Efforts to restore the Mississippi real estate market after the devastation of Hurricane Katrina in the Coast are wide of the mark. These days, the rising housing inventory has brought home values to the dumpster. Sales remain soft with austere expectations for recovery throughout the year.

In Biloxi, home sales are decelerating. Potential borrowers are lucky to have more mortgage lenders who are ready to finance their loans but the high cost of homeowners insurance are discouraging them from pursuing their plans. Also, the condominium projects are stalling in the city. A year ago, ten condominium developments had their permits lapse without any notice of extension mainly because of the cooling market.

RealtyOutlook.com forecasts home prices to dip by 12 percent in 2009. Residents need to accept the fact that physical recovery and financial stability of the entire real estate market in the city will take more than year to occur. Biloxi is expected to still remain strong because of the Gulf Opportunity Zone Act of 2005 that provides incentives for private investors in the area.

In Jackson, the housing market jumped the gun prior to the boom of the industry. But the heightened activity was cut short by the credit crunch easily. Homeowners fell behind their payments and eventually foreclosed their houses. Residential high-rise units have also been stalled. The previous year saw only a few completed projects and developments in the planning stage have been reduced due to financial limitations.

Pascagoula, an industrial area known for its shipbuilding facilities, is hammered by the high cost of refinancing schemes. As such, homeowners are subjected to higher interest rates from their adjustable rate mortgages amidst falling percentages for 30-year fixed rate types every week. Home values are forecasted to lose 11 percent this year coupled with downbeat housing sales.

Hattiesburg is also experiencing the pressure of harder economic times. After total home constructions dramatically rose to new levels when Hurricane Katrina left the state in shambles, tight credit markets today have halted the efforts of massive rebuilding. However, low mortgage rates should encourage buyers to push through with their ownership plans. Buyers need to be aware though that RealtyOutlook.com projects a 10.5 percent drop in the city’s home values this year.