In conversation today about our local housing market, I was asked how in the world Harrisonburg and Rockingham County home values have stayed relatively level over the past few years when many parts of the state and country are not. 

One key reason for the relative stability in our housing market is continued LOW UNEMPLOYMENT.  Thanks to Jim over at RealCentralVA, for pointing out the Washington Post's interactive unemployment map. 

As unemployment has increased in other parts of Virginia, and the United States, there have been many ripple effects that directly impact those local housing markets:

• people who lose their jobs can't buy houses
• people who lose their jobs often can't continue to pay for their houses
• people who think they might lose their jobs won't buy houses
• people who can't find jobs won't move into the area and buy houses

To focus in on Harrisonburg and Rockingham County, here are a few snapshots from the Washington Post's interactive unemployment map.


 
As seen above, all areas in Virginia and most in neighboring states experienced sub 7% unemployment rates in July 2007.
 

 
As shown above, quite a few areas in neighboring states, and a few in Virginia started to see unemployment creep up to the 7% - 10% range in July 2008.
 

 
OUCH!  The vast majority of states surrounding Virginia were above 7% or above 10% or even above 13% in 2009.  Most areas of Virginia outperformed these neighboring states --- and Haririsonburg and Rockingham County STILL experienced an unemployment rate below 7%.