Are you thinking about selling your home in Mississippi during 2018? Recent data shows that the housing market is looking good for both buyers and sellers this year.
While there may be some challenges along the way, the Mississippi housing market appears to be doing well with the main issue being that there is a short supply of homes available. This is great news for sellers since the competition between buyers can help to raise the final sale price. Here are some predictions for what to expect from Mississippi’s housing market this year.
What’s in Store for the 2018 Mississippi Housing Market?
A common trend across the country in the real estate market involves a growing number of buyers and a decrease of sellers. While the market is still in good standing, the short supply of homes throughout the state has had an effect on progress. This is especially true in the market for starter homes.
During the fourth quarter, more than half of all homes for sale in the Mississippi housing market were ranked in the top third of home values. While supply is expected to gradually increase and allow for reasonable prices throughout the market by the end of the year, the total number of homes for sale for 2018 will still fall short when it comes to the overall demand.
A Sluggish Rise in Home Prices
According to reports from Zillow, home prices in Mississippi should rise as much as 2.8% during 2018. That is a decrease from the current growth of 6.9%, yet it is still well above the usual growth rate of nearly 3%.
Real estate experts believe that the housing market will see a growth rate that is closer to 3.2%. This reflects the current situation of supply issues and potential that the issue may be reversed which is good news for those in the market for a new home. However, that is bad news for owners who want to sell their home for the highest possible amount.
If you are considering selling your home in Mississippi and want to take advantage of the current sellers’ market, it would be in your best interest to sell now before the demand starts to drop.
Interest Rates are Expected in Increase
While predictions for a rise in interest rates have been rampant for years, in 2018 the Mississippi housing market may finally see that dreaded increase. Interest rates are slowly but surely on the rise due to three minor rate increases made by the Federal Reserve.
And while the rates aren’t expected to skyrocket overnight, the rise is still in effect. Experts believe that the interest rates on a 30-year fixed loan will reach as much as 5% this year. That will be the highest they have been since February 2011.
What is the Outlook for Entry-Level Homes in Mississippi?
The outlook for entry-level homes is promising, at least in the seller’s market. Developers tend to focus on mid to upper-class housing markets, especially in metro areas. The high cost of land and the price of labor can make it difficult to gain a reasonable profit from an investment in affordable entry-level housing.
However, the decrease in homes for sale and the growing number of young adults entering the buyer’s market could cause the price for entry-level homes to go up and make them excellent prospects for developers. A decrease in the number of affordable homes for sale in Mississippi is evident, however, we should expect the supply to eventually increase and entry-level home prices to stabilize.
Will New Tax Bills Impact the Mississippi Housing Market?
The new tax bill is likely to have a negative effect on the Mississippi housing market, especially in certain areas. Overall the state and local tax deductions are limited currently at $10,000, but the overall tax bills in states across the country with higher taxes and high property values should increase a great deal.
These housing markets will see a decrease in home appreciation as many buyers start to find their local markets undesirable. The tax plan effects also impact mortgage interest rates with deduction limits on new homes cut to $750,000, causing the high-value housing market to take a hit.
The Mississippi Housing Market Overview for 2018
Based on data from Zillow, the average home value in Mississippi is $113,531. The value for homes in the state have declined as much as -1.3% over the past year, but the real estate website predicts that home values will rise as much as 2.8% on through 2019.
The median listing price per square foot for homes in Mississippi is currently at $91. And the average price of homes currently on the market for sale in the state is at $175,000.
Zillow’s statistics for Mississippi’s housing market health shows that the market is unstable currently with a score of 4.0 out of 10, based on statistics from February 2018. The average amount of days a Mississippi home stays on the market is 92. This is likely a result of more high-end homes up for sale and fewer affordable homes available.
Related Post: 2018 Georgia Real Estate Market Predictions