According to the Desoto Times-Tribune:
Construction of a $30 million planned commercial subdivision that will cater to senior citizens is expected to begin in December in Olive Branch. Preliminary plans for the development, to go up at 5500 Goodman Road in Olive Branch, were approved by city planning commissioners on Tuesday.
For more of this story, click on or type the URL below:
http://www.desototimes.com/articles/2008/10/16/news/doc48f7177e1aca6492687363.txt
Tracy Kirkley
Crye-Leike Realtors
662-895-8300
Olive Branch Homes for Sale
Friday, October 17, 2008
Thursday, October 16, 2008
My Notes from a Presentation by Lawrence Yun, Chief Economist for NAR
I just got back from the Crye-Leike Fall Conference, where we were fortunate to have as one of our keynote speakers, Lawrence Yun, the Chief Economist for the National Association of Realtors.
Following are some of my notes from his presentation:
Following are some of my notes from his presentation:
- Normal unemployment is 5%, we are currently at 6%. While we could top out at 7%, he feels it is doubtful.
- The national housing market will start rebounding soon (some areas have already begun). However, we will not see the '05 or '06 frenzy anytime soon . . . there was too much speculative buying during that time.
- As the rebound happens, we will still have fewer buyers . . . however, they will be more qualified.
- Certain parts of the country are already beginning to rebound: ID, CA, NV, AZ, VA, FL.
- Areas that are still struggling are: AK, WY, MO, KY, IN, WV, WA.
- In the very affordable parts of the country (TN & MS included), one would think that sales would be fine. However they are still down because of two primary reasons: tightening of credit and low buyer confidence (which is due primarily to negative media).
- Washington is of the mind that to get the economy back on track, we must get the housing market back on track. Paulson asked that the currently tight loan requirements be loosened. The goal is to get the pendulum back to the meeting.
- Nationally, prices are beginning to stabilize.
- With regard to the First-Time Homebuyer Tax Credit: it can help unleash a chain reaction for the trade-up buyer. Also, even with the repayment requirement, it is still a great deal . . . because money today is always better than money tomorrow.
- FHA loan market share has gone from less than 5% in 2005-2007 to a projection of 20% in 2008 and 27% in 2009.
- Conventional loan products' default rate is consistently less than 5%.
- Subprime products' default rate is consistently 10%+ and is currently about 20%.
- There is neighborhood variation with regard to pricing stability. All real estate is local. Those neighborhoods in which buyers primarily used conforming loans, prices are remaining stable.
- Inventory of homes for sale is beginning to shrink . . . this will lead to greater demand and will help prices stabilize.
- The home price forecast from a survey of 800 economists is that nationally, housing prices will stabilize in the first half of 2009.
- The dollar is beginning to strengthen compared to the Euro, which will help bring oil prices down.
I hope you find this information useful. If you would like to discuss this, don't hesitate to give me a call.
Tracy Kirkley
662-895-8300
Olive Branch Homes for SaleWednesday, October 8, 2008
This is a Great Time to Buy a House . . . but
But . . . you don't know how to get started?
If you are a First-Time Homebuyer or a Seasoned Veteran Homebuyer, the dilemma can be the same . . . because let's face it, this is not something that most people do every day. So, here are a few pointers for you:
Find a Realtor to Help You. I really cannot stress this enough. By having your own Realtor, you can save time, save headaches, and save money. Your Realtor can help you save time because they are more familiar with the market and where the best places are to look for just the right house for you. So many folks spend time driving around in neighborhoods that end up being out of their price range . . . or they look through the magazines and call on every house that looks interesting, just to find out that the house is out of their range or has already been sold. That is a lot of time wasted. After you have a counseling session with your Realtor, they can "pre-screen" homes to make sure that they have the things your are looking for and are in your price range. Your Realtor can hep you save headaches because they know the ropes. They know what paperwork needs to be used and what it all means; they know how to help protect your interests by recommending home inspections, special contract addenda, financing options, etc; and they know how to help you steer clear of problems, or how to successfully get through problems that may occur. Your Realtor can help you save money because typically they have had special negotiating training and are practiced at it; they regularly become aware of some great deals before they ever come on the market; they know what "incentives" that local builders are willing to give (even thought the builders may not advertise it); and they can pull a Comparative Market Analysis (CMA) and help you analyze what similar properties are selling for. When choosing a Realtor, make sure that they are a good fit for you (see my post on Selecting the Right Realtor for You . . . it is geared more towards if you are selling a house, but many of the points/questions will work for a Buyer's Agent too). Also, once you have found a good Realtor, stick with them and listen to their advice. Also, most Buyer's Agents are paid through the listing side of the transaction, so you don't have to pay them.
