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Silk, to what do you attribute these developments? Low interest rates, or other economic factors?
Interest rates are definately a factor CT. Many of the banks in this area are accepting home loans at record low levels around 2% interest! In fact, this is the reason i jumped on board 2 years ago and began looking to buy a new home and sell my old house in Saint Albans.
As for other economic factors? I can't put my finger on it. The economy here seems like it's just stable, not losing many jobs and not really gaining any significant jobs either.
Huntington and Charleston already had relatively strong housing markets, both making the best housing markets list last year and again this year as well with 4% and 4.5% growth expected. It seems both are experiencing a growth period.
Martinsburg and the Eastern Panhandle have experienced a decent downturn in the housing market due to the economic downturn and housing market collapse. Morgantown is more driven by rentals and made one list of worst housing markets ove the next 5 years but the site above predicted the growth there to be 3.8%.
I'm very surprised to see 3 WV cities on tha list Tbailey. That is good news that we are seeing houseing growth right now. And good for Wheeling. It seems like things are improving in the Northern Panhandle again.
Maybe CT can shed some light on what is happening up in the NP?
Huntington and Charleston already had relatively strong housing markets, both making the best housing markets list last year and again this year as well with 4% and 4.5% growth expected. It seems both are experiencing a growth period.
Martinsburg and the Eastern Panhandle have experienced a decent downturn in the housing market due to the economic downturn and housing market collapse. Morgantown is more driven by rentals and made one list of worst housing markets ove the next 5 years but the site above predicted the growth there to be 3.8%.
Interesting. I'm wondering where you are coming up with the idea that our housing market growth has been driven by rentals? My next door neighbor is a major builder here, employing dozens of people in the process. Looking at the links you provided, and synthasizing them with what he has told me, this is my take on the matter:
There are two groups building residential housing here. One builds for rentals, largely related to The University students, and the other for permanent residents... those are not rentals. There is currently excess inventory in townhouse type permanent resident housing (there was some overbuilding) which might be what your second source is talking about, but a shortage in single family homes on the market. My neighbor has switched to single family construction, largely in the Cheat Lake area, and is going great guns with it. I have a friend who is a real estate agent telling me that home sales area stronger than ever in this area, and that does not look to let up any time soon. Of course, some of that involves existing homes.
The excess in townhouse inventory is working itself out, especially with high end properties. It is also possible that some of those townhouse permanent resident properties will be converted to rentals. That will be interesting to watch. Our market here has been strong for a full decade, so a 3.8% growth rate from an already strong market is not bad performance. It is continued growth, albeit at a somewhat slower pace. It is impossible for any area to maintain a "boom" phase indefinitely, and sustained growth is actually more desirable.
I do note that the Charleston and Huntington markets have been strong for the past couple years. Given that they started from a slump phase while ours was in boom mode, it is not surprising that the percentage growth rates from the lower areas would be high. The important thing is that they are growing, and that is indeed good news for those areas. The fact that the trend is continuing after the first spike is surely a good sign of things to come.
I'm interested in your opinion as to the reason for those increases in your area. Do you think it is because the market was artificially depressed in the pervious periods, or is it a result of major growth in local industries and the local economies?
Interest rates are definately a factor CT. Many of the banks in this area are accepting home loans at record low levels around 2% interest! In fact, this is the reason i jumped on board 2 years ago and began looking to buy a new home and sell my old house in Saint Albans.
As for other economic factors? I can't put my finger on it. The economy here seems like it's just stable, not losing many jobs and not really gaining any significant jobs either.
Silk, it's interesting you are mentioning the interest rate factor. My wife and I have had our new home here for 2 1/2 years. We've already refinanced the thing (at the advice of bankers) twice with the most recent being near the 2% level (like you mentioned). Just the refinancing resulted in a reduction in payments of nearly $150 per month for doing little more than signing some papers. Now is definitely a great time to buy a home, and there is no place better to do that than West Virginia. Low financing rates make it cheaper than renting, and there is the added benefit of having tax writeoffs for interest payments. It might even be worthwhile for somebody with cash reserves too use them elsewhere and borrow the money for property.
Silk, it's interesting you are mentioning the interest rate factor. My wife and I have had our new home here for 2 1/2 years. We've already refinanced the thing (at the advice of bankers) twice with the most recent being near the 2% level (like you mentioned). Just the refinancing resulted in a reduction in payments of nearly $150 per month for doing little more than signing some papers. Now is definitely a great time to buy a home, and there is no place better to do that than West Virginia. Low financing rates make it cheaper than renting, and there is the added benefit of having tax writeoffs for interest payments. It might even be worthwhile for somebody with cash reserves too use them elsewhere and borrow the money for property.
Isn't that a great feeling knowing that you just saved almost 2k a year in mortgage payments! I just recent refinanced my truck and will be saving about $45 a month with a small processing fee. It's a win/win for the banks and the consumers.
CT, real estate is a hobby of mine, and I've been online checking out some of Cheat Lakes newer housing stock. One development that has caught my attention is The Summit. Looks like some beautiful views and some lovely homes inside and out. I figure this is probably limited to professionals living there due to the cost of the homes I saw listed.
