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
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 |
| West Virginia | $53,600 | $165,000 |
| Arkansas | $63,900 | $176,000 |
| Alabama (Tie) | $66,100 | $220,000 |
| Mississippi (Tie) | $70,800 | $189,000 |
| Indiana | $86,500 | $186,000 |
| Oklahoma | $64,100 | $195,000 |
| Kentucky | $76,700 | $193,500 |
SmartAsset.com used information from each of the factors to create an index score. You can see the full analysis here.
Final Thought
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.
Want to know the first steps in buying a home? Read the Team Clark Home-Buying Guide.
More Content From Clark.com:
The post Report: The 7 Cheapest States to Buy a Home appeared first on Clark Howard.