Archive for the ‘Housing Market’ Category

January 14th, 2016 Housing Market No Comments »

2016 West Virginia Housing Market Uncertain… Falling Gas Prices, Rising Unemployment Rates, a Hurting Coal Industry:

What Does This all Mean for West Virginia’s Housing Market?

The near year is upon us and with it, our local economy is at a crossroads.

Gasoline prices continue to fall, unemployment rates rise, local population numbers decline and coal mine layoffs increase.

Yea, we smile when it costs only costs us $20 to fill up the tank. But, like anything with the economy, there’s give and take. And West Virginia can only take so much.

Coal is Hurting

Coal. The Mountain State is built on this sustainable energy source.

But, coal prices have fallen by 15 percent since 2015, and coal production is now at its lowest level since the Reagan administration. All this while layoffs and shutdowns continually plague area mines.

When our state’s foundation is shaken this way it creates a domino effect that eventually trickles down to the local housing market.

In his talk about the economy, Gov. Earl Ray Tomblin addressed the downturn in the coal industry.

“We cannot ignore the unprecedented shift that has taken place in our state and our nation,” he said. “Forces beyond our control have severely damaged our coal industry, and even the most optimistic among us realize it is unlikely coal will ever reach production levels of the past.”

Putting it all Together

If West Virginia’s main energy resource continues to suffer then area coal companies lose money, which causes workers to lose jobs, which causes the local economy to lose momentum. In other words, less people will have less money to buy houses.

It’s simple supply and demand. This will drive West Virginia home prices down.

Lawrence Yun, chief economist at the National Association of Realtors., explains:

“Fewer jobs means less home buying demand and that will naturally soften the housing markets in those job-impacted areas,” he said.

Yun practically called out West Virginia with that statement.

Unanswered Questions

Don’t get us wrong, this is great for financially stable home buyers as their dream home becomes more affordable.

But, will there be fewer home buyers in 2016 due to the state’s high unemployment rate?

Will the coal industry make a comeback once the country gains a new president?

These are the questions to answer.

WV Real Estate Photographer Justin Waybright & WV Real Estate Agent Chuck Boggs

January 14th, 2016 Housing Market Comments Off on 2016 West Virginia Housing Market Uncertain…

2016 West Virginia Housing Market Uncertain…

Falling Gas Prices, Rising Unemployment Rates, a Hurting Coal Industry:

What Does This all Mean for West Virginia’s Housing Market?

The near year is upon us and with it, our local economy is at a crossroads.

Gasoline prices continue to fall, unemployment rates rise, local population numbers decline and coal mine layoffs increase.

Yea, we smile when it costs only costs us $20 to fill up the tank. But, like anything with the economy, there’s give and take. And West Virginia can only take so much.

Coal is Hurting

Coal. The Mountain State is built on this sustainable energy source.

But, coal prices have fallen by 15 percent since 2015, and coal production is now at its lowest level since the Reagan administration. All this while layoffs and shutdowns continually plague area mines.

When our state’s foundation is shaken this way it creates a domino effect that eventually trickles down to the local housing market.

In his talk about the economy, Gov. Earl Ray Tomblin addressed the downturn in the coal industry.

“We cannot ignore the unprecedented shift that has taken place in our state and our nation,” he said. “Forces beyond our control have severely damaged our coal industry, and even the most optimistic among us realize it is unlikely coal will ever reach production levels of the past.”

Putting it all Together

If West Virginia’s main energy resource continues to suffer then area coal companies lose money, which causes workers to lose jobs, which causes the local economy to lose momentum. In other words, less people will have less money to buy houses.

It’s simple supply and demand. This will drive West Virginia home prices down.

Lawrence Yun, chief economist at the National Association of Realtors., explains:

“Fewer jobs means less home buying demand and that will naturally soften the housing markets in those job-impacted areas,” he said.

Yun practically called out West Virginia with that statement.

Unanswered Questions

Don’t get us wrong, this is great for financially stable home buyers as their dream home becomes more affordable.

But, will there be fewer home buyers in 2016 due to the state’s high unemployment rate?

