Best deals on real estate

Buying a home

The asking price per square foot in the 38 metro areas tracked by brokerage Movoto increased an average 12% in the 12 months through March. That's just an average, though; eight of the markets are cheaper now.

 

Calculator: How much house can you afford?

 

The three below are also forecast to have gains over the next year above the 4% national average projected by Fiserv.

 

Greatest decline in listing price per square foot

Chicago: Declined 15% last year, forecast to increase 6% next year
Charleston, S.C.: Declined 4% last year, forecast to increase 5% next year
New Orleans: Declined 3% last year, forecast to increase 7% next year

 

Mortgages

 

Middling economic and job growth over the past year has continued pushing down the average rates on home loans, so that the 30-year fixed is now below 4% for well-qualified borrowers.

That said, the Mortgage Bankers Association expects better economic news to give rates a jolt over the next year (the 30-year could go to 4.5%). So grab a deal before they're gone.

Refinancers may want to consider shorter-term mortgages, notes Keith Gumbinger of consumer loan data firm HSH.com. While the spread between a 30-year and 15-year is historically 0.5%, the difference is now 0.74%.

Take advantage of lower rates

30-year conventional fixed rate mortgage: 2012: 4.0%; Now: 3.5%
30-year jumbo: 2012: 4.5%; Now: 3.9%
15-year fixed rate: 2012: 3.3%; Now: 2.8%.
Home-equity loan: 2012: 6.8%; Now 6.3%.
HELOC: 2012: 5.2%; Now:5.2%

Renting

With minimal new construction on multifamily properties, asking rents on apartments rose 3% over the past year. Because of a surge in single-family-home investing, however, there are now some 4 million more houses for rent than in 2005, Trulia reports.

Related: Buy or rent? 10 major cities

Rents on single-family homes in the past year were flat overall and fell in many areas.

Greatest drops in asking rent on homes

Las Vegas: Average rent last year: down 2%, Average sale price: up 25%
Fort Lauderdale, Fla.: Average rent last year: down 1%, Average sale price: up 11%
Orange County, Calif.: Average rent last year: down 0.7%, Average sale price: up 14%

Brickwork

The construction downturn isn't over for the brick industry. Sales have fallen every year since 2006, for a cumulative drop of more than 65%.

Supply yards are piled high with the red clay blocks, which are selling for about 1% less than last year and 7% less than three years ago, according to Reed Construction Data.

With 10% to 15% lower labor costs from hungry masonry contractors likely, you're looking at hundreds or even thousands in savings on a new brick patio, walk, fire pit, or retaining wall.

Gas heat

Converting from oil to gas heat used to be a gamble, because oil often proved the more economical option. But natural gas has won handily for seven years straight, and in cold New England it averaged $1,500 less than heating oil last winter, says Mark Wolfe, executive director of the National Energy Assistance Directors' Association.

With the increased use of fracking -- the controversial process of blasting apart rock to release gas -- there's no sign of a reversal. Plus, furnace prices are down 1.4% from last year, and there are a host of incentive programs (see dsireusa.org) designed to lessen the total $8,000 to $10,000 cost of conversion. So a switch could turn a profit in just a few years.

Outdoor furniture

As the concept of outdoor living has taken off, so has the outdoor-furniture market: Sales, which were around $4 billion last year, are expected to climb another $1 billion by 2017, according to Global Industry Analysts. Increased supply has caused prices to fall.

Costs for five-piece dining sets in aluminum have come down 12% since 2008, wood 23%, reports trade publication Casual Living.

Best deals

Ikea Äpplarö drop-leaf table and six chairs, $399 (down from $499 last year). Jennifer Litwin, author of Best Furniture Buying Tips Ever!, especially likes the versatility that the expandable table affords.

Get it cheaper - buying a home

Buy a house house for less in a seller's market - Advice from Sam Schneiderman, broker, Greater Boston Home Team

Shop in the off-season. "In family-oriented suburbs that's usually from after the school year begins till early spring. In urban locations, there's typically less competition after landlords require lease renewals, primarily July and August, until mid- to late winter."

Broaden your search. "When rates are this low, people gravitate to neighborhoods they couldn't otherwise afford. Expand your circle to neighborhoods where prices -- and competition -- may be lower. And look at homes that have been sitting on the market at least six weeks; sellers may be more open to negotiating."

Avoid making demands. "There are 19 other bidders the seller can move on to. Come off as sane, and you can be more appealing than someone with a higher bid who looks like trouble."

Get an A+ pre-approval. "Work with a lender that has a reputation for closing on time and carefully vetting borrowers (ask your agent for suggestions). A higher bid contingent on financing from a lender with a bad reputation might not be as compelling as a lower bid attached to a respected lender."

What's not cheap - building materials

The overall price of building supplies has climbed 9% in the past three years. Some materials are up far more: Plywood has climbed 32%, framing lumber 25%, and insulation 18%.

Cheaper alternative: Instead of expanding your house's footprint, repurpose existing square footage to drastically reduce the materials you'll need.