Memphis House Values

I bought a house on Kaye Road near Eastgate Shopping center in 2007 for $90,000, spent $10,000 on it and sold it for $118,000 6 months later. That house is now worth about $120,000. Another house I bought near the University of Memphis in 2006 for $60,000 and put in $10,000 I sold for $86,500 at the peak of the sub-prime bubble. That house is now worth...get this...over $100,000! Why did the "cheaper" house appreciate more than the "expensive" house? Location, Location, Location! The houses near the University seem to be always more desirable because there is a steady stream of students looking to rent and parents wanting to buy regardless of the economy and interest rates. The moral is to invest in areas that are near University and in stable neighborhoods.