While the long-term prospects for Mississippi Real Estate are positive, the short term projection is for further deflation of roughly 10% this year in the major cities. This is in spite of willing banks and mortgage companies, and a modest jump in sales due to the first time home buyers tax credit. For more on this, see the following article from Housing Predictor.
A jump in home sales is getting people in Mississippi to the place they were a little after Hurricane Katrina hit the state – into another phase of bewilderment wondering just what their housing markets are headed for these days.
The turn around has been prompted mainly at the lower end of the market by the federal government's first time home buyers tax credit, and the rebound in sales just might last a while in Mississippi to aid the state in its long running recovery.
Housing prices in Jackson are on the slide, despite a rise in sales. The state's most populated city is seeing foreclosures rise amidst the worst market downturn since the Great Depression. Jackson had one of the highest levels of subprime and Option Arm lending in the south, and as a result is seeing homeowners who are unable and sometimes unwilling to refinance their mortgages.
Jackson housing sales boomed during the real estate frenzy only to become one of the south's worst hit communities. The fall-out from the credit crunch is projected to trigger further deterioration in the marketplace, and is forecast to hurt housing prices through at least the rest of the year on deflation forecast at 12.2% in 2009 on average.
Local Mississippi Housing Markets at a Glance
| City |
Forecast |
| Jackson |
-12.2% |
| Biloxi |
-10.1% |
| Pascagoula |
-9.2% |
| Hattiesburg |
-10.7% |
Down state on the Gulf of Mexico, the special "Gulf Zone" tax incentive program is getting off its feet to aid Biloxi in its recovery from Hurricane Katrina four years ago, which devastated the region. New construction projects are getting approvals, despite the recessionary economy.
Aided by government programs, local mortgage companies and banks are willing to lend on property, but homeowners insurance has become more expensive slowing the rebound of the market. Home sales show an increase as Biloxi deals with a long haul recovery that is certain to take years. Housing Predictor forecasts Biloxi will see slower deflation over the remainder of the year with values averaging a drop of 10.1% in 2009.
In Pascagoula the market is beginning to see signs of life again, but has still been experiencing sluggish home sales and is expected to until the government gets a handle on the financial crisis. Rebuilding after the storm has been slow, and housing values are forecast to average deflation of 9.2% in 2009.
The infrastructure is beginning to catch up with the boom in building that Hattiesburg experienced after Katrina. Home sales have begun to pick-up after falling off because of the credit crunch. As an inland city away from the Gulf, Hattiesburg population ballooned after Katrina as new home construction boomed.
Feeling the pressure from the financial crisis, community leaders came together to get the word out that Hattiesburg has a lot to offer, including the highly touted University of Southern Mississippi. Hattiesburg has weathered the financial storm in strong measure compared to many other areas and is projected to continue its pattern of growth over the long haul, but not before housing values take another hit, forecast to deflate 10.7% in 2009.
This article has been republished from Housing Predictor. You can also view this article at Housing Predictor, a real estate forecasting site.
