Tennessee Home Prices Continue to Rise in 2024
Tennessee boasts a healthy state government with a surplus, which is excellent news for the state’s financial health. Many residents from financially struggling states like Illinois are moving to Tennessee. The state attracts numerous residents from high-tax states such as Illinois, Wisconsin, California, New York, New Jersey, Massachusetts, and Connecticut. Unlike Illinois, which raises taxes on almost everything yet still faces financial difficulties, Tennessee maintains one of the nation’s lowest tax rates and has a profitable state government.

In this article, we will explore why Tennessee home prices continue to rise and discuss how to qualify for a mortgage in Tennessee.

Reasons Why Tennessee Home Prices Continue To Rise

One of the primary reasons residents from high-taxed states move to Tennessee is the absence of state income taxes.

Tennessee is among the nine U.S. states that do not impose state income taxes. Instead, Tennessee has other state taxes, such as the Hall Tax, a flat tax on income and investment dividends. To offset the absence of income tax, Tennessee has one of the highest sales tax rates in the country, with higher taxes on merchandise and food compared to other states.

Homes in Tennessee are generally affordable, but Tennessee home prices continue to rise faster than in other Midwestern states. Over the past three years, home prices have been steadily increasing. This increase is due to more homes for your money than in other states and the low mortgage rates currently at a three-year low. Additionally, building permits have been rising quarter after quarter since 2017, indicating a growing housing market. Click here to apply for VA Loans with under 620 credit scores

See the full current and previous reports with detailed breakdowns and summaries by going to http://mtsu.edu/berc/housing.php and clicking the appropriate links.

Will House Prices go down in TN?

The outlook for house prices in Tennessee in 2024 paints a rather optimistic picture compared to other regions in the United States. Unlike areas where ballooning prices have led to speculation about significant market corrections, Tennessee’s housing market is on a different trajectory, characterized by gradual and steady growth. Several underpinning factors are contributing to this positive trend, including but not limited to the state’s population growth, economic stability, and notably low inventory levels, which have been persistent issues. These elements collectively foster a conducive environment for the real estate market to thrive.

Forecasts elaborating on median home prices in Tennessee suggest a trend toward a modest but consistent increase. Specific areas within the state, such as Crossville and Knoxville, are emerging as noteworthy examples of this growth pattern. These locales are projected to experience increases in home prices up to 6.5% by the early months of 2025. T

he driving forces behind such bullish predictions include the promising employment prospects in these regions, their high standard of living, and their overall attractiveness to existing residents and potential newcomers.

Tennessee’s market tells a different story amid broader national concerns over affordability and economic uncertainty—which some analysts believe could lead to a 5-10% drop in house prices across the United States. With its competitive housing environment, the state continues to see a demand that far outstrips supply, contributing to price stability and slight increases in some areas. This dynamic suggests that the fear of a significant market downturn, prevalent in various parts of the country, does not apply with equal force to Tennessee.

Reflecting on these trends, there is a compelling case for considering homeownership in Tennessee sooner rather than later. The prevailing conditions indicate that anticipating a price drop might not be a strategic decision, as the market does not show signs of significant downturns shortly. Instead, the steady growth suggests that now might be an opportune time to invest in a property in the state. The combination of economic stability, quality of life, and the potential for property value appreciation makes Tennessee an attractive option for prospective homeowners.
Moreover, the state’s appeal is wider than its financial aspects. Tennessee boasts a rich cultural heritage, a vibrant community life, and a diverse landscape ranging from bustling cities to serene countryside, enhancing its attractiveness as a place to live and invest in real estate.Considering these factors, the decision to buy a home in Tennessee seems not only financially astute but also promising in terms of the quality of life and potential for personal fulfillment.

In conclusion, Tennessee’s housing market future looks bright. Supported by a robust economic framework and bolstered by the state’s intrinsic appeal, the real estate sector in Tennessee is poised for steady growth. For individuals contemplating the purchase of a home, the current market conditions indicate that acting sooner rather than later could be to their advantage, as the trend points towards rising prices rather than a decline.

Qualifying For Mortgage In Tennessee With A Direct Lender With No Lender Overlays

Gustan Cho Associates is a prominent figure among national mortgage companies due to our unique stance on loan processing. Unlike many in the industry, we operate without the burden of overlays on both government and conventional loans. This streamlined approach has made us a preferred choice for many borrowers, particularly among Tennessee’s homebuyer and homeowner communities.

Our commitment to offering straightforward, accessible loan options extends to our policy of not imposing lender overlays on government and conventional loans. This means that our clients can enjoy the benefits of simpler qualification criteria and faster loan approvals, facilitating a smoother journey towards homeownership or refinancing.

In addition to our expertise in government and conventional loans, we are recognized for our proficiency in non-QM Loans and various alternative financing mortgage programs. Whether it’s unconventional income sources, credit challenges, or unique property types, our team is adept at crafting mortgage solutions tailored to the diverse needs of our clients.

Suppose you’re looking to navigate the mortgage process in Tennessee with a lender that operates without lender overlays. In that case, Gustan Cho Associates is here to assist. Delivering personalized assistance and professional advice is our team’s commitment to help you obtain the necessary financing. For more information or to start your qualification process, please get in touch with us at 800-900-8569. You can also contact us via email at gcho@gustancho.com. Remember, we support you seven days a week, including evenings, weekends, and holidays, ensuring we’re available when you need us most. Qualifying for mortgage in Tennessee with a direct lender with lender overlays

FAQs: Tennessee Home Prices Continue To Rise Due To Low Mortgage Rates

• 1. Why are Tennessee home prices continuing to rise? Tennessee’s home prices have been rising since 2017 due to factors such as the lack of state income tax, economic stability, high demand from residents of high-tax states, affordable housing, low mortgage rates, and increasing building permits.
• 2. What is the Hall Tax in Tennessee? The Hall Tax is a flat tax on income and dividends from investments. It is one of the state taxes Tennessee imposes to offset the absence of state income tax.
• 3. How high are sales taxes in Tennessee? Tennessee’s sales tax rate is among the highest in the nation, resulting in higher taxes on goods and groceries than in other states.
• 4. Will house prices go down in Tennessee? The outlook for house prices in Tennessee in 2024 suggests that prices are unlikely to drop significantly. Instead, the market is expected to experience steady growth due to population growth, economic stability, and low inventory levels. Areas such as Crossville and Knoxville are projected to see notable price increases of up to 6.5% by early 2025.
• 5. How does Tennessee compare to other states regarding housing market trends?Tennessee home prices are rising faster than in other Midwestern states. The state’s competitive housing market, driven by high demand and low supply, supports price stability and slight increases.
• 6. How can I qualify for a mortgage in Tennessee with no lender overlays? Gustan Cho Associates is a national mortgage company with no overlays on government and conventional loans. They specialize in non-QM loans and alternative financing mortgage programs. For more information or to qualify for a mortgage in Tennessee, contact Gustan Cho Associates at 800-900-8569, text for a faster response, or email gcho@gustancho.com. They are available 7 days a week, including evenings, weekends, and holidays.
• 7. Where can I find more detailed reports on Tennessee’s housing market? Visit Middle Tennessee State University’s Business and Economic Research Center for detailed reports and summaries on Tennessee’s housing market.
• 8. How does Tennessee’s financial health impact its housing market? Tennessee’s healthy state government with a surplus contributes to its financial stability, attracting residents from financially struggling states. This migration helps maintain high demand for housing, contributing to the continuous rise in home prices.

This blog about Tennessee Home Prices Continue To Rise Due To Low Mortgage Rates was updated on June 4th, 2024.