West Virginia Real Estate Market: What to Expect in 2024 and 2025?

✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home sellers.

The current median home sale price of $244,600 is stable and rising steadily at 1.1% YoY. Moreover, homes spend only 46 days on the market. This indicates that the West Virginia real estate market is pretty much competitive.

The average months of home supply are 3 months YoY. A market with fewer months of supply indicates a seller’s market. However, in July, the number of homes sold increased by 22% year-over-year. In July 2024, 1137 homes were sold up from 932 homes in July 2023.

Such inactivity in the market is mainly due to the recent NAR settlement. People are anxious about the selling prices and agents’ compensation.

The NAR settlement has removed the buyers’ agent compensation and many MLSs have followed the suit. It will probably reduce the home selling prices. As a result, buyers will have improved affordability along with low mortgage rates. Here are some tips for you to sustain in the market:

• If You Are a Home Buyer: Homes for sale (4,271) are growing at 12.4%. Along with this, the expected drop in home prices can benefit you. The low interest rates at 5.86% are now in buyers’ favor. Also, in case of low housing demand and prices, you can request for seller concessions.
• If You Are a Home Seller: You can lock in West Virginia’s current high home prices. The correction in the home prices is long overdue. In the wake of the NAR settlement, home prices may drop a little more. If you’re a seller, you can still make profits on home sale before prices potentially drop.

So, How Is the Real Estate Market in West Virginia?

Balanced!

The number of homes for sale increased by 12.4% in July 2024 compared to the previous year. This is the 6th consecutive month the housing market has witnessed such growth. Other important facts are:

• Median Days on Market: The median days on the market for homes for sale are 46 days, down by 9 days YoY. This trend suggests a high demand in the West Virginia real estate market.
• Housing Inventory and Supply: As a buyer, you have more options now as the housing inventory is up by 12.4%. There are 4,271 homes for sale in West Virginia, with an average supply of 3 months.
• Average Home Prices: The median home price in West Virginia is $244,600. But, it is expected to decrease due to a rise in inventory in the latter half of 2024. The sale-to-list price ratio is 97.4%, down by 0.9 pt YoY.
• Home Sales: As per July 2024 data, home sales increased by 22% YoY! 1,137 homes were sold, compared to 932 last year.
• Average Rent Prices: Rental costs vary statewide. The median rent is $1,047 with a month-over-month change is +$47.

Why Is West Virginia a Seller’s Market Now?

West Virginia real estate market has a balanced inventory of homes for sale. Besides this, a steady increase in median home prices favors home sellers. Homes spend only 46 days on the market which depicts the competitive market.

Let’s look at some more facts:

• Fewer Days on the Market: Homes are spending only 46 days on the market before going under contract. This is visible in metro cities like Wheeling and Martinsburg where the average days on the market is between 13 to 40 days.
• Multiple Offers on Homes: Wheeling has got 60 and Martinsburg got 53 in Redfin’s Compete Score. It means the housing market in West Virginia is very competitive. It shows that many homes get multiple offers, some even sold without contingencies.
• High Sale-To-List Price: The average homes sell for about 4% below the list price whereas hot homes sell for around the list price. The average sale-to-list price ratio in Wheeling is 96.3%.

• Homes Sell Above List Price: On average, 22.8% of homes sell above list prices. However, in July, 28.2% of homes experienced price drops, compared to 7.5% last year. This trend indicates a gradual shift toward a buyer’s market.

West Virginia Housing Market Predictions 2024

Here are the predictions for West Virginia’s housing market in the remaining months of 2024 and 2025:

1. Number of Home Buyers Will Increase: As inventory grows and homes stay on the market, more home shoppers are expected to re-enter the market. The historically high interest rates averted buyers in 2023. But the easing inflation and stabilizing rates will bring back house hunters.
2. Home Prices Will Continue to Rise: Home prices rose steadily in the top metros across WV YoY, reaching $244K in July 2024. Cities like Wheeling and Martinsburg expect home prices to increase by 3.6% and 5.2% by July 31, 2024.
3. New Home Constructions Sales Will Increase: 12.3% of homes purchased in September were new homes, the highest since 2022. Home builders offered $30,000 worth of concessions to attract buyers in 2023. We think builders and sellers will compete for buyers in 2024.
4. iBuyers Will Continue to Make Lowball Offers: iBuyers like Opendoor and Offerpad, which once offered 104.1% of market value in 2021, now offer around 70%. Such lowball offers to sellers will increase opportunities for individual buyers.

Bonus Predictions: Buyer Broker Commissions Will Be Zero!

In a shocking turn of events, the NAR settlement has completely eliminated buyer agent fees from the MLS. Let’s understand its impact:

1. Buyer Agents Will Be Affected: With buyers now responsible for directly paying their agents, many may choose to find their homes on their own. This may very soon render buyer agents obsolete.
2. Seller Concession Will Increase: Without the obligation to pay buyer agent commissions, sellers might see increased requests for seller concessions and offline transactions. Additionally, builders are offering significant concessions to attract buyers, further influencing the market dynamics.
3. Builders Will Compete More: Home builders are persuading buyers to buy new construction homes with mortgage buydowns worth $30K!
4. Sellers May Offer Fees for Services: Sellers may offer at least 1%-2% fees to the buyer agents in order to sell their homes quickly. Increasing competition from builders may also cause sellers to pay extra fees to buyer agents.

Is the Housing Market in West Virginia Going to Crash?

A housing market crash in the Mountain State is unlikely.

The average cost of living in West Virginia is $89,118, which is 9% lower than the national average. West Virginia currently has a population of around 1.8 million, with Glen White being the fastest-growing city.

The state boasts a violent crime rate of 3.1, which is ~22% below the national rate of 4.0. The air quality is really impressive as well, with a level of 28 AQI.

The state’s unemployment rate is at 4.3%. West Virginia’s well-maintained transportation system, affordability, low crime, and natural beauty, make a housing market crash in West Virginia unlikely.

2024: Is It a Buyers’ or Sellers’ Market Now?

West Virginia real estate market favors sellers in 2024. (And buyers, too!). The West Virginia real estate market is expected to lean more in favor of the buyers in the latter half of 2024.

Home prices are rising slowly, and the number of homes for sale has increased by 12.4% YoY. Buyers now have more choices. With mortgage rates around 5.86%, buyers also have more purchasing power.

Consequently, more homeowners are likely to list their homes on West Virginia MLS. The 21.2% increase in new active home listings in West Virginia has brought back home shoppers. So, whether you are looking for a condo in Wheeling or a single-family primary home in Martinsburg, you will find your dream home in the coming months.

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Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision.

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