Homebuyers, Don't Give Up! Here Are The 10 Cheapest Cities In America To Purchase A House Right Now

Homebuyers, Don't Give Up! Here Are The 10 Cheapest Cities In America To Purchase A House Right Now

Home buyers are always looking for good deals. This is nothing new. However, real deals are rarer and more valuable than ever today as buyers and sellers experience a tightening real estate market.

Rising mortgage rates have increased monthly home payments by hundreds or thousands of dollars for homebuyers. This is a budget squeeze that would have worked just fine months ago. The result is a rapid cooling of the real estate business as most buyers stay away from buying and sellers are forced to lower prices to accommodate the new realities or lose the market altogether.

But here's the thing: these comebacks don't happen everywhere . Indeed, some cities still have thriving real estate markets, with low prices partially insulating them from the effects of rising mortgage rates. So the Realtor.com® team has found a city where buyers can find the cheapest homes in America today.

These are typically small metropolitan areas in the Northeast, Midwest, and South, many of which have experienced economic problems in recent years. Prices in this location are historically lower than other locations and have not experienced sharp price increases in the past two years due to COVID-19, which has occurred in hot markets such as Phoenix, Boston and Denver. Many are state capitals and former Rust Belt manufacturing centers whose populations have declined due to factory closings and out-of-state labor migration.

They may not all be booming tech hubs or America's prettiest metros, but they all have great homes at great prices. All are priced well below the national median home price of $427,250 in September.

Unfortunately, you won't find California or the entire western United States on this list. House prices also remain (very) high.

To get our results, we analyzed our listing data for the 100 largest metropolitan areas, collected in early October, to see which had the lowest average home prices per square foot. We use prices per square meter instead of total prices to account for seasonal trends and different house sizes across the country.

Metro covers the main city and surrounding towns, suburbs and small towns. We include only one metropolitan area per state to ensure geographic diversity.

Ready to take a look at some housing deals? Is it good?

Median home price per square foot: $95
Median home price: $149,900

Youngstown, halfway between Cleveland and Pittsburgh on the Ohio side, is the cheapest metropolitan area in the country. It's in the heart of the Rust Belt, and like other steel boom towns of the 19th and early 20th centuries, its population declined in the 1970s. As there are more homes than buyers, prices have fallen. .

The low cost of living in the city, says Al Ceritelli , an agent with Howard Hanna Real Estate Services in the Polish suburb of Youngstown, has made Appalachia an independent lifestyle. It is very attractive to those who come from other parts of the country and come in search of amenities.

"People coming from abroad talk about how nice the people are, that the traffic is not heavy and the cost of living is very low," said Ceritelli.

Things have slowed in recent weeks as interest rates hit new highs, Ceritelli said. But when he sent homebuyers a new listing, they opened his email and clicked on his property.

Prices in Youngstown have fallen slightly in recent months, more than 2% since their peak in August. And prices are still around 12% per year.

Ceritelli said he thought costs were very low before the pandemic, but as remote workers look for cheaper places to live and work from home, prices are rising.

"We have a lot of unexpected value," he said. "Then in the last few years we've seen some bidding wars where buyers come in and fight each other to get the deal done."

Median home listing price per square foot: $124
Median home price: $225,000

Scranton, about a 2.5-hour drive north of Philadelphia, is best known as the home of the fictional paper company Dunder Mifflin from "The Office" and the current hometown of President Joe Biden . It's also one of the cheapest ski resorts in America.

The city has a rich history dating back to the 19th century. It was the center of the coal industry in the mid-20th century and in the 1880s was also called the "Electric City", being one of the first with electric lighting and then with electric trams. In the late 20th century, the population declined, as did many cities that flourished during the industrial age. The city now has five colleges and universities and a vibrant downtown.

Home prices in Scranton are low despite growth over the past year. Prices per square foot are up 20% year-over-year, outpacing the local market's 12% year-over-year growth. It is one of the 4 metropolitan areas on this list that has shown a slight downward trend in prices recently.

For less than $225,000, you can buy a large three-bedroom house built in the 1940s with a renovated kitchen.

Average home listing price per square foot: $130
Median home value: $217,250

Syracuse, a college town in central New York, was recently named by Realtor.com as one of the best places for middle-class homebuyers because of low prices.

But shoppers on a budget may want to widen their search as prices are on the rise. Compared to last year, they increased by about 10%.

The number of homes listed for sale in Syracuse is the lowest of any metropolitan area on the list. However, despite the housing shortage, according to Realtor.com, homes have been on the market slightly longer than the national average, selling in 47 to 60 days over the past four months.

Today, buyers can purchase a three-bedroom brick ranch in the historic Washington Syracuse Park neighborhood, close to downtown and a five-minute drive from the shores of Onondaga Lake, for $220,000.

___

Check out: America's 10 Best and Cheapest Places to Retire in 2022

___

Median home listing price per square foot: $134
Median home price: $304,475

Wichita is known as the "Air Capital of the World" and attracts aviation enthusiasts from around the world. The area is a high-tech manufacturing center, home to companies such as Beechcraft, Cessna, Learjet and Boeing's Stearman Aircraft. However, it still offers its residents a low-cost, high-quality lifestyle, along with fantastic barbecue.