Will the coal industry make a comeback once the country gains a new president?

These are the questions to answer.

WV Real Estate Photographer Justin Waybright & WV Real Estate Agent Chuck Boggs

August 27th, 2015 Housing Market Comments Off on Homeownership Pride Reigns in West Virginia

Homeownership Pride Reigns in West Virginia

West Virginia always seems to have a resilient housing market.

Case in point: Its low number of foreclosures.

Since June 2014, the Mountain State recorded only 566 completed foreclosures, the 5th lowest amount in the nation.  The US, as a whole isn’t doing so bad either.

Foreclosure inventory declined by 28.9 percent, and completed foreclosures have declined by 14.8 percent since June 2014, according to CoreLogic’s newly released June 2015 National Foreclosure Report.

“The foreclosure rate for the U.S. has dropped to its lowest level since 2007, supported by a continuing decline in loans made before 2009, gains in employment, and higher housing prices,” said Frank Nothaft, chief economist for CoreLogic.

So, what does this mean for West Virginia and the nation?  Let’s take a look.

West Virginians share a pride in homeownership

 West Virginia boasts a 73.4 percent homeownership rate, according to the US Census.  That’s nearly 10 percent higher than the nation as a whole.  Keep in mind, West Virginia carries this number along with its stigma of lower household income than the rest of the nation, right at $12,000 less per year.  These numbers speak loudly as they testify to the determination of West Virginia families to retain home ownership as the “American” or in this case, “The Appalachian Dream.”

The local economy is bouncing back

 Anyone noticing lower gas prices lately?  Those prices are expected to drop to $2 or less by November, according to economists’ predictions.  More people are out working, as employment seems to be gradually bouncing back.  The unemployment rate currently hovers at 5.3 percent, down almost 1 percent from this time last year, according to a release from the U.S. Dept. of Labor’s Bureau of Labor Statistics.

A Renewed Value in Housing

 It’s no secret that home prices continue appreciating, and have been doing so monthly since Spring.  This has helped create a sellers’ market, where everyone wants a “piece of the pie.”  West Virginians are no different.  It seems the Mountain State leads the pack.

Nationally, demand for homes remains solid.

The annual sales pace for new single family homes in the U.S. rose by more than 5.4% last month.

By Justin Waybright & Chuck Boggs

 

August 13th, 2015 Housing Market Comments Off on High Demand Creates Hot Seller’s Market

High Demand Creates Hot Seller’s Market

2015 high demand-sellers-market

2015 high demand-sellers-market

It’s August and the sun isn’t the only thing that’s hot.

Kids are going back to school, vacations are ending, temperatures are rising and the housing market is steaming, especially for sellers.

The real estate industry, normally slower at this time of year, is now on fire.  Low interest rates, lower-than-normal supply, and a rebounding economy have sellers of all ages diving into the smoking market.  As kids across the state and nation arrive to their first day of school, realtors everywhere are scrambling to get folks into homes before parents become burdened with homework, quizzes and the usual paperwork that comes with the first few weeks of school.

Summer continues to get shorter, and Real Estate agents feel the pressure, especially with an in-demand housing market on their shoulders.

And it seems the summer momentum is not showing any signs of fizzling.  Days ago, Fannie Mae released its July 2015 Housing Survey, showing a renewed optimism among its participants.  More than 65 percent of those surveyed said they’d rather buy than rent, even while knowing home prices are predicted to continue to soar.

Home prices. They’ve been climbing, and they haven’t stopped since 2012.  During the past 3 years, prices have soared by 27 percent.  This is great news for sellers and would-be home buyers and investors.  Combine this solid return on investment with historic low interest rates, and all is well.  Or is it?

Nothing lasts forever…  Just like Guns N’ Roses sang, “November Rain” is expected to bring change.

The Federal Reserve is predicted to raise federal fund rates this fall.  This act will likely affect our low mortgage rates.  The National Association of Realtors (NAR) predicts mortgage rates will rise in the next couple months.

In spite of the short window about to close, homes are staying on the market longer.  In fact, houses across the nation are being left on the table 7 percent longer.

