North Mississippi Market Analysis and Land Trends
North Mississippi Current Land Trends
The Price Per Acre by Land Type and Average Price per Acre Graph in the lower left corner demonstrates that land value is closely linked to its location. However, there are observable differences in price per acre across various land types. Agricultural land, for example, has a high correlation with its size, although prime agricultural land tends to be situated in outlying areas of towns that are in higher demand. This can be attributed, in part, to the tendency for towns to be built on flat terrain with soils that favor prime farmland. Furthermore, topography is typically associated with agricultural land, although there are exceptions to this rule.
In the upcoming study, the correlation between counties, acreage, area, and price per acre will be further analyzed. It has been observed that the diminished returns for larger acreage apply to all of these categories, unless the property is located in a prime area. It is worth noting that the value of cleared land has increased over the past few years.
Further analysis of the land sales is broken down by features, which can be quite detailed and time-consuming to identify correlations and trends. If you enjoy solving puzzles, this task may be a fun challenge for you!
Analysis Of the Broader Land Market
Market Analysis of Lots Between 30-50 acres
This market analysis includes an inventory analysis covering the prior 7-12 months, prior 4-6 months, and current 3 months. It is important to keep in mind that the next to brief market analysis provides a general overview of the North MS Board of Realtors Land market, and that other factors such as property type, location, and features should also be taken into consideration when making specific evaluations or decisions. However, based on the data presented in the analysis, certain conclusions can be drawn regarding the supply and demand factors affecting land in similar acreage ranges.
Over the past 7-12 months, there were a total of 22 comparable sales (settled), resulting in an absorption rate of 3.67 sales per month. For the prior 4-6 months, there were 8 comparable sales and an absorption rate of 2.67 sales per month. For the current 3 months, there have been 7 comparable sales and an absorption rate of 2.33 sales per month.
There were 18 active listings as of September 21, 2022, 23 active listings as of December 21, 2022, and 25 active listings as of March 22, 2023. Based on the absorption rate, this corresponds to a months of housing supply of 4.9 months, 8.61 months, and 10.73 months, respectively.
Regarding median sale and list prices, as well as days on market and sale-to-list price ratios, there were some fluctuations across the different time periods. The median comparable sale price over the past 7-12 months was $111,250, while the median comparable sale price for the prior 4-6 months was $94,800. In the current 3 months, the median comparable sale price was $98,000. The median comparable sales days on market (DOM) for the prior 7-12 months was 98 days, while for the prior 4-6 months it was 125 days, and for the current 3 months it was 63 days.
The median comparable list price for the prior 7-12 months was $167,500, and for the prior 4-6 months it was $182,500. In the current 3 months, the median comparable list price was $225,000. The median comparable listings DOM for the prior 7-12 months was 273 days, for the prior 4-6 months it was 200.5 days, and for the current 3 months it was 170 days.
Finally, the median sale price as a percentage of the list price was 94.00% for the prior 7-12 months, 78.00% for the prior 4-6 months, and (data missing) for the current 3 months
Market Analysis of Lots Between 10-20 acres
This market analysis presents an inventory analysis for the prior 7-12 months, prior 4-6 months, and current 3 months. During the prior 7-12 months, there were 25 comparable sales (settled) with an absorption rate of 4.17 sales per month. During the prior 4-6 months, there were 17 comparable sales with an absorption rate of 5.67 sales per month. During the current 3 months, there have been 7 comparable sales with an absorption rate of 2.33 sales per month.
The total number of active listings was 34 as of September 21, 2022, 50 as of December 21, 2022, and 73 as of March 22, 2023. Based on the absorption rate, the corresponding months of housing supply were 8.15 months, 8.82 months, and 31.33 months, respectively.
Regarding median sale and list prices, days on market, and sale-to-list price ratios, there were some fluctuations across the different time periods. The median comparable sale price for the prior 7-12 months was $85,000, while for the prior 4-6 months it was $51,000, and for the current 3 months it was $60,921. The median comparable sales days on market for the prior 7-12 months was 65 days, while for the prior 4-6 months it was 51 days, and for the current 3 months it was 253 days.
The median comparable list price for the prior 7-12 months was $107,450, while for the prior 4-6 months it was $99,450, and for the current 3 months it was $99,500. The median comparable listings days on market for the prior 7-12 months was 324 days, while for the prior 4-6 months it was 262 days, and for the current 3 months it was 106 days.
Finally, the median sale price as a percentage of the list price was 88.00% for the prior 7-12 months, 94.00% for the prior 4-6 months, and 90.00% for the current 3 months.
Expired Listings Between 30-50 Acres
The massive amount of expired listings in this market analysis is likely a result of overpricing. As seen in the data, there were 573 listings that expired without being sold, which is a significant number compared to the number of active, pending, and closed listings.
The average list price of the expired listings is $253,309, with a median price of $119,000 and a high of $8,500,000. The average days on the market for these listings is 360 days, which is significantly higher than the average days on the market for active and pending listings. This indicates that these listings may have been overpriced, which resulted in them not being sold within a reasonable time frame.
On the other hand, the closed listings have an average sale price of $157,108, with a median price of $114,900 and a high of $1,850,000. The sale-to-list price ratio for these listings is 0.90, which is relatively close to the asking price. Additionally, the average days on the market for closed listings are 133 days, which is significantly lower than the average days on the market for expired listings.
Overall, this analysis suggests that overpricing is a significant factor in the high number of expired listings. It is important for sellers to work with a real estate agent who can provide a realistic and accurate valuation
MUCH MORE TO COME!
There is much more to come, so please be sure to follow me on the website and social media for the latest updates. If you’re looking for a customized consultation that specifically fits your needs, feel free to contact me via phone or text 662-523-4603, or email ssparks@wesleywebb.com at any time to schedule an appointment. Thank you for taking the time to read this!
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