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Danville Real Estate Trends

Feb. 14, 2009
Categorized in: Real Estate News

The year 2008 will not be a pleasant memory for local Realtors in the Dan River Region, but in some ways we were more fortunate than Realtors in other areas of the United States. The economic decline of the textile and tobacco industry in our region began around the turn of the century leaving the region with one of the highest unemployment rates in Virginia throughout the decade from 2000 forward. The lack of employment opportunity left the Dan River Region with a net decrease in metro area population of more than 4,000 people. Despite these negative issues the local housing industry was strong throughout this period thanks to the booming national economy and financial market, low interest rates, and over agressive lending. The average value of housing in our market increased annually by a conservative rate of 5 to 7% while some parts of the country were experiencing annual increases in value of 20 to 35%.  The unrealistic increase in value across the country lead to what former Fed Chairman Greenspan liked to refer to as " irrational exuberance" .  People made decisions to buy more than they could afford simply due to easy credit and the belief that the property would be worth more in a few years, leaving them with an easy profit.  To compound things futher, many people added a second mortgage ( home equity loan) to their home.  This loan being made against the phantom value their home reflected in comparison to recently sold homes in the area at much higher prices.  As more and more people bacame comfortable with the higher home values and opportunity for a quick profit the cycle escalated with no one stopping to consider the possibility that home values would stop increasing and even worse, they would decrease in value as the market adjusted to the "irrational exuberance" of the past ten years.  This real estae bubble did not effect the Dan River Region as severly because we had not experienced the fantastic rise in values most other parts of the country enjoyed, therefore our adjustment period will not be as long or as severe.  Market activity has already increased with first time home buyers thanks to the low interest rates and tax credits offered by Washington.  The move up buyer will become more active as the local economic news improves.   People in the Dan River Region have suffered with depressing economic news for ten years.  We will adjust more quiclkly to the national news and go back to the ever day task of obtaining food, clothing, and shelter for our families.  I feel the remainder of 2009 will be a slow uptick from the levels of 2008 and 2010 will be a year of growth good for everyone in the economy whether you be a home buyer, seller, homebuilder, or Realtor.

User Comments

1. RE: Danville Real Estate Trends

Written by: Dean
Mar. 13, 2009

We are relocating to the Danville area as I am persuing a job offer. What I have found so far after 3 costly trips from here in MA is that most of the agents in the area, really don't want to work. I have been told time after time that "We have just what you are looking for" just to find something that isn't even close to what we had expected. In a few cases I wouldn't even let my dog live there.

We are looking to rent with what we can afford $650-750 a month. Which from what we've seen is fair. Why don't agents approach owner with properties that have been on the market for way too long with alterternative ideas? Not just go for the sale. A commision may be lower for a rent, but we're looking to buy within 6 months to 1 year and the agent who helps us now, will get our business again.

Times have changed and the normal "trend" needs to be diverse, not commision driven. This is a personal deal, they (agents) need to realize that they are there to help, not just push product.

2. RE: Danville Real Estate Trends

Written by: Carl Manasco
Mar. 13, 2009

Dean, I'm sorry to hear you are having trouble with agents finding rental property in Danville.  We do not have a monthly listing of rentals like some areas.  There are just not enough units available to justify a weekly printing.  You can view the properties my company currently has available at www.manasco.com/residential.htm  .  This list is updated as availability changes.  Please feel free to email me prior to your next visit and I will try to get you the availability from other companies that handle rentals.  The listings change daily, so it would be best to wait and send the request a day prior to your visit.

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Dan River Region Realty Blog

Blog by Carl Manasco
Danville, Virginia

Providing real estate news and information for the Danville, Virginia and Dan River Region.


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Recent Comments

RE: Danville Real Estate Trends
Dean, I'm sorry to hear you are having troubl...
RE: Danville Real Estate Trends
We are relocating to the Danville area as I am per...