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West Virginia
Home prices in most of West Virginia didn’t go through the roof during the real estate boom, and as a result most of West Virginia is handling the national real estate recession strongly.
In the capitol of Charleston the housing market has seen sales volume slow, but prices haven’t been statistically hit yet. Lower home prices generally take a half a year to show up in statistics, but that will occur soon enough. However, the marketplace never saw double digit appreciation and as a consequence won’t see rapid deflation.
Housing Predictor forecasts that the Charleston market will remain relatively healthy through 2008 and see deflation of just 4.6%, which is substantially less than most other housing markets in the nation. With a median price of just $126,000 lower home prices protect this market to a great degree from the fall out of troubles else where.
In the northern West Virginia community of Fairmont prices have stayed relatively healthy for most of the last half century, appreciating 2 to 4% on average a year. But a buyers market has developed, which has sent home prices slightly southward. An increase in foreclosures has attributed to part of the problem.
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| City |
Forecast |
| Charleston |
− 4.6% |
| Morgantown |
− 3.5% |
| Fairmont |
− 3.5% |
| Potomac Highlands |
− 5.4% |
| Huntington |
− 4.9% |
But North Central West Virginia ranks at the top of the state’s housing markets by West Virginia standards, and as a result of comparatively high demand the market should do fairly well through 2008, despite slower sales. Housing Predictor forecasts Morgantown and Fairmont to deflate just 3.5% in 2008. Morgantown is home to West Virginia University.
West Virginia’s strong economy drives the housing markets with good employment growth.
But Potomac Highlands is in a different situation all together. It’s comprised of 8 counties and is a highly regarded second home market catering to those from bigger urban areas surrounding West Virginia.
During the national real estate boom Potomac Highlands saw prices appreciate strongly until the credit crunch hit to slow the market's pace. Now the inventory of homes is increasing almost daily as more and more vacation homeowners become concerned about the national economy.
As a result Housing Predictor forecasts Potomac Highlands will see a fall in home prices over 2008, deflating a projected 5.4% by year’s end.
On the banks of the Ohio River Huntington has less expensive home prices. It’s taking longer to sell homes in Huntington as the average number of days on the market is higher than a couple years ago. But the market is still relatively active like much of West Virginia real estate.
However, buyers are now in control, pulling prices lower, and are projected to decrease average values of homes in Huntington 4.9% by year’s end.
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