The Jackson housing market is experiencing a period of change. As we look ahead, the Jackson housing market appears to be in a state of transition. The recent decline in median home prices, coupled with increased market activity, suggests opportunities for both buyers and sellers. The market’s competitiveness, multiple offer scenarios, and varying selling durations indicate a balanced landscape, with different segments catering to diverse preferences.
Current Jackson Housing Market Trends
How is the Housing Market Doing Currently?
According to Redfin, in December 2023, the Jackson housing market experienced notable shifts, reflecting changes in both pricing and market dynamics. The median home prices in Jackson witnessed a significant decrease of 25.9% compared to the previous year, with homes selling for a median price of $85K. This decline in prices has reshaped the landscape, creating opportunities for potential buyers.
On average, homes in Jackson are now spending 48 days on the market, a substantial increase from 24 days the previous year. This shift indicates a change in the pace of the market, allowing buyers more time to make informed decisions. The number of homes sold in December saw a remarkable increase, rising from 92 last year to 174, showcasing heightened activity in the real estate sector.
How Competitive is the Jackson Housing Market?
Despite the decline in prices, Jackson’s housing market remains somewhat competitive. The median sale price in Jackson is 85% lower than the national average, providing affordability but also indicating a unique market dynamic. Homes, on average, sell in 41.5 days, suggesting a balanced competitiveness in the market.
Some homes in Jackson experience multiple offers, a sign of increased demand in certain segments of the market. The average homes sell for about 6% below the list price, with a relatively quick turnaround of 42 days from listing to pending. However, hot homes can command prices close to the list price and go pending in an impressive 13 days.
Sale-to-List Price and Homes Sold Above List Price
The sale-to-list price ratio stands at 95.1%, showing a +3.7 point year-over-year increase. Additionally, 15.1% of homes were sold above the list price, marking a +1.0 point increase from the previous year. These figures underline the evolving dynamics of the market, reflecting both buyer demand and seller considerations.
Are There Enough Homes for Sale to Meet Buyer Demand?
The Jackson housing market is witnessing intriguing migration and relocation trends. In the period from Nov ’23 to Jan ’24, 32% of Jackson homebuyers expressed interest in moving out of Jackson, while 68% looked to stay within the metropolitan area. This data highlights a dynamic market where buyers are exploring options both within and outside the local region.
Interestingly, across the nation, only 0.08% of homebuyers searched to move into Jackson from outside metros. The top contributing metros to Jackson’s incoming homebuyers were Los Angeles, Chicago, and Dallas, indicating a diverse range of potential residents considering Jackson as their new home.
What is the Market Outlook?
Considering the migration trends, the forecast is nuanced. While a notable portion of buyers is exploring options outside Jackson, the majority still expresses a desire to stay within the metropolitan area. This trend suggests a stable and resilient market, offering choices for both local and incoming residents.
Jackson Housing Market Forecast for 2024
According to Zillow, the Jackson housing market has experienced a notable shift, with the average home value standing at $61,225, reflecting a 26.1% decrease over the past year. Homes in Jackson typically go pending within a swift 29 days, showcasing the dynamic nature of the real estate landscape. Let’s delve into the key metrics shaping this market.
Key Metrics Breakdown:
For Sale Inventory (December 31, 2023):
671 properties are currently on the market, providing potential homebuyers with a diverse range of options in Jackson.
New Listings (December 31, 2023):
155 new listings have emerged, indicating a continued influx of properties into the market, potentially influencing supply and demand dynamics.
Median Sale to List Ratio (November 30, 2023):
With a 0.928 ratio, sellers in Jackson have experienced a balanced market, where homes are selling close to their list prices.
Median Sale Price (November 30, 2023):
The median sale price in Jackson stands at $74,833, offering insights into the affordability and value of homes in the area.
Median List Price (December 31, 2023):
The median list price currently registers at $95,463, illustrating the expectations and pricing trends set by sellers in the market.
Percent of Sales Over/Under List Price (November 30, 2023):
Notably, 10.5% of sales in Jackson have exceeded the list price, while 74.3% have occurred under the list price, presenting a nuanced picture of negotiation dynamics in the real estate transactions.
Jackson MSA Housing Market Forecast:
Looking ahead, the Housing Market Forecast for the Jackson Metropolitan Statistical Area (MSA) anticipates a nuanced trajectory. According to the data provided for 31-01-2024, 31-03-2024, and 31-12-2024, the forecast indicates a minor dip of -0.4% by the end of January 2024, followed by a more moderate decrease of -0.2% by March 2024. However, the market is projected to rebound, with an estimated 1.4% increase by December 2024.
The Metropolitan Statistical Area (MSA) of Jackson, Mississippi encompasses a geographical region with shared economic and social ties. In this context, the Jackson MSA includes various counties, with their housing markets contributing to the overall dynamics of the region. The forecasted changes indicate the resilience and adaptability of the Jackson housing market, offering valuable insights for prospective buyers, sellers, and investors.
Are Home Prices Dropping in Jackson?
