Saturday, March 3, 2007

Biloxi and Ocean Springs Real Estate.

Ok Biloxi, pull up a chair. You too Ocean Springs, grab a chair. Let's talk about everyone's favorite subject, MONEY!! Sit back and relax while I serve you up a nice dinner of "it's ok" when it comes to Biloxi and Ocean Springs real estate. Will finish the night with a delicious side of overall market analysis. How has Katrina affected housing prices? How much are houses in demand now? Has the market cooled off? What about the "real estate bubble" that has busted? It's all over the news. Shouldn't I be worried? These are a few of the questions we will address now.

It's true that in many areas of the country the housing market has slowed dramatically. Why is this? Well, it's because the value of real estate in these areas has been increasing too fast, drastically exceeding inflation rates. But in Biloxi and Ocean Springs this just it isn't so. Our housing market isn't drastically over inflated. So what does this mean for you? It means so can breathe a breath of fresh air. It's safe to buy a home here, you don't have to worry about the real estate bubble everyone is panicking over, you're not in an over inflated market. The only time we were even close was right after Katrina, when housing was so limited and those with money were willing to pay just about anything for a house. Now supply is good, prices are fair, and homes are selling. In February, there were around 70 or so homes sold in Biloxi and Ocean Springs alone.

Now the not so good news. Has the market cooled off a little? Sure it has. Why? Well it's a couple things. First, Katrina was a factor. Right after Katrina, if you wanted a house, you better have be in your car on the way to a house the minute it hit the market; believe me, if you weren't 12 other people were. Houses were moving like crack on the corner of "Tanked Ave" and "Stone Cr." The markets cooled a bit since then. A good, fair priced home, usually will sell within 60-90 days. The next factor is the time of year. Two things happened to real estate simultaneously here in Biloxi and Ocean Springs. The first was the cooling from Katrina. The second was the same thing that happens every year, Fall and Winter. It's just a fact of life that around these times the market cools. For one, who likes to shop when it's cold and gloomy outside? I don't. Unless of course Sergeant Real Estate is your agent and you like the cold. Another thing is school? I know what you're thinking, how does school affect home sales? It all really makes perfect sense. Who is the biggest buyer of homes? Families right? And what do families usually have? Kids! And where do kids go from Fall to Spring? School. So therefore a lot of families don't like to move during these times because it affects the kids.
In short, don't be worried about buying a house here. It's ok!
Blog Done. Carry On!!


Anonymous said...

Good to know sales are still strong, but what about the lending industry tightening requirements? Doesn't this make it harder to buy?

Wanting to build in Woolmarket...

Sergeant Real Estate said...

Dear Anonymous,

When I wrote this article back in March our market was still pretty strong. Since then we have seen a steadily increasing inventory of homes for sale and fewer purchases. I think with the fed finally acknowledging the problem with subprime markets and it's effects on the economy we should start seeing more purchases in the future; once again, that's my view point.

With the lenders tightening their requirements it does make it a little more difficult to get approved but really the are helping the borrower because they are not lending to people who should not have the loan and really can't afford it. Just make sure you go with a big, reputable name right now; I'm not sure I was trust a mom and pop mortgage company right now. Again, that's only my opinion. If you're looking to build and hold on to the home for a while (4-5 + years) I think now is a great time to buy, you should be able to negotiate a good deal. Anyway, hope this helps you out. If you have more questions please feel free to ask. Take care.

Sgt Real Estate