Yes and no.

I am participating in an economic survey group striving to create a true picture of the impact of the national economy on our region.  In our first meeting yesterday, we discussed our local economy as it pertains to retail sales, manufacturing, farming, construction, and many other sectors.  The participants included chambers of commerce, representatives from employment commissions up and down the valley, and many other perspectives on our Valley economy.

After hearing some not-so-great news followed by some so-so news, followed by some plain-old-depressing news, one participant commented that it sounded like our local economy wasn't really as sheltered as some consider it to be.

I quickly jumped in to clarify that (as it pertains to real estate) we are definitely affected by the national economy, but also significantly insulated from the effects that it has had in other areas.  Take these two facts, for example:

• The number of homes selling in Harrisonburg & Rockingham County have slipped 25% (+/-) each of the last 3 years.  That is clear evidence that national economic conditions and events are affecting our local real estate market.
• Median home values have increased or decreased 1% - 3% each of the last three years.  That is clear evidence that our local real estate market is also somewhat insulated from national economic conditions and events, as most other markets have seen 15%, 25%, 35% or higher losses in median home values.

So --- are things bad?  Yes, but they are nowhere near as bad as things are in most other areas of the country, even as close as communities such as Winchester.