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New study shows Knoxville housing prices are on the rise

Between June 2018 and June 2019, the report showed the most affordable homes went up in price by about 20-percent.

KNOXVILLE, Tenn. — A new study shows America's housing affordability crisis is affecting the Knoxville housing market. 

The report by Bloomberg showed Knoxville homes in the most expensive price range went up about 15-percent from June 2018 to June 2019.

In that same time period, the least expensive homes rose in price by around 20-percent.

"It's a nationwide phenomenon, but it's really hitting home here," realtor Alisa Pruett said. She said many of her clients are first-time home buyers.

Many of them are frustrated by rising rental property costs and looking for so-called "starter homes" in the under $200,000 range, Pruett said. But the Multiple Listing System (MLS) she uses to check home listings did not have much to offer.

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"Under $150,000 in Knox County, there were approximately 149 active listings," she said. "Once you get up to $200,000 it was about 293." 

The Bloomberg report cited thriving employment and low mortgage rates as the reason so many people are interested in purchasing their first homes. It also found that desire of home ownership — especially in the heartland — is actually worsening the affordability crisis. 

"It's just really, really hard to get them in something," Pruett said. "Don't think you're going to steal something because you're not going to steal something right now."

President Trump signed an executive order in late June he said will make affordable housing easier to develop.

It created a national council that is tasked with reducing barriers to affordable housing.

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