If you’re looking to buy a home and can afford to move, you may be able to find cheaper options in another state.
A recent report from fintech site SmartAsset.com shows the cheapest states to buy a home right now.
SmartAsset.com says it analyzed U.S. home data using these criteria:
- Effective property tax
- Median listing price
- Median listing price per square foot
- Median value in the bottom one-third of homes
- Average closing costs
Top 7 Cheapest States to Buy a Home in 2020
Here are some key findings from the report:
- Five of the top seven states with the cheapest homes are in the South.
- Of the top seven states, only Alabama has a median listing price of more than $200,000.
Here are the seven cheapest states to buy a home, according to the report:
Buying a Home in These States Is Cheaper
|State||Median Value of Bottom-Tier Homes||Median Listing Price|
SmartAsset.com used information from each of the factors to create an index score. You can see the full analysis here.
Money expert Clark Howard says the decision to buy a home right now has as much to do with your personal financial outlook as it does with the economy.
“If you’re planning on owning the property for a number of years, then today’s conditions are fine as long as your employment looks stable,” he says.
Clark says if you’re looking for a home, two things are currently working in your favor:
- You can get a low interest rate on a mortgage, allowing you to save money on the purchase of your home.
- You have the opportunity to lock in that low rate for the life of your loan.