Get Pre-Approved for Your Mortgage. Before you go out looking for a home is the perfect time to talk to a mortgage company. Not only will this help you establish the price range in which you should be looking, it will help to give you better negotiating power when you do find the right house. How does it do this? Well, think about this . . . if you make an offer on a house and you already have the backing of a strong mortgage company, the sellers know that they have a "real" buyer who can actually purchase their house and they are going to be much more willing to negotiate with you. This is as opposed to someone who makes an offer and has not been to a mortgage company. In this case, the sellers are not really certain that the buyer can buy, and so therefore may not be as willing to come off of their asking price.
Keep Your Finances Stable Until Closing. This means: don't go buy a new car, don't deplete all of your cash reserves, don't quit your job, don't go buy a new plasma tv (or any other high ticket item). In other words, once you are serious about buying a house, put all of the rest of your spending on hold at least until you have closed on your home.
Do Your Homework. Get online and do a little research about the area that you are thinking of moving to. This might trigger questions that you should ask your Realtor. This will also help you to determine how much house you can get for the money that you are planning on spending.
I could probably go on and on about the process and all of the things you need to look for . . . but if you follow my advice on item #1 (Find a Realtor to Help You), then your Realtor will walk you through everything.
Now, GO BUY A HOUSE . . . BECAUSE THIS IS A GREAT TIME TO DO IT!!!
Tracy Kirkley
Crye-Leike Realtors
662-895-8300
For more information on the home-buying process, go to http://www.tracykirkley.com/.
If you are a First-Time Homebuyer or a Seasoned Veteran Homebuyer, the dilemma can be the same . . . because let's face it, this is not something that most people do every day. So, here are a few pointers for you:
Find a Realtor to Help You. I really cannot stress this enough. By having your own Realtor, you can save time, save headaches, and save money. Your Realtor can help you save time because they are more familiar with the market and where the best places are to look for just the right house for you. So many folks spend time driving around in neighborhoods that end up being out of their price range . . . or they look through the magazines and call on every house that looks interesting, just to find out that the house is out of their range or has already been sold. That is a lot of time wasted. After you have a counseling session with your Realtor, they can "pre-screen" homes to make sure that they have the things your are looking for and are in your price range. Your Realtor can hep you save headaches because they know the ropes. They know what paperwork needs to be used and what it all means; they know how to help protect your interests by recommending home inspections, special contract addenda, financing options, etc; and they know how to help you steer clear of problems, or how to successfully get through problems that may occur. Your Realtor can help you save money because typically they have had special negotiating training and are practiced at it; they regularly become aware of some great deals before they ever come on the market; they know what "incentives" that local builders are willing to give (even thought the builders may not advertise it); and they can pull a Comparative Market Analysis (CMA) and help you analyze what similar properties are selling for. When choosing a Realtor, make sure that they are a good fit for you (see my post on Selecting the Right Realtor for You . . . it is geared more towards if you are selling a house, but many of the points/questions will work for a Buyer's Agent too). Also, once you have found a good Realtor, stick with them and listen to their advice. Also, most Buyer's Agents are paid through the listing side of the transaction, so you don't have to pay them.
