you could very well discover your dream home next spring.