This week in one of our “American Dream House” segments, Nick and Lindi, high school sweethearts who were tired of California congestion and wanted a better place for their family, decided to search for their perfect “country house” in Franklin, Tennessee.
They did it in very interesting times. Mortgage rates topped 7% for the first time in 20 years this week, according to Freddie Mac, with the 30-year fixed term, the nation’s most popular mortgage option for home buyers, reaching levels not seen in 20 years. For context, last year at this time, the rate was just above 3%.
East meteoric rise in interest rates It has become the topic of greatest concern for most real estate professionals, from real estate agents to first-time buyers and investors.
Realtor.com (a unit of News Corp.) notes that a buyer who puts down 20% on a median-priced home in the United States will have a current monthly mortgage payment of $2,300.
That’s an 80% jump from a year ago.
The family that made $100K last year when rates were around 3% is still making $100K, so their buying power has been decimated.
But as I mentioned this week in “Fox and Friends” the family that made $100K last year when rates were around 3% still make $100K so their buying power has been decimated.
This dichotomy is why the housing market is changing rapidly, with buyers asking, “Where can I afford to buy my dream home?”
What we haven’t seen so far is sellers getting realistic about the current state of potential buyers.
They refuse to acknowledge that their houses will not sell at pandemic prices.
Many real estate brokers are beginning to have difficult conversations with clients, but sometimes without success.
We also learned this week that existing home sales in September fell 24% year over year. New home sales fell 18%. Prices are starting to come down, but not enough to move sales. That’s where the blockage is right now.
Still, there are bright spots.
Earlier this week, a new report in partnership with the Wall Street Journal/Realtor.com showed the top real estate markets where affordability and pricing were attractive and where demand remained strong.
“While it’s still considered a seller’s market, inventory is slowly building up.”
For the third quarter of 2022, Johnson City, Tennessee, topped the list in their “Emerging Housing Markets Index.”
I spoke to a local broker about the appeal of Tennessee, and this week on “American Dream Home,” we take our viewers to Franklin, Tennessee, where Nick and Lindi, high school sweethearts who were tired of stuffy California, decided to search for their perfect “country house.”
Ryan McKinney and his wife are real estate agents for Keller Williams.
He explained: “Although it is still considered a vendor’s market, inventory is slowly increasing. New construction permits have increased in the last two years, contributing to growth. Johnson City housing, in particular, offers a lot of value for the price you pay for a home.”
He added that the draw is quality of life and that Johnson City “continues to innovate for the future as a world-class center for outdoor recreation, a bustling college town (ETSU/Milligan), and a vibrant community full of hospitality and charm.” southerners”. .”
He also said, “Johnson City has an affordable cost of living, low crime, some of the best public schools in the state, a resurgent downtown, and is a medical hub with a Level 1 Trauma Center hospital and medical technology corridor.” .”
Of course, when “American Dream Home” traveled to Franklin, Tennessee, and filmed the “Tennessee or Bust” episode, we saw firsthand the beauty of the state, including lakes, hikes, parks, and easy access to Nashville, Memphis, Atlanta, and Charlotte.
It really is the American dream!
“American Dream House”, Hosted by Cheryl Casone, airs every Wednesday at 9pm/9:30pm ET on Fox Business and airs on Fox Nation.
To learn more, watch the video at the top of this article, or Click here to access.