DALLAS - April 12, 2016 - (BUSINESS WIRE) - HomeVestors, the We Buy Ugly Houses® people, and Local Market Monitor, the experts in local markets, published the Best Markets Top Ten List for Real Estate Investing in the first quarter of 2016. The data is ranked based on cities with increased job opportunities in the past year. The overall national average increase was 1.9 percent.
Dallas-Plano-Irving, Texas topped the list, with San Antonio, Texas coming in second. Although Grand Rapids-Wyoming, Michigan fell to third, their numbers remain strong. Orlando, Florida follows in fourth and Atlanta-Sandy Springs-Marietta, Georgia rounds out the top five.
"Good job growth is driving prices higher in our markets, mainly in business services but also tourism (Orlando, San Antonio), finance (Charlotte, Dallas) and manufacturing (Grand Rapids),” said Ingo Winzer, president and founder of Local Market Monitor.
While the prices of homes have now recovered from the recession in Texas, Florida and California, the report predicts some markets in these states will be over-priced in another year - with the risk of a boom and bust down the road.
"Over the last year, we have seen an increase in population and job growth,” said David Hicks, HomeVestors® co-president. “However, housing prices are increasing significantly faster than incomes. As a result, home sales are slowing, limiting the housing demand. Therefore, investors need to be careful where and when they invest.” Winzer concurs saying, “Prices are still at or below the income price - and a couple of years away from being too high. Yesterday's opportunity becomes today's risk once prices move higher than they should. This is especially true for investors in rental properties and especially now that the deep discounts at which properties could be bought have largely disappeared.”
"Investors always need to think hard, but in this environment they also can't afford to think too long," said Ken Channell, co-president of HomeVestors.
The remainder of the list includes Charlotte-Gastonia-Concord, North Carolina sixth; Salt Lake City, Utah seventh; Nashville-Davidson-Murfreesboro, Tennessee eighth; Tampa-St. Petersburg-Clearwater, Florida ninth; and Phoenix-Mesa-Scottsdale, Arizona tenth.
The first-quarter 2016 Best Markets Top 10 List for Real Estate Investing includes:
The data identifies markets that will be good rental markets and where home prices are likely to rise at an increased rate over the next few years. Criteria include markets where:
Markets are excluded that:
Dallas-based HomeVestors of America, Inc. is the largest professional house buying franchise in the U.S., with more than 65,000 houses bought since 1996. HomeVestors® recruits, trains and supports its independently owned and operated franchisees that specialize in building businesses based on buying, rehabbing, selling and holding residential properties. Most commonly known as the "We Buy Ugly Houses®" company, HomeVestors strives to make a positive impact in each community. In 2015, for the tenth consecutive year, HomeVestors was among the prestigious Franchise Business Review's "Top 50 Franchises," a distinction awarded to franchisors with the highest level of franchisee satisfaction. In 2015, HomeVestors was recognized as the 19th fastest growing franchise by Entrepreneur Magazine and number 127 in the Franchise 500 by Entrepreneur Magazine. For more information, visit www.HomeVestors.com.
Local Market Monitor, the experts in local markets, offers investors in homes and home mortgages the local market risk intelligence they need to make informed decisions. Using a proprietary formula called the Equilibrium Home Price, Local Market Monitor determines if markets are currently over or under valued, equipping users with a long-term risk and investment perspective. Covering over 300 local markets, Local Market Monitor also presents key investors with a 12, 24 and 36-month home price forecast. The solution includes sorting capabilities allowing subscribers to view and compare real estate markets along various metrics, including an Investment Suitability Ratings to identify opportunities based on individual investing goals. To learn more, visit www.localmarketmonitor.com or call 800-881-8653.
SOURCE HomeVestors of America, Inc.
For HomeVestors of America, Inc.