Learn more about the housing market in West Virginia

Every state is unique when it comes to the real estate market. That’s why it’s critical to understand the market you live or operate in. Whether you’re renting, buying, or selling, it will impact many aspects of your life. 

West Virginia Housing Market

West Virginia is a state in the Appalachia region, called so because it is situated in the vast and forested Appalachian Mountains. The state has a rich history in mining, and data from IBISWorld indicates that Mining was the sector that contributed the most to the state’s 2023 GDP, almost doubling the contribution of Healthcare and Social Assistance, which ranked second. Real Estate, Rental, and Leasing was the fourth-most contributing sector, meaning that a further look into the notable housing market in the state is worthwhile.

At the beginning of the year, experts predicted that the housing market in West Virginia would continue to see an increase in both housing prices and the number of prospective buyers, though the interest rates across the state would settle. As of April 2024, these predictions all appear to have come true, with certain indicators that these trends will continue.

In fact, historically high interest rates have seen a significant decrease across the country. The national average 30-year fixed mortgage rate in late 2023 approached 8%, but settled in April 2024 to just below 7%. As we will discuss later in this article, a similar trend can be seen in the West Virginia housing market, reflecting easing inflation that is bound to benefit a growing demographic of prospective homeowners across the country.

West Virginia Market Trends 

To understand the West Virginia real estate market, it’s important to keep up with trends. Let’s take a look at some key ones in West Virginia:

Note: These statistics are based on Redfin’s monthly housing data from April 2024.

Median Housing Price

The median price of a home in West Virginia in April 2024 was $276,200, according to Redfin’s monthly housing market data. This is an increase of 5.6% from the previous year, accurately reflecting predictions of a continually appreciating housing market. According to Zillow, the median housing price in Charleston, the most populous city in West Virginia, is significantly below the statewide median price at $163,833 in April 2024. It is important to remember that in any state, statewide data is pulling from a plethora of housing markets experiencing a variety of different influences and factors.

Number of Homes Sold in April 2024

888 homes were sold in West Virginia in April 2024, which is a significant increase of 28.7% from April 2023. This number can be expected to increase in the summer months. It is important to keep in mind that nationally speaking, sales usually peak during the spring and summer months and slow in the winter. In fact, the National Association of Realtors (NAR) predicts that in February and March alone, sales activity increases by as much as 34% and prices by 3%.

Despite this, number of home sales from the previous two years have failed to reach the same peaks that were recorded in the summers of 2020 and 2021.

Median Days on Market (DOM)

Days on market (DOM) is a measure of the average length of time a home remains listed on the market before being put under contract. A lower DOM signals a highly competitive seller’s market with more pressure on buyers to make higher offers and remove contingencies. A higher DOM signals a buyer’s market as sales are slower and sellers have less leverage.

The median DOM in West Virginia in April 2024 was 51 days, which has remained stagnant in the last year. This means that, on average, listings spend almost two months on the market before they are purchased. This is a relatively high DOM, suggesting a market that favors buyers over sellers, and the stagnant number shows that this has not significantly fluctuated.

New Supply Statistics

In 2021, there were about 2.07 new residential construction permits per 1,000 people in West Virginia. This statistic, which points to the rate of new housing inventory, is lower than the nationwide average. Increased housing supply is predicted to ease housing prices and increase affordability in many markets across the U.S. in 2024.

Property Tax Rate

According to Rocket Mortgage, the average property tax rate in West Virginia is 0.57%. This is one of the lowest rates in the country, higher than only six other states. The average annual property tax is $3,233.20. As previously mentioned, it is important to keep in mind that this statistic reflects the average of a lot of data, and tax rates are likely to vary depending on the value of a home and its location in the state.

Foreclosure Rate in Q1 of 2024

In the first quarter of 2024, 1 in every 4,253 homes in West Virginia experienced a foreclosure filing, according to recent data from ATTOM. This is one of the lowest rates in the country, and the state is ranked 46th for foreclosure rates.

Hottest Local Markets in West Virginia

1. Charleston

Charleston is the capital city of West Virginia, and it is also the most populous city in the state. As previously mentioned, its April 2024 median housing sale price was $163,833, according to data from Zillow. Its median DOM that same month was 12 days, which is significantly lower than the statewide average. This suggests that compared to the state as a whole, the housing market in Charleston is much more competitive. Some of the most popular neighborhoods in Charleston are East End, West Side, and Loudon Heights.

2. Huntington

Located near the western edge of the state near its borders with Ohio and Kentucky, Huntington is the second-most populous city in West Virginia behind Charleston. According to data from Zillow, the median sale price for housing in April 2024 was $145,708, which is significantly below the statewide median. Its median DOM of 21 days is also below the statewide average by a significant margin, suggesting a relatively competitive housing market in the city. Some of the most popular neighborhoods in Huntington are Southeast Hills, West Huntington, and Southside.

3. Charles Town

Not to be confused with Charleston, Charles Town is a populous city in the northeast corner of West Virginia near the state’s border with Maryland. The median housing price in Charles Town is higher than the statewide median at $363,000, which is an 18.4% decrease from April 2024. However, its median DOM is lower at 40 days in April 2024. This is an increase from 32 days in April 2023, suggesting a market that is trending toward favoring buyers over sellers. Some of the most popular neighborhoods in Charles Town are Beallair, Crosswinds, and Huntfield.

