State Real Estate Market Outlook
Realty Market Outlook West Virginia State Profile - Spring 2006
Home price appreciation accelerated in 2005
According to the Office of Federal Housing Enterprise Oversight, the house price index for the state rose 11.9 percent in 2005. . Median home prices rose by nearly $24,000 last year, which was a record increase and well above the $4,267 average over the last 25 years. The Eastern Panhandle within the Winchester metropolitan area was the fastest appreciating market in the state with a price gain of nearly $35,000. Home price appreciation in the Eastern Panhandle is significantly greater because of its proximity to the Greater Washington, D.C. metro area. Despite the long commute, many workers in the D.C. area have sought more affordable housing in West Virginia.
The inventory of unsold existing homes is growing.
By late 2005, home inventory saw significant increases and were outpacing growth in home sales in the Eastern Panhandle. The total number of homes listed for sale in January 2006 was more than 150 percent higher than a year ago representing a 6.0-month supply, which is up sharply from a 2.6-month supply a year earlier. The slowing pace of home sales and growing inventory levels from a year ago suggest that marketing times may lengthen, potentially leading to slower price gains in 2006.
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