DeSoto weathers housing slump

DESOTO COUNTY - DeSoto County is fairing slightly better than the national average in sales of existing homes, according to real estate professionals in the state's fastest growing county.

Existing home sales nationally plunged to 27 percent, the lowest level in 15 years, despite the lowest mortgage rates in 40 years and bargain prices. DeSoto County is 20 percent off last July's pace.

The national drop-off in sales is the largest in more than four decades.

The sales and inventory report for the entire multiple listing service for the northwest Mississippi region, which includes DeSoto County, shows there were 213 sales this July compared to 270 for the same time period in 2009.

Figures for monthly volume show $38.4 million in inventory for 2009 compared with $30.6 million this July.

A bright spot among the statistics shows the average list price for homes in the MLS area is slightly higher for July than it was a year ago.

The average list price for a home in July of 2009 was $148,897 compared with $149,887 this year. Average sale prices were also up, from $142,280 in 2009 to $144,027, July figures show.

Inventories are also slightly less than what they were a year ago, meaning the glut of existing homes is slowly drying up. The region had an inventory of 2,268 homes in July of 2009 compared with 2,158 this past July.

"DeSoto County is doing just a little bit better than the national trend," Paul Shahan, executive officer of the Northwest Mississippi Association of Realtors said. "We're looking at being about 20 percent behind where we were last July," Shahan said.

Shahan said he expects numbers to pick up as DeSoto County's population continues to grow.

"We have a better quality of life here," Shahan said. "That's why we're a little ahead of the national trend. Increased job opportunities are starting to take effect."

Corie Haynes, president of the Northwest Mississippi Association of Realtors, said she has talked with local real estate agents about the drop in existing home sales and tries to remain upbeat things will turn around.

"Our agents are seeing a little bit of a slowdown," Haynes said. "But it appears we're holding steady. I'm optimistic."

Haynes said typically DeSoto County has faired better than its regional counterparts in terms of home sales and average prices of units sold during the economic recession.

"Over all, DeSoto County is continuing to grow," Haynes said. "We're continuing to get new industries moving in and people from other areas of the country who are moving here for jobs."

Haynes said she expects the number of existing home sales to rise as the economy continues to gain solid footing.

"Usually in the fall we see an up-tick from September and October, even into November and December," Haynes said. "It will be a little slow over the winter months, as it usually is, but then I think it will pick up again in the spring."

The housing market tends to drive the nation's economy, along with several other key components like job growth, manufacturing and capital investment.

Local bankers are cautiously optimistic that existing home sales and new housing starts will help kickstart the economy after the first of the year.

"We just need some good news that the worst part is over," Bill Renovich, President and CEO of DeSoto County Bank. "Bad economic news freezes people. I hear worse stories outside our market. We've had great announcements by the DeSoto Economic Development Council within the last month. I think people will continue to move here."

Renovich said the public's reaction is reflexive of the economy.

"I saw a trend in things getting better," Renovich said. "But since this announcement (plummeting homes sales) I've had at least two deals fall through. It's definitely down from what it's been years in the past. By the same token, we've had an increase in people wanting to refinance because rates are so low. From what I've seen, I'd say it's flat. There's been no change in activity."