Are You Prepared for Mississippi's 2021 Real Estate Market?
When COVID-19 made its way to Mississippi, local and state economists had reasons for concern, but the Mississippi real estate industry has remained steady. In fact, buyers today are more confident than even before the onset of shutdowns. In 2021, markets across the state are expected to continue this upward trend. With the demand for rural property steadily increasing, novel work-remote positions, low-interest rates, the incoming COVID-19 vaccine, and rapidly rising home sale prices, real estate professionals all across Mississippi should gear up for a busy year of transactions.
2021 Mississippi Real Estate Outlook: Hot Like ‘Sip Summers
In December 2020, the average home in Mississippi was valued at $131,973, a 4.0% increase year-over-year. However, that figure is expected to increase dramatically as Zillow predicts the market will rise another 9.4% within the next year. Rising values, despite 2020’s trials and tribulations, are a promising sign that 2021 could be profitable for agents.
Additionally, Mississippians prefer to purchase over rent with 66.0% of residents reporting that they own their home. Over the past decade, home values have risen nearly 20.0%, but as buyer activity increases, record low-interest rates continue, affordable price points remain, and demand is sustained, Mississippi will likely be an active market that’s great for buyers, sellers, and investors alike as 2021 unfolds.
Rent prices, on the other hand, haven’t changed year-over-year statewide but still remain very affordable — about 30.0% less than the national average. Meanwhile, a total of 1.6% of Mississippi mortgages were reported as delinquent. So, while new transactions continue to boom and affordable real estate draws more people to Mississippi, current homeowners will thrive as well.
2020 Mississippi Real Estate Market Data
|Zillow Home Value Index||$131,973|
|1-Year Change on Home Values||+4.0%|
|1-Year Change on Rent Prices||+0.0%|
|Homes With Negative Equity||N/A|
|Delinquent on Mortgages||1.6%|
|Buyer’s or Seller’s Market||Both|
Market Insights for Mississippi
In November 2020, the Bureau of Labor Statistics reported that Mississippi’s unemployment rate was 6.4%, down significantly from 9.4% in July. Currently, Mississippi sits slightly below the national unemployment rate of 6.9%, but that’s likely to change as retail markets and tourism/hospitality in the Gulf return to normalcy. Economic activity often correlates with growth in real estate markets, and narrowing unemployment rates along with low-interest rates are yet another promising sign for 2021.
The state of Mississippi also possesses other very attractive features that could positively impact its market. Mississippi is an appealing spot for those with new work-remote positions looking to escape the high taxes, hustle and bustle, and harsh winters of large northeastern cities. It’s also a popular place for retirees seeking affordable real estate and a mild weather climate.
In the year ahead, expect inventory to remain low, which will keep prices high and encourage bidding wars. Mississippi real estate, while still a great investment that affords homeowners a high quality of life, will play out to be an active market in 2021 that’s pushed to new heights.
With a robust 2021 economic forecast, Mississippi real estate agents will need to be at the top of their game and prepare clients to act quickly; as more buyers are looking to make Mississippi their permanent residence, they’re likely willing to pay more upfront. With a wealth of opportunity on the horizon, there has never been a better time to help your fellow Mississippians find the property of their dreams.
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