Durham is the best place in the country to buy single-family investment properties, according to a new report from Local Market Monitor.
The Cary research firm analyzed 315 U.S. markets and ranked them by the opportunity for conservative investors interested in residential real estate using factors such as home values in relation to incomes, job growth and population.
The "Investor Suitability Report" put Durham first, followed by Huntsville, Ala.; Indianapolis; Knoxville, Tenn.; and Lexington, Ky., the Wall Street Journal reported.
High-ranking markets are those where there is a low probability that home prices will fall further, Local Market Monitor president Ingo Winzer told the Wall Street Journal. They are places where incomes are growing moderately and where employment is relatively stable because of a large percentage of jobs in health care, education or government.
The report excludes towns with fewer than 200,000 residents. The report focuses on price-appreciation potential rather than rental income.
The most dangerous markets include Reno, Nev.; Las Vegas; Orlando; Lakeland, Fla.; and Prescott, Ariz. Those markets will see further price declines and have little potential for turnaround because of shaky local economies, Winzer said.
The Wall Street Journal points out Durham's pluses, including its proximity to Duke University, UNC Chapel Hill and Research Triangle Park's employers.
Ironically, home sales in Durham, Johnston, Orange and Wake counties tumbled 33 percent in July from the same month a year ago, Triangle Multiple Listing Services data show. The decline was fueled partly by the expiration of the home-buyers' tax credit.
Listings in the Triangle are now at the highest level in four years, as potential sellers try to unload their homes. But there was a bright spot: the average sales price in July, which was $252,174, or 6 percent higher than the same month last year.
Read the full Wall Street Journal story here.
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or
Comments
LOL
Mon, 08/23/2010 - 23:39 — NewNCJealous is such as ugly trait. LOL.
Diversity
Mon, 08/23/2010 - 16:07 — ThePRGuyMke27513, you seem to paint with a pretty broad brush. Perhaps you don't know about the diversity of Durham that ranges from Treyburn to Croasdaile to Walltown to downtown to Hope Valley to Parkwood. Sure, there are some bad areas but your comments don't seem to be very well informed. If your friend bought in a blighted neighborhood, what do you expect? If you do due dilligence and invest wisely in the right neighborhood, you will be rewarded.
Yes, I know about the Duke Professor Refugee areas
Mon, 08/23/2010 - 22:24 — mike27513Yes, I am familiar with all of Durham . I have been a professional real estate investor for over 15 years - none of which I purchased in Durham. I put my money where my mouth is.
The problem with Durham is that the "Hood" eventually comes to those neighborhoods.
Even my offices in RTP[ in Durham county] had cars stolen/vandalized.The Parking Lot Video identified guess what ? The perps were from Durham and had a long criminal history.
Did you see the armed holdup of the Red Lobster last Sunday? Dead bodies found by Southpoint mall, etc.? Just look at the crime stats for Durham vs. the rest of Triangle.
But why use facts when you can say there are a "couple" of less crime infested areas in Durham.
Durham is the WORST PLACE for Investment Properties
Mon, 08/23/2010 - 11:32 — mike27513How much did Durham Realtors pay the N&O to run this story?
I have bought 6 investments properties in the last two years, NONE in Durham due to the crime and poverty.
Some colleagues of mine bought Durham property and regretted it, Having to chase out Crackhead squatters on a daily basis and having the property damaged and materials stolen during renovations. [Some contractors will not even go to Durham.] They sold the properties as is to the next suckers at a large loss.
Make sure you wear your Kevlar vest there too.
Hilarious
Mon, 08/23/2010 - 09:25 — TerpInNCAnother article showing the typical disconnect between the egghead 'studiers' and actual investors. Put your money where your mouth is. Real estate is analyzed neighborhood by neighborhood. Period.