Pandemic-era ‘explosion’ in real estate prices will show up on 2025 Durham tax bills

The past five years of soaring real estate prices will begin showing up on Durham County homeowners’ tax bills next year, as the first reappraisal since 2019 is completed.

“This is not a traditional market. What we’ve seen here is an explosion,” Tax Administrator Keyar Doyle told the City Council on Thursday.

Durham County’s population increase — at least 25,000 more people since 2019, according to Census estimates last updated in 2023 — has caused demand for housing to shoot up, Doyle said.

The county’s median sales price jumped 80% , from $239,500 in January 2019 to $430,500 in August 2024, which Doyle called a “scary thing to try and take in.”

“It’s pretty much the whole county,” Doyle said. “It’s not really isolated to focused areas as it would be in a traditional market.”

The housing market has cooled some in the past year, as prospective buyers faced higher interest rates .

On the whole, Doyle reports Durham County’s sales ratio is 61%, meaning properties are currently valued at about 61% of what they’re actually worth. The lower the current percentage is, the more drastic effect homeowners will see on their tax values.

The results of the reappraisal will be felt differently in different neighborhoods.

Deputy assessor Starlin Beatty showed four examples of resold, unrenovated homes that reveal where the real estate market is especially hot:

• Southeast Durham: A three-bedroom home in a neighborhood off Mineral Springs Road sold for $270,000 in late 2018 and $440,000 in early 2024, a 63% increase .
• South Durham: A four-bedroom home in a neighborhood off Woodcroft Parkway sold for $325,000 in late 2018 and $560,000 in early 2024, a 72% increase .
• Forest Hills: A three-bedroom home east of University Drive sold for $210,000 in late 2018 and $441,500 in early 2024, a 110% increase .
• Watts-Hillandale: A three-bedroom home on West Club Boulevard sold for $300,000 in late 2018 and $710,000 in mid-2024, a 136% increase .

North Carolina law requires all counties to conduct reappraisals at least every eight years. Durham County aims to operate on a four-year cycle to limit major jumps or dips in tax revenue.

Properties across the board have seen values increase since 2019:

• Office: Sales price up $15 per square foot.
• Retail and industrial: Sales price up $50 per square foot.
• Multifamily: Sales price up $40,000 per unit.
• Hotels: Sales price up $7,000 per room.
  
  

Reappraisal notices will be mailed in February. An online tool exists for people to check if they qualify for assistance: www2.dconc.gov/TaxAssistanceEval/ (The www2 is not a typo.)

Water bills also contain information on tax relief.