Homeownership has long been a cornerstone of the American Dream, providing financial stability and a reliable path to building long-term wealth. Across the country, rising home prices have reinforced this reality, making real estate one of the most effective investments for wealth accumulation.
Since the start of the pandemic in 2020 through the end of last year, home prices in Tennessee have surged 67.8%, significantly increasing homeowners’ equity, according to the National Association of Realtors. Neighboring states have seen similar trends, with home price appreciation reaching 53% in Kentucky, 67.1% in North Carolina, 55% in Alabama, and 64.8% in Georgia. Nationally, Maine experienced the highest growth at 73%, while Louisiana saw the lowest at 24.3%.
For current homeowners, these gains represent a major financial advantage. However, for those who have been waiting to buy, the market presents new challenges. Many prospective buyers who missed out on historically low mortgage rates in 2020 are now facing higher borrowing costs, with rates currently in the high 6% range—a stark contrast to the sub-3% rates available during the pandemic housing boom.
While it’s unlikely that mortgage rates will return to those ultra-low levels, borrowing costs are expected to stabilize, offering some relief to buyers. Additionally, housing inventory is on the rise in the Greater Nashville market, with a 22% increase in available homes in January, signaling more opportunities for those ready to enter the market.
In today’s competitive and evolving market, working with a trusted Realtor® can make all the difference. A professional Realtor brings market expertise, negotiation skills, and access to exclusive listings—helping buyers navigate rising prices and higher rates while identifying the best opportunities. Whether you’re buying your first home or making a strategic investment, a Realtor is your advocate in securing a property that aligns with your long-term financial goals.
Homeownership remains one of the most powerful ways to build generational wealth, and despite today’s challenges, the right guidance and strategy can help turn aspirations of homeownership into reality.
