The Al & Dee Real Estate Group
Market Conditions - December 2009

We see significant progress in the housing economic recovery underway. And although unemployment rate is still around two-digits, interest rates continue to be at near-record lows which encourage growth during 2010. Average 30-year fixed rates are now just under 5 percent, according to the Mortgage Bankers Association, and as the economy rebounds rates could rise by another quarter of a point in the coming months. November and December 2009 produced the best evidence when new home starts jumped by 9 percent, according to the Commerce Department. So if you're timing the sale or purchase of a home, keep a special watch on interest rates.

A big chunk of the gain was attributed to apartment project starts, while only 2.1 percent were for detached single family homes. More noteworthy were the new permits builders pulled for future starts of new homes -- they jumped 5.3 percent. Meanwhile, sales and prices in major markets were positive for the month of November and December.

Looking at the chart below* you’ll see that, with the exception of the Pascagoula area, there were less homes listed in December 09 than in November 09. This is good news for homeowners wanting to sell since the inventory is less and a strong site of leveling values.  In addition, there were more homes sold in December 09 than in November 09 in Ocean Springs, St. Martin and Biloxi.  Great news for home sellers in the SW Gulfport area where the Average Days on the Market for a For Sale home was only 30 days, followed by Saucier/Lza are with an average of 48 days and even d’Iberville showed an average of 100 days on the market.  The best news are for home owners now selling in Ocean Springs, St. Martin and SE Gulfport; home owners were able to get an average of 97% of their asking price, in comparison with homes in d’Iberville that sold for about 91% of the asking price.

	Nov 09 Listing*	Nov 09 Closed	Dec 09 Listing**	Dec 09 Closed	Dec 08 Closed	List/Sell %	DOM***
Long Beach	28	11	24	5	2	93%	213
N. Gulfport	59	34	60	38	32	97%	140
SW Gulfport	18	5	20	2	4	96%	30
SE Gulfport	24	17	27	3	9	97%	117
Saucier/Lzna	22	9	9	6	6	95%	48
Biloxi	42	11	30	12	6	94%	139
N. Biloxi	15	8	16	6	3	93%	122
d’Iberville	8	9	11	6	9	91%	100
Wlmkt/E. Hrsn	6	5	5	3	1	91%	97
W. Jackson	3	0	1	0	0	0	0
St. Martin	27	11	29	13	3	97%	153
Ocean Springs	95	17	83	45	27	97%	178
Vancleave	7	6	15	5	3	96%	89
Gautier	39	11	30	10	3	94%	145
Pascagoula	13	12	17	11	6	96%	213

 * Gulf Coast Multiple Listing Service, Dec 09.  ** Number of Listings Entered in one Month   *** Days On the Market

Overall this is great news as our local market continues to outpace and outsell other areas in the country.  If your home is in a good location, well staged, and properly priced, there is no reason why homes should not sell within these local averages.

On our three Gulf Coast Counties unemployment continues to rise, but still lower than most other counties in Mississippi. According to the Labor Market Data released in November Hancock and Harrison Counties maintains an unemployment rate of 8.0 percent, while Jackson County reported an 8.7 percent unemployment rate. Unfortunately these rates are about 2 percent higher respectively than October 2008 reporting.

RE/MAX by the Gulf Associates continues to outsell every single real estate agent on the Mississippi Gulf Coast, according to RE Stats Inc., for December 2009. For the last consecutive four quarters, RE/MAX by the Gulf Associates continue to outsell both Coldwell Banker offices in Ocean Springs and Gulfport, Keller Williams Realty, and Prudential Gardner Realtors in the number of closed transactions per agent.  Rest assured that when you list with us your chances of getting your home sold and closed are higher with our Associates than any other real estate company on the Mississippi Gulf Coast… after all isn’t that what a home seller wants?

No one sells more real estate than RE/MAX.

Of the people that you know, who do you think needs to buy or sell a home? Please let us know and it’ll be our pleasure to assist them.