Realtor.com’s Chief Economist Jonathan Smoke isn’t worried, though.

“It’s typical to see a slackening in the pace of market activity during this time of year, due to back-to-school and the ‘Dog Days’ of summer,” Smoke said. “Increasing median days-on-market suggests the market is finding more of a balance, but demand is still strong. This bodes well for more moderate price appreciation in the months ahead.”

Knowing the window of opportunity is soon closing, right now is a great time to be a home buyer or home seller in West Virginia.  The Mountain State recently earned the No.7 spot for Huffington Post’s most desirable states to get a mortgage loan.

“West Virginia’s mortgage rates are better than most, with its average 30-year rate about on par with the national average balancing out its average 15-year rate, and housing costs remain low in this state,” the report states.

The door of opportunity could soon be closing.  What are you waiting for?

WV Real Estate Photographer Justin Waybright & WV Real Estate Agent Chuck Boggs

July 30th, 2015 Housing Market Comments Off on Summer 2015 Brings Heat to WV Housing Market

Summer 2015 Brings Heat to WV Housing Market

WV Housing Market on a Roll

WV Housing Market Heats up Summer 2015

WV Housing Market Heats up Summer 2015

As July ends and August begins, the WV housing market continues to rise like the temperature.

Existing home sales jumped by 3.2 percent in June to a level the country hadn’t experienced since 2007.  Here at home, the trickle effect is growing.  Increased number of homes sold, continued price appreciation and historically low interest rates continue to pave the way for one of the hottest seasons for the West Virginia housing market, ever.

More and more families are diving into the inviting pool of home ownership.  And why not?  The sun is hot, the water is cool and as we predicted back in March, now is the opportune time.   Whether you’re a first-time home buyer or a veteran home buyer, now is certainly the time to buy.

Mortgage rates in West Virginia are better than most, with the average 30-year rate nearly on par with the national average.  Just last week, rates through the WV Housing Development Fund dropped to 2.81 percent, the lowest level in the agency’s history.

Housing costs remain low across the Mountain State.  The median price of a home in West Virginia is the lowest in the country at $94,500: Just another reason to buy.  Keep in mind the average cost of a home in the US is $189,000.

Due to these factors, West Virginia is considered a top pick for first-time homeowners.  See our article on that here.

Need some more reasons to jump into the housing market?  Try the current interest rate on for size.  The nation sits at 4.1 percent for the popular 30-year fixed mortgage.  However, great rates like these don’t last forever.  Investors and federal representatives continue to imply the rate will increase as the year rolls on.

RealtyTrac Vice President Daren Blomquist believes the housing market recovery is still tentative, and could be temporary with the rate increases looming in the future.

“I think this market is still very interest-rate sensitive and fragile,” Blomquist said. “If we see interest rates go up, the kind of boom we were seeing in the first half of the year could quickly disintegrate as homes become less affordable with higher interest payments.”

See their full article here.

Due low interest rates, the availability of affordable housing, state assistance, the variety of loan products and home appreciation, West Virginia has the highest home ownership rate in the country, according to U.S. Census Bureau data.  The pride of home ownership is alive in the Mountain State.  More than 73 percent of homes in West Virginia are owned by their occupants.

While other states have endured loss during the past decade, the WV housing market has grown. According to data from GoBankingRates, the share of new first-time homeowners increased 57.6 percent between 2003 and 2013, while foreclosures have remained low at less than one percent in 2015.

We’ve said it once and we’re sure we’ll say it again: If you’re wishing to buy or sell a home in West Virginia, now’s your time.

By Justin Waybright and Chuck Boggs

May 14th, 2015 Housing Market Comments Off on WV Real Estate Offices Staying Busy This Summer

WV Real Estate Offices Staying Busy This Summer

Local Housing Market Gains Traction

015 wv real estate market

wv real estate market on the upswing

From Teays Valley to Charleston, Parkersburg to Huntington, and everywhere in between, local Real Estate agencies are seeing a strong demand from buyers and fast success from sellers.

