Foreclosures in Durham Due to Tax Bills Caused by the Pandemic

Next year, when the first reappraisal since 2019 is completed, the last five years of high real estate prices will begin to reflect on the tax bills of homeowners in the city of Durham and the county in general. Keyar Doyle, the city’s tax administrator, informed the city council that this is not a typical market, as the city has experienced a real estate boom due to high housing demand, driven by the population growth in Durham County. According to census estimates updated last year, there are now at least 25,000 more residents in the area.

This is one of the reasons why the median sales price of homes in the county skyrocketed nearly 80%, from $239,500 in January 2019 to $430,500 in August 2024, an increase that affects the entire area and “is not limited to specific areas as it might be in a normal market,” Doyle stated. This is notwithstanding that the real estate market has cooled somewhat over the past year, as potential buyers faced higher interest rates.

In his report, Mr. Doyle continues to say that Durham County’s sales ratio is currently 61%, indicating that properties are valued at approximately 61% of their actual value. The results of this price variation will depend on the neighborhood. Therefore, Starlin Beatty, the city’s appraiser, presented a report highlighting four examples of resold, unrenovated homes that show where the real estate market is particularly active:

Southeast Durham: A three-bedroom house near Mineral Springs Road saw a 63% increase, selling for $270,000 in late 2018 and $440,000 in early 2024.

South Durham: A four-bedroom house near Woodcroft Parkway saw a 72% increase, selling for $325,000 in late 2018 and $560,000 in early 2024.

Forest Hills: A three-bedroom house east of University Drive saw a 110% increase, selling for $210,000 in late 2018 and $441,500 in early 2024.

Watts-Hillandale: A three-bedroom house on West Club Boulevard saw a 136% increase, selling for $300,000 in late 2018 and $710,000 in mid-2024.

To minimize the risk of significant changes in tax revenue, Durham County conducts reappraisals of home prices every four years, even though North Carolina law requires all counties to conduct them at least every eight years. But the reality shows that property values in Durham have increased across all scenarios since 2019, with office prices rising by $15 per square foot; retail and industrial prices increasing by $50 per square foot; multifamily housing prices rising by $40,000 per unit; and hotel prices increasing by $7,000 per room.

Available Foreclosures:

Southeast Durham: 12 homes available.

South Durham: 8 homes available.

Forest Hills: 5 homes available.

Watts-Hillandale: 3 homes available.

By Elías DaSilva | 24 de octubre de 2024.