The first-quarter Metrostudy data for the Durham market shows consistent existing and new-home sales and increased demand for new homes. Existing home closings went up minimally year-over-year from 1,643 in the 1Q13 to 1,646 in 1Q14. New-home sales experience slight decline year-over-year from 340 to 312. The second through fourth quarters of 2013 all closed at least 400 new homes in the market.
The price of existing homes remains affordable in the Durham market with a median closing price in the first-quarter of $174,900. This is significantly lower in median closing from price from the peak for existing homes in the last year in which median price hit $194,200 in the second-quarter. New homes have experienced dramatic price appreciation in the last year from $233,600 in 1Q13 to $281,200 in 1Q14. While this is down quarter-over-quarter from $295,800 in the fourth-quarter, increased demand will continue to push median new-home price toward the $300,000 mark. The price per square foot in the market had also increased year-over-year. Existing homes jumped from $109 to a median $115 from 1Q13 to 1Q14 and new homes from $115 to a median $131.
Vacant Developed Lot (VDL) supply has declined in the market year-over-year from 40.3 months to 27.6 and a VDL inventory decline from 4,970 to 4,224. Housing starts are up in the market both quarterly and annually with an annual increase from 1,481 to 1,837 and quarterly up from 329 to 411 year-over-year. Finally the market has experienced a fall in months supply of housing from 8.2 to 7.3 year-over-year.
Learn more about markets featured in this article: Durham, NC.