The property market located in West Virginia boasts a lower median home value than other states in America. Therefore, West Virginia is a great place to live. West Virginia’s real estate market has earned itself a name for providing potential buyers with affordable homes. With an average home value of $112,902, it’s pretty reasonable to say that purchasing a home in West Virginia is significantly cheaper and more affordable than renting many regions within the Mountain State, which bodes highly healthy for long-term investors.
The momentum generated in the other nation will benefit West Virginia and its respective investors. Although the state will require overcoming a few economic issues to realise its full potential fully, it is moving in a positive direction. In all likelihood, the real estate market within West Virginia looks to be an affordable investment with the potential to earn attractive profits despite recent price hikes.
This is the Top West Virginia Real Estate Markets
The best actual property marketplace in West Virginia is up for discussion. Here’s a list of the cities investors may wish to make special considerations for:
- Charleston
- Huntington
- Morgantown
- Parkersburg
- Wheeling
West Virginia Median Home Prices
The median home price for homes in West Virginia is $112,902, representing the culmination of nearly eight decades of development. In October 2012, West Virginia saw its median home value decrease to around $89,896. Since then, this state, West Virginia, has ridden a rise in good indicators. Not least of which were the reason for an increase of 25.5 percentage rise. In terms of context, the real estate market within West Virginia appreciated at a lower rate than the average for all of America.
To better understand the situation, put things in perspective: the median home value across the United States is $266,222–or $153,320 higher than the median West Virginia home price. Since the end of October 2012 (right at the time when the nation’s real estate market began to rebound) median home prices across the nation have increased by 62.3 percentage. If we take a step back, it’s evident that the real estate market within West Virginia has underperformed the national market. However, local investors must view the state of affairs as an opportunity.
As it turned out, West Virginia was less insulated from Coronavirus than most states. In part due to the state’s weak employment market, the state’s low unemployment rate has hindered the housing market locally. With a rate of 6.3 percent and rising, it’s clear that the West Virginia real estate market has much to cover. Therefore, the comparatively low unemployment rate hasn’t allowed most buyers to join the market like other states are currently experiencing. The real estate market in West Virginia is only as robust as the job market. However, the situation is improving, and jobs and home values should rise faster than ever.
A lower number of people employed means fewer buyers available on the market. Insecurity and economic uncertainty prevented some people from taking part in any way. While record-low mortgage rates have attracted some to buy homes, West Virginia has a long way to go before the current demand for homes returns to normal. However, West Virginia may lag behind the rest of the country, but only modestly.
West Virginia Foreclosure Trends & Statistics
Much is to be said about the West Virginia housing market, which has progressed significantly since the recession. However, improvements are needed across the state. It is important to note that foreclosures aren’t as big of a problem for West Virginia as many nationwide counterparts. In particular, West Virginia has a meager number of homes that are in foreclosure. With one out of every 127,040 houses in any condition of difficulty (default auction, default or bank-owned), The foreclosure rate is essentially very low. The average foreclosure rate in the United States is approximately 0.7 0.7%.
Despite a low foreclosure rate, these counties have the greatest distribution of distressed homes in West Virginia:
- Harrison (1 out of every 10,544)
- Logan (1 out of every 16,840)
- Jefferson (1 for every 2281)
- Cabell (1 for every)
- Kanawha: (1 out of every 92,487)
While foreclosures in the local area haven’t increased dramatically, the economic uncertainties resulting from the high unemployment rate are expected to make it more difficult for homeowners needing help. In the end, it’s likely that the possibility of an increase in foreclosures faster than later. Investors from the local market who have positioned themselves properly now might be able to provide aid.
Tax Lien Investing
- Tax Lien or Deed: Tax Lien state
- The Interest Rate is 12%
- Redemption Time: 17 months
West Virginia Real Estate Investing
The West Virginia real estate market has slightly improved over the past 10 years. Since the market emerged from the Great Recession in the first portion of 2012, the housing market has been moving upwards. Since then, rehabbers, wholesalers, and flippers have benefited from the economic conditions that favor their specific exit strategies. While not as great as other states, the appreciation rates favored the interests of investors who could be in the right moment. However, the same rate of appreciation that has benefited investors over the last 8 years has become an obstruction. Rehabbers are seeing profit margins becoming harder and harder to obtain due to the rising value of homes.
It’s not to say that rehabilitation and wholesaling aren’t viable exit strategies going forward (they are); however, a more appealing exit option is emerging from the current market environment: building an investment portfolio of rental properties. Market indicators that the Coronavirus has created are likely to attract investors interested in real estate with more long-term investment time frames. Let’s look at some of the recent developments that have occurred in the West Virginia real estate market that have made rentals more appealing at the moment.
- To combat the outbreak in response to the epidemic, the Fed has announced that it will keep the interest rate low to encourage more buying activity. As a result, the current monthly average commitment rate for the 30-year fixed-rate mortgage is 2.74 percent. This makes getting institution-level money more affordable than ever, which can also lower the monthly payment for those who buy rental properties and increase the cash flow.
- Inventory levels are strained across the nation, which is why the West Virginia real estate market is not an exception. The absence of listings is one reason the value of homes has risen rapidly over the past eight years. The pandemic only added to the issue by preventing construction workers from performing their duties. This means it’s becoming increasingly difficult to afford a home, even for those with enough money. Therefore, those who can’t afford to purchase a home will eventually be put in the rental pool. Landlords will notice the need for rental properties rising for a long time, at the very least, until a more extensive inventory comes onto the market.
- The same pressure that drives people to rent will reduce the possibility of vacant homes and permit landlords to raise the rent. The market caused by the pandemic is a perfect storm for property owners who own rental properties.
West Virginia real estate investors can study the most well-known exit strategies. However, the unpredictable Coronavirus market fundamentals of the past favour landlords of rental properties over any other kind of investor.
West Virginia Housing Market Predictions
The real estate market within West Virginia has done its best to emulate national trends. For over 10 years, the real estate market located in West Virginia has exhibited many characteristics similar to those of its counterparts in the nation. Price increase and optimism in the marketplace and other indicators are consistent with the national pattern, so what exactly does it mean in the near future? What should West Virginia real estate investors, homeowners, and potential buyers anticipate for the near future?
- Parkersburg could be seeing an increase in buyers: With a median property value of 14.9 percent less than the average for the state, Parkersburg looks like it could be an excellent value. There’s evidence to suggest that Parkersburg will see an increase in young buyers seeking cheaper options. The city has already seen an increase in value over the state average in the past year. The median home price in Parkersburg will likely increase in the coming years. The interest generated due to the city’s low cost can attract potential buyers and boost appreciation rates.
- Inventory will lead to the appreciation of homes: Like all other states nationwide, the West Virginia real estate market appears to lack supply. Many of West Virginia’s most populous cities can also offer fewer properties than balanced markets typically have, and the pandemic has only made matters worse. Ultimately, the house sales competition has also increased the cost of homes and made it harder for prospective buyers.
- A lot of people will relocate to the suburbs. With no necessity for many people to be near an office, many people are anticipating a massive migration away from big cities. The current work-from-home lifestyle has allowed people to pack up and relocate to cheaper and more spacious living spaces. Prices in metropolitan areas may drop while suburban costs rise throughout this year.