3 Reasons Why Raleigh-Cary Will Remain One of Nation’s Best Real Estate Markets

Posted on 04/22/13 No Comments

8704 Gleneagles Drive in North Raleigh’s Glen Valley is for sale.
In many markets around the country, real estate professionals are quietly hiding their worry amongst all the conversations of recovery.

We’re not one of them.

For every five articles about the growing stability of the market, there’s an article like this, where doubt is cast and little needles of worry are pricked into the backs of our necks.

Well, here in Raleigh, Cary and Apex, we’re not buying into the shadow conspiracies, because as we’ve said before, today’s real estate market is locally driven, meaning that many markets are healthy enough from within to tolerate the little ups and downs of the overall economy. We’ll use the points in the Forbes article cited to demonstrate our opinion.

#1. The article states: The housing recovery is being led by investors.
In South Florida, Las Vegas, Phoenix and Detroit, this is indeed the case. Institutional funds and wealthy property buyers are snapping up large tracts of homes to rent. This creates serious issues in terms of home value, desirability to relocate, and it reduces the sphere of additional business created by real estate ownership. Real estate in Raleigh, Cary and Apex isn’t being sold this way, the cash flow opportunities are not there to attract investors, meaning that our house values never plummeted deep enough to provide a quick flip market or heavy cash flow to investors. Rental property owners can still do well here, but it’s certainly a very long-term play.

#2. The article states:  The economic recovery is just not strong enough yet.
Nationally speaking, no, the recovery is probably not stable enough to sustain a significant real estate bounce-back. In North Carolina, it is — especially in the Triangle. Our area has long been established as a market that never climbs too high or falls too far. Plus, the rich collection of universities helps provide an ongoing stream of highly educated and entrepreneurial professionals that when combined with the lifestyle options available to them, end up staying to build careers and raise families. The Triangle is also not overly dependent on a single industry. Instead, we boast a large, global representation of industries, from pharmaceuticals and software to agriculture and education.

#3 The article states: Government cuts will hurt homeowners.
This one may be a bit less easy to overcome but there is little doubt the sequester’s impact will deter the growth of Raleigh-Cary real estate. The biggest concern may be government contracts serviced by firms throughout Research Triangle Park. However, Washington is targeting a few select corners of government that will be too far removed from the core of our economy. Payroll tax breaks will hit a lot of people particularly hard; however, our region is dense with dual-income families more able to sustain decreases in take-home pay.

In short, we remain positive. There are plenty more reasons to remain confident in the health of real estate in Raleigh, Cary and Durham. It’s just too easy to buy-in to the talks about another pending “bubble.” And if something is too easy, then it’s probably not worth considering.

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