Recently, we asked some local Real Estate professionals to weigh in on the current state of our area’s housing market. Most agree the increase in buyer activity has spurred the perfect time to sell a home.

Josh McGrath, Broker of Real Estate Central, llc. believes increased buyer activity has infused competition and demand: two ingredients that spell a “Seller’s Market.”

“There seems to be more buyers active in the market as opposed to last year, however, with the lack of decent homes to choose from there is not a huge increase in pending transactions,” he explained.  “Buyers are dominating the market at the moment, and the lack of inventory is making it difficult for them to find a home.”

McGrath and his agents are seeing most activity in Hurricane and Charleston, WV.

Craig Allison, Broker of Property Elite, llc. agrees that Summer 2015 has brought a “Seller’s Market” to the Kanawha Valley.

“This is a seller’s market, and there’s not enough inventory on the market for the droves of buyers currently looking for a home,” he said. “If a house is priced properly, it’s going into contract very quickly, and after multiple offers.”

Allison and his crew are seeing strong activity coming from Teays Valley, Hurricane, Winfield, South Charleston and Cross Lanes. The broker said he is also seeing Ripley and Jackson County  rising as the “best-bang-for-your-buck” area.

Speaking of the Jackson County market, Melissa Morris, Broker of Jackson County Realty, llc. and Exclusive Realty, llc. agrees that 2015 has brought with it a great local market. She has seen increased activity from both buyers and sellers.

“Spring 2015 has been great,” Morris said. “The market has improved tremendously…Interest Rates are low, and if they continue, this will spur additional activity.”

Mike Callaghan, Broker of Great Expectations Realty, llc. agrees with Morris. His agency saw a strong market begin as soon as Spring arrived.

“Across the board there is more activity this Spring than last Spring,” he noted. “When a quality house is placed on the market at an appropriate price point, it usually will go into contract very quickly.”

The Real Estate professionals all agree a long, cold winter, combined with low interest rates and a buyer surge is helping fuel the strong local market we’re seeing. They’re looking forward to a successful summer.

If you’re looking for a home, take advantage of low interest rates. If you’re needing to sell a home, take advantage of buyer competition.

By: Justin Waybright
Marketing Associate, Boggs & Associates, Inc.

April 14th, 2015 Housing Market No Comments »

Charleston WV Housing Market Heating Up

Excitement is Building

The Charleston WV Housing Market is Coming Alive

As the sun continues to light the ground, agents across the Kanawha Valley are gearing up for what promises to be an exciting buying and selling season.

Into the first quarter of 2015, and we’re seeing the foundation laid for a seller’s market in the Charleston WV area, just as we predicted in our last article.

We are currently seeing a build up of new construction of single and multi-family homes in Kanawha, Putnam and Cabell counties.  We anticipate this continuing through the remainder of 2015, unless a change in economic conditions occurs.

Low interest rates, lower down payments and home price increases are just a few of the building blocks constructing the potential for a busy spring and summer for realtors and the home sellers and buyers they serve.

The inventory of existing homes on the market appears to be declining.  If this continues, we can expect to see price increases in our marketing area.

Sellers should consider listing with local real estate offices in an effort to take advantage of the potential for higher home values.

According to Fannie Mae’s March 2015 National Housing Survey, 46 percent (all-time survey high) of those interviewed believe now is a good time to sell.

And guess what local market is in the top 10 best in the nation.  Charleston WV!

According to Realtor.com, the Charleston area is expected to be a market to watch this Spring and Summer.  It ranked #9 on a list with the likes of New Orleans, Boston and Pittsburgh.

This may be a surprise to many.

“These markets should see plenty of activity in the next few months as the home buying season gets underway,” said Realtor.com Chief Economist Jonathan Smoke.

Smoke noted, housing demand is surging and median list prices are rising faster.

“We are now firmly in the time of the year when peak demand and peak inventory levels typically occur, through spring and early summer,” he said. “Buyers should expect substantial competition, especially in the hottest markets, and for affordably priced homes within most markets.”

Hey home buyers!  Interest rates for 30-year mortgages are hovering around 3.5-4 percent and most banks and credit unions are advertising down payments of 3.5 percent or less for these in-demand loans.  The feds aren’t going to keep such low rates forever.

