In reviewing the market trends over the past 12 months in the Triangle area (Raleigh, Durham, Chapel Hill),  several noteworthy items surfaced which highlight the steady growth in this vibrant metro area.

To start:

1. Resale closings of existing homes were up 11% over this 1 year period.

2. The average sales price for housing across the counties was 225k (Orange County – Chapel Hill posted the highest average price and appreciation over this timeframe).

3. New housing starts and commercial development remained strong.

Although average days on the market for typical homes in the area averages just under 3 months (~72 days), the inventory on hand continues to absorb steadily. What is the reason for this, you might ask? Well, one reason may be the steady flow of employers and job expansion in the Triangle. North Carolina is becoming known as a business-friendly state, especially for small to medium-sized firms. This business-friendly environment has supported the expansion of several smaller firms such as Healthways, which created 130 new jobs over a 1 year period and plans to add 100 more to its call center (at an average salary of 65k) in the next year alone. Likewise, Merck has constructed a new 272k sq. ft. plant in north Durham County which is expected to bring in excess of 300 new jobs when it is completed in 2008.

In addition, The Triangle is home to no less than nine educational institutions including Duke, UNC, North Carolina State University, Durham Technical institute, Shaw University, Wake Tech, Meredith College, and Peace College among others. The growth in the student, administrator and professor populations at these institutions plays a large role in supporting migration to the Triangle and provides a steady flow of professionals to sustain the real estate markets.

All in all, a very healthy year in review.

Please contact me for more information about investment property in the Raleigh-Durham-Chapel Hill area.