The local housing market is showing signs of continued stability and gains in the face of a slumping market nationwide.
The overall value of homes continues to increase, according to recent data from the Cabell County Assessor’s Office and the local Board of Realtors.
Local agents increased their overall sales nearly 8 percent in 2007 when compared to 2006, according to numbers provided by the Huntington Board of Realtors and its board president, Patrick Lucas.
Old Colony also witnessed success in the local market. The company’s total sales were up 9 percent in the local market, which includes Huntington, Barboursville, Milton and Proctorville, Ohio.
“Our market is stable,” said Old Colony Realtor Betty Sargent. “Negative comments from the media do create doubt for the consumer; however, our buyers and sellers realize that a real estate investment is still a wise decision.”
Cabell County’s housing market is relatively stable, according to the Cabell County Assessor’s Office. The most recent tax year ended June 30, 2007.
The Assessor’s Office recorded 1,785 residential sales in tax year 2007. That was a 4.7 percent drop from tax year 2006, but the data does not include homes sales between July and December 2007.
The average price of a home in Cabell County increased 1.43 percent between tax year 2006 and 2007. The report noted the largest gains in home value came in Barboursville and the county’s unincorporated areas.
Difference from national trends
Analysts believe the stable, conservative nature of the local housing market prevented it from witnessing the sharp declines experienced nationwide.
The national housing market dropped off significantly in 2007, in part due to a mortgage crisis that spurred many foreclosures.
The number of home sales dropped nationwide throughout 2007, according to the National Association of Realtors.
The Realtors association also recorded a 1.4 percent drop in the average price of a home between 2006 and 2007. It was the first such decline on record.
Analysts say the local market did not experience the large housing boom felt in many cities leading up to 2006. Sargent said the area experienced a few “bumps in the road,” but it never climbed large peaks.
Cabell County Chief Appraiser John Perry agreed.
“Our market has just steadily grown, instead of spiked overnight like it did in some of these areas,” he said. “I believe if it builds up slower, it seems to maintain better.”
West Virginia has not experienced near the number of foreclosures reported by other states. Lucas credits modest prices and the conservative nature of local buyers.
“Our local buyers rarely bite off more than they can chew when it comes to major purchases,” he said. “The average price of residential homes in our area is substantially lower than the average price in larger markets. In a declining national market, it’s much easier to keep up with a $1,000 mortgage payment than a $3,000 mortgage payment.”
Some people still find weaknesses in the local housing market. Roger Thompson, an assistant manager at 84 Lumber near Huntington, described the market as struggling. His business has seen a decline in the sale of building supplies within the last year.
Thompson said many contractors have empty houses. He called them spec homes, because contractors will build the homes without a buyer in mind. The homes are typically located in subdivisions, where real estate agents can get a quick sale. Problems arise when the homes stop selling.
“Once you have a couple houses built, then the banks were telling these contractors they would not loan them any more money until the other houses sold,” he said.
Lucas said the market may be a bit sluggish in spots, but he is not hearing about contractors having to sit and wait.
“It is definitely not dead,” he said.
Lucas and Sargent expect interest rates to stay low, which aids real estate markets. Lucas said it encourages “fence-riding buyers to make a move.”
Sargent said the lower rates make now a great time to buy.
“It is without a doubt, the cheapest money you can borrow,” she said. “The rates today allow most people the opportunity to experience the American dream of owning their own home.”
Growth continues outside local cities
On average, homes with the most value are located in Cabell County’s unincorporated areas.
The Assessor’s Office data noted a 3.12 percent increase in the average sales price of homes in unincorporated areas between tax year 2006 and 2007. The average price tag jumped nearly $4,000 to reach $128,687. It’s the highest average price found in the county.
Those numbers did not surprise local analysts.
Perry said the prices jump as more people hunt for newer homes with less government. Buyers are finding both desires inside subdivisions and away from municipalities. He said many subdivisions fill up as quick as the developer can build.
