WEST VIRGINIA - The West Virginia real estate market is currently experiencing an inventory shortage. Most of the larger cities in the state have fewer listings than a balanced market. This shortage has made buying a home more difficult, and competition for available houses has pushed up prices. The state is also facing a rising number of foreclosures, reducing the number of homes available for sale.
Population Declines Due To Changes In Migration Flow
The new census estimates show that population declines in West Virginia are due in large part to changes in migration flows. In some counties, natural increase is the main contributor; in others, domestic migration is the main factor. Although West Virginia traditionally has a high rate of births and deaths, a declining birth rate and an increasing death rate have impacted the state's growth in recent years.
This decline in population in West Virginia is consistent with a national trend. However, unique challenges in rural areas must be addressed to achieve both sustainable and broader economic growth. To achieve this, policymakers need to invest in public infrastructure and people to create the conditions for economic opportunity and improve the quality of life for all residents.
Population Declines Due To Changes In Coal Severance Tax Collections
West Virginia is a state that shares borders with Kentucky, Ohio, and Pennsylvania and is located near the border with Virginia. The state is also relatively close to Washington, D.C., and Pittsburgh, about 60 miles away. Although residents of these areas can commute to these cities easily, they will have a long commute during rush hours.
West Virginia is one of the few states that have seen its population decrease over the past seven decades. This trend will likely continue in the coming years, and many legislators are now looking for ways to raise revenue to compensate for lost revenue. Increasing sales taxes or broadening the sales tax base are two options. Some of these measures can be accomplished in a revenue-neutral way, including a decline in the income tax rate.
Changes in property tax collections
The new law will require the state treasurer to reimburse local governments for any decrease in property tax revenue over the next five years. This amount will be about $200 million and is intended to offset any decrease in school district property tax revenue that results from the new law. This will give the state treasurer enough money to continue to implement tax cuts.
The new law will allow localities to lower property tax rates for certain types of property. The combined rate for all counties in West Virginia will be about 7.9 percent under the governor's plan, while the Senate's plan calls for 8.9 percent. However, it's not clear how much each county will collect.
Changes In Home Prices
The median home value in each state will likely increase over the next three years, but the outlook for home prices is not as positive. Zillow's forecast tool used average home values from February 2022 to February 2023 and calculated the expected change in price each state would see over the next three years. The forecasts are based on several factors, including the affordability of the average home and its price based on demand.
The housing market in West Virginia is hot right now, and the state is expected to be one of the cheapest states to buy a home in 2023. The national average home price increased by 2.3 percent from January to January of this year, but West Virginia will remain the least expensive state to purchase a home. The state offers pristine nature, majestic mountain views, as well as an affordable cost of living. West Virginians can afford to travel and spend their weekends visiting neighboring states.
