December 2011 Real Estate Sales Info For Lowndes County, MS

Each month we review real estate activity in the previous month. This helps anyone with a specific interest in the Lowndes County, Mississippi real estate market gauge the relative strength or weakness. It’s not a substitute for an evaluation on a specific piece of real estate. Rather, like national real estate information, this helps to provide general information about the local market.

The data presented is a representation based in whole or in part on information from the Golden Triangle Association Of REALTORS® or its Multiple Listing Service (MLS) predominantly for the period December 1, 2011 through December 31, 2011 but also for previous months. Neither the Association nor its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Association or its MLS may not reflect all real estate activity in the market. Several properties close each month without any involvement with a REALTOR®. These properties include but are not limited to private sales like a For Sale By Owner, builder owned real estate, bank owned real estate, or auctions. Those non-MLS transactions are not included in this summary.

During December 2011, a total of 25 residential real estate transactions closed with the assistance of a REALTOR® in Lowndes County, which also includes inside the city of Columbus. That is nearly identical to the December 2010 production and a huge increase from a month earlier. For calendar year 2012, real estate sales fell by 6 percent over the previous year. This marks the fifth straight year that sales failed to match or exceed the prior year.

The median house that closed in Lowndes County during December sold for $138,500 or about $68 a square foot. The median house represents an actual sale that is halfway between the house that sold for the most and the one that sold for the least.

The average house sold for slightly less than $133,000 or $67 a square foot. The average house may not be an actual sale. It is a mathematical computation. The average house sold for about 91 percent of the list price and spent almost six months on the market.

Some sellers question the impact of houses at the extreme top and extreme bottom of the market. We removed any transaction that closed above $300,000 or below $50,000. In the remaining $250,000 window is where the bulk of local real estate transactions occur. The median house sold for $150,000 or about $64 a square foot. The average house sold for about $156,000 or $77 a square foot.

In addition to the 25 closings, another six buyers wrote acceptable purchase offers to the sellers. Maybe it was just the Christmas season. Maybe it was the weather. But the six houses that went under purchase contract may be one of the lowest numbers in a single month in the last few years. That is not a good sign for the future. We report these six transactions when they actually close, and the terms of sale become MLS reported data.

Meanwhile another 47 houses went off the market in December because the listing contract expired. No buyer wrote an acceptable purchase offer. At the same time, 34 sellers put their house on the market. That brings to 349 the total number of houses on the market in Lowndes County. That is more than a 12 month supply of houses in the inventory. What does a 12-month supply of houses mean? Who is asking the question?

For a buyer, it means there is a great selection. With mortgage interest rates very low, it means affordable housing is a reality. For the seller, the 12-month inventory means that they must price their property to compete for the few buyers in the market and be willing to negotiate a price.

The above is only a general snapshot of the market. Contact your REALTOR® for exact information about the market value of a specific house and parcel of land.

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Andy Kalinowski is a REALTOR® and an Accredited Buyer’s Representative® with CENTURY 21 Doris Hardy and Associates, LLC in Columbus, Mississippi. He is also a member of the National Association of Realtors. Contact him by cell (or text) phone – 662.549.3421 or by e-mail – andyk@dorishardy.com.  He is also available for web video chat.