10 Top States for Homebuyers This Year

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:

  1. Maine
  2. Colorado
  3. Arkansas
  4. Missouri
  5. Tennessee
  6. Kansas
  7. Iowa
  8. South Dakota
  9. Florida
  10. Indiana

The 10 lowest-ranking states are:

  1. New Jersey
  2. Virginia
  3. New York
  4. West Virginia
  5. California
  6. Montana
  7. Ohio
  8. Connecticut
  9. New Mexico
  10. Pennsylvania

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.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
16 Products You Absolutely Do Not Need
16 Products You Absolutely Do Not Need

There are plenty of great ways to spend your money, but you can safely leave these products on the store shelf.

How to Invest in Real Estate for as Little as $500
How to Invest in Real Estate for as Little as $500

If stock market volatility has you looking for other investment options, here’s a way to diversify — even if you don’t have tons of money.

8 Reasons Your Parents Had an Easier Retirement Than You Will
8 Reasons Your Parents Had an Easier Retirement Than You Will

Here’s why the last decades of life are harder now than they used to be.

7 Other Retailers With Free Prescription Delivery
7 Other Retailers With Free Prescription Delivery

Amazon’s new pharmacy is hardly the first to offer free shipping.

5 Memberships That Offer Car Insurance Discounts
5 Memberships That Offer Car Insurance Discounts

These discounts may save you hundreds — even thousands — of dollars a year.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
10 Things Frugal People Never Buy
10 Things Frugal People Never Buy

If you’re a true tightwad, the mere thought of spending money on these items gives you the willies.

7 Social Security Benefits You May Be Overlooking
7 Social Security Benefits You May Be Overlooking

There’s more to Social Security than retirement benefits.

10 Useless Purchases You Need to Stop Making
10 Useless Purchases You Need to Stop Making

You might as well flush your money down the loo if you spend it on these things.

10 Cars You Are Most Likely to Keep for 15 Years
10 Cars You Are Most Likely to Keep for 15 Years

The cars that owners hold onto the longest have one thing in common, a new study shows.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

The 6 Best Investing Apps for Beginners
The 6 Best Investing Apps for Beginners

If you’re looking to ease into investing in the coronavirus economy with just a little money, check out these easy-to-use tools.

14 Things You Should Stop Buying in 2021
14 Things You Should Stop Buying in 2021

These convenient household products come with hidden costs that you might not have considered.

7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

8 Things You Should Replace to Improve Your Life Today
8 Things You Should Replace to Improve Your Life Today

Being frugal isn’t smart if you put off replacing these items.

9 Things You Should Never Leave in a Car
9 Things You Should Never Leave in a Car

Thinking of leaving these possessions in a car? Prepare for unexpected consequences.

9 Mistakes People Make When Cleaning With Vinegar
9 Mistakes People Make When Cleaning With Vinegar

Cleaning with vinegar can save you a lot of money, but using it like this can cost you.

7 Income Tax Breaks That Retirees Often Overlook
7 Income Tax Breaks That Retirees Often Overlook

Did you realize all these tax credits and deductions exist — or that they apply to retirees?

13 Amazon Purchases We Are Loving Right Now
13 Amazon Purchases We Are Loving Right Now

These practical products make everyday life a little easier.

If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

Whether you resell it for a big profit or add it to your own wardrobe, this type of clothing is a hidden steal.

10 Things Successful Retirees Do Differently
10 Things Successful Retirees Do Differently

These habits and characteristics can help put you on the track to success.

7 Costly Health Problems That Strike After Age 50
7 Costly Health Problems That Strike After Age 50

As we age, our bodies wear down. Here is how to cut costs associated with some common ailments.

29 Purchases That Can Save You Money Every Day
29 Purchases That Can Save You Money Every Day

Sometimes, you’ve got to spend to save.

7 Things I Never Buy at Costco
7 Things I Never Buy at Costco

A bulk buy isn’t always the best buy.

5 Tax Mistakes to Avoid in Retirement
5 Tax Mistakes to Avoid in Retirement

Even great savers can reduce their retirement income by making these mistakes.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.