Communities throughout North Virginia are continuing to experience slow real estate markets as a result of the recession that began in the fall. Although real estate markets in northern Virginia have remained stable, with only slight declines in the past months, most markets are still experiencing very little real estate activity, with many realtors and associated businesses making desperate measures to jump-start the real estate market.
Commercial real estate markets are also maintaining fairly low vacancy rates, but very little commercial real estate activity has taken place in the past months. Although declines have slowed, many experts are still unsure whether North Virginia real estate markets have truly hit bottom and are poised for the rebound sometimes.
The Daily Progress newspaper in Charlottesville, North Virginia, has reported that despite little commercial real estate activity taking place in the community, Charlottesville has been able to maintain a stable commercial real estate market with relatively low vacancy rates. Nevertheless, when vacancies are created, landlords are still having trouble finding new tenants to take the newly created vacancy.
Circuit City, one of the major retail store anchors in the Albemarle Square mall remains empty since Circuit City’s closure last year. Retail stores make up a large portion of the commercial real estate market in Charlottesville, yet many real estate experts are worried that many stores are in jeopardy of closures due to the recent lack of consumer spending in the region.
Surveys have reported that consumer spending in North Virginia is significantly lower than the national average. Many experts are worried that this may pose a major problem for the stability of the commercial real estate in North Virginia.
The Alexandria Times has also reported the evident struggles in many North Virginia real estate markets, despite stability over the past months. Real estate levels in the city of Alexandria haven’t declined significantly over the past months, but real estate activity still remains fairly sluggish.
The Alexandria Times has reported that many local realtors are reporting financial struggles in their own businesses, and many realtors in Alexandria are even resorting to creating partnerships with local businesses to promote real estate activity. A local car dealership in Alexandria recently promoted an August special where a car buyer would be awarded a 3-bedroom rambler with the purchase of the car.
Many realtors are also moving from listing the time it takes to sell a home from DOM (days-on-the-market) to MOM (months-on-the-market) and sometimes YOM (years-on-the-market). Many experts are attributing the sluggish activity to high-interest rates and high tax property taxes.
