Are townhomes in Raleigh, NC a good investement?

I am in the market to buy by summer 2008. In Raleigh, the housing market seems to be holding very well vs Boston or NYC. I have been told my numerous people that a townhome is NOT a good investment in Raleigh, simply because there are too many new ones going up every week.

They are affordable
They are a good choice for those who think they will leave in 3-5 years.
They are in good locations

What about KB HOMES? They have a really nice Twin Lakes development in the Morrisville area, but i have heard of very high HOA fees. Martha Stewart designed them, and i feel they will be of value in 3-5 years (more than 150,000 anyways.)

Opinions please?!

Living in Raleigh, I would say that a townhome is definitely a good investment here. Yes, there are some going up constantly, but your house will not significantly depreciate in value because of that. Also, Raleigh has a huge population of young professionals because of the research triangle who buy townhouses and condos, so there's always a market for them. My only complaint is the HOA dues which range from $100/month up to $200/month depending on where you look. I've actually visited another KB Homes site in the area and there houses are very nice. The market has definitely slowed some, but prices haven't started to plummet yet, that may happen sometime next year.

Alot depends on where in Raleigh you're looking at.
These sprawling suburban developments are a dime a dozen...there's too many of them and they all look the same. I wouldn't live in them if you GAVE it to me. The suburban traffic congestion and having to drive EVERYWHERE with nothing in walking distance? Not appealing real estate, in my honest opinion.

Now...find a condo/townhome in the more urban core, in the areas in and around Downtown, now THAT is a wise investment right there. Lots of people are coming to Raleigh finding this type of life more appealing. Traffic is calmer there, there's much more walkability, and everything is close together making travel from home to work to shopping (etc) a breeze. These areas are much more unique too...very rare to find "cookie-cutters" there. That is definitely where you should be looking.