Nationally, home prices are falling, unemployment is on the rise and the economy is expected to grow slowly–or even contract–in the first half of the year.  But some cities are doing just fine.  And the Triangle area is one of them. 

Raleigh, NC was just named one of Forbes Top Ten Recession-Proof cities.

Forbes examined unemployment data supplied by the U.S. Bureau of Labor Statistics (BLS) for the year ending in February 2008 to see which areas are most adding or subtracting jobs. Then they looked at the BLS data on job growth in non-farm payrolls, through February 2008, for construction, education and health services, financial activities, information, leisure and hospitality, manufacturing, natural resources and mining, professional and business services, trade, transportation and utilities, and the BLS’s catch-all category, “other services.” 

They also took into account median home price data from the National Association of Realtors – from the fourth quarter of 2006 to the fourth quarter of 2007 – to see which areas posted the largest annual gains. (The data don’t account for the impact of declining sales in the first several months of this year.)Finally, the rankings were adjusted using data from a November 2007 report, “U.S. Metro Economies: The Mortgage Crisis,” by the U.S. Conference of Mayors. It lists each city’s estimated gross metropolitan product growth by projecting how rising foreclosures and falling home prices would affect overall levels of productivity in local economies. 

Raleigh is expected to see 7.4% growth in professional and business services and 6% growth in education and health.  The median home price was up 4% and unemployment was 4.2% - up from 3.7%.  Because of stable home prices (read: steady reasonable growth instead of crazy inconsistent growth) and expansion across different sectors of its economy, the Triangle has been buffered from much of the housing/mortgage crisis that’s plagued other areas of the
U.S. 

What does this mean to you, the buyer, seller, owner, or investor?  Whether you’re just moving here, buying your first investment, or selling your place to downsize into retirement, the Triangle is the place to be.  Welcome home: you made a smart choice.