Get Pre-Approved for Your Mortgage. Before you go out looking for a home is the perfect time to talk to a mortgage company. Not only will this help you establish the price range in which you should be looking, it will help to give you better negotiating power when you do find the right house. How does it do this? Well, think about this . . . if you make an offer on a house and you already have the backing of a strong mortgage company, the sellers know that they have a "real" buyer who can actually purchase their house and they are going to be much more willing to negotiate with you. This is as opposed to someone who makes an offer and has not been to a mortgage company. In this case, the sellers are not really certain that the buyer can buy, and so therefore may not be as willing to come off of their asking price.
Keep Your Finances Stable Until Closing. This means: don't go buy a new car, don't deplete all of your cash reserves, don't quit your job, don't go buy a new plasma tv (or any other high ticket item). In other words, once you are serious about buying a house, put all of the rest of your spending on hold at least until you have closed on your home.
Do Your Homework. Get online and do a little research about the area that you are thinking of moving to. This might trigger questions that you should ask your Realtor. This will also help you to determine how much house you can get for the money that you are planning on spending.
I could probably go on and on about the process and all of the things you need to look for . . . but if you follow my advice on item #1 (Find a Realtor to Help You), then your Realtor will walk you through everything.
Now, GO BUY A HOUSE . . . BECAUSE THIS IS A GREAT TIME TO DO IT!!!
Tracy Kirkley
Crye-Leike Realtors
662-895-8300
For more information on the home-buying process, go to http://www.tracykirkley.com/.
Olive Branch Real Esate Market Update 8/18/08
Residential properties in Olive Branch can be found in a wide array of price ranges. There are currently 783 Olive Branch homes for sale with prices ranging from just below $100,000 up to over $500,000 . . . with just a few over the $1,000,000 mark. The pricing breaks down as follows:
< $100,000 = 11 homes (was 15 on 3/27/08) $100,000-$149,999 = 122 homes (was 125 on 3/27/08) $150,000-$199,999 = 166 homes (was 193 on 3/27/08) $200,000-$299,999 = 315 homes (was 332 on 3/27/08) $300,000-$400,000 = 99 homes (was 125 on 3/27/08) > $400,000 = 70 homes (was 38 on 3/27/08)
Supply has dropped in all price ranges, except the $400,000+ market . . . which has nearly doubled its inventory. This is a good trend for sellers in the below $400,000 market.
The average days on market for these listed homes is 166 days (up from 165 on 3/27/08). The average list price is $253,937 (down from $259,062 on 3/28/07). The median list price is $230,900 (down from $235,505 on 3/28/07).
-----------------------------------------------------
In the previous six months in Olive Branch there have been a total of 388 listed homes sell. The sold homes for the last six months break down as follows:
< $100,000 = 35 homes (was 35 on 3/27/08) $100,000-$149,999 = 103 homes (was 77 on 3/27/08) $150,000-$199,999 = 106 homes (was 97 on 3/27/08) $200,000-$299,999 = 108 homes (was 81 on 3/27/08) $300,000-$400,000 = 27 homes (was 43 on 3/27/08) > $400,000 = 9 homes (was 13 on 3/27/08)
Sales activity has remained even or picked up in all price ranges below $300,000. Overall sales activity has increased by 12% since this same data was analyzed on 3/27/08.
The average days on market for these sold homes was 139 days (up from 129 days on 3/27/08). The average sold price was $189,908 (down from $204,176 on 3/27/08). The median sold price was $175,750 (down from $179,750 on 3/27/08). This indicates that buyers are buying in the lower price ranges and shying away from thos $300,000 and above. One main reason for this could be buyers ability to qualify for FHA loans, which in our area have a loan limit of $271,050. Loans above that must be conventional and require a larger down payment.