Wichita is one of the birthplaces of the American desegregation movement, which was marked by the Dockum Pharmacy sit-down in 1958.

Home prices in Wichita have risen more than any city on the list, up 24% over the past year. And the Wichita market has so far largely avoided the declines seen in other major U.S. cities, hitting a one-year high in September.

Buyers looking for business can check out the 2,500-square-foot, three-bedroom, two-bathroom home on nearly a third of an acre for $180,000. Or they can check out this three-bedroom, two-bedroom ranch for $265,000.

Median home listing price per square foot: $138
Median home price: $299,000

Jackson, the hometown of country singer LeAnn Rimes , recently made the news for toxic drinking water. The crisis seems to affect the real estate market.

Home inventories have risen as sellers rush to list their homes for sale. There are about 50% more homes for sale now than at this time last year.

However, drinking water does not affect housing prices, at least not yet. Jackson is one of four metropolitan areas on this list where current prices are still the highest in a year. Prices here change slightly every month and increase by about 17% per square meter from year to year.

The city has a history of civil rights struggles, and the US Environmental Protection Agency just announced a civil rights investigation into the current water crisis following a formal complaint alleging the current situation is a continuation of a systematic neglect of infrastructure needs. . In the black heart of the Jackson metropolitan area.

Median home listing price per square foot: $141
Median home price: $298,873

Buyers can also look for affordable housing in Arkansas' capital, even as prices rise. The city was recently named one of the best for middle-class buyers thanks to its low cost of living and a major revitalization of its historic downtown.

The price per square foot is up about 15%, and the Little Rock home continues to sell quickly.

For around $300,000, buyers in Little Rock can afford a one-bedroom home with floor-to-ceiling windows and a terrace overlooking the Arkansas River and downtown River Market. For the same price, you also get a large four-bedroom house on a large plot of land on the outskirts of the forest further from the centre.

Median home price per square foot: $144
Median home price: $300,000

Indianapolis, better known as the home of the Indy 500, is often on the list of cheapest cities. Buyers in the state capital can find some of the most affordable villas in the country.

Prices in Indianapolis are up 11% year over year. However, they are down slightly, around 2%, from May's high.

Buyers can find a newly renovated three-bedroom, one-bathroom home for around $150,000. They can also schedule showings at this 2,000-square-foot, three-bedroom, two-bathroom home for $250,000. (You better hurry.)

Median home price per square foot: $144
Median home price: $270,000

Some of the best deals by far can be found in McAllen, a city of about 150,000 located on the US-Mexico border in the Rio Grande Valley, about an hour from the Gulf Coast.

Visitors flock to the city to see about 550 species of native birds and more than 300 species of butterflies. It is also a regional shopping mecca for those on both sides of the border.

House prices in this commercial port city have survived the recent downturn in the housing market. They have grown steadily since this time last year.

This three-bedroom brick home is for sale for $205,000. Those with a bit more income can look at this new three-bedroom house with a large garden for $285,000.

Median home price per square foot: $146
Median home price: $308,900

Columbia is the capital of another state as well as a college town that is home to the University of South Carolina. (Get wild!) These are becoming more popular with overseas shoppers during the pandemic looking for lower prices and higher taxes. lowlands and countries with warmer climates.

Of all the metropolitan areas on the list, home prices in Colombia have recorded the biggest price declines in recent months, falling nearly 5% since prices peaked in June. However, prices are more than 10% higher than last year.

For around $310,000, a buyer in Columbia can afford a three-bedroom, 1,800-square-foot home in an area just minutes from downtown.

Median home listing price per square foot: $150
Median home value: $311,575

About an hour's drive southwest of Columbia, Augusta is best known as the home of the elite Masters Golf Tournament in April. It is also a medical, technological and military center. The city is home to the Medical College of Georgia at Augusta University, the state's only public medical school, as well as Fort Gordon Air Force Base, the Army Cyber ​​Security and Electronic Warfare Training Center.

Universities and military bases typically keep the real estate market alive, says Katero Godby , a real estate agent with Realty One Group Visionaries.

"We see a lot of people coming here for work or school," Godby said. Many leave and then come back to stay forever. The charm of the south has captivated many people.

"People are very friendly," he said. "It still has a small-town feel, and you can buy a house on a large plot of land."

Buyers can usually get homes on half or the whole acre. Very interesting during a pandemic when everyone wants more space.

"We're constantly moving here from California, New Jersey, Texas and Florida because of the low cost of living," Godby says. "They come here and they can buy with cash."

Augusta's inventory has grown the most this year of any metro on this list, growing almost 2.5 times. And housing supply in recent months has continued to grow.

Despite the low prices, buyers in Augusta are not immune to rising mortgage rates.

"Earlier this year they were looking at a house for maybe $300,000, but now it's $250,000," Godby said.

Home buyers, don't despair! Here are the 10 cheapest cities in America to buy a home when it appeared first on Real Estate News & Information | agent.com®.

10 BEST CITIES TO BUY A HOME IN 2022 (REALLY GOOD)