Middle class being outpriced in housing market

CHATTANOOGA, Tennessee (WDEF)-Vicki Trapp is a managing broker with Crye Leike. She says the median house price in the Chattanooga area is almost $350,000 which is pricing more people out of being able to afford a home.

“That’s what the problem is, those are the people who are not able to buy at this point. Those in your first-time homebuyers are getting priced out of the market right now,” said Trapp.

She says since the 2008 housing crisis, house building has not kept up with demand, but they’re currently is more inventory on market than a few months ago but it’s still not enough for the average loan buyer.

“Agents are coming to me with the tale of woah. My buyers lost out on seven houses. We keep making offers and we keep losing and they say what we do. I don’t really have a good answer for them because right now cash is what is winning,” said Trapp.

She says this housing market is different than what led to the 08 financial crisis.

“I don’t think we’re gonna have another 08. That was a mortgage situation where they were loaning money to people who truly weren’t qualified and that caused that to happen. This is an inventory shortage. I know that it will get better,” said Trapp.