Durham, NC Real Estate Trends + Forecast for 2023
Durham, NC Real Estate Trends + Forecast for 2023
Are you moving to Durham, NC, and want to know more about the housing market? Let's dive into real estate trends, market predictions, pricing trends, and much more!
Are you interested in moving to Durham, NC, and would like to know more about the current housing market? Follow along as we break down the past, current, and future state of the housing market in Durham County and the Triangle, explicitly focusing on Durham, NC.
Durham is a city in North Carolina and is the 4th most populous city in North Carolina and the 74th most populous city in the United States. Durham is famous because it's part of the Research Triangle Park region, otherwise known as the Triangle. RTP is the largest research park in the United States and is home to hundreds of companies, including science and technology firms, government agencies, etc.
Durham, NC, is often regarded as one of the best places to live in North Carolina. It is located in Durham County and offers residents a suburban feel with access to metropolitan area amenities and is engulfed in arts and culture. Durham is also home to Duke University, a highly-ranked private university.
It is essential to understand the housing market when planning to move to a new area, buy a new home, or sell your current home. A healthy housing market and a healthy economy are significant factors in your decision. When you have both and you've done your research, you can comfortably decide to move to Durham, NC.
So, are you considering Durham, NC, as your next home? This article will discuss the housing market's past, current, and future state in Durham, NC using the most recent data.
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Durham Real Estate Trends
Durham, NC, is one of the country's fastest-growing and most expansive cities. Being home to Duke University and its proximity to research triangle park are the main reasons people continuously relocate to the area. Durham is highly diverse and is home to families, young professionals, students, and more! The suburban feel of the city allows residents to feel at home and a part of the community while also being a short commute away from Raleigh and research triangle park.
Durham is currently experiencing a seller's market, meaning more people are looking to buy than homes available. Although they've been in a seller's market for some time now, it is shifting towards a balanced market. In a seller's market, sellers tend to price their homes on the higher side because they know that people are looking to buy quickly. In a balanced market, the supply and demand for homes are generally the same. Homes tend to sell for less and spend more data on the market in a balanced market.
The housing market in Durham is somewhat competitive. In September 2022, homes sold for about the same price as they were listed and spent an average of 35 days on the market. Hot homes can sell for roughly 3% above the list price and go pending in around 14 days.
The triangles housing market overall is also somewhat competitive. On average, homes spent approximately 27 days on the market and sold for a median price of $379K in September 2022.
As home prices and mortgage rates have increased, homebuyers in the Triangle have lost 29% of their purchasing power. According to the latest data from Freddie Mac, the typical rate for a 30-year-fixed mortgage is 6.66%. The increase is causing buyers to back out because they are either unable to receive financing or unwilling to. According to a report from the Mortgage Bankers Association, mortgage loan application volume dropped 14.2%. Data from the Triangle Multiple Listing Service shows that median home prices have dropped in September 2022 compared to June and August.
In this article, we're going to discuss the current real estate trends in Durham, NC, including:
- Durham, NC, is currently experiencing a seller's market that is shifting toward a balanced market
- Durham, NC, has a population density of 2,625 people per square mile
- New listings were down by 21.8% compared to 2021
- The median list price is $417,000
- Durham County has one of the highest median property taxes in the United States
Durham Real Estate Demand
Durham, NC, is home to over 285,000 people. Duke University and the proximity to Research Triangle Park are consistently bringing in new people to the area. Formerly known for its tobacco production, Durham has transformed into a famous up-and-coming city with diversity, culture, arts, restaurants, entertainment, etc. Durham is also considered "the city of medicine." Doctors and medical researchers are constantly moving to the area to be involved in the global center for medicine.
Another reason people choose to relocate to Durham, NC is housing affordability. The cost of living in Durham is approximately 23% lower than the national average. The culture and arts scene in Durham attracts many. There are museums, festivals, art galleries, and theaters that residents or visitors can enjoy. The Durham Bulls stadium and Durham Performing Arts Center are local attractions!
Population Growth
The latest US Census in 2020 put the current population of Durham at 294,542. Durham is growing at a rate of 1.91% annually, and the population has increased by 3.89% since the 2020 Census. With 113 miles across Durham, the population density is 2,625 people per square mile. With a healthy economy, job opportunities, and more, Durham will continue to grow and prosper.
- Across the nation, 0.92% of homebuyers searched to move into Durham from outside metros
- Fayetteville homebuyers searched to move into Durham more than any other metro
- 76% of Durham homebuyers searched to stay within the Durham metropolitan area
- Greensboro was the most popular destination among Durham homebuyers
Demographics
| Race | Population | Percentage |
| White | 133,832 | 48.43% |
| Black or African American | 103,580 | 37.48% |
| Asian | 14,846 | 5.37% |
| Two or more races | 14,114 | 5.11% |
| Other race | 9,084 | 3.29% |
| American Indian and Alaska Native | 736 | 0.27% |
| Native Hawaiian and other Pacific Islander | 149 | 0.05% |
Durham Real Estate Supply
Durham, NC, is experiencing a seller's market that is starting to shift towards a balanced market. In a seller's market, buyers must be on the lookout for properties and act fast if they find one that fits their wants and needs. In a balanced market, the supply and demand are relatively the same, so the market isn't as competitive.
