The Jackson real estate market continues to experience modest gains in 2016. The first-half witnessed subtle growth in both median home prices and appreciation rates for Jackson real estate, with prices in the second quarter up from a year ago. Although home prices remained below the national average in Q2, gains in the last three years have extended the trend of positive price growth since the recession. The Jackson real estate market remains among the most affordable in the nation, and its improving economy should help to further improve the city’s standing by the end of the year.
Jackson, MS Real Estate Market Statistics:
The Jackson real estate market has fared pretty well in the second quarter in terms of appreciation. Jackson real estate saw one-year and three-year appreciation rates of 0.3 percent and 15.4 percent during the second quarter, whereas the national average achieved 4.9 percent and 17.8 percent. For Jackson real estate investors and homeowners, price appreciation and principle payments in the last three years have boosted total equity growth since the recession. For those considering Jackson real estate investments, the following reveals appreciation gains in previous years:
- Homes purchased in the Jackson, MS housing market one year ago have appreciated, on average, by $3,439. The national average was $14,963 over the same period.
- Homes purchased in the Jackson, MS housing market three years ago have appreciated, on average, by $30,870. The national average was $46,878 over the same period.
- Homes purchased in the Jackson, MS housing market five years ago have appreciated, on average, by $46,942. The national average was $82,353 over the same period.
- Homes purchased in the Jackson, MS housing market seven years ago have appreciated, on average, by $47,887. The national average was $77,054 over the same period.
- Homes purchased in the Jackson, MS housing market nine years ago have appreciated, on average, by $45,563. The national average was $31,126 over the same period.
The Jackson real estate market continues to see stable gains in home appreciation, despite falling short of the national average. Total equity for Jackson real estate saw their biggest gains in year five, which saw homes appreciate by $46,942. Although total equity gains lag behind the national average, it’s still strong compared to other markets. For investing purposes, the combination of comparable equity gains, coupled with lower home prices bodes well for Jackson real estate investors and homeowners, including future investment activity.
Another factor that could influence investment activity for Jackson real estate are foreclosures. According to RealtyTrac, Jackson saw 717 properties in some stage of foreclosures during the month of September. This is 32 percent higher than the previous month and 31 percent lower than the same time last year. Another component of foreclosures are bank owned properties. Surprisingly, the number of REO properties in Jackson continues to skyrocket, as last month saw REOs increase 53.8 percent compared to the previous month, and 185.7 percent prior to last year. The deluge of bank owned properties in the Jackson real estate market could spur a flurry of investment activity in coming months.
Jackson, MS Real Estate Market Summary:
- Current Median Home Price: $172,600
- 1-Year Appreciation Rate: 0.3%
- 3-Year Appreciation Rate: 15.4%
- Unemployment Rate: 5.8%
- 1-Year Job Growth Rate: 0.8%
- Population: 172,638
- Median Household Income: $33,434
Jackson, MS Real Estate Market (2016) — Q2 Updates:
The Jackson real estate market continues to make steady strides in 2016. The median home price for Jackson real estate was $172,600 during the second quarter, compared to the national average of $239,167. Appreciation rates also remained competitive, with one-year and three-year appreciation rates at 0.3 percent and 15.4 percent respectively. Although home prices and appreciation were below the national average in the second quarter, the Jackson real estate market continues to gain ground.
One of the hallmarks of the Jackson housing market has been affordability. The second quarter further cemented this notion, as homeowners paid 8.4 percent of their income to mortgage payments, compared to the rest of the country paying 15.8 percent. Home affordability has traditionally been strong and continues to improve in Jackson, but new housing construction will undoubtedly influence it down the road. The second quarter saw the level of new construction reach 29.5 percent above the long-term average, while single-family permits hit 16.5 percent. In comparison, the national average saw single-family housing permits only reach 10.6 percent. That said. Construction in Jackson is on the rise relative to last year, which suggest that local inventory has stabilized.
Lastly, the local economy is expected to play a considerable role in the Jackson real estate market moving forward. Although employment has held up and is on an upward trend, job growth remains poor. The one-year job growth rate for Jackson was 0.8 percent in the second quarter, compared to the national average of 1.9 percent. In terms of unemployment, the second quarter saw a rate of 5.8 percent for the city of Jackson, while the national average recorded an unemployment rate of 4.9 percent.
The second-half of 2016 is forecasted to see weaker price growth for the Jackson real estate market. According to the National Association of Realtors, Jackson real estate is predicted to see growth at a rate of 2.7 percent, as opposed to the national average which will see a rate of 3.6 percent. The Jackson real estate market continues to hover below the national average in 2016, with home prices, appreciation rates and future predictions falling short. However, the Jackson real estate market remains a lucrative market for investment activity, especially in 2016.
