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Housing prices go through the roof
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The median price for a home in Middle Tennessee has climbed to $380,000. For Warren County, the median price is $225,000, according to Redfin.

Maybe you’ve heard home prices are on the rise.

Prices in Middle Tennessee have shot up so rapidly, the Federal Reserve Bank of Atlanta declared in a report issued last week that housing is “unaffordable” in a majority of counties in our region.

“Home prices in Nashville have gone up 24% over the past year, and that’s one of the highest in the nation,” said Dominic Purviance in an interview with WSMV. Purviance specializes in residential real estate with the Federal Reserve Bank of Atlanta.

A map from the Federal Reserve Bank shows the median income for a Middle Tennessee household is about $65,400. The median home price is over $380,000.

In Warren County, home prices for March 2022 were up 22% from the year before, according to Redfin. 

On average, homes in Warren County are selling after 56 days on the market.

There were 48 homes sold in Warren County in March, selling for a median price of $225,000.

On the high end in Warren County, a home on Wilson Lane sold for $755,000 on Wednesday. It’s a 4-bedroom, 3.5-bath with 2,822 square feet.

On the lower end, a 2-bedroom, 1-bath house on Virginia Street sold for $120,000 on Tuesday. It’s very small at just 672 square feet.

Purviance said there are several reasons for soaring prices. The cost of construction materials and labor is much more than before the pandemic. Supply chain issues have created low inventory which has contributed to increased prices on everything from wood to electrical supplies.

There’s also an influx of cash buyers coming to Middle Tennessee from other areas where home prices have been suffocating for years. Annual salaries and wages are rising too, but they are not keeping pace with housing prices.

“Somewhere about $71,000 is what is necessary to afford the median price house in the region,” said Purviance, pointing out the annual household salary of about $65,400 falls short. “If you go back prior to the pandemic, on average a household was probably paying about 28% of their annual income if they were to buy the median price house on the market.”

That figure has climbed to 33% of household income today, he noted.