HomeVestors Names Year-End Top 10 Real Estate Markets
DALLAS, Dec. 30, 2013 /PRNewswire/ -- Job growth, particularly in lower paying jobs, population growth and relatively low home prices are factors making investments in single family homes as rental properties a nearly risk-free opportunity in some markets, while other markets still pose significant risk.
That's according to new data compiled by HomeVestors (known as the "We Buy Ugly Houses®" company) and Local Market Monitor.
"Our fourth quarter data shows that investing in single family homes as rental properties remains a good bet in many markets, particularly in Texas and Oklahoma with their low unemployment rates and ability to profit for years from new shale oil and gas development," said Ingo Winzer, president and founder of Local Market Monitor.
For the fourth quarter, Fort Worth and Dallas lead the list of the top 10 housing markets in the country for investing in single family homes. Houston was in fifth place and Oklahoma City in seventh place.
The other markets in the top 10 include Charlotte (3), Nashville (4), Atlanta (6), Orlando (8), Las Vegas (9) and Boise City (10). "These markets also had strong home price appreciation, but are still underpriced by as much as 28 percent," Winzer said.
"We think the markets hold considerable opportunities for investors as long as they do not over pay for properties," said David Hicks, HomeVestors co-president, noting that risk of investing in all markets across the country remains low. "Only seven of the top 100 markets continue to be ranked as 'speculative.'"
The 10 "riskiest" major markets (all listed as "speculative") include Los Angeles, Gary, Providence, Buffalo, Toledo, Cleveland and Columbia. "These markets continue to have weak population and job growth that makes them more risky investments," Hicks said. "The last three markets of the bottom 10 are Birmingham, Detroit and New Haven – each of which continues to experience shrinking populations and job loss."
Hicks noted that the strong markets have fueled unprecedented growth in home purchases by HomeVestors® franchisees. "We just passed the 55,000 mark in the overall number of homes we purchased company-wide," he noted, "and we're on track this year to considerably outpace our 2012 total of 2,500 homes purchased in a 12-month period."
CONTACT: Susie Lomelino