The real estate crisis hasn't taken over the West Virginia housing market like in the majority of the country. Homes are still selling, but at a much slower pace as a result of mortgages that are tougher to obtain. The slowdown is attributed to the credit crisis as West Virginians tighten their belts during the recessionary economy.

Newly developed creative adjustable rate mortgages were hardly available during the boom in West Virginia, and subprime lending was in very low numbers. The state ranks near the bottom in terms of foreclosures.

However, higher unemployment figures and expected further job cuts in construction and small business are expected to have a sizeable impact on the local economy. In Charleston, the housing market remained relatively stable through 2008 even though home prices slid marginally in some sectors.

But the slowing economy will put a drag on the Charleston real estate market in 2009, slowing sales, which will turn the market and send it into a deflationary spiral. Home values never hit double-digit appreciation during the boom, which will act to protect the marketplace at least to some degree. Home values are forecast by Housing Predictor to deflate just 3.4% in 2009 on average.

City	Forecast
Charleston	− 3.4%
Morgantown	1.6%
Fairmont	1.2%
Potomac Highlands	− 7.9%
Huntington	− 7.1%

Fairmont is one of those rare places in America's real estate landscape. Home prices have stayed relatively stable for nearly a half century. Prices have gone up enough each year on average to be equal to about the level of inflation, not more, not less. But with less financing available the market will see a further slow down in sales most of the year, but it won't have much of an effect on the market, which is forecast to appreciate just 1.2% in 2009.

Morgantown has always been a community that's had a demand for housing, ranking up there in home sales, but homes are selling at a slower pace these days as the credit crunch takes its bite into the market. Sales will remain slower through 2009 as prices begin to flatten ever so slightly, forecast to appreciate an average of just 1.6% by year's end. As the home of West Virginia University, Morgantown is holding up compared to most other places.

However, Potomac Highlands is regarded as second home market, which have taken their beatings in the nation's housing crisis. Baby-boomers just aren't buying property like they were during the boom and it's likely to remain that way for a while.

Potomac Highlands will see sluggish sales through the year on the way to deflation forecast by Housing Predictor to be 7.9% for the year on average. The over abundance of property on the market is pulling down the number of transactions.

It's taking longer and longer to sell homes in Huntington whether they're on the banks of the scenic Ohio River running through town or elsewhere, affecting home sales. Huntington will see sales through most of the year, but not on pace with that of yesteryear as they record average deflation forecast at 7.1% in 2009.