Mississippi Real Estate Market: When Will My Home Value Return?

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Mississippi Real Estate Market: When will Home Values Return?

Mississippi’s economy has been knocked down lately, but this southern state knows how to get back up and brush itself off. Even throughout the Gulf of Mexico oil spill, trends show that coastal properties in Mississippi are only expected to fall about 10 percent, which is much lower than originally predicted.

Overall, Mississippi mirrors the national trends in many respects. Mississippi’s downturn over the last year and a half seems to be right along the national trends, and it comes as no surprise that this state’s recovery is expected to stay the course that the nation is taking. According to the Fiserv Case-Shiller Indexes, home values in Mississippi are expected to return to their 2007-2008 levels by 2016.

Unemployment Rate

Another area where Mississippi is mirroring the nation in is its unemployment rate. If you are in the construction and government sectors, then you have seen your job help Mississippi stand its ground and keep the unemployment rate down. This state predicts that its employment growth rate will increase about 1.2 percent through 2014. The lull in construction employment in Mississippi will continue until 2011, and pre-recession levels are not expected until 2014.

If you are a homeowner in Mississippi, you will have likely seen a drop of just 5 percent from your 2008 levels in terms of the median price of your home. In contrast, the nation as a whole saw median home prices plummet nearly 20 percent during the same time period. Although you can breathe a small sigh of relief at this positive news, it is still worth mentioning that this housing sector hasn’t completely escaped the blows of the national recession.

To highlight this fact, housing starts in Mississippi fell 40 percent from the second quarter of 2008 to the second quarter of 2009. The state’s foreclosure rate during this time was 2.7 percent, which was much lower than the national average of 4.3 percent.

Coastal Homes

If you are a coastal homeowner in Mississippi, you are likely thanking your lucky stars, as the Housing Predictor estimates that home prices here are expected to drop just 10 percent as a result of the Gulf oil spill. This is much lower than the previous estimates of 30 percent.

In conclusion, you have a lot to be thankful for if you are a homeowner in Mississippi. Although this state hasn’t completely escaped the fallout from the recession, home prices have leveled off, and unemployment has begun showing signs of improvement. Home values in Mississippi are expected to return to their 2007-2008 values by 2016.

Largest Cities in Mississippi