Economic Factors Impacting the West Virginia Housing Market

A holistic view of West Virginia’s housing market requires a basic understanding of the main economic drivers affecting the market. Let’s take a look at a few below.

Mortgage Rates

Mortgage rates are a common cause of concern for would-be homeowners across the U.S. in 2024. As previously mentioned, national averages have dipped from last fall’s record highs, and West Virginia is no different. According to Zillow, West Virginia’s current average 30-year fixed mortgage rate is down to 6.47% after approaching 8% at the end of 2023. This accurately reflects predictions that interest rates in 2024 would settle but stay above an average of 6%.

Inflation and Cost of Living

Mortgage rates are tied to inflation, another massive contributing factor to the affordability of housing and the state of housing markets in general. Inflation has increased the cost of living for many across the U.S., including in West Virginia. This means fewer people can truly afford to limit housing costs to less than 30% of their monthly income.

Population Changes and Demographics

A changing population ca also have implications for the housing market. According to the U.S. Bureau of Labor Statistics, the unemployment rate in West Virginia is currently 3.2%. Compared to other states, this is a relatively high rate, but unemployment rates all around the country are down, suggesting economies that are thriving and bound to bring in more potential homeowners.

West Virginia Housing Market Forecast 2024

As previously mentioned, experts considered the housing market West Virginia has been facing over the past few years and predicted that prices would continue to rise throughout the year. This has proven true over the course of the year, though steadying interest rates and a hope for increased supply in the housing market signified by an increase in sales may indicate a slowing growth in prices.

Likelihood of West Virginia Housing Market Crash

Though continually rising housing prices in West Virginia may seem concerning, experts have maintained that a crash is significantly unlikely. There are many reasons for this, including a healthy economy signified by low nationwide unemployment rates and the decline and stabilizing of interest rates. The market seems poised to continue appreciating, but it is unlikely to reach any significant or concerning threshold in the near future.

Forecast for the U.S. Housing Market

Now that we’ve looked at West Virginia’s housing market, let’s zoom out a little bit. What about the U.S. housing market? What do you need to keep an eye on in the coming years?  

The United States’ current median existing-home sale price is around $384,500 per the National Association of Realtors. The inventory, though, remains low. A balanced market typically has a 5-to-6-month supply, but the current figure is 2.9.

We’re currently in a seller’s market with buyers looking at continued rising house prices. The same trend can be seen with renters. Housing continues to appreciate, in general.  

Dr. Lawrence Yun, Chief Economist and Senior Vice President of Research, National Association of Realtors, believes the housing market will appreciate 15 to 25% over the next five years. He thinks that the seller’s market will continue because housing inventory will remain low. In five years, however, he predicts a more balanced market, in which neither party has a built-in advantage. Thus, the market will shift to a case-by-case basis to determine what kinds of deals people can get.

Hybrid work also impacts the housing market. This shift in work culture means suburbia will continue to grow. States like Texas, the Carolinas, Tennessee, and Florida should see continual growth.

The number of single-family homes built decreased over the past couple years while the number of multi-family homes increased due to lower prices and a demand for affordable housing. Higher mortgage rates and inflation (affecting price of materials) were the main causes.

Lower income households continue to struggle in the current housing market. This trend appears likely to continue into the foreseeable future. Without enhanced supply or helpful subsidies, the outlook is that many Americans will still wrestle with housing affordability in the years to come.

West Virginia Rental Market

The rental and buying market are obviously closely linked. When home prices fall, landlords are more likely to buy properties to rent out. Home prices and rental prices are correlated as well because a hot market means prices rise.

Rents were more unaffordable than ever in 2021 and 2022. In 2022, 22.4 million households paying rent said it was unaffordable, which is the highest that figure has ever been, according to a January report from the Joint Center for Housing Studies at Harvard University. The study found that half of all renters in the United States spent over 30% of their income on rent and utilities.

The markets cooled in 2023, though, due to new units and decelerating demand. But a serious problem persists: Rent increases are still outpacing income gains.

Moreover, high interest rates are keeping borrowing and transaction activity down. Over half the banks surveyed by the Federal Reserve reported that demand for multifamily loans decreased year-over-year.

The pandemic caused a housing disparity that isn’t going away anytime soon. Unaffordable housing is a serious issue across America. Whether high rents or low income is the main cause doesn’t change the fact that this problem is widespread.

This short summary leads directly into West Virginia’s current rental market. Below are just a few of the current trends for West Virginia’s rental market based on data pulled from Zillow:

West Virginia Rental Market Key Trends

• Median rent: $995 

• Month-over-month rent change: +$0 

• Year-over-year rent change: +$45 

• Available rentals: 1,000

Conclusion

As we have covered throughout this article, any state’s housing market is bound to be made up of diverse influences, factors and variables, and summative data cannot tell the whole story. However, as a whole, the West Virginia housing market in 2024 has seen many significant indicators of a stabilizing and healthy housing market that buyers and sellers alike should watch closely. Experts and analysts will continue to monitor this market, as well as nationwide factors like interest rates and new construction.