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At the beginning of 2008, local sentiment was that Lynchburg was still relatively insulated from the news of sharply declining property values that have afflicted other parts of the country. As the year ends, we have to conclude the even Lynchburg and the surrounding areas have experienced declining property values across all market segments in 2008. Entry level ( 90-160,000 )single family homes appear to have remained relatively stable. Spec houses and townhouse have been overbuilt and that has led to a softening in prices. It seems that  the market peaked in 2006. Houses purchased in 2006 probably have seen little,if any, appreciation. Whether we will see real deflation in property values remains to be seen.  

Realtors and appraisers who were reporting stable levels of business are reporting that the market has slowed dramatically over the last few months.