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 housing market is experiencing significant changes in 2023, according to the recently released report by the Durham Regional Association of REALTORS® and the Triangle Multiple Listing Service (TMLS). This report provides valuable insights into the current state of the market, which can be useful for buyers and sellers planning to enter the market this year. Here is a closer look at the report and what it means for the Durham housing market in 2023.
New Listings and Under Contract Sales
The report shows that new listings in the Triangle region decreased by 0.8 percent to 2,952 in January 2023, compared to the same period in the previous year. Under Contract Sales also decreased by 7.7 percent to 3,065. This could indicate a slower pace of growth in the Durham housing market in 2023. Buyers may have fewer options to choose from, which could lead to more competition for properties.
Inventory Levels and Closed Sales
The report also indicates that inventory levels in the Triangle region increased significantly by 152.9 percent to 5,528 units, compared to the same period in the previous year. Closed sales decreased by 30.5 percent to 1,964. This could mean that sellers may have to be more competitive in their pricing and marketing strategies to attract buyers in a market with more inventory.
Median Sales Price and Days on Market
Despite the decline in closed sales, the report shows that the median sales price in the Triangle region increased by 3.9 percent to $385,000, compared to the same period in the previous year. However, Days on the Market were up 186.7 percent to 43 days, indicating that properties may be taking longer to sell.
Months’ Supply of Inventory and Housing Affordability
The report shows that sellers in the Durham housing market may have some reason to be encouraged, as Months’ Supply of Inventory was up by 240 percent to 1.7 months. This indicates that there may be more inventory available for sale, giving sellers a greater chance to find buyers. However, the Year-to-Date Housing Affordability Index was at 85, which is 25.4 percent less than January 2022, indicating that the Durham housing market may be less affordable for buyers than in the previous year.
Implications for Buyers and Sellers
Based on the report, the Durham housing market in 2023 may be more challenging for buyers than in previous years, with fewer new listings and under-contract sales. However, with an increase in inventory levels, sellers may have more opportunities to find buyers. The increase in Median Sales Price suggests that properties are still in demand, although it may take longer to sell. Buyers should be prepared to move quickly when they find a property that meets their needs. Sellers may need to be more competitive in their pricing and marketing strategies to attract buyers.
Overall, the Durham housing market in 2023 is experiencing significant changes, as shown in the recent report by the Durham Regional Association of REALTORS® and the Triangle Multiple Listing Service (TMLS). Buyers and sellers in the Durham housing market should pay close attention to these trends to stay informed and make the best decisions for their real estate needs in 2023.
Durham County Housing Price Trends
- Median Sales Price: $375,000 (+0% year over year)
- Average Sales Price: $411,715 (+1.1% year over year)
- Median Days On Market: 46 (+253% year over year)
- Percent of Original List Price Received: 94.3% (-8% year over year)
Durham County Sales & Housing Supply
- Closed Sales: 247 (-28.8% year over year)
- New Listings: 321 (-9.6% year over year)
- Inventory of Homes for Sale: 477 (+43.7% year over year)
- Months Supply of Inventory: 1.3 (+85.7% 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)
The Durham housing market has been performing well over the past year, with the average home value in Durham-Chapel Hill increasing by 7.4% to $375,242. Properties in this region tend to go pending within 22 days, indicating a high demand for housing in the area. With such a strong performance in the past year, what can we expect for the Durham housing market forecast in 2023-2024?
According to the latest market data, the Durham housing market is expected to continue growing in 2023, albeit at a slightly slower pace. The 1-year market forecast predicts a 0.9% increase in home values by February 28, 2024. While this may seem like a small increase, it is still a positive sign that the housing market in Durham is expected to remain strong in the coming year.
Another positive sign for the Durham housing market is the median sale-to-list ratio of 0.989 as of January 31, 2023. This ratio measures the percentage of the sale price compared to the list price of the property, indicating that properties in Durham are selling close to their list price, on average. Additionally, 27.5% of sales in Durham closed above the list price, suggesting that competition is still high in the area.
However, there are also signs that the Durham housing market may start to shift in favor of buyers in the coming year. While 55.5% of sales in Durham closed below the list price as of January 31, 2023, this percentage may increase as the market starts to cool off slightly. This could create opportunities for buyers to find more affordable housing options in Durham.
Finally, the median days to pending in Durham was 22 as of February 28, 2023, indicating that properties are still selling quickly in the area. However, this number may increase as the market begins to shift in favor of buyers, providing more time for buyers to make informed decisions.
Overall, the Durham housing market forecast for 2023-2024 looks positive, with modest growth expected in home values and high demand for housing in the area. While there may be more opportunities for buyers in the coming year, sellers can still expect a strong market with properties selling quickly and close to their list price.
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.
Buying an investment property is different than buying an owner-occupied home. The investment properties are designed to make money as rentals, which means you must look at it solely as an income-producing entity just like any other business. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.
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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