The Nashville metro area led the housing market in Tennessee in terms of building permits, sale prices, and foreclosure rates between July and September, according to MTSU Business and Economic Research Center’s (BERC) report.
Home prices in the city’s metropolitan statistical area (MSA) increased 10.4%, which may turn off first-time buyers. If you plan to buy homes, financing companies offer low rates for a mortgage in Clarksville, where prices may align more with your budget.
The BERC report listed the MSAs in Chattanooga and Memphis as other markets with high price movement. Home prices in these areas grew 7.7% and 7.3%, respectively. Mortgage Investors Group agrees that this represents good news for homeowners or property sellers that consider putting their assets on the market.
Across the state, property prices have increased 7.9% during the third quarter. BERC Director Murat Arik attributed the growth to Tennessee’s strong economy and low jobless rate. The report also showed that housing supply has increased in Nashville, Knoxville, and Memphis for the first time in recent years, while foreclosure rates fell to their lowest figure since 2000.
Data from the U.S. Census Bureau’s 2015 American Community Survey showed that Memphis provided millennials with the cheapest prices for homes, amounting to $142,795. However, the rate of homeownership among them stood at 29.2%.
On the other hand, the expensive home prices in California should not come as a surprise. In the Los Angeles-Long Beach-Anaheim market, the rate of homeownership among millennials reached 17.8% as the average home value cost more than $500,000. San Jose ranked as the least affordable market for millennial buyers with average prices worth at least $737,077.
Whether or not you plan to buy a house in Tennessee, several factors will determine how much you would need to spend on a property. In most cases, you would need to apply for financing just so you could meet the asking price on a home for sale.