The North Carolina real estate market is a great choice for real estate investors. Durham, NC is home to roughly a quarter million people. However, Durham is the heart of the Durham-Chapel Hill area, home to about half a million. It is also square in the middle of the Raleigh-Durham-Chapel Hill metro area; that’s home to just over two million people and includes the state capitol.
It also presents an excellent opportunity for real estate investors. Job opportunities and moderate house pricing have contributed to the excellent growth of the Durham real estate market. The Durham housing market has made considerable improvements since the housing bubble burst. Only two years after the market crash in 2008, Durham was considered one of the few favorable locations to invest in real estate.
With strong population growth and a solid economy, the rental demand in Durham, North Carolina is continuously increasing. Durham real estate market is strong due to the popularity of the Triangle area among new and out-of-state residents, as well as investors. Real estate investors have a particular interest in the Durham and Raleigh areas which both have an increasingly educated and growing population, as well as a diverse economy employing its base.
Durham Housing Price Trends 2023
The Durham Regional Association of REALTORS® and the Triangle Multiple Listing Service (TMLS) report the following information pertaining to the Durham housing market in July 2023. The data shown reflects information on properties located in Durham & Orange Counties and the Triangle.
In July 2023, the housing market in the Durham and Triangle region experienced significant changes. New listings, under contract sales, closed sales, and inventory levels all saw declines, while the median sales price decreased slightly. Days on market increased significantly, indicating a shift in the market dynamics. However, sellers found some relief with a stable months’ supply of inventory.
Despite these changes, it's important to note that housing affordability, as measured by the Year-to-Date Housing Affordability Index, decreased compared to the previous year. This suggests that the housing market in the region may be becoming less affordable for potential buyers.
New Listings
New Listings in the Triangle region were down 25.2 percent to 3,627.
Under Contract Sales
Under Contract Sales were down 0.9 percent to 3,270.
Inventory Levels
Inventory levels went down 16.5 percent to 5,192 units.
Closed Sales
Closed sales were down 16.8 percent to 3,087.
Median Sales Price
The Median Sales Price decreased by 1 percent to $416,000.
Days on Market
Days on Market was up 66.7 percent to 20 days.
Months’ Supply of Inventory
Sellers were encouraged as Months’ Supply of Inventory was even percent at 1.7 months.
Year-to-Date Housing Affordability Index
The Year-to-Date Housing Affordability Index was at 71, which is 11.3 percent less than July 2022. This index measures housing affordability for the region. An index of 120 means the median household income was 120% of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number indicates greater affordability.
Durham County Housing Price Trends
- Median Sales Price: $423,000 (+2.7% year over year)
- Average Sales Price: $472,082 (+5.9% year over year)
- Median Days On Market: 17 (+70% year over year)
- Percent of Original List Price Received: 101.2% (-2.2% year over year)
Durham County Sales & Housing Supply
- Closed Sales: 314 (-29.8% year over year)
- New Listings: 379 (-33.7% year over year)
- Inventory of Homes for Sale: 465 (-35.1% year over year)
- Months Supply of Inventory: 1.4 (-12.5% year over year)
Durham Housing Market Forecast 2023-2024
Durham, North Carolina is going to see heavy population growth over the next decade. Another seventy thousand people are expected to contribute to the demand for properties in the Durham real estate market overall. Some of these are people relocated for work. And many are the students who attend local colleges, stay for jobs, and then choose to start their growing families here. That relatively young population helps explain the roughly half of residents who rent and they're smaller than average household size.
As they grow out of studio apartments and into single-family homes, they drive demand for rented houses and property purchases. But the availability of jobs means many growing up here will stay here for school and work themselves, contributing to the sustainable long-term growth of the Durham housing market. The limited inventory and strong demand led to increases in prices for homes in the Durham real estate market.
Durham – Chapel Hill MSA comprises Chatham county, Durham county, Granville county, Orange county, and Person county.
- 564,273 Population [2010] – census
- 649,903 Population [2020] – census
- 1.4% Annual Population Change [2010 → 2020] [Citypopulation.de]
- Source: U.S. Census Bureau (web)
Durham County in North Carolina (USA)
- 326,126 Population [2021] – Estimate
- 0.32% Annual Population Change [2020 → 2021] [Citypopulation.de]
- Source: U.S. Census Bureau (web)
Durham Housing Market Forecast: Positive Growth and Strong Demand
The Durham housing market, as forecasted by Zillow, provides valuable insights into the current and future trends in the real estate landscape.
