Foreclosures Up in Mississippi: What Does That Mean for the Market?By Daniel Cherry | Published 11 Aug 2011 07:17pm |
Foreclosures are once again on the rise in Mississippi. MPB's Daniel Cherry takes a look at the state's housing market and what that means for potential home buyers in these economic times.
John Hooks of Jackson did what some people would find unthinkable. He dove into the sea of foreclosures and bought a seven thousand square foot home needing more than 100 thousand dollars worth of repairs. Hooks says for what he paid for the house it's worth the investment.
"You have to be much more savvy today than you did in the 1990s or the early 2000s. You have to be much more aggressive and aware of the process because a bank is not just going to loan you money just because you are who you are."
Foreclosures spiked more than 16 percent in July according to Realty Track, a leading foreclosure tracking company. Even though the numbers are up, they're still 13 percent lower than at this time last year. Berry Dumas is a realtor in Jackson. He says the market is leveling off, but with all the foreclosures the market in some places is flooded.
"There was a time when you could make a stated income without even providing documents to get a mortgage. A lot of those people are the ones who really couldn't afford to buy the house and they're going into foreclosure. That's driving the price of the houses down."
The U.S. credit downgrade has sent the stock market on a roller coaster ride. Realtor Don Potts says the volatile market has actually had a positive impact for those looking to buy.
"The U.S. Treasury Bonds are still the best investment out there, and people will continue to put money in treasury bonds because the way the stock market is. When people are buying bonds, it pushes the interest rates down. The 10 year bond which mortgage rates are based on, is the lowest it's ever been."
Overall Mississippi has the 44th lowest rate of foreclosures.
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