Best Housing Markets by the Numbers
The following are five markets to consider if you’re looking for the best place to buy a house.
Cleveland, Ohio
Cleveland may be a haven for homebuyers who are seeking big-city living at affordable prices. According to data from Realtor.com, the median home price is $190,000, which is a decline of 8.5% year-over-year. Overall, housing expenses in Cleveland are 12% lower than the national average, according to PayScale data. Cleveland and similar large metro cities on the East Coast are buyer’s markets, Martin Carreon, broker and owner of SoCo Wine Country Properties in Santa Rosa, Calif., told The Balance in an email. That’s because there’s less competition in these markets overall, leaving buyers more space to bargain with lower bids. “Buyers can expect a percentage discount of 3.9% at least of the final sale price,” Carreon said.
Memphis, Tennessee
Memphis is another midsized market that may be promising for buyers looking to settle near the East Coast. The median home price is $227,000, and home prices are down 4.6% year-over-year. Memphis is perhaps best known for its music scene, and barbecue is a staple of the local food culture. The city is family-friendly, with plenty of parks and outdoor space, good schools, and a moderate crime rate.
Dallas-Fort Worth, Texas
Looking for a warmer climate and bargain prices? If so, you might consider a move to the Lone Star State. “Dallas-Fort Worth is still surprisingly somewhat buyer-friendly,” said Tyler DeMando, founder of OnDemandRealty based in Frisco, Texas. He said home inventory has finally caught up with demand, easing competition among buyers. The median home price is $425,000, which is more expensive than Cleveland or Memphis, but nearby towns such as Royse City and Forney may appeal to deal hunters, DeMando said. “Both cities are just 15 minutes away from Dallas. However, they still offer all the amenities people are accustomed to within a larger city,” DeMando said.
Prescott, Arizona
Prescott offers a lifestyle geared toward people who enjoy the outdoors and warmer temperatures. The median list price is $622,300, which is well above some homebuyers’ budgets as of the first quarter of 2022, Realtor.com data showed. But housing was still 13% more affordable than the national average, according to PayScale as of May 2022. According to data from CoreLogic, the odds of a price drop are significant, with a 70% probability of a decline in the next year as of March 2022. Understanding housing price trends is key to finding a good deal. Consider markets where your home would most likely have a good resale value if you decide to move later and do not want to lose money.
Huntsville, Alabama
Huntsville was deemed a “hidden gem” of the 2022 housing market by the National Association of Realtors, due to its moderately priced homes and strong job growth. It also has good access to broadband services and good infrastructure, which has attracted business and workers and boosted home prices. In a three-year period, home prices in Huntsville rose 24.6%, jobs increased by 4.7%, and the population increased 5.6%. The median listing price was $300,000 in April 2022, which was up 17.1% year-over-year. Housing costs are about 26% below the national average as of May 2022, and the cost of living was 5% lower, according to PayScale. Buyers are also attracted to its highly rated public schools, diversity, and ample activities for families.
Other Home Location Factors To Consider
Location and the overall housing market are important, but other factors can play a role in where you decide to buy a house.
Proximity to Work
Making the daily commute to work can be time-consuming and costly, especially when gas prices are on the rise. So it’s important to include the distance from home to work in your cost calculations. Living closer to your work means a shorter commute and less money spent on gas. However, also consider the merits of living a bit farther away from your desired location, DeMando said. For instance, moving 10 to 15 minutes farther out means a longer commute, but it could save you hundreds on your monthly mortgage payment if you can find a lower-priced home. And location may be less important if you’re able to work from home for part or all of the work week.
Job Opportunities
If you’re looking for your first job or your next job, factor in job growth when deciding where to buy a house. A city might meet all of your criteria for cost and quality of life, but if you can’t find a job, then it doesn’t matter how affordable it is.
Access to Friends and Family
Moving to a new city could mean living closer or farther from family and friends. Many buyers prioritize access to friends and family when deciding where to buy. For example, if you’re planning a cross-country move, think about how often you’d return to visit your loved ones. Consider costs you may face, such as flights, rental cars, or other travel expenses.
Your Preference for Commotion or Quiet
You may also want to consider the culture of the area. Urban cities may have a more active nightlife scene, which younger buyers may prefer. But if you prefer to spend most of your nights at home, you may want to look to the suburbs or even the countryside. Factor in conveniences as well. Living in a rural area, for example, may mean a longer drive to the grocery store, fewer job opportunities, or fewer school options.
Your Budget
Think about your budget for buying a home. That includes how much you can afford to pay toward a mortgage each month. It also means budgeting for other costs, such as your down payment, closing costs, and the expenses you’ll pay to own a home year to year.
Putting It All Together
Finding the best place to buy a house is a personal decision. It’s important to consider what’s going to work best for you financially and with regard to the kind of lifestyle you want to have. It can help to first make an inventory of your “must haves,” then a second list of “nice to have” features. Comparing those lists to your homebuying budget can help you narrow down which markets to target. Nick Barber, principal real estate broker for Ember Co-Ownership Homes, suggests buying a home in a location where you would be comfortable for the next 10 years. “If the market takes a downturn, you’ll still be happy you chose the area,” Barber told The Balance in an email. “If home prices continue to rise, it will put you in the driver’s seat to make a change or enjoy your well-planned and thought-out purchase.”