“They’ll pay a little more because it’s a newer house,” he said. “If they build (a subdivision) and get decent infrastructure — good roads and all the utilities — they seem to be able to sell them pretty quick.”
Lucas said nothing seems to be slowing down the desire for more subdivisions in eastern Cabell County. He said the developments offer homeowners more comfort that their residence will appreciate at a normal rate thanks to rules that govern the size and style of the house.
“That all keeps property values increasing,” he said.
Lucas said many of the subdivisions are enhanced by their inclusion in the Cabell Midland school system, along with their proximity to the Huntington Mall and local restaurants.
The recent completion of a large sewer project in eastern Cabell County is still yielding fruit. The project expanded public sewer in the area. That allowed contractors to develop land where private septic tanks once were required.
Sargent believes the sewer project will continue to spur development for the next year or so.
“I think the entire economic market for retail/business, housing will be better because we now have the infrastructure,” she said.
Perry admits most of the growth in unincorporated areas is along the Interstate 64 corridor. Historically, he said the county does not see too many sales along W.Va. 2 and W.Va. 10.
“If they live there, they stay there,” he said.
Space squeeze
The average sales price inside Barboursville city limits jumped 9.64 percent between tax year 2006 and 2007 -- the largest increase of any city within the county. It also outpaced the county’s unincorporated areas.
Barboursville’s residents pay the highest property taxes in the county, but Perry said limited space and desirability continue to be among its largest assets.
“When they do sell, they sell at a good price,” he said of houses in Barboursville. “The streets are clean, the sidewalks are newer and you don’t see potholes.”
Limited space within the village has forced developers to be more creative. One example is ongoing development at the former Knob Hill Golf Course and an old junk yard. Perry said the land is being transformed into a subdivision.
Lucas expects property values in Barboursville to continue rising as people look for opportunities to live near the village’s park and its newer elementary school. City officials said the park now measures about 750 acres.
“You can’t build many more homes there, therefore what’s there is what’s there,” he said. “If you want to be in there, you’re going to have to pay for it.”
Lucas said one example of the desire-vs.-space argument is the amount of construction within four miles of the village.
Huntington challenges
The Assessor’s Office recorded about 1,000 residential sales in the city of Huntington during the 2007 tax year. The average sale price increased less than a percent.
The average price tag is now $79,960. That is approximately $33,000 less than Barboursville’s average and almost $50,000 less than the median price in the county’s unincorporated areas.
Analysts listed older homes and a lack of space for new construction as contributing factors.
“You can’t drive up and down the streets of Huntington and see new homes being built,” Lucas said. “You have a large number of homes that are depreciating because you’ve got all of the rental properties, you’ve got homes that people are not taking care of and you’ve got homes in there that are foreclosed on and sold that way.”
Sargent also noted a slight decline in the city’s housing market because of people moving into eastern portions of the county.
“The City of Huntington has much to offer, but very few new construction homes,” she said.
Lucas said fees and taxes also deter buyers from purchasing homes inside of city limits, but there are exceptions. He said many people still express interest in living near Ritter Park. Others want to live in Stamford Park, which is a higher-end subdivision located in the city’s Beverly Hills neighborhood.
Deputy Assessor J.D. Adkins said there is steady growth within the city, but the age of many homes create problems. He said some of the homes need work when a new house, in theory, should be maintenance free.
Milton remains steady
The housing market is fairly steady in Milton. The Assessor’s Office recorded 51 sales in tax year 2007, which was down one sale from 2006.
The average price of a home sold in Milton fell 6.75 percent in tax year 2007, from $115,020 to $107,256.
The numbers surprised Sargent and Lucas.
Sargent, who is also Milton’s mayor, agreed with Perry in saying the city’s housing market and average sale price are historically good.
Sargent said one contractor built several homes at the same time during the most recent tax period. She said he was forced to cut prices to move the properties. She believes that may have contributed to the drop in average price.
Sargent said her city also struggles with limited space, but she believes two active subdivisions show promise.
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