Durham Estate Market Forecast 2023

Durham, North Carolina, is renowned for its inclusion in the Research Triangle Park region, also known as the Triangle. This dynamic area accommodates numerous businesses, including science and technology firms, government agencies, and more.

Often hailed as one of the best places to live in North Carolina, Durham offers a delightful combination of suburban ambiance and easy access to metropolitan amenities. The city thrives on a unique blending of arts and culture. Durham is also home to Duke University, a prestigious private institution highly regarded for its academic standing, making it an excellent place for young adults and families.

Understanding the housing market becomes imperative when contemplating a move to a new place, purchasing a new home, or selling an existing property. A competitive housing market and a thriving economy shape one's decision-making process and path forward. If you find both factors favorable and have conducted thorough research, choosing Durham, North Carolina, as your next home can be a confident choice. Here is everything you need to know about the Durham housing market, including prices, trends, and the forecast for the coming year.

Durham housing market prices, trends, and forecast 2023

As part of the Triangle region, Durham’s thriving economy and plentiful job opportunities provide a desirable quality of life for those moving there. Durham entices young professionals and families thanks to its serene ambiance, proximity to major metropolitan amenities, top-notch educational system, and excellent real estate landscape.

Considering that Durham is one of the best places to live in the state and offers a vast array of amenities, it might surprise you that the cost of living in Durham is only 1% higher than the national average. This factor helps keep Durham real estate a competitive and steady market despite rising interest rates and inflation.

According to the latest market update by the Orange Chatham Association of Realtors, the entire Triangle region has seen median sales prices holding relatively steady at around $410,000 over the past year. Within the area, closed sales have dropped by about 12.6%, and homes are spending much longer on the market, likely due to buyer hesitation over increased interest rates and inflation. New listings in the Triangle region are also down by 22%.

Zooming into Durham-Chapel Hill specifically, the median home price currently sits at $412,600. This is a price appreciation of about 40.4% over the past three years, which is considerably higher than the average appreciation for the rest of the country. Within Durham, employment is trending upward, with the labor market holding stable despite economic changes across the country.

Home values remain steady

Home values in Durham and the entire Triangle region have remained relatively stable over the last year. That said, the time homes spend on the market has nearly tripled, though it remains low at only 22 days. Much like the rest of the Triangle region, the housing landscape in the area should expect to increase in the coming years steadily. Home values and sales prices will continue to grow thanks to the strong economy and abundance of amenities in the Triangle area. At the same time, homes remain on the market for only a few weeks, which is favorable for investments.

Rising and lowering interest rates

There are positive outlooks for mortgage rates, as they are expected to continue steadying through 2023 and into the following year. Current rates are sitting between 6% and 7%, but the National Association of Realtors (NAR) predicts that inflation will continue to slow through the year ending 2023 at around 6%.

Durham County housing market prices, trends, and forecast 2023

Durham County is experiencing an ongoing seller’s market, which has remained consistent from last year's market. As discussed, the median sale price is approximately $412.000, which is consistent with the rest of the Triangle region. Inventory within the Triangle area has grown by 25% over the past year, with slightly over 4,800 properties listed on the market throughout the region. If inventory continues to grow, this could push the market toward something more balanced or in buyers’ favor.

Despite a slight market cooldown post-pandemic, homes in the area are still selling relatively quickly at just 22 days, so it’s an excellent time for sellers to list their homes on the Durham real estate market. While the Durham housing scene is expected to continue to favor sellers this year, that shouldn't discourage buyers from jumping on such an excellent opportunity to call Durham their new home.

The real estate market: Should you invest?

Durham, North Carolina, is the perfect location for those who want to tap into the thriving economy of the Research Triangle Park. The city boasts many investment prospects, from residential to commercial properties. With its prime location, favorable tax policies, affordable cost of living, and robust job market, including major players in the technology, healthcare, and finance sectors, Durham real estate presents an excellent opportunity for long-term real estate investment.

The booming economy and job market are not the only reasons Durham makes an excellent real estate investment option, though. The city's median home value falls below the national average, and its cost of living is on par with the national average. This means investors can acquire properties at a relatively low price while enjoying a substantial return on investment. With investment options ranging from commercial properties to residential, it’s easy to build a well-rounded investment portfolio.

Are you ready to invest in Durham real estate?

The Durham real estate market is perfect for anyone looking to invest in an area with a thriving economy and competitive market. As part of the Research Triangle Park, the area offers many amenities, job opportunities, and top-quality real estate. If this sounds like the right fit, contact Spotlight Realty for expert guidance along the way. Whether you’re buying or selling a home, this exceptional group of professionals is ready to guide your journey smoothly from start to finish.

Header photo courtesy of Spotlight Realty

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