The whole country is experiencing deflated home prices because of the flurry of foreclosures everywhere. Many real estate experts say that this status just might remain for a very long time. And the smaller parts that make up the bigger picture will also experience the same thing.

Central Virginia is proving to be a microcosm of the United States, mirroring how the real estate is faring. Short sales – which is how homes sold for less than loan value and bank-owned homes are called – are still abound in Central Virginia and are expected to hold down property prices and property values for a long time. Experts further warn that short sales and foreclosures will be a force to reckon with in the real estate market for years to come.

But Central Virginia has something it can be thankful for: the local market is indeed more stable than in most areas in the country. Despite reflecting the national trend, Central Virginia can boast of being more stable than other areas.

RealtyTrac marketing director Daren Blomquist shares, “We’re seeing a steep increase in foreclosures in August, but the metropolitan [Charlottesville] rate is one property in foreclosure for every 751 properties, while the national rate is one in foreclosure for every 381 properties, so [Charlottesville’s] rate of foreclosure is not nearly as bad as other areas in the country.”

Everything is not as peaches and cream though. There is still a downside to this scenario.

“The number of foreclosures is not good for the local market because foreclosures impact home values by decreasing sale prices. There were 53 foreclosure properties sold in the second quarter — that’s three months — and more than double that number in new foreclosures in one month. We’re not clearing these properties out from the market as fast as they come onto the market and that means we can expect more pain ahead, more properties in foreclosure and harder hits to the market value of properties,” Blomquist further explains.

Statistics from RealtyTrac shows that August has given foreclosure notices to 117 homes. Though the number is just 14% higher than the July figures, the number has shot up by 225% from August of 2009.

Not all of the foreclosed properties though are for sale. Only 6.4% of the properties listed in the Charlottesville and Albermale market are considered distressed sale. The number of homes offered for distressed sale has remained at 5% to 6% since March, lower than what is seen in most areas. This is not to say that Central Virginia is not impacted by the real estate crash; just that the impact is less in the area.

Even the median home sale price is not that bad: Charlottesville Area Association of Realtors reports that for the second quarter, the estimated median price stayed at $248,000. The median price for last year was $245,000. The median sale price peaked at $289,000 in the first quarter of 2006.

Most of those losing their homes to foreclosures are traditional, middle-class Americans who lucked out during the economic crash.