Raleigh named healthiest housing market for 2011

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According to Builder Magazine, Raleigh is the place to be if you are in construction this year. The magazine ranks metro areas based on a system called the “Builder Healthy Markets Index.” It factors in home prices, employment, household formation and income.

Tim Minton, the Home Builders Associations’ executive vice president in Raleigh-Wake County, explained how Raleigh is thriving in today’s market. He credited many of the positive accolades that the area has received with attracting business, as well as the area’s home builders’ ability to deal “with manageable inventory levels” and respond well to the “changing demand of the market.”

The magazine reports Raleigh builders sense that their market may be in for something big–building permits increased 85% last year to 8,600, with much of the strength on the multifamily side. But single-family permits increased as well as builders took stock of improving market conditions.

The market was hot enough that existing home prices rose 4% in 2010, though they are expected to fall 10% this year due to a spreading foreclosure problem. But excess inventory may be absorbed quickly, because households are still moving in large numbers to Raleigh, drawn by its temperate climate and good employment prospects. Raleigh continued to add jobs last year, especially in services, lowering its unemployment rate to 8.4%.

Other NC cities on the top 20 healthiest housing market list include: Durham-Chapel Hill (3) and Wilmington (16). Read More.

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