A Tale of Two Opportunities: National Data Reveals Places Where Single-Family Home Investors Can Enjoy Upsides Like They Did in the Last Real Estate Boom

DALLAS, June 26, 2014 /PRNewswire/ -- It's the "best of times" for investors in single family homes (unlike the more recent "worst of times" for real estate), according to new data from HomeVestors and Local Market Monitor that unveils investment opportunities offering the kind of upside potential last seen during the mid-2000 boom.

The new data divides the best investment opportunities into two separate groups and, according to HomeVestors co-president David Hicks, "for two very good reasons."

One group (the "Texas" group) has strong fundamental economics and home prices that are currently at or very near the highest level they've ever been, Hicks explained. "Investing in these markets has a high chance of success because home prices are being driven up by strong demand."

The other group (the "Florida" group) also has strong fundamental economics but home prices—even though they've been rising—are still well below the peak they reached in the mid-2000s boom. "That means many homeowners are still under water on their mortgages and foreclosure opportunities are still available for investors with sharp elbows," said Ingo Winzer, president and founder of Local Market Monitor

"Depending on their inclination, investors can go for an easy investment with long-term potential or get in the fray and maybe get a really good deal," added Winzer. "Either way, the odds of a good investment in these markets are high since conditions are either currently ideal, as in the Texas group, or are right for home prices to rise, like in the Florida group."

Of the 11 cities in the Texas group, five are in Texas—Austin (1), Dallas (3), Houston (4), San Antonio (8) and Fort Worth (9)—and the remaining six cities are in other states and offer similar "strong economic fundamentals," Winzer noted. These include Denver (2), Nashville (5), Indianapolis (6), Omaha (7), Greenville, South Carolina (10) and Oklahoma City (11).

Home prices in the Texas group are currently at or very near the highest level they've ever been, according to Hicks. "In all the major markets in the Texas group, we are experiencing an actual shortage of properties for sale. We are on track to close more sales in these 11 markets in 2014 than at any point in our history," said Hicks.

The Florida group includes five Florida cities—Fort Myers (1), Orlando (2), Sarasota (3), Miami (4) and Jacksonville (5)—followed by Boise City, Idaho (6), Atlanta (7), Seattle (8), Portland (9) and Charlotte (10) and Raleigh (11), North Carolina. In this group, even though house prices have bounced, they are still well below the peak they reached in mid-2000. HomeVestors co-president Ken Channel stated, "Our franchisees in these markets report outstanding investment opportunities are available at the same time that the resale market appears to be quickening. This shortage is evident in the number of people wanting to be franchisees. There are always people that have "ugly Houses" and "ugly situations" that benefit from our franchises services. We are adding a record number of new franchises."

About the Quarterly Data:
The data identifies markets that will be good rental markets and where home prices are likely to increase at a good rate over the next few years. Criteria include markets where:

• The population has been growing at above-average rates (4 percent or better) with growth coming from people moving there in search of jobs;
• The current rate of job growth of 2 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 don't have stable economies;
• With very high home prices because, although they have many renters, they live in apartment buildings, not in single-family properties;
• Have very low home prices because they don't have stable renters;
• Where home prices haven't increased; or
• Where homes are already over-priced.

About HomeVestors of America Inc.
Dallas-based HomeVestors of America, Inc. is the largest professional house buying franchise in the U.S., with over 56,000 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 2013, for the eighth 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. For more information, visit www.HomeVestors.com. In 2014 HomeVestors was recognized as the 25^th fastest growing franchise by Entrepreneur Magazine and number 126 in the Franchise 500 by Entrepreneur Magazine.

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.

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SOURCE HomeVestors of America Inc.