Soaring prices continue as homes in Triangle are being bought up, torn down at torrid pace

Wake County News

RALEIGH, N.C. (WNCN) – Homes that have stood for decades in Raleigh are being bought and torn down to build new ones. Many of the purchases being made just to tear these houses down range from $400,000 to $600,000.

“It’s really a very stressful experience because, while you think it’s going to take five to six months, you’re really looking at nine to 12 on a good day,” said real estate agent Laurie Compiano with Fathom Realty.

Much of the supply chain needed for new construction is backed up. Buyers also have to agree to pay additional money for any unforeseen price increases, whether it’s lumber or appliances.

Those looking to buy an existing home in the Triangle to actually move into should be prepared to shoot for the moon.

“It used to be that sweet spot price range of $150,000 to $350,000. Now it’s really anything goes. I’ve seen a million-dollar house get 13 offers, and that was two months ago,” Compiano said.

Compiano added that just a few years ago, people would pay $500 to $1,500 in due diligence to hold a home during inspections. Now it’s $20,000 to $50,000.

In North Carolina, that money is nonrefundable to protect the buyer since the home can no longer be shown while under contract.

“Here’s a check. We’re taking your house off the market for two or three weeks for the due-diligence period for inspections and appraisals, and all of those things. And since it has to be contingent in the MLS, there’s no longer going to be any showings. So, essentially you’re taking that person’s house off the market for three weeks,” Compiano said.

So, who’s paying these prices?

Many are from places like California, New York, and New Jersey.

“And most of those people have cash because their real estate was much more expensive where they were and they sold and they made a lot of money. And they’re just coming here with a lot of money, so due diligence for some of those people can be $40,000, $50,000, and a lot of it sight unseen,” Compiano said.

On average, realtors are often seeing 10 to 20 offers on the first day a home is listed. All of them are above asking price.

This does not bode well for first-time buyers or those with an average income. Most experts agree there is no clear end in sight to the trend.

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