The average home value in Durham is currently $396,191, reflecting a 2.2% decrease over the past year. Additionally, properties in Durham tend to go pending in approximately 5 days, highlighting the brisk pace of the local real estate market. (Data through July 31, 2023)
Key Metrics
Here are some key metrics that shed light on the state of the Durham housing market:
- Median Sale to List Ratio (June 30, 2023): 1.005
- Percent of Sales Over List Price (June 30, 2023): 54.0%
- Percent of Sales Under List Price (June 30, 2023): 33.4%
- Median Days to Pending (July 31, 2023): 5
Durham MSA Housing Market Forecast
Looking ahead, the housing market in the Durham-Chapel Hill housing market is expected to show positive growth. According to the forecast:
- On August 31, 2023, the market is projected to see a 0.9% increase.
- By October 31, 2023, this growth is expected to accelerate to 1.9%.
- By July 31, 2024, a more substantial 7.6% growth is anticipated.
These positive trends suggest that the real estate market in the Durham MSA remains vibrant and promising for both buyers and sellers.
Zillow's data and forecasts provide valuable information for individuals looking to navigate the Durham housing market, whether they are interested in buying, selling, or investing in real estate.
Durham Real Estate Investment Overview
Durham, North Carolina, has become a prime location for real estate investors looking to tap into the growing economy of the Research Triangle Park. The city offers a wide range of real estate investment opportunities, from residential to commercial properties. With its strong job market, favorable tax policies, and affordable cost of living, Durham is a great place to invest in real estate for the long term.
One of the primary reasons to consider investing in Durham real estate is the city's strong and growing economy. The Research Triangle Park, which includes Durham, Raleigh, and Chapel Hill, is home to more than 250 companies, including major players in the technology, healthcare, and finance sectors. This concentration of high-tech companies has led to significant job growth in the area, with Durham's unemployment rate currently sitting at just 2.8% (Dec 2022).
Durham's affordable cost of living is another factor that makes it an attractive destination for real estate investors. The city's median home value of $375,242 is well below the national average, and the cost of living is 8% lower than the national average. This means that investors can purchase properties at a relatively low cost, while still enjoying a strong return on investment.
Top 6 Reasons to Invest in Durham Real Estate for the Long-Term
- Growing Economy: Durham is one of the fastest-growing cities in the United States, and this is largely due to the growth of the Research Triangle Park, which is home to some of the world's leading technology companies, such as IBM, Cisco, and Lenovo. This concentration of high-tech companies has led to significant job growth and a booming economy, making Durham a stable and thriving market for real estate investors.
- Job Growth: Durham's job market is strong, and it is continuing to grow. The city's unemployment rate is well below the national average, and there is a steady stream of well-paying jobs being created in the technology, healthcare, and finance sectors. This creates a stable source of rental income for real estate investors, and it also means that there is strong demand for homes to purchase.
- Affordable Cost of Living: One of the most significant advantages of investing in Durham real estate is the city's affordable cost of living. The median home value in Durham is well below the national average, and the cost of living is 8% lower than the national average. This means that investors can purchase properties at a relatively low cost, while still enjoying a strong return on investment.
- Favorable Tax Policies: North Carolina has some of the most favorable tax policies for real estate investors in the country. The state has a low state-income tax rate, and there is no inheritance tax. This makes it an attractive destination for real estate investors who are looking to maximize their returns.
- Diverse Real Estate Market: Durham offers a diverse range of real estate investment opportunities, from residential to commercial properties. This diversity provides investors with the flexibility to build a diversified real estate portfolio. It also means that there are always new investment opportunities available in the city.
- Quality of Life: Durham offers a high quality of life, which makes it an attractive destination for both renters and potential buyers. The city has top-rated schools, a thriving arts and culture scene, and access to outdoor recreation opportunities. This quality of life attracts a diverse range of people to the city, creating a strong demand for real estate investment opportunities.
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Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Sources:
- https://durhamrealtors.org/market-tools/
- https://www.trianglemls.com/tmls/market-trends/
- https://www.zillow.com/durham-nc/home-values
- https://www.neighborhoodscout.com/nc/durham/real-estate
- https://www.realtor.com/realestateandhomes-search/Durham_NC/overview
- https://www.neighborhoodscout.com/nc/durham/real-estate
