More local homeowners are upgrading their living conditions and purchasing larger homes, thereby increasing the volume of residential sales and average selling prices in Oktibbeha County by 9 percent each, a housing report shows.
Using the Golden Triangle Multiple Listing Service, a tool that combines listings and data from numerous Realtors across the tri-county area, the report shows the average selling price for an Oktibbeha County home — $193,545 — is at an all-time high in the last 10 years and remains well ahead of similar marks in Lowndes ($137,649) and Clay ($136,524) counties.
Only listed homes and properties are included in the data stream. Since those structures represent a majority of transactions in the Golden Triangle, local officials use the analysis to gauge the health of Oktibbeha County’s housing market.
Coldwell Banker’s Michelle Amos said Realtors are seeing the market for larger homes improve after the 2008 recession. Even though year-to-date figures from Sept. 30 show only two more homes sold compared to the same point last year, the larger structures have increased volume, average price and price per square foot.
Although larger homes are moving in Lowndes and Clay counties, the average price for space in Oktibbeha County homes sold this year is much higher than its neighbors : $101.63 per square foot.
Prices are increasing in the tri-county area, but Oktibbeha’s 6 percent uptick brought it above the $100 mark for the first time in history.
“People are moving out of their first and second homes and into bigger structures. On the lower pricing end, that means people renting can find more and more first homes on the market,” Amos said. “In real estate, there’s no such thing as a national market; it’s all local. Being in a Southeastern Conference town, Starkville is always a market unto itself.”
College towns like Starkville, she said, yield more stable housing markets that are capable of shrugging off events like the recent housing market slide and subsequent sluggish national economy.
When the recession hit in 2008, Oktibbeha County brokers moved 344 listed homes that year. That number remained near consistent since, dipping below the mark in 2011.
“During the recession, an upper-end home over $350,000 didn’t sell. It just sat there for the longest time,” she said. “In the last two years, we’ve seen many of those homes move again. It doesn’t take too many $500,000 home sales to impact the numbers.”
“Even when times are tough, real estate here is a stable and good investment given the advantages of having a major university,” Amos added. “Starkville’s quality of life also helps tremendously. All three counties benefited from (industrial development in Lowndes County) in the past because we’re at a point where people do not think twice about driving 30 miles for work.”
Future industrial projects, including Yokohama’s significant Clay County investment and the development of a new industrial park in Starkville, are expected to greatly impact the housing market once they go live.
The university, specifically excitement among alumni about ever growing athletic achievement, is also providing a boon for condominium development. While recent projects, like the Tabor Development-backed Lofts at Central Station, took a while to sell in the past two years, condo properties are now finding interest as soon as they hit the market, Amos said.
Tabor and developer Steve Langston are preparing two separate, mixed-use properties on Lafayette Street, off the heart of downtown Starkville, while 300 Traditions, a condo project at the Thad Cochran Research, Technology and Economic Development Park, will offer living space geared toward professionals who desire close housing connected to Mississippi State University and its affiliated research wings.
Tabor’s website lists Gallery 106, its Lafayette Street development, as two three-bedroom, three-bathroom luxury loft condominiums averaging about 2,300 square feet. The price tag for a unit starts at $474,900.
Two-bedroom, two-bathroom condo units within 300 Traditions are priced on the multiple listing service at $169,000.
“The football frenzy has increased interest in second homes, but not enough to have a significant impact on our sales just yet. While luxury condos are available, inventory on ‘everyday’ condos is very low, with most selling before the listing hits the market,” Amos said in an email to Greater Starkville Development Partnership officials. “The new student housing complexes definitely had an impact on the rental market here in Starkville. It will be interesting to see if those rentals hit the sales market next spring (or) summer. That could have a significant impact on some of our older neighborhoods, potentially providing affordable homes for first-time homebuyers.”
Property values are likely to remain high in Starkville, given the stability of the market and potential economic development opportunities associated with MSU and the amount of disposable income it brings into the city, she said.
“Hotels are tight, restaurants are full and we have a quality of life unlike any other city in this area – people recognize what Starkville has to offer,” Amos said. “What we find is that people come to Mississippi expecting to find a heck of a deal (on property), but our prices are competitive with larger cities. It’s not that we don’t have lower-priced homes, it’s just that they don’t stay on the market long at all.”
GSDP CEO Jennifer Gregory said her organization is receiving more and more inquiries from developers and potential buyers alike about second home and condo opportunities in Starkville. The market’s slow growth in Starkville across the last decade, she said, provided stability not seen in other SEC towns.
“We’re probably about 10 years behind Oxford (in terms of second home and condo development), but Oxford experienced such a boon in construction then a large number of foreclosures. Our development has been very steady, and, to me, that is the way we want it. The slow and steady growth is yielding developments of substance that will have a lasting impact on our community,” Gregory said. “Overall, people can buy twice the house in Columbus for the same price (as Starkville homes), but they’re choosing to live here. It’s easy to understand when you consider our growing economy, growing population, the 40 percent increase in tourism over five years and record 2 percent (food and beverage) and overall sales tax collections. Starkville’s quality of life definitely makes it a multi-faceted destination for all ages, from young professionals to alumni and retirees.”
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 36 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.