We did it again! Raleigh was just listed in an article by online publication The Business Insider as one of the top 10 real estate markets that will thrive in 2011. It seems that Raleigh is always making these types of lists. Best quality of life. Best place to live. Best place to start a small business. You get the idea.
I know we’re all ready for the Raleigh real estate market to pick up again. So will 2011 be the year that happens? Let’s take a look at why the Business Insider thinks that it will.
Raleigh home prices did not run up
Real estate in Raleigh was actually pretty boring (by comparison) during the housing boom that ended around 2005-2006. While many other real estate markets around the country were experiencing double digit price appreciation, Raleigh was chugging along at a cool 2-4% rate of growth. While my fellow Realtors in hot markets like California, Arizona and Florida were watching their average sell prices go through the roof, I was busy working a robust relocation business that was able to supply (relatively) affordable homes to buyers. These buyers were attracted to the Raleigh area by the very economic conditions that should place us among the first to emerge from this troubled market.
By the way, it’s worth noting that we were among the very last markets to feel the effects of the national decline of the housing market. We really only began to experience a reduction in sales volume in 2008. And yes, for the record, I was jealous of my friends in other markets who were previously experiencing their sales increase largely due to an increase in average sell price. But I quickly got over that when things started to unravel nationally.
I personally think this is a fundamental dynamic with regards to the speed at which we will recover. Since we never ran prices up so high, they have fallen much less. While some markets have suffered reductions in price of 50% or more, we have had a much more modest pull back in prices.
A solid job market
Everyone keeps saying that the key to economic recovery is job growth. Although the unemployment rate here is just below the national average, the Raleigh area is well known for a robust job market. In my own relocation business the top reason given by clients for moving to the area is job transfer. The second most popular reason for relocating to Raleigh is for retirees to be near their grandkids. This was usually because their adult children had been transferred to the area for work.
Top rated universities
Speaking of top rated universities, we have three. Duke University, University of North Carolina, and NC State University are all within a 30 minute drive of each other. The article makes reference to our well educated work force. It’s easy to understand why this is so important. Major corporations such as IBM, Cisco, Glaxo Smith Kline and RBC Bank and have set up operations here for this very reason. And if you have college age kids and are a NC resident, the in-state tuition rates are very low. I’ve helped lots of families relocate for this single reason.
Many people who relocate to Raleigh for access to higher education never leave. I have helped quite a few clients buy a home here because they came to one of our top rated universities and were recruited into one of the local technology or health care related companies after graduation.
None of this is new. The reasons that Business Insider selected Raleigh as a real estate market most likely to thrive in 2011 have been around for a while. This is why our population continues to expand even during this national economic slowdown.
If you’re interested in finding out more about relocating to Raleigh please get in touch with me. I’ve got some really nice relocation materials I can send you and I can get you set up to start receiving email notifications of homes that match your requirements.