-----------------------------------------------------
Based upon the information above there appears to currently be a 12.1 month overall supply of homes in Olive Branch IF no other homes come on the market. This is Absorption Rate . . . the rate at which the current inventory of homes would be expected to sell. The breakdown regarding supply in the price ranges is as follows:
< $100,000 = 1.9 month supply (down from 2.6 on 3/28/08) $100,000-$149,999 = 7.1 month supply (down from 9.7 on 3/27/0) $150,000-$199,999 = 9.4 month supply (down from 11.9 on 3/28/08) $200,000-$299,999 = 17.5 month supply (down from 24.6 on 3/28/08) $300,000-$400,000 = 22 month supply (up from 17.4 on 3/28/08) > $400,000 = 46.7 month supply (up from 17.5 on 3/28/08)
-----------------------------------------------------
OK! That is a lot of information and a whole lot of numbers to absorb, so what the heck does it all mean for the average buyer or seller??? Well, here are my thoughts:
BUYERS
Buyers, your best bets for getting the best deals are still going to be for homes $200,000 and above . . . and especially in the $300,00 and above ranges. These sellers are in heavy competition, especially with the builders . . . because this is where the majority of the new construction exists. So, does that mean that you should find a house that you like and then lowball it? The answer to that question lies in what the market analysis says for that house . . . this is something your Realtor can prepare for you once you find a house that you like. It is very possible that the seller has priced their home to sell . . . which means they may have it already priced below what the market indicates it should sell for. If this is the case, even in this market, you may still need to act fast and make a reasonable offer, or someone else may buy the house out from under you. However, if the market analysis shows that the home is priced above the market, then get advice from your agent on how low you should offer . . . and be sure that when presenting the offer on your behalf, your agent provides supporting information for why you offered what you did. The seller may still feel insulted with the low offer, but if there is a supporting CMA, it could lessen the sting for them. Also, keep in mind that nearly any time you make a "lowball offer" you run the risk of making the seller mad, which could make them much tougher to negotiate with in the long run. Talk to your agent about this. Also keep in mind that this is NOT the market to overpay for a house . . . unless you can find nothing else you like and you plan on being in the house for a very long time . . . if that is the case, then buy the house you want.
Deals will also present themselves below the $200,000 mark . . . but you will be in tighter competition for those deals, so be sure to act fast! If you are looking for a home below $100,000, you may be in a situation of "take what you can find" because those are in very short supply in Olive Branch.
SELLERS
Sellers, first, if you have a home in the $200,000+ price range in Olive Branch, let me apologize to you . . . just in case I made you mad by what you may have read above in my comments to the buyers. However, remember "it is what it is" . . . and the numbers "are what they are". So, how, as sellers do you deal with it. Like this:
First and foremost, get a great Realtor, who is backed by a great company and lots of support. This is NOT the time to be looking for "cheap" when it comes to who helps you get your home sold . . . especially if you are in a position that you HAVE TO sell. The agent you hire needs to have a top notch marketing plan and be able to show you that they can get results. Ask the tough questions about their average days on market, what support they get from their company, what they absorption rate is for homes in your price range (if they can't tell you this, then they have not done their home work . . . or they don't know what it is). Hire your agent based upon their marketing plan, their knowledge of the business, if you feel they can be trusted, etc . . . DO NOT hire an agent based solely upon what they tell you they can get for your home. An agent cannot determine a selling price . . . the market does that. The agent can only render their opinion based upon the market's recent history, the current market competition, the absorption rate, etc.
Second, DO NOT overprice your home. There are many reasons for this. In a highly competitive market, overpriced listings stay on the market much longer . . . even if you do reduce your price throughout the life of the listing. Homes that have a longer than average days on market get "shop worn". In other words, folks don't get as excited about them and wonder what is wrong with the house, since it has just been "sitting". Your prime time for attracting buyers is within the first 3-4 weeks . . . so it is imperative that your home is priced right from the beginning. After the first few weeks, all of the "pent up" buyers go away, and then all you have are new buyers coming into the market place. "Pent up" buyers are those who have been looking and haven't found yet what they want . . . so when a new home comes on the market, it is like fresh meat and all of the "pent up" buyers go rushing to it.
Third, BE SURE your home is in tip-top condition. This means that it should be in good repair, squeaky clean (inside and out), and free of clutter. You may also want to consider having a professional stager assist with staging the home to sell. However, if you have hired a great Realtor and you listen to AND do the things that they suggest, you should be in a good position with this regard.
