FOR IMMEDIATE RELEASE
601-948-1332 ext. 12
July 2016 Residential Real Estate Market Report
Median Existing-Home Sale Prices are Inching Upward
(August 29, 2016) - In July, median existing-home sales prices increased 5.8 percent to $179,000 in the ten-county area of the Central Mississippi Multiple Listing Service (CMMLS).
In the South, the median price was $214,500, while nationally the median existing-home price in July was $244,100. July's price increase marks the 53rd consecutive month of year-over-year gains.
A low housing supply is believed to be the culprit for rising home prices.
CMMLS reported local housing inventory levels fell 3.1 percent to 3,170 units which is about a 7-month supply.
Total housing inventory at the end of July inched up 0.9 percent higher to 2.13 million existing homes available for sale, but is still 5.8 percent lower than a year ago (2.26 million) and has now declined year-over-year for 14 straight months. Unsold inventory is at a 4.7-month supply at the current sales pace, which is up from 4.5 months in June. "Although home sales are still expected to finish the year at their strongest pace since the downturn, thanks to a very strong spring, the housing market is undershooting its full potential because of inadequate existing inventory combined with new home construction failing to catch up with underlying demand," adds Yun. "As a result, sales in all regions are now flat or below a year ago and price growth isn't slowing to a healthier and sustainable pace."
Appraisal Issues Sited for a Quarter of Contract Delays
NAR President Tom Salomone, broker-owner of Real Estate II Inc. in Coral Springs, Florida, says in addition to affordability concerns, an issue seen earlier in the housing recovery may be reemerging. "Appraisal-related contract issues have notably risen over the past year and were the root cause of over a quarter of contract delays in the past three months," he said. "This is likely a combination of sharply growing home prices in some areas, the uptick in home sales this year and the strong refinance market overworking the already reduced number of practicing appraisers. Realtors® are carefully monitoring this trend, and some have already indicated they're extending closing dates on contracts to allow extra time to accommodate the possibility of appraisal-related delays."
Here's a YTD snapshot of Hinds, Madison & Rankin Counties
(all figures are year-to-date)
About Central Mississippi MLS, Inc.
Central Mississippi MLS Inc. and Central Mississippi REALTORS
"The Voice for Real Estate in Central Mississippi" and represent the largest real estate association in the state of Mississippi serving more than 1,700 licensed real estate professionals across ten counties of Central Mississippi
(Hinds, Madison, Rankin, Yazoo, Holmes, Attala, Leake, Scott, Simpson and Copiah)
. To learn more about CMMLS, visit
or call 601.948.1332.