McMinnville has made No. 12 on a list that ranks the best places to buy a house in Tennessee for first-time homebuyers.
“It only proves that McMinnville continues to be an economical place to live … affordable with a great quality of life,” said Mayor Jimmy Haley. “It is a privilege to be mayor of a great Tennessee city where everyone strives to make us better.”
According to the information released by NerdWallet, real estate prices in Tennessee are on the upswing. While that’s good news for homeowners, it’s not so great for the first-time homebuyers.
Housing data from Realtor.com shows median listing prices increased in every metropolitan area in the state in July, compared with a year ago. Larger metro areas such as Chattanooga, Nashville and Knoxville have seen double-digit price increases in that time.
Overall, real estate prices in Tennessee’s metro areas in the past year have increased 8.3 percent which outpaced the state’s 4 percent growth in income. First-time homebuyers – who on average earn 28 percent less than repeat homebuyers, according to the National Association of Realtors – could especially feel the pain in their pocketbook from rising prices.
To help first-time homebuyers, NerdWallet analyzed how much they could spend on a mortgage and down payment, as well as data on home appreciation, to find the best places to buy a house in Tennessee.
Taking the No. 1 spot out of 101 places reviewed was McKenzie. According to the NerdWallet survey, “McKenzie, one of the smartest investments for first-time homebuyers, is also one of the more rural. The city of just 5,500 is 46 miles from Jackson, the nearest large city. McKenzie’s top ranking on our list is largely due to a 15.7 percent growth in home values from 2010 to 2013, and a median home price that remains well below the statewide median. The city is home to Bethel University, as well as the Tennessee College of Applied Technology at McKenzie.”
McMinnville
compared to
McKenzie:
McMinnville: 2013 population was 13,609; 2013 home price was $93,200; 2010-2013 housing appreciation was 13.1 percent; median property tax rate was .79 percent; monthly owner costs was $913; years to save for 20 percent down was 9.37; crime risk score given was “less safe.”
McKenzie: 2013 population was 5,483; 2013 home price was $84,700; 2010-2013 housing appreciation was 15.7 percent; median property tax rate was .81 percent; monthly owner costs was $814; years to save for 20 percent down was 8.52 percent; crime risk score given was “less safe.”
Taking the spots between McKenzie and McMinnville, from 2-11, were South Cleveland, Loudon, Sparta, Dayton, Martin, Collegedale, Kingsport, Rockwood, LaFollette and Athens.
For more information or to view the full report, visit www.nerdwallet.com/blog/mortgages/top-places-first-time-home-buyer-tennessee-2015/.