Midstate homes getting bigger, prices going up - WSMV Channel 4

Midstate homes getting bigger, prices going up

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NASHVILLE, TN (WSMV) -

Local homebuilders said with the demand, houses are getting bigger and prices are going higher.

"It is very good news," said David McGowan, president of Regents Homes. "Housing is one of the drivers of the economy. When housing increases, so do jobs."

Amid the sounds of hammers and machinery, construction is under way on bigger homes, in neighborhoods surrounded by signs reading "Sold".

"The average home in the U.S. is about 2,000 square feet," said McGowan.

Surrounded by blueprints, McGowan said a stability in the stock market and economy has caused a new demand for bigger homes.

"The lower interest rates have made it possible for people to do a move up," said McGowan. "With the interest rates dropping into the 4 percent range, people are moving into a larger home and improving the lifestyle and quality of life for their family."

With bigger homes come higher prices.

McGowan said the average price of homes in Middle Tennessee have increased 10 percent in the past year, 14 percent in an area like Green Hills.

"Lumber has gone up about 30 percent during that time," said Regent Homes' John Burns. "We are slated to get a 30 percent increase on drywall by the end of the year."

"I think it's been four years since we've seen an increase like we have seen," Burns added.

According to McGowan, now is the prime time to buy a home by taking advantage of interest rates that won't last.

"They will not stay this low," said McGowan. "They will go back up in the next couple of years and the smart people are buying today."

Homebuilders said those unusually low interest rates may start to turn around as early as January or February.

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