RUTHERFORD COUNTY, Tenn. - Home buying has dramatically changed over the years, with soaring prices making it significantly harder for first-time buyers to step onto the property ladder. In fact, the average age of first-time buyers continues to climb as younger generations struggle to save enough for down payments and qualify for loans... That was Elizabeth Long with Exit Realty, Bob Lamb & Associates, highlighting how, in a lot of cases, the dream of home ownership has shifted to an older demographic.

Chad Robinette, who is also with Exit Realty, further emphasized how today’s listings and prices shape who can realistically buy a home in Rutherford County...

Currently, listings throughout Rutherford County add up to a little more than 1,600 single-family homes and almost 350 condominiums or townhomes, according to Zillow. On the upper end, buyers with bigger budgets will find a $5-million property in the more rural part of the county — with 5,600 square feet of living space and a 4 to 5-car garage on nearly 7 acres. Meanwhile, closer to town on East Main Street in Murfreesboro, a historic home built in the 1920s has been fully renovated and sits on nearly an acre, listed for $2.9-million.

If a newer neighborhood is more appealing, the under-construction “Boura” subdivision offers large contemporary homes on 1-acre lots priced between $1.6 and $2.4-million. These homes range from 4,500 to 5,500 square feet with 4 to 5 bedrooms, and of course, include HOA fees that typically run between $40 and $160 per month, in most neighborhoods.

But don’t worry if the million-dollar price tag is out of reach — there are still a lot more affordable options... While Robinette noted the average price for a home at closing is around $460,000, there are still homes uner that price point. Today, nearly 360 homes are priced between $350,000 and $450,000 right now in Rutherford County. Most of these houses have between 2,000 and 2,400 square feet. For buyers on tighter budgets, there are around 120 homes priced at $350,000 or less, averaging 1,100 to 1,800 square feet each.

While finding a reasonably priced home is one hurdle, securing affordable financing has become an even bigger challenge. Many homeowners are hesitant to sell because they don’t want to trade their historically low mortgage rates for today’s higher ones... For example, a homeowner with a $450,000 mortgage at a 2.75% interest rate pays about $1,837 per month, not including taxes or insurance. Refinancing or buying that same home today at a 6.75% interest rate would bump the monthly payment to $2,918 — a difference of over $1,000 per month.

Put another way: just a few years ago, mortgage rates hovered near 2.65%. Someone who bought a $650,000 home then would pay about $2,619 per month for a 30-year mortgage. That same loan at today’s 6.75% rate would cost $4,215 per month — nearly $1,600 more every single month.

This massive difference has led many homeowners to sit tight, contributing to the lack of available homes and keeping prices high for those looking to buy for the first time. As prices and rates continue to shape the market, both buyers and sellers must carefully weigh their next move.

Hear our entire interview with the realtors HERE.