Mississippi Housing Market Expected To Flourish Through 2020
This ARTICLE On Mississippi Housing Market Expected To Flourish Through 2020 Was PUBLISHED On November 7th, 2019
The Mississippi Housing Market is hot.
- Mississippi is raking in billions of revenues from out of state businesses and residents moving to this state
- Homebuyers can get a lot of house for the money in Mississippi
- Countless businesses and individual taxpayers are moving to the Great State of Mississippi
- Many New Yorkers and Illinoisans are moving to Mississippi due to lower taxes, affordable housing, and low cost of living
- Other amenities the state has to offer is great weather 12 months out of the year and countless places to visit
- Last year when mortgage rates peaked at over 5.0%, it did not make a dent on the Mississippi Housing Market
In this article, we will cover and discuss the Mississippi Housing Market Expected To Flourish Through 2020.
Mississippi Housing Market For Homebuyers And Sellers
Mississippi Housing Market has been increasing year after year since 2012.
- Even last year, with record-high mortgage rates, the Mississippi Housing Market was going strong
- The state attracts many out of state residents to call Mississippi home due to affordable housing, low property taxes, and low cost of living
- There is way more demand for homes versus supply
- Homebuilders have never been busier than now
- Record revenue and growth for Mississippi homebuilders
- Homes in the affordable price range sell out before the builder has obtained building permits
- 2019 has been a stellar year for home sales throughout the state
- Many areas of the state have experienced major housing inventory shortage
- Homes in the $250,000 to $300,000 price range are in major demand and sell the minute it is listed
- Homes under $200,000 are the hottest in the marketplace
- First-time homebuyers, renters who need affordable housing, and real estate investors are prime buyers for these lower-priced homes
It is not uncommon for lower-priced homes under $200,000 to have multiple offers and bidding wars.
Mortgage Rates Versus Housing Demand
Last year in 2018, mortgage rates peaked over 5.0%.
- Even with record-high mortgage rates since the 2008 Great Recession, the Mississippi Housing Market did not slow
- Part of this momentum was due to more non-conforming mortgage programs like bank statement loans and non-QM loans that hit the marketplace
- More and more lenders eased their lender overlays to fuel the Mississippi Housing Market
- Mississippi Housing Market is much more affordable than other parts of the country
With the massive migration by out of state residents, this added more demand for housing.
What Experts Are Saying
Alex Carlucci, a Mississippi Housing Market Expert and Senior Vice President of Gustan Cho Associates Mortgage News, issued the following statement:
The home building industry has been steady in Mississippi. It is not like the Texas or Dallas market, but our building has been steady. The $200,000 homes, we can’t build enough of them if you can even build them for $200,000. Smaller homes are in demand. The larger the home is, the more days the house is going to sit on the market. The upside of this is because our pricing on houses is average, not really high like California or other areas. If there is ever a downturn in the market, Mississippi won’t feel the effect as much,” Travis said. “We do have a shortage with our starter homes. But, again, you can’t build a $200,000 home in other areas. In California, it might be twice that much for the same home. It is very expensive to live in California. New York is another place the cost of housing is high. We are fortunate to live in a state where the housing in more affordable. Buyers are looking for amenities and not necessarily square footage. Also, buyers are looking for homes in areas close to community conveniences. Realtors encourage homebuyers to search the public websites BuyInMississippi.com and Realtor.com where the active listing information is current and accurate.
Home sales create jobs and a stronger economy. For every home sold, two jobs are created. Sales of homes continue to rise throughout all counties of Mississippi. Housing sales are up over 7.0% from 2018 with an increase of 4.5% in median prices.