Mississippi Real Estate Market in 2022: Forecasts + Trends, by Francine Marsolek.

Mississippi real estate market in 2022: Forecasts + Trends

By Francine Marsolek

Mississippi is a town known for good blue music tones and catfish availability. Green Ville, Jackson, and South haven, a small town where residents enjoy the place. It has a sub-tropical climate that boosts its agriculture economy all year round

Mississippi is among the most affordable places in the U.S., Just like any other state, prices are set higher daily. Mississippi is a seller market; thus, home prices are higher. Recently, there have been high inventory levels and many buyers in the market. The U. S housing economy saw people over from cities with a higher cost of living to more affordable cities. Covid 19 pandemic also led people to buy more homes and is thus a reason for the increase in home prices. Low mortgage interest rates are a reason for many buyers to get into the market.

MISSISSIPPI MEDIAN HOME PRICE

Today the median price of a home is $161,160 as opposed to the $129,000 that was the home price before the pandemic. In the last twenty-four months, Mississippi has had a 24.7% increment in rent. However, in the U, S housing economy, the local home value is still less than the national home value, which is $344,400, with a 35% increase. The median home price in Mississippi will continue appreciating, although not at the high rate seen in the last two years.

MISSISSIPPI MEDIAN RENT PRICES

High home prices are evident in home ownership and the rental market. Due to the high inventory levels, rental charges today are higher than last year. High rents affect renters because they sometimes cannot move into home ownership. Today the median rent is $1005, and as long as there are more people in the market, landlords

have the right to increase rental charges. It is an excellent opportunity for investors because the rise in rent will proceed in the future.

FORECLOSURE TREND AND STATISTICS

Foreclosure in 2022 rose by 1% from last month and 120% annually. Foreclosure increase is not only in Mississippi, but in most parts of the U.S. Foreclosures result from government policies and local industries to guard the buyer against defaulting. Today there are 130 foreclosures out of over one million homes available.

MARKET OVERVIEW

Last month’s median sale price of homes in general was $262,100, with an addition of 15.3% year over year. Averagely 1650 homes were sold, a 3.3% increase by June 2022.

HOUSING SUPPLY

By June 2022, the number of homes sold was less than last year, creating a tighter inventory level. June last month, the number was 4359, indicating a decrease of 21.5%.

HOUSING DEMAND

Most homes in Mississippi today sell at a price above the listing. Competition is growing by the day..

MISSISSIPPI REAL ESTATE INVESTING

Investors highly depend on distressed homes to make profits. As the name suggests, distressed homes are sold by the seller because they do not need them anymore. It also means buying a non-upgraded home, catering for the cost, and later reselling to make profits. There is a seller who depends on foreclosure, but it is worthwhile noting that currently, foreclosures are low; thus, investors cannot depend on them much.

With the low-interest rates associated with borrowing, investors have more cash flow, encouraging them to invest more in real estate.

REAL ESTATE MARKET PREDICTIONS

Up to date, most of Mississippi has higher home prices than during the pre-covid times. It is a good idea for investors and home buyers to look into the market’s future before investing. It is done by studying previous trends by reading realtor magazines and consulting an experienced friend who has more knowledge about a particular topic of interest. It is foreseen that;

APPRECIATION RATES WILL FALL BEFORE THE NATIONAL AVERAGE

Mississippi is not very productive, and thus unemployment rates are likely to cause a slow increase in home prices. Even in previous years, Mississippi always falls below the national average, which might be long-term depending on Mississippi’s growth rate.

LOW SUPPLY OF HOMES

Various factors lead to low supply. Since Covid 19, building materials costs went higher meaning, adversely leading to a low supply of homes. On the other hand, the pandemic brought the need for people to own homes leading to more buyers in the market. Since then, there has been an economic imbalance between supply and demand, and this recovery will consume a lot of time. New listings are few today, and bringing new homes to the market will take a long time. High inventories only result in higher home prices, leading unprepared buyers out of the market.

Mississippi is a good place for investors and more favorable than high-cost cities such as San Francisco. The place has affordable deals, and different investors look for a particular aspect in investing soon.