Let's look at the most recent multiple listing service data on the housing market in Durham, NC. In September 2022, there were 413 new listings. Of those new listings, there were 373 closed sales. Durham also has 0.9 months of supply inventory. Year-to-date new listings as of September 2022 were 4,406, and closed sales were 3,806. Compared to 2020, new listings were down by 21.8% and closed sales were also down by 21.5%. The median sales price was $410,000 in September, 35,279 less than the average sales price ($445,279).
The Durham County report shows 405 new listings in the area, with 386 closed sales and 0.9 months of supply inventory. Year-to-date new listings were 4,566 and closed sales were 3,920. New listings were down by 23.7% compared to 2021 and closed sales were down 24.2%.
Now let's look at the entire triangle region. There were 3,972 new listings in September 2022, with 3,542 closed sales and 1.8 months of supply inventory. The median sales price was $402,000, and the average was $455,229. Year-to-date new listings were 39,357, with 32,870 closed sales.
The Durham Housing Authority also works hard to provide affordable housing and increase self-sufficiency. They were established in 1949 and "provide decent, affordable housing for eligible low-income families, people with disabilities, and the elderly through 1,210 public housing units and manages 3,078 housing choice vouchers (HCV) for area landlords". The vision of the Durham Housing Authority is to serve as the leading provider of affordable housing dedicated to building stronger Durham communities. Their mission is to develop, own, manage, and contribute to diverse communities of choice.
Durham, NC, was ranked 8th on Stacker's list of cities with the least available housing inventory in the Durham metro area.
Durham Real Estate Pricing Trends
When buying a home, selling a home, or planning a move to a new area, homes' pricing and affordability are among the most significant factors to consider. While there are new listings in Durham, NC, daily, affordable housing opportunities, and more, it's still important to understand the current pricing trends.
- The median listing home price is $417,000
- The median home sold price is $410,000
- List prices are up 12.7% year-over-year
The median sales price in September 2022 was $410,000 compared to $365,000 in September 2021.
The combined property tax rate for Durham, NC, is $1,2799 per $100 assessed value. The annual property tax bill amounts to about 2.78% of residents' yearly income. Durham has one of the highest median property taxes in the United States.
According to the most recent census, 51.62% of households in Durham, NC, are owner-occupied, and 48.38% are renter occupied. The average rent for an apartment unit in Durham is $1,591, and the average size is 933 square feet. Here are some of the different price ranges for apartments in Durham, NC.
- $701 - $1,000: 5%
- $1,001 - $1,500: 40%
- $1,501 - $2,000: 43%
- > $2,000: 11%
Housing affordability and rentals depend on various factors, including location quality, size, and ownership. Before deciding if you can afford to move, consider your career, salary, everyday expenses, etc.
Let's look at some of the neighborhoods in Durham, NC, and their median prices.
If you're looking for an adult community in Durham, consider Carolina Arbors. It is strictly a 55+ community and welcomes a diverse and active lifestyle. The median list price for homes in this neighborhood is $578,475, and homes spend about 34 days on the market.
Grandale is a popular and large Durham neighborhood consisting of 135 single-family homes. The median home price is $846,225 averaging approximately $190 per square foot. The area is well-established and offers various amenities, including playgrounds, walking paths, and more!
Another well-established, affordable, and thriving neighborhood is Parkwood. The neighborhood includes four playgrounds, an elementary school, a swim club, walking trails, and various parks. The median list price is $360,960, and homes average about 30 days, so the market.
These are just a few of the fantastic neighborhoods in Durham, NC. If you're interested in more, contact us or visit our website to connect with an agent who can help you in your search!
Durham Real Estate Predictions
The housing market in Durham, NC, the Triangle region, and Durham County is beginning to shift towards a balanced market. The supply of homes and demand for homes is becoming equal and favors both buyers and sellers. Going into 2023, North Carolina will continue to be a top-ranked state and hot spot for relocators. Durham, NC, is continuing to grow and bring in more people, whether due to job opportunities, education, or the area in general. With the population increasing and demand remaining steady, prices will continue to rise.
Find Your Dream Home in Durham, NC
Durham, NC, is continuously growing and will only continue to do so. Being home to Duke University and its proximity to Research Triangle Park has made Durham, NC, a hot sport for relocators and has kept current residents in the area. The education and job opportunities are excellent, but the diversity, culture, and suburban feel make Durham an exciting city to live in and raise a family.
Many people looking to learn more about real estate trends in Durham are also wondering if Durham Nc is a safe place to live.
We have created this guide for you in hopes that it helps in your decision to move to Durham, NC, or has provided you with educational information on the past, current, and future trends of the real estate market. It's always wise to be up to date on your local housing market. So, are you planning on moving to Durham, NC? Whether you're relocating or already living in the area, Raleigh Realty is happy to help you with your real estate needs or answer any real estate-related questions. Feel free to contact us or visit our website!
Ryan Fitzgerald
Hi there! Nice to 'meet' you and thanks for visiting our Raleigh Real Estate Blog! My name is Ryan Fitzgerald, and I'm a REALTOR® in Raleigh-Durham, NC, the owner of Raleigh Realty. I work alongside some of the best Realtors in Raleigh. You can find more of my real estate content on Forbes, Wall Street Journal, U.S. News and more. Realtor Magazine named me a top 30 under 30 Realtor in the country (it was a long time ago haha). Any way, that's enough about me. I'd love to learn more about you if you'd like to connect with me on Facebook and Instagram or connect with our team at Raleigh Realty. Looking forward to connecting!