‘Unlevel’ playing field prices out home buyers and renters

NEWS COVERAGE YOU CAN COUNT ON. >> HOME PRICES IN THE TRIANGLE ARE UP. 24% OVER THE PAST YEAR. RENTAL PRICES ARE UP. 21% AND THE COST TO RENT A SINGLE-FAMILY HOME IS ESSENTIALLY THE SAME AS A MORTGAGE PAYMENT >> TO MAKE THINGS TOUGHER ON RESIDENTS LIVING IN THE TRIANGLE. WRAL INVESTIGATES CULLEN BROWDER FOUND A TROUBLING TREND. THIS PRICING PEOPLE OUT OF OWNERSHIP AND RENTING. >> WE HAVE SEEN, YOU KNOW, IN SOME SOME AREAS, I BELIEVE THAT THE RENTS ARE UP. 33% FROM BUYING HOMES TO RENTING PEOPLE IN WAKE COUNTY ARE PAYING THE PRICE FOR A THRIVING TRIANGLE AREA. GOOD 16 OFFERS IN ONE DAY AND I THINK IT SOLD $425,000 OVER LAST LOGAN FOR ALYSON. HIS WIFE THOUGHT ABOUT MOVING FROM THEIR FUQUAY-VARINA HOME EARLIER THIS YEAR. THEY LIKE MANY OTHERS FELT THE FRUSTRATION. I DON’T THINK THEY ENTERTAINED OFFERED TO BE HONEST. THIS SEARCH STARTED ABOUT A YEAR AGO FOLLOWING APPLE’S ANNOUNCEMENT WAS COMING HERE. WRAL INVESTIGATES FOUND ONE MAJOR PLAYER IN THE UN REAL REAL ESTATE PRICE EXPLOSION. >> INVESTMENT FIRMS, KERRY REALTOR, MAYA GALLETTA KNOWS THEM WELL. THEIR CASH OFFERS. >> THEY CAN CLOSE VERY QUICKLY. THEY’RE WILLING TO GIVE THE SELLERS BASICALLY ANYTHING THEY WANT AND HEIDI DILIGENCE FEES, WRAL INVESTIGATES SEARCH. WAKE COUNTY REAL ESTATE TAX DAY TO REGISTER OF DEEDS TRANSACTIONS IN THE SECRETARY OF STATE’S CORPORATE REGISTRATION DATABASE IN THE PAST YEAR, A LARGE NUMBER OF HOME PURCHASES POINTED HERE. >> 7500 NORTH THOMPSON ROAD IN SCOTTSDALE, ARIZONA. THE HOME OF PROGRESS RESIDENTIAL, A FIRM THAT BUYS THEN RENTS PRIMARILY SINGLE-FAMILY HOMES AND TOWNHOMES. A RESEARCH SHOWS 12 DIFFERENT ENTITIES LINKED TO PROGRESS BOUGHT MORE THAN 600 HOMES IN WAKE COUNTY. MOST OF THE $20350,000 RANGE. AND THAT INCLUDES A SWEEPING PURCHASE, ERIN WENDELL, OF MORE THAN 40 TOWNHOMES FROM WHAT I’M HEARING, THESE ARE VERY LONG-TERM HOLDS FOR THEM. SO THESE ARE, YOU KNOW, AT LEAST 10, 15, YOUR WHOLE TO THESE PROPERTIES ARE NOT COMING BACK ON THE MARKET. >> YOU KNOW, ANYTIME SOON, IDEAL INVENTORY FOR FIRST TIME OR LOWER-INCOME BUYERS. >> GONE. THIS IS A REALLY COMPLICATED ISSUE. WAKE COUNTY COMMISSIONER MATT CALABRIA IS HELPING LEAD THE CHARGE FOR MORE AFFORDABLE HOUSING IN THE COUNTY. HE SAYS THESE BOTH BUYERS OF HOMES ARE HELPING THE SHORT TERM CONCERN IS THAT LARGE CORPORATE PURCHASES ARTIFICIALLY SOAK UP HOUSING SUPPLY AND BY OUTBIDDING OTHER BUYERS, THEY TEND TO DRIVE PRICES UP. THE INVESTORS ARE DOING ANYTHING ILLEGAL ON ONE AND THEY’RE HELPING FILL A RENTAL VOID IN RALEIGH. BUT THEY’RE ALSO MAKING OWNING OR RENTING A HOME MUCH MORE EXPENSIVE. >> CALABRIA FEELS IT’S SOMETHING WAKE COUNTY LEADERS REALLY NEED TO LOOK INTO THIS PARTICULAR ISSUE REGARDING CORPORATE OWNERSHIP SHOULD SAY OUTSIDE. BUT CORPORATE OWNERSHIP OF PROPERTIES. >> HAS BEEN SOMETHING THAT WE’VE BEGUN TO TALK UP WAS DECIDED THE MARKET WAS JUST TOO CRAZY AND CHOSE TO UPGRADE HIS HOME INSTEAD OF MOVING. HE HOPES SOMETHING CAN BE DONE TO HELP PEOPLE, NOT COMPANIES BUY A HOME OF THEIR OWN. THEY’VE GOT THE CAPITAL TO GO IN AND >> PROVIDE ALL-CASH OFFER, YOU KNOW, FORT AND A CLOSE. WATER. REGULAR HOME BUYERS DON’T HAVE THAT. NOT A LEVEL PLAYING FIELD. THE INTEREST RATE ON RENT IS 100% RIGHT. GRETA SAYS MANY OF THE BYE TO RENT FIRMS PAY WELL OVER ASKING PRICE FOR HOMES, SOMETHING RENTERS EVENTUALLY PAY FOR. THAT HAS A LOT TO DO WITH THE FACT THAT THEY’RE BUYING THESE PROPERTIES FOR HIGHER VALUES AND THEY’RE HAVING TO. >> YOU KNOW, RAISE THE RENTS TO COVER THEIR INVESTMENT, RAISING RENT IN THE RALEIGH AREA AND IMPACTING THE AMERICAN JURY TO TAKE AWAY AGAIN. SINGLE-FAMILY HOMES FROM PEOPLE THAT SHOULD BE ABLE TO PURCHASE THEM RIGHT FOR THEIR, YOU KNOW, FOR THEMSELVES, FOR THEIR FAMILIES TO LIVE IN.