The bottom line: This 'playground of the South' coastal community is on the upswing of recovery post Hurricane Katrina and amid challenging market conditions

This summer, we were in Biloxi, MS visiting our Affiliates at the Biloxi Sun Herald. According to our local newspaper Affiliates, this housing market has taken a big hit similar to other markets across the country. Unlike other markets, however, their foreclosure transactions are relatively low. There are fewer foreclosures because many homes were damaged by Hurricane Katrina in 2005, with an estimated 10,000-12,000 homes affected by the storm.

For months following the initial destruction, the Sun Herald was one of the main sources of news when electricity was not available. Fortunately, the newspaper was still able to publish regular issues since it was located ¼ mile off the beach and above shore level.

Today the Biloxi area is still recovering. Some homes are not being rebuilt as insurance is very high and some local insurance firms are not issuing new policies. The job market was also adversely affected so there are few out-of-town buyers and many builders have since left the area after the rebuilding was completed. Currently, gambling and tourism are some of the biggest industries in this community. Yet with 26 miles of sandy beachfront and a moniker as one of the 'playgrounds of the South,' Biloxi continues to offer its weight in real estate gold: location.

During our visit, we also met with many agents and brokers in the area including RE/MAX by the Bay (Bay St Louis), Latter & Blum Coastal Properties (Bay St Louis) and Gollott Lyons Real Estate (Biloxi, MS).

Here at HomeFinder.com, we're fortunate to have a presence in over 130 local markets, thanks to our partnership with online newspaper Affiliate sites across the country. To cultivate this partnership, we have a team of five lovely ladies (Affiliate sales managers) who regularly travel to our newspaper markets to provide training on our latest and greatest products/services as well as set up sales calls and meet with current advertisers and prospects nationwide.

Essentially, they are our feet on the street—a window into a microcosm of the industry. We look forward to providing you with local market snapshots from their visits throughout the year—so stay tuned…and let us know how this jives with what's happening in your market.

The S&P/Case-Shiller U.S. National Home Price Index plunged 18.2% during the final quarter of 2008, the biggest annual decline in the closely watched index's 21-year history. Separately, for the month of December alone the Case-Shiller 20-City Composite Index fell 18.5% compared with the previous December, also a record decline.

The seven worst performing cities in terms of year-over-year declines continue to be from the Sunbelt, reporting negative returns in excess of 20%. Phoenix was down 34.0%, Las Vegas reported -33.0% and San Francisco fell 31.2%. Denver, Dallas, Cleveland and Boston faired the best in terms of annual declines down 4.0%, 4.3%, 6.1% and 7.0%, respectively.

Metropolitan Area Home Price Index 1-year change (%)

• Atlanta, GA: -12.1%
• Boston, MA: -7.0%
• Charlotte, NC: -7.2%
• Chicago, IL: -14.3%
• Cleveland, OH: -6.1%
• Dallas, TX: -4.3%
• Denver, CO: -4.0%
• Detroit, MI: -21.7%
• Las Vegas, NV: -33.0%
• Los Angeles, CA: -26.4%
• Miami, FL: -28.8%
• Minneapolis, MN: -18.4%
• New York, NY: -9.2%
• Phoenix, AZ: -34.0%
• Portland, OR: -13.1%
• San Diego, CA: -24.8%
• San Francisco, CA: -31.2%
• Seattle, WA: -13.4%
• Tampa, FL: -22.0%
• Washington, DC: -19.2%

Source: Standard & Poor's and Fiserv
Data through December 2008

As of February 1, 2009, home inspectors in Texas began using a new property inspection report. This new form reflects changes in a home inspector's standard operating procedure as defined by the state, but it is also meant to clarify what a home inspection entails (i.e. what you can expect from your home inspector). To help consumers understand how this will impact them, I thought I'd give a summary of the more significant changes in the report.

The first major change to the property inspection report can be found in the opening paragraph. The old form had a readable opening, but it took some careful reading from consumers to fully understand. In the new report, we have a longer introduction written in fairly clear terms. But the most significant change is in how items are reported. We use to state that an item was 'in need of repair' (this was indicated by checking the 'R' box); however, consumers were confused by the fact that we checked this box when an item did not need to be repaired. Sometimes a home inspector may have been indicating that there is a feature that we consider important, like a GFCI outlet in the kitchen, but the outlets in the kitchen worked. Now inspectors are looking for AFCI breakers for the bedrooms.

