Home prices on the rise across Mid-South metro cities

A house awaits a buyer in this file photo.
A house awaits a buyer in this file photo.

Median home prices in 2014

* U.S. average: $208,700, up 6.9 percent * Atlanta: $157,700, up 10.7 percent * Chattanooga: $141,200, up 8.8 percent * Nashville: $187,200, up 8.8 percent * Memphis: $135,200, up 6.7 percent * Knoxville: $150,800, up 4.2 percent * Birmingham, Ala.: $169,800, up 5 percent * Huntsville, Ala.: $174,200, up 1.4 percent

Chattanooga home prices rose at a faster pace than the country as a whole last year, but home prices remained far more affordable in Chattanooga than in most markets.

According to the National Association of Realtors, the median price of homes sold in the Chattanooga area remained nearly a third cheaper than the national average and below most Mid-South metro areas. Nationwide, the median sales price of homes sold last year rose 6.9 percent to $208,700. In the Chattanooga area, home prices, on average, rose 8.8 percent to $141,200.

The change reflects both the increased value of existing homes and buyers' preferences for bigger homes, compared with 2013, Realtors say.

Lawrence Yun, chief economist for the National Association of Realtors, said historically low mortgage rates are still making home purchases relatively affordable despite the increase in sales prices.

"Home prices in metro areas throughout the country continue to show solid price growth, up 25 percent over the past three years on average," he said. "This is good news for current homeowners but remains a challenge for buyers who are seeing home prices continue to outpace their wages. Low interest rates helped preserve affordability last quarter, but it'll take stronger income gains and more housing supply to help meet the pent-up demand for buying."

Contact Dave Flessnor at dflessnor@timesfreepress.com.

Upcoming Events