by: Nexstar Media Wire, Jeremy Tanner
(NEXSTAR) – Home buyers open to embracing a new state will get a lot more house for their money, a new study shows.
An analysis by The Ascent, which rates and reviews personal finance products, found that the average median home price in the first quarter of 2022 was $428,700.
In the 10th least expensive state, Louisiana, the average price is less than half that, at $214,522. If Mardi Gras, mouth-watering culinary options and a fascinating history are not enough to draw you to the Pelican State, don’t worry, there are cheaper options.
In Kentucky, home to the iconic Derby and Mammoth Cave National Park, the average price dips below $200,000, to $197,644.
See the full list, according to The Ascent:
|Rank||State||Avg. home price|
There’s also good news for home buyers in all states. An analysis of home sales data by Redfin shows that, on average, U.S. homes purchased during a four-week period in August sold for less than what sellers were asking. That hasn’t happened since at least March 2021, according to the real estate brokerage.
“The only times you get homes going above list price is when there’s a bidding war, and those used to not be a regular occurrence,” said Daryl Fairweather, Redfin’s chief economist. “And we’re back to a place where bidding wars are unusual, not the norm.”
On average, 7.5% of homes for sale in the four weeks in August that Redfin tracked had a price drop each week, a record high, the company said.
That the typical home is now selling for below the asking price is a sign that the housing market is becoming a bit more balanced, or less skewed, toward sellers.
“It’s significant that now buyers know that when they’re bidding on a home chances are they can get it for less than the asking price and without a competing offer, which was not the case earlier this year,” Fairweather said.
That doesn’t mean some homes aren’t still drawing multiple offers. Some 37% of homes purchased in the four-week stretch of August analyzed by Redfin sold for more than their list price. That was down from 50% a year earlier, Redfin said.
The Associated Press contributed to this report.