Yes, the data reveals a 26.1% decrease in the average home value over the past year, bringing it to $61,225. This decline may present opportunities for buyers seeking more affordable housing options. However, it’s essential to consider other factors such as market trends, location, and individual property characteristics before making a definitive conclusion about the trajectory of home prices in Jackson.
As of the current analysis, the Jackson housing market appears to be favoring neither exclusively buyers nor sellers. The median sale to list ratio of 0.928 suggests a balanced environment where homes are selling close to their listed prices. This equilibrium indicates that both buyers and sellers have opportunities for fair transactions, fostering a competitive yet stable marketplace.
Will the Jackson Housing Market Crash?
The current indicators do not suggest an impending housing market crash. While there has been a decrease in average home values, the forecasted rebound with an estimated 1.4% increase by December 2024 signals resilience in the market. It is crucial to monitor economic factors, interest rates, and external influences for a comprehensive understanding of the market’s stability.
Is Now a Good Time to Buy a House in Jackson?
Considering the decrease in home values and the balanced market conditions, now could be a favorable time for potential buyers. The 29 days on the market metric indicates a relatively quick turnaround, providing buyers with a timely and dynamic selection of properties. However, individual circumstances, financial considerations, and long-term goals should be carefully weighed when making such significant decisions.
It’s essential to note that real estate markets are influenced by a multitude of factors, and predictions are subject to change based on economic, social, and environmental shifts. Prospective buyers and sellers are encouraged to consult with real estate professionals for personalized advice tailored to their specific situations.
Source: Zillow
Is Jackson a Good Place to Live?
Deciding if Jackson, Mississippi is a good place to live involves considering various factors, including lifestyle preferences, career opportunities, cost of living, education, safety, and more. Here’s an assessment to help you weigh the pros and cons.
1. Cost of Living
One of the key advantages of living in Jackson is its affordability. The cost of living is generally lower compared to many other cities in the United States, making it an attractive option, especially for budget-conscious individuals or families.
2. Employment and Economy
Jackson has a diverse economy with sectors like healthcare, manufacturing, education, and government playing significant roles. However, the city has faced challenges like a declining population and a high crime rate that can impact the overall economic landscape.
3. Education
Jackson has various educational institutions, including public and private schools, colleges, and universities. While there are options for education, it’s important to research and choose schools that align with your educational goals and standards.
4. Community and Lifestyle
Jackson offers a vibrant cultural scene, with events, festivals, museums, and theaters. Additionally, the city has beautiful parks and outdoor recreational opportunities. However, the high crime rate may affect the overall sense of safety and community well-being.
5. Health and Healthcare
The city has numerous healthcare facilities and medical services, providing adequate healthcare options for residents. Access to healthcare is an important aspect when considering a place to live.
6. Overall Safety
While Jackson has a relatively high crime rate, it’s important to note that safety experiences can vary by neighborhood. Researching and choosing a safe neighborhood is crucial for a better living experience.
Is Jackson, Mississippi a Good Place to Invest in Real Estate?
Investing in real estate is a significant decision, and assessing the potential of Jackson, Mississippi as a real estate investment destination requires a careful examination of various factors, including market trends, economic stability, housing demand, and potential for returns.
1. Affordability and Property Prices
One of the compelling reasons to consider Jackson for real estate investment is its affordable property prices. The cost of real estate in Jackson is notably lower than in many other parts of the United States, making it an attractive option for potential investors, especially those looking to enter the market without a substantial initial investment.
2. Rental Market and Demand
Jackson has a steady demand for rental properties. The city’s affordability attracts renters, including young professionals, students, and families. Investors can capitalize on this demand by acquiring rental properties, potentially ensuring a consistent income stream.
3. Economic Diversity and Stability
The economic diversity in Jackson, with a mix of industries including healthcare, manufacturing, education, and government sectors, provides a sense of stability to the local economy. A diverse economy is generally considered beneficial for real estate investments, as it can mitigate risks associated with over-dependence on a particular industry.
4. Potential for Growth and Development
Jackson is investing in new infrastructure and development projects, which can enhance the city’s appeal and potentially drive property value appreciation. These initiatives, coupled with ongoing efforts to address the crime rate and improve livability, may attract more residents and businesses, positively impacting the real estate market.
5. Neighborhood Analysis
Conducting a thorough analysis of various neighborhoods within Jackson is essential. Some neighborhoods may have higher demand, better growth prospects, or a more favorable appreciation rate. Identifying neighborhoods with potential for growth can be key to a successful real estate investment in the city.
6. Risks and Challenges
It’s important to acknowledge the challenges, such as the city’s high crime rate and a declining population. These factors can affect property demand and neighborhood desirability. Investors should carefully evaluate and choose neighborhoods with relatively lower crime rates and potential for growth.
Jackson, Mississippi presents investment opportunities in real estate, primarily due to its affordability, potential for growth, economic diversity, and ongoing development efforts. However, investors must conduct thorough due diligence, analyze specific neighborhoods, and consider the associated risks before making investment decisions.
References:
https://www.zillow.com/home-values/32179/jackson-ms/
https://www.redfin.com/city/9165/MS/Jackson/housing-market
https://www.realtor.com/realestateandhomes-search/Jackson_MS/overview
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