This is a nice safety feature, but it should be up to the consumer of the report to decide to have these installed. That is the main point. By stating 'in need of repair,' there was an impression that an item had to be fixed, but this was never the case, and the new introduction makes that statement clear. A buyer cannot force a seller to make a repair. They never could. These details should be part of the negotiation process.

The new indicator is 'D,' which means that an item is deficient. We have to understand that an existing home may have been built well for its time, but we are finding new and better ways to improve the construction of our homes and a home inspection report should inform you of those changes. This fact should be important to a consumer in any state. Home inspectors are not always stating what needs to be repaired, but they mean to give you guidance.

The next significant change is the list of items inspected. Actually, there are no new parts of the home being inspected, but where a home inspector's findings are listed has been refined. Under 'Structural Systems,' we now have the heading 'Stairways.' These were placed under 'Walls' in the old report, but the awkwardness of listing issues there has been cleared up by giving it a separate section. Along these lines, you will find some clarifications in the 'Appliances' section. 'Other Built-in Appliances' and 'Whole House Vacuums' have been moved to the optional systems part of the report. These sections were rarely used in the old report. In the 'Appliance' section, you will also see that bathroom vents are now handled under 'Mechanical Exhaust Vents and Bathroom Heaters.' Bathroom heaters were typically examined by home inspectors, but there was no clear space to write our observations down, so this change helps us find that information in a consistent location.

The 'Optional Systems' section has the two additions mentioned, and the only other change is the name of some sections are now more inclusive of what is being examined. That means we now look at 'Gas Supply Systems,' 'Private Water Wells' and 'Private Sewage Disposal Systems' (septic).

The biggest change to our inspection process comes in the 'Plumbing' section. Home inspectors had a loose way of inspecting this system when compared to the new requirements. We have to report on static water pressure, which should be between 40 to 80 psi. This is the acceptable range for everything in your home to work well. Before, we just looked at functionality and signs of pressure issues. Inspectors now have to check the exact pressure. We also need to look if there are ways to reduce the pressure when it is too high. I reported on the location of the meter and main shut off valve in my reports when I saw how some buyers were not sure where these could be. This is now a standard practice for all inspectors.

While the new changes mean that home inspectors will be refining how they evaluate your home, the basis of the home inspections conducted in Texas remains pretty much the same. I believe that these changes will be good for the industry, making the information more transparent for home buyers and sellers who are dependent on these inspection reports.

Frank Schulte-Ladbeck, is a Houston-based Professional Real Estate Inspector

Most metropolitan area median home prices, impacted by distressed sales, trended down in the fourth quarter from a year earlier. At the same time, existing-home sales rose in only six states from the fourth quarter of 2007, according to the latest survey by the National Association of Realtors.

In the fourth quarter, 134 out of 153 metropolitan statistical areas showed declines in median existing single-family home prices from the same period in 2007, pulled down by active sales at the lower end that were driven by foreclosures. One area was unchanged and 18 metros reported price gains.

Distressed sales – foreclosures and short sales – accounted for 45 percent of transactions in the fourth quarter, dragging down the national median existing single-family price to $180,100, which is 12.4 percent below the fourth quarter of 2007 when conditions were more balanced; the median is where half sold for more and half sold for less.

Despite the drop in median home sales, the largest sales gain in the fourth quarter from a year earlier was in Nevada, up 133.7 percent, followed by California which rose 84.7 percent, Arizona, up 42.6 percent, and Florida with a 12.5 percent increase. Some housing experts contribute the sales gains to the increased foreclosures and short sales in those states.

California, Florida, Arizona post highest foreclosure totals
In a separate report from RealtyTrac, foreclosure filings were reported on 76,761 California properties, the most of any state despite a 14 percent decrease from the previous month. The state's foreclosure activity in January still increased 34 percent from January 2008.

Florida's 40,770 properties receiving foreclosure filings in January was the second highest total of any state, and Arizona's 14,674 properties receiving foreclosure filings was the third highest total of any state

Illinois foreclosure activity in January increased 16 percent from the previous month, giving the state 14,447 properties with foreclosure filings — the fourth highest state total. One in every 363 Illinois properties received a foreclosure filing in January, the nation's sixth highest foreclosure rate.

Nevada, Michigan, Ohio, Georgia, Texas and Virginia also reported foreclosure totals that were among the nation's 10 highest.

Got hot local housing tips or a story you want to share? Contact Amy Le at openingdoorsblog@HomeFinder.com.