Fourth, focus on the features of your home that set it apart from others. For instance, if in your price range all homes have tile floors in the kitchen and baths, don't focus on that. Instead, focus on the fact that your is in a quiet cul-de-sac and has panoramic views of the countryside . . . or whatever the special features of your home are.
Sellers who see the market for what it is and poise themselves to be one step in front of the competition (whether by marketing, price, condition, features, or all of the above) will see the best results.
Good luck to you all, whether you are buying or selling. Opportunities exist for everyone if you know what your are doing and hire a great Realtor.
For additional information, don't hesitate to contact me at 662-895-8300 or 901-210-8045.
Tracy Kirkley
Crye-Leike Realtors
662-895-8300
Olive Branch Homes for Sale
P.S. The information regarding homes listed and sold was compiled from the MLS system of the Northwest MS Assoc of Realtors. It is deemed reliable, but not guaranteed.
< $100,000 = 11 homes (was 15 on 3/27/08) $100,000-$149,999 = 122 homes (was 125 on 3/27/08) $150,000-$199,999 = 166 homes (was 193 on 3/27/08) $200,000-$299,999 = 315 homes (was 332 on 3/27/08) $300,000-$400,000 = 99 homes (was 125 on 3/27/08) > $400,000 = 70 homes (was 38 on 3/27/08)
Supply has dropped in all price ranges, except the $400,000+ market . . . which has nearly doubled its inventory. This is a good trend for sellers in the below $400,000 market.
The average days on market for these listed homes is 166 days (up from 165 on 3/27/08). The average list price is $253,937 (down from $259,062 on 3/28/07). The median list price is $230,900 (down from $235,505 on 3/28/07).
-----------------------------------------------------
In the previous six months in Olive Branch there have been a total of 388 listed homes sell. The sold homes for the last six months break down as follows:
< $100,000 = 35 homes (was 35 on 3/27/08) $100,000-$149,999 = 103 homes (was 77 on 3/27/08) $150,000-$199,999 = 106 homes (was 97 on 3/27/08) $200,000-$299,999 = 108 homes (was 81 on 3/27/08) $300,000-$400,000 = 27 homes (was 43 on 3/27/08) > $400,000 = 9 homes (was 13 on 3/27/08)
Sales activity has remained even or picked up in all price ranges below $300,000. Overall sales activity has increased by 12% since this same data was analyzed on 3/27/08.
The average days on market for these sold homes was 139 days (up from 129 days on 3/27/08). The average sold price was $189,908 (down from $204,176 on 3/27/08). The median sold price was $175,750 (down from $179,750 on 3/27/08). This indicates that buyers are buying in the lower price ranges and shying away from thos $300,000 and above. One main reason for this could be buyers ability to qualify for FHA loans, which in our area have a loan limit of $271,050. Loans above that must be conventional and require a larger down payment.
-----------------------------------------------------
Based upon the information above there appears to currently be a 12.1 month overall supply of homes in Olive Branch IF no other homes come on the market. This is Absorption Rate . . . the rate at which the current inventory of homes would be expected to sell. The breakdown regarding supply in the price ranges is as follows:
< $100,000 = 1.9 month supply (down from 2.6 on 3/28/08) $100,000-$149,999 = 7.1 month supply (down from 9.7 on 3/27/0) $150,000-$199,999 = 9.4 month supply (down from 11.9 on 3/28/08) $200,000-$299,999 = 17.5 month supply (down from 24.6 on 3/28/08) $300,000-$400,000 = 22 month supply (up from 17.4 on 3/28/08) > $400,000 = 46.7 month supply (up from 17.5 on 3/28/08)
-----------------------------------------------------
OK! That is a lot of information and a whole lot of numbers to absorb, so what the heck does it all mean for the average buyer or seller??? Well, here are my thoughts:
BUYERS
Buyers, your best bets for getting the best deals are still going to be for homes $200,000 and above . . . and especially in the $300,00 and above ranges. These sellers are in heavy competition, especially with the builders . . . because this is where the majority of the new construction exists. So, does that mean that you should find a house that you like and then lowball it? The answer to that question lies in what the market analysis says for that house . . . this is something your Realtor can prepare for you once you find a house that you like. It is very possible that the seller has priced their home to sell . . . which means they may have it already priced below what the market indicates it should sell for. If this is the case, even in this market, you may still need to act fast and make a reasonable offer, or someone else may buy the house out from under you. However, if the market analysis shows that the home is priced above the market, then get advice from your agent on how low you should offer . . . and be sure that when presenting the offer on your behalf, your agent provides supporting information for why you offered what you did. The seller may still feel insulted with the low offer, but if there is a supporting CMA, it could lessen the sting for them. Also, keep in mind that nearly any time you make a "lowball offer" you run the risk of making the seller mad, which could make them much tougher to negotiate with in the long run. Talk to your agent about this. Also keep in mind that this is NOT the market to overpay for a house . . . unless you can find nothing else you like and you plan on being in the house for a very long time . . . if that is the case, then buy the house you want.
