According to real estate agent Redfin, Triangle home prices are up 24% from last year. Rents aren’t too late, rising by an average of 21% last year, according to data from ApartmentList.com. In some cases, it’s more than that.
“Rents are rising 33% in some areas,” says Maya Garetta, a Cary realtor.
From home purchases to rents, Wake County people are paying for a thriving triangle area with a highly competitive housing market.
“I think they had 16 offers a day and I think they sold for $ 125,000 more than the list,” Logan Ferralez told WRAL Investigates about his buying experience.
Earlier this year, Ferrares and his wife considered moving out of Hooky-Valina’s house. They, like many others, felt frustrated.
“I don’t think they entertained our offer,” he said.
The surge started about a year ago. Apple’s announcement coming to the triangle.. Since then, several other companies have announced plans to bring work here.
WRAL Investigates has discovered one of the leading players and investment companies in the surge in non-real estate prices. Galetta knows them well.
“They are cash offers,” Garetta said. “They can be closed very quickly. They are willing to give the seller basically what they want and a high due diligence fee.”
WRAL Investigates examines the searched Wake County property tax data, certificate transaction registrations, and Secretary of State Noscaroliner’s corporate registration database. Last year, a number of home purchases arrived at 7500 North Dobson Road in Scottsdale, Arizona.
This is the home of Progress Residential. Progress Residential is a company that mainly buys and rents single-family homes and townhouses. Our research found that 12 different entities related to Progress have bought nearly 600 homes over the past year, most of them in the range of $ 200,000 to $ 350,000. This includes recent purchases of Wendell’s over 40 new townhouses. Last year, those same companies bought only about 100 properties here.
“I’ve heard that these are very long-term holds, 10 to 15 years on hold, and these properties won’t be back on the market right away,” Garetta said. I am saying.
Ideal inventory for first-time buyers and low-income buyers. Now they are gone.
“This is a really complicated issue,” says Matt Calabria, Commissioner of Baseball, Wake County.
Calabria helps lead the price of more affordable homes in the county. He says these bulk buyers of the house aren’t helping.
“The short-term concern is that long-term corporate purchases tend to artificially absorb housing supplies and push prices up by pricing buyers,” Calabria said.
Investors aren’t doing anything illegal. On the one hand, they help fill the rent gap in Raleigh, but make owning or renting a house much more expensive. Calabria feels that Wake County leaders really need to consider.
“This particular issue of corporate ownership, or corporate ownership outside of real estate that I should say, was what we started talking about,” Calabria said.
As for Ferrales, he decided the market was too crazy and chose to upgrade his home instead of moving. He wants to be able to do something to help people, not businesses, buy their homes.
They have the capital to offer all the cash offers, and with 14 days of closing, many regular homebuyers don’t have it, “he said.
According to Garetta, many buy-to-let companies pay to ask for the price of a home. This is what she believes the lessor will pay in the end.
“It has a lot to do with the fact that they are buying these properties for higher value, and they have to raise their rent to cover their investment,” Garetta said.
Raising rents and having a domino effect on selling prices in the Raleigh area is affecting the American dream of owning a home. Galetta says it’s not correct.
“It’s stinking to rob a house from people who could buy it for themselves and for their families to live in,” Garetta said.