Isn't that a great feeling knowing that you just saved almost 2k a year in mortgage payments! I just recent refinanced my truck and will be saving about $45 a month with a small processing fee. It's a win/win for the banks and the consumers.
CT, real estate is a hobby of mine, and I've been online checking out some of Cheat Lakes newer housing stock. One development that has caught my attention is The Summit. Looks like some beautiful views and some lovely homes inside and out. I figure this is probably limited to professionals living there due to the cost of the homes I saw listed.
Well Cheat Lake is an expensive area.
It wasnt that way when my family first moved there, but nowadays it is. It is not different from an affluent suburb anywhere in this country. For WV cheat lake is a rarity since areas like it dont tend to exist, but for most major cities there is an affluent suburb(s).
I have to disagree there. I think you can find some affluent suburbs in just about any city, even those who's economy has tanked. There is usually some "old money" around that prospers no matter what happens to everyone else. In fact, sometimes they prosper even more when everyone else is having trouble. Wheeling, for example, has a very sizable (and hugely affluent) old money contingent even though the common folk in the city have struggled for the past 3 decades, and those guys are richer than ever.
I have to disagree there. I think you can find some affluent suburbs in just about any city, even those who's economy has tanked. There is usually some "old money" around that prospers no matter what happens to everyone else. In fact, sometimes they prosper even more when everyone else is having trouble. Wheeling, for example, has a very sizable (and hugely affluent) old money contingent even though the common folk in the city have struggled for the past 3 decades, and those guys are richer than ever.
I can agree with CT there. I have been to Wheeling to visit a friend that moved from Dunbar to National Road. He showed me around the area last year and was surprised at how much old money still existed in the area. I was expecting much, much worse from everything i have read. Instead, i found Wheeling to be very livable for middle to upper middle class folks.
Huntington can also fit this bill. The suburban communities of Barboursville, Milton, and even Proctorville, OH offer some exclusive developments and are comparable to Cheat Lake or really just about any upper middle class neighborhood. It's just that there are fewer of these type of communities in these cities as compared to a larger or wealthier city such as Columbus.
One thing that is great about areas like Cheat Lake, Barboursville, ect. Is the proximity they have to downtown, and/or great shopping, and amazing scenery. Something that you just don't find in a lot of cities around the country. It would be hard to trade that for living anywhere else IMO.
I can agree with CT there. I have been to Wheeling to visit a friend that moved from Dunbar to National Road. He showed me around the area last year and was surprised at how much old money still existed in the area. I was expecting much, much worse from everything i have read. Instead, i found Wheeling to be very livable for middle to upper middle class folks.
Huntington can also fit this bill. The suburban communities of Barboursville, Milton, and even Proctorville, OH offer some exclusive developments and are comparable to Cheat Lake or really just about any upper middle class neighborhood. It's just that there are fewer of these type of communities in these cities as compared to a larger or wealthier city such as Columbus.
One thing that is great about areas like Cheat Lake, Barboursville, ect. Is the proximity they have to downtown, and/or great shopping, and amazing scenery. Something that you just don't find in a lot of cities around the country. It would be hard to trade that for living anywhere else IMO.
I'm sure Parkersburg has such a community too, as does Charleston. Wheeling's old money group is descended from the original industrial barons of the area... steel, coal, and tobacco. One family in Wheeling is affluent to the extent that they own a professional baseball team, 40 newspapers, controlling interest in Charleston's United Bank, a resort in Pennsylvania, and other holdings. It was old money that established the incredible 1,700 acre manicured Oglebay municipal park in Wheeling. There is plenty of money even in towns that aren't doing well economically. It just doesn't get to the ordinary person a lot of the time.
Interesting. I'm wondering where you are coming up with the idea that our housing market growth has been driven by rentals?
I'm interested in your opinion as to the reason for those increases in your area. Do you think it is because the market was artificially depressed in the pervious periods, or is it a result of major growth in local industries and the local economies?
For your first question, that was straight from the article:
Quote:
However, as older residents move to West Virginia for a lower cost of living, younger types are leaving the state in mass seeking jobs and a better future. Students at West Virginia University in Morgantown may get an education in their state but then most are moving else where to find work. A strong market for rentals to house students should drive prices higher 3.8% by years end.
For the second question, I think Huntington has reinvented itself and is dealing with many of the negative issues it has had in the past. Our downtown is alive and thriving, our crime is own almost 40% and the city government is addressing code issues. Combine that with growth at Marshall and a strong local industry and Huntington is poised for some major growth. We've always had the attributes necessary for growth but people are becoming more proactive about putting them together with a can do attitude and that makes a world of difference. The article also alludes to this as well:
Quote:
In bigger Huntington, historically low mortgage interest rates will prompt home buyers on the fence to make purchases as the community undergoes a reversal of economic fortunes of sorts. New residents are projected to take advantage of lower home prices, driving a surge in home sales, with prices forecast to rise 4.0% over the year.
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