Courtney James, Managing Partner & Founder, Urban Durham Realty

In an interview with Invest:, Courtney James, managing partner and founder of Urban Durham Realty, discussed Durham’s increasingly balanced housing market, affordability challenges, and the Triangle’s evolution into a more connected region. “The Triangle has become less siloed as Durham, Raleigh, and Chapel Hill increasingly meld into one another,” James said.

What changes over the past year have had the greatest impact on Urban Durham Realty and the Durham housing market?

Over the past year, we have had what some people might call more of a buyer’s market. In reality, I think it is more of a normal market. We operated for a long time in a strong seller’s market, driven by enormous scarcity in the area. We are now seeing some increases in inventory, giving buyers more opportunities to negotiate on price and repairs. It might be a little more of a buyer’s market, but I think it is a balanced market more than anything.

For years, especially between 2019 and 2024, sellers were driving transactions. They could ask what they wanted, and their houses did not necessarily need to be in perfect condition. It has been challenging to reset sellers’ expectations, and some do not want to make that adjustment.

Are low mortgage rates continuing to discourage homeowners from selling?

In some ways, yes, although we are still seeing an increase in inventory, so it is not happening across the board. That reluctance was probably more prevalent initially than it is now. Interest rates affect both buyers’ and sellers’ decisions, but I think they have finally accepted that we are not going to see a 3% interest rate again, at least not for a long time.

Even small downward movements in rates lead to increased activity. I would personally love to see rates move closer to 6% instead of closer to 7%. Lower rates would give buyers more purchasing power and support additional movement in the market.

How could new housing, retail, and mixed-use development in Research Triangle Park affect demand?

We desperately need more housing. Since around 2008, we have been in a position of scarcity. Any additional housing is better for buyers because greater inventory can ease some of the pressure on pricing. I think the development occurring in Research Triangle Park will be a good thing.

The benefits will extend across Durham and really throughout the Triangle. I have worked in real estate in the Triangle since 2002, and when I started, each city was siloed. You had Durham, Chapel Hill, and Raleigh. Over the past few years, those cities have become less siloed and have started melding into one another. Growth in Research Triangle Park can benefit Raleigh, Durham, Chapel Hill, and the surrounding area.

The effect on buyers’ location preferences is still developing. People are generally still learning about RTP 3.0 and what is planned there.

Are new projects delivering housing that local buyers can afford?

Affordability continues to be a challenge. It is not becoming less expensive to build; sadly, it is becoming more expensive. That makes it difficult for builders to enter the market and produce homes at affordable prices.

Durham has done a good job with formal affordable housing that receives more support, but it is hard for general builders to deliver a product that is affordable, particularly for first-time homebuyers. Since 2019, prices have basically doubled. We are not going to return to those earlier prices, nor do we necessarily want to, but interest rates coming down would give buyers additional purchasing power.

More homebuyer assistance programs could also help. I remember how the Obama homebuyer credit spurred homeownership. There are some programs available now, but providing more of them would make a meaningful difference.

What types of homes are clients finding most difficult to secure?

A single-family detached house in good condition in one of the urban core neighborhoods remains difficult to find. Those properties continue to receive a lot of attention.

That is also the kind of home many clients are seeking. Since COVID, people have placed greater value on having a house with a yard. They want a little bit of space. It does not have to be a large yard, but it is still something buyers covet.

Urban neighborhoods in Raleigh and Durham continue to be popular. In Durham, that includes neighborhoods such as Forest Hills, Trinity Park, and Watts-Hillandale.

What does national housing data fail to capture about the local market?

Broader housing data tends to focus on the national market. When buyers and sellers in this area listen to that information, they can miss some of the nuances of the Triangle.

Over the past couple of years, national sentiment has sometimes suggested that the market was going downhill or, in some cases, facing something more catastrophic. This area has been well protected. Instead of experiencing decreases, we have continued to see slight increases. We are not experiencing the boom we had five years ago, but growth has been moderate. That moderation was probably needed to bring us into a more balanced market.

I think we are already in that balanced market. More inventory helps from a buyer’s perspective, and interest rates coming down a little would help further. Those factors can support a healthier balance between buyers and sellers.

What are Durham’s greatest housing opportunities and the real estate industry’s biggest challenge?

The biggest opportunity is the attention Durham is receiving from developers. In the past, many of the developers I spoke with were local, which was great, and we want to continue encouraging them. We are now also receiving attention from developers based in other areas.

We have several great development projects coming to the region. If those projects add inventory, they can help improve affordability and give buyers more choices.

A broader challenge for the real estate industry is artificial intelligence. Buyers, sellers, and others are entering transactions with much more information, but that information is not always complete or correct. Artificial intelligence is giving people access to more data, but it is not necessarily giving them greater clarity about that data. That is a recent challenge that I expect will continue to grow.

How is Urban Durham Realty responding to changes in the market and artificial intelligence?

It is something we discuss all the time. Our approach does not necessarily reflect a change, but it is an area on which we will continue to focus. The two things that we try to do for our clients are educate them and assist in the process.

We work in real estate every day, so we know this market and can help clients understand it. We are also here to make the process easier and alleviate some of the work for buyers and sellers by taking on parts of that process. Our focus is on determining how we can best serve and educate our clients.

How is the company expanding alongside the Triangle’s growth?

The Triangle has become less siloed as Durham, Raleigh, and Chapel Hill increasingly meld into one another. Smaller cities are also growing around those primary markets.

Our company is expanding into Urban Triangle Realty. We remain focused on Durham, but we have also begun working in Raleigh and Chapel Hill. We are expanding into the Triangle region in general as the area continues to evolve.