Remember, if home prices continue to rise, an investment now can turn into a big return over time.

Spring’s finally here and she brings all the ingredients for a great local housing market.  What are you waiting for?

 

 

 

March 12th, 2015 Housing Market No Comments »

WV Housing Market: Your Time is Now

WV Housing Market: Your Time is Now

west virginia real estate and wv housing market

Flowers push through the dirt, stripes of green blanket the ground and orange rays of warmth reach down.

This could only mean one thing: Spring is here.

With the season only days away, there’s a buzz in the air, not only from honey bees, but from real estate agents, bankers and construction crews. The days of snow and artic chill are over.

Now’s the time to buy. Now’s the time to sell.

Here’s why.

#1: A Faster Loan Process

If you’re looking to buy a home, one of the biggest challenges you’ll often face is the loan process at the bank or credit union. It’s no secret that financial institutions are requiring more paperwork and red tape before approving a mortgage loan.

Why not take advantage of that?

Homes continue to overwhelm Kanawha County. The Planning Commission received 127 more residential building permits last year than it did in 2013. Putnam County has already brought in nearly 20 residential building permits since January, and it’s been one of the coldest Winters to date!

If these trends continue, expect local mortgage loan officers to have their hands full during the heavy buying seasons of Spring and Summer.

Instead of waiting until the housing market floods with buyers and sellers, get a jump start on the demand, and reap the benefits of faster, smoother service from your loan officer.

While others are waiting on loan approval, you can already be picking out the furniture for your new home.

#2: Rates That Can’t be Beat

According to Bankrate, the average interest rate on a 30-year fixed mortgage loan sits at 3.6%. Remember, good news can only last so long. Market leaders expect rates to rise by at least 1 percent by the end of 2015.

So, take advantage of great rates while they still exist. If not, you could be sorry and so could your wallet.

#3: A Seller’s Platter

If you’re wishing to sell a home, now’s your time. Homes will flood the market within a month, according to banking professionals. This means more competition.

Plant some flowers, spread some mulch, open up the curtains and market the house now. Blast the home on social media, Craigslist, the local newspapers and more. Hold your open house before the Spring rush and enjoy the fruit of your labor.

Remember, it’s been a long, cold winter. Prospective buyers have been cooped up for the past 4 or 5 months and they’re itching to buy. One way to success is staying ahead of the competition. So, get your home on the market now and have it sold weeks before others even begin their first open house.

#4: Time’s Running Out

If you’re looking to upgrade your living conditions, do it now. Home prices are projected to appreciate by more than 23% from now to 2019, according to recent reports. This spells great news for investors, developers and home sellers.

However, this puts a crunch on homebuyers.

If you’re waiting for the perfect time to buy or sell a home, that time is now!

By: Charles Boggs, Jr. & Justin Waybright

 

February 18th, 2015 Housing Market No Comments »

The Perfect Storm

west virginia 2015 snow

This too Shall Pass

The last few days, we’ve all endured Alaskan-like winter weather, cold enough to break pipes, render all-wheel-drive vehicles useless and cancel school and work for many.

At Boggs & Associates, Inc., we try to stay optimistic.  We’re hoping Spring comes soon.

Not only will March, April and May bring with them warmer weather, grass and flowers, but these three months are predicted to shower us with a stronger-than-ever housing market.

During the past few weeks, we’ve uncovered various trends, results and data that backs up our West Virginia Real Estate theories.

Storms are Temporary

Yes, we realize we’re not out of the snow yet.  It is currently Wednesday morning and snow is blowing outside our office window, peppering the frozen roadways with a slippery blanket of white.  The sun is still hiding behind grey clouds.

Meteorologists predict sub-zero temperatures and more snow this week.

However, storms never last forever.

We believe the sun will soon kill the winter and light the path to a housing market revival unlike anything West Virginia has seen during the past decade.  Not to mention all the eager, cabin-fever-laden buyers and sellers just itching to jump into the housing market at the perfect time.

