Rising prices hinder first-time homebuyers

After months of searching for a house, Amy Richardson was concerned that rising home prices were putting the American dream of homeownership out of reach for her.

"There were a number of great communities, but they weren't in my price range," said Richardson.

She eventually discovered the Village of Evergreen Farms in Murfreesboro, where she purchased a new townhome in April 2015 with the help of the Tennessee Housing Development Agency (THDA), which offered a low-interest Great Choice mortgage and down payment assistance.

"My rent was $740 and my mortgage is $742. It was an easy transition," she said.

Richardson paid $115,000 for her two-bedroom, two-and-a-half-bath townhome. Prices now begin at $131,000, and she said demand is strong.

"They build and sell very quickly. One behind me was on the market for just two days," she said.