The Local Real Estate Market Is Not All Gloom And Doom

Various stories across the nation illustrate gloom and doom in the real estate market. There is a misconception that it is bad everywhere. That is not true. Certain cities have enjoyed double digit appreciation, homes selling in hours, bidding wars breaking out between buyers, and many other instances that have helped make the real estate market so successful for the last several years. These kind of instances may not be as frequent now. However, there are certain considerations to keep in mind about our local area:



1. We have new subdivisions being built, but none on the scale that larger cities and suburbs have in major metropolitan areas. When you have hundreds if not thousands of new homes sitting and not selling, it will eventually have an effect on the market. I am sure most buyers in the Huntington area know or will eventually realize that there is not an abundance of new construction to view right now.



2. The available stock of homes is actually down in certain parts of the Tri-State when compared to last year. The local market is not a buyer's market overall, but certain areas are harder to find a home than others.



3. Some homebuyers in the past have used a mortgage with an adjustable interest rate to buy homes that are more expensive due to the adjustable rate maybe being lower at the beginning which causes a lower mortgage payment. The interest rates rising over the last one to two years has caused some homeowners who had adjustable interest rates to pay more in home mortgage payments. The value of their homes may have recently decreased which puts them in a bad situation. That may have happened here, but not on the scale being experienced across the nation.



4. Some metropolitan areas have experienced tremendous growth in recent years, but now may have leveled out and the shortage of housing that was created with that growth may be leveling out as well. The Huntington area has not seen a major influx of new residents in recent years, but the residential real estate market seems to have remained stable. Barring any major job loss or plant shut downs the real estate market should remain stable in our area.

The above scenarios could be some possible reasons for the Huntington area not experiencing a real estate market in major decline. Even though gloom and doom is heard at various points in the news dealing with real estate, fixed interest rates have dropped as much as a half of a point in recent weeks. If you have been considering buying a home, the lower interest rates could save you money or allow you to purchase a higher priced home. Feel free to contact me with any questions.