HomeVestors and Local Market Monitor Announce Best Markets Top Ten List for Real Estate Investing for Third Quarter of 2016
Florida and Tennessee Cities Tie for First Place
DALLAS - October 04, 2016 - (BUSINESS WIRE) - HomeVestors, the We Buy Ugly Houses® people, and Local Market Monitor, the premier real estate forecasting solution, today published the Best Markets Top Ten List for Real Estate Investing in the third quarter of 2016. The data is ranked based on cities with increased job opportunities in the past year.
Cape Coral-Fort Myers, Florida and Nashville-Davidson-Murfreesboro, Tennessee tied for first place with Ogden-Clearfield, Utah coming in close second. Following in order is Boise City-Nampa, Idaho, West Palm Beach-Boca Raton-Boynton Beach, Florida and Charleston-North Charleston, South Carolina to complete the top five.
“Our Top 10 shows markets with strong economic growth where the number of renters has increased sharply in the last few years,” said Ingo Winzer, president and founder of Local Market Monitor. “The increase is largely due to the fact that most of the new jobs in these markets are in service industries, where pay is relatively low. Note that home prices in these markets are rising rapidly - because of a shortage of housing.”
“After the crash of 2008, when foreclosures spiked and home prices fell, investing in homes was a golden opportunity,” said David Hicks, co-president of HomeVestors. “You could buy one for very little and rent it out at a rate that gave a nice return. And once home prices rose again, you could resell it at a good profit. That era isn't entirely over, but finding bargain properties is no longer as easy as it used to be.”
According to LMM, demand for rentals keeps growing, so investors can still reap big benefits from buying single-family homes - and slicing them into multiple rental units.
Winzer continued stating, “This type of investment takes more time and expense than simply renting out an entire house, but the long-term returns can be much better. The emphasis on rents rather than on a low investment price means that a different type of market provides the best chance for success - one with a growing renter population. Consider an investment in these markets, where demand is likely to be strong for years. Take your time because this is a longer-term investment, but keep in mind that the clock is ticking.”
The third-quarter 2016 Best Markets Top 10 List for Real Estate Investing includes:
1. Cape Coral-Fort Myers, Florida (tied for first)
1. Nashville-Davidson-Murfreesboro, Tennessee (tied for first)
2. Ogden-Clearfield, Utah
3. Boise City-Nampa, Idaho
4. West Palm Beach-Boca Raton-Boynton Beach, Florida
5. Charleston-North Charleston, South Carolina
6. Orlando, Florida
7. Austin-Round Rock, Texas
8. Jacksonville, Florida
9. Raleigh-Cary, North Carolina
About the Quarterly Data:
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:
- the population has been growing at above-average rates (of four percent or better) with growth coming from people moving there in search of jobs;
- the current rate of job growth of two percent or better; and
- there is low unemployment, so that new jobs will be filled by people who move there, not by unemployed people who are already there.
Markets are excluded that:
- Have a small population because they do not have stable economies.
About HomeVestors of America, Inc.
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.
About Local Market Monitor
Local Market Monitor, the premier real estate forecasting solution, 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.