Photo (cc) by JoeInSouthernCA
If you’ve been considering a new home, 2016 could be the year to buy.
Prices are expected to rise at half the pace that they did last year, and homes are expected to remain on the market longer, GOBankingRates reports.
Generally, such circumstances could result in more home choices and more lending options for buyers, as well as more time to make the best decisions, according to GOBankingRates.
But the website’s recent state-by-state housing market analysis shows that some states are a lot more buyer-friendly than others.
The analysis is based on five factors that help make buying a home a smart financial move:
- Housing affordability (median housing prices compared with median household incomes)
- Renting costs compared with buying costs for the same property
- Year-over-year home value changes (with rising values considered indicative of a smarter investment)
- Average annual percentage rate for mortgages
- Property tax rates
New Jersey, for example, ranks as the worst state for buyers. That’s primarily because its property tax rate of 2.38 percent is so high. In fact, that rate is the highest in the nation, according to the nonprofit Tax Foundation.
Maine ranks as the best state for buyers due to home prices that are expected to rise further and mortgage rates that are below average — a combination that can make owning cheaper than renting for some residents of the Pine Tree State.
The best states to buy a home this spring in GOBankingRates’ analysis are:
- South Dakota
The 10 lowest-ranking states are:
- New Jersey
- New York
- West Virginia
- New Mexico
For the complete ranking of all 50 states, check out GOBankingRates’ full analysis.
If you’re considering purchasing a new home — or refinancing a mortgage on your current home — be sure to first check out “Your Mortgage: The Rate That Can Change Your Life” to learn how to keep your mortgage rate as low as possible.
Would you recommend your state to prospective homebuyers? Let us know in our Forums. It’s a place where you can swap questions and answers on money-related matters, life hacks and ingenious ways to save.