Deals will also present themselves below the $200,000 mark . . . but you will be in tighter competition for those deals, so be sure to act fast! If you are looking for a home below $100,000, you may be in a situation of "take what you can find" because those are in very short supply in Olive Branch.
SELLERS
Sellers, first, if you have a home in the $200,000+ price range in Olive Branch, let me apologize to you . . . just in case I made you mad by what you may have read above in my comments to the buyers. However, remember "it is what it is" . . . and the numbers "are what they are". So, how, as sellers do you deal with it. Like this:
First and foremost, get a great Realtor, who is backed by a great company and lots of support. This is NOT the time to be looking for "cheap" when it comes to who helps you get your home sold . . . especially if you are in a position that you HAVE TO sell. The agent you hire needs to have a top notch marketing plan and be able to show you that they can get results. Ask the tough questions about their average days on market, what support they get from their company, what they absorption rate is for homes in your price range (if they can't tell you this, then they have not done their home work . . . or they don't know what it is). Hire your agent based upon their marketing plan, their knowledge of the business, if you feel they can be trusted, etc . . . DO NOT hire an agent based solely upon what they tell you they can get for your home. An agent cannot determine a selling price . . . the market does that. The agent can only render their opinion based upon the market's recent history, the current market competition, the absorption rate, etc.
Second, DO NOT overprice your home. There are many reasons for this. In a highly competitive market, overpriced listings stay on the market much longer . . . even if you do reduce your price throughout the life of the listing. Homes that have a longer than average days on market get "shop worn". In other words, folks don't get as excited about them and wonder what is wrong with the house, since it has just been "sitting". Your prime time for attracting buyers is within the first 3-4 weeks . . . so it is imperative that your home is priced right from the beginning. After the first few weeks, all of the "pent up" buyers go away, and then all you have are new buyers coming into the market place. "Pent up" buyers are those who have been looking and haven't found yet what they want . . . so when a new home comes on the market, it is like fresh meat and all of the "pent up" buyers go rushing to it.
Third, BE SURE your home is in tip-top condition. This means that it should be in good repair, squeaky clean (inside and out), and free of clutter. You may also want to consider having a professional stager assist with staging the home to sell. However, if you have hired a great Realtor and you listen to AND do the things that they suggest, you should be in a good position with this regard.
Fourth, focus on the features of your home that set it apart from others. For instance, if in your price range all homes have tile floors in the kitchen and baths, don't focus on that. Instead, focus on the fact that your is in a quiet cul-de-sac and has panoramic views of the countryside . . . or whatever the special features of your home are.
Sellers who see the market for what it is and poise themselves to be one step in front of the competition (whether by marketing, price, condition, features, or all of the above) will see the best results.
Good luck to you all, whether you are buying or selling. Opportunities exist for everyone if you know what your are doing and hire a great Realtor.
For additional information, don't hesitate to contact me at 662-895-8300 or 901-210-8045.
Tracy Kirkley
Crye-Leike Realtors
662-895-8300
Olive Branch Homes for Sale
P.S. The information regarding homes listed and sold was compiled from the MLS system of the Northwest MS Assoc of Realtors. It is deemed reliable, but not guaranteed.
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