Always a Rainbow After the Storm

Realtors across West Virginia are preparing for a buyer/seller surge in the next few months.  Emphasis on strong marketing and heavy-hitting listings are becoming reality for many successful real estate companies.

To say we’re excited for Spring is an understatement.

Low mortgage rates, better employment rates, renewed homeownership pride and low gas prices are just a few ingredients making up a recipe for success.

The confidence remains “consistent with a modest, ongoing recovery,” said David Crowe, NAHB chief economist. “Solid job growth, affordable home prices and historically low mortgage rates should help unleash growing pent-up demand and keep the housing market moving forward in the year ahead.”

Overcoming the Storm

To effectively overcome any storm, one must know his adversary and how to prepare.  As real estate and banking professionals, our livelihood depends on this very fact.

The sun should soon shine its face on the real estate market.

Ask yourself:

  •  “What I am doing to prepare for and ensure victory?”
  • “Am I watching TV and drinking a hot chocolate or am I studying the market, anticipating the desires sellers and buyers will pursue?”
  • “Am I building an effective marketing strategy that caters to my potential Spring clients or am I just hoping the same old strategy brings them to me by fortunate coincidence?”
  • “If I work to supply for my family, is my work effective enough now to prepare for success in Spring?”

What you do now, will greatly impact the results you receive later.  Spring is coming, my friends.

Are you ready?

By Charles Boggs, Jr.
Owner, Boggs & Associates, Inc.

February 12th, 2015 Housing Market No Comments »

Housing Market Rebound Underway

A couple weeks ago we made the prediction that Spring 2015 will contain all the ingredients for a recipe of Real Estate success, both for buyers and sellers.

mortgage rates

Number of foreclosures Dwindling

More good news boosts our theory.

 HomeOwnership Rate to Rise

The resilient West Virginia housing market has prevailed when other states have failed.

The national homeownership rate fell to 63.9 percent at the end of last year.  This was the lowest level in two decades, according to numbers from the U.S. Census Bureau.

However, West Virginia’s home ownership rate planted itself at 77.5 percent.

Economic analysts believe the national rate will rebound this year.  If history proves true, then as the nation’s rate rises, so should West Virginia’s.

  Foreclosures Drop

The number of completed foreclosures dropped across the U.S. in 2014, according to statistics from CoreLogic.

States with the lowest number of foreclosures include South Dakota, North Dakota, Wyoming and, you guessed it: West Virginia!

Once again, the Mountain State’s resiliency shines.

“The steady decline in the number of completed foreclosures is a good sign of healing in the U.S. housing market,” said Anand Nallathambi, president and CEO of CoreLogic.

Fewer foreclosures show that more people are serious about homeownership and about making on-time payments and improvements.  This shows the love and pride owners are placing in their homes.

April is the best month to sell a home, according to a Consumer Reports survey of 300 real estate agents.

Spring (April, May and June) is the best overall time to sell, according to the publication.

 Renewed Pride in Homeownership

Spending on home projects could set records in 2015, many analysts agree.

A recent report from Harvard University’s Joint Center for Housing Studies found the amount of spending on home improvements rose by almost $6 billion between 2011 and 2013, the first increase since 2007.

According to the report, the average homeowner spent $2,500 in 2013 on improvements. The study predicts remodeling activity will continue to rise for several reasons:

  • Homeowners who can afford to move have decided to stay put
  • Federal and state incentives encourage energy-efficient improvements
  • Baby boomers are seeking accessibility improvements
  • Owners of rental properties are reinvesting to attract tenants

 What will Spring Bring?

Every real estate agent knows Spring is the busy season for both home buyers and home sellers.  History tells them that.

However, this Spring could bring with it an unprecedented surge in eager buyers and sellers.  With lower interest rates, better tax incentives, lower gas prices, higher employment rates, a rebounding economy and a renewed pride in homeownership, this season could bring with it a housing market revival we’ve only dreamed about.

By Charles Boggs, Jr. & Justin Waybright
Boggs & Associates, Inc.

This themes includes code from Andreas Hassellöf, licensed under a Creative Commons Attribution v3.0 License