Posts Tagged ‘Housing Market’

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.

January 22nd, 2015 Housing Market No Comments »

WV Housing Market Could Rebound in 2015

Lower Mortgage Rates & Lower FHA Insurance
Could Spur Housing Market Rebound

housing-statistics

Housing Market Rebound

 

Good news for the local housing market continues as mortgage rates are down nearly 1 percent from this time last year, and FHA Mortgage Insurance rates will drop a half-percent by the end of the month.

With the average interest rate hovering at 3.66 percent, many would-be homebuyers are taking the plunge into homeownership, already. They’re not waiting for the warmer weather of Spring. Applications for mortgages rose 49% last week, refinancing applications more than doubled and new-mortgage applications soared by 24 percent, according to a recent report from the National Association of Realtors (NAR).

Why such a dramatic surge in mortgages?
It could have something to do with the average monthly mortgage payment on a U.S. home dropping by $50 due to lower interest rates.

Now, $50 per month may not sound like much to the average person. But, that’s an annual savings of $600. With gasoline prices below $2 in West Virginia, the monthly mortgage savings could result in 2 fill-ups for the average car.

That’s big.

If gasoline prices remain, the average family could witness an annual savings of more than $750 in fuel, alone. Combine lower gas prices with lower mortgage payments and you’re looking at an annual savings of $1,350.

That’s huge.

FHA: Double Savings

Many borrowers will enjoy even more savings with the help of the FHA. They will soon pay ½-percent less on their FHA Mortgage Insurance, and that leads to a savings of more than $900 annually.

President Obama announced the good news last week. He said rates will go drop from 1.35 percent to 0.85 percent by the end of January. The change will bring $75 in monthly savings to the average FHA mortgage insurance payment.

This all comes after the Federal Housing Administration worked with the president to lower the rates, making homeownership more accessible to lower and middle class Americans.

The National Association of Realtors (NAR) estimates the reduction in FHA premiums has the potential to bring 90,000 to 140,000 additional home purchases this year.

The Perfect Recipe

Realtors and lenders should prepare for a buyer surge.
The ingredients are here. The signs are here. The numbers back them up.

If business is slow now, it could just be the calm before the perfect storm.

Remember, lower FHA Insurance rates and lower mortgage rates are not the only fuels fanning this fire. —Link to previous blog——All these ingredients seem to be working together to create a recipe for a Real Estate surge this Spring.

Are you ready?

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

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