Home » News » Want to buy a house this fall? Factors to look into!

Fall is a great season to purchase a new house in US. If you are willing to buy real estate this autumn, you must have a look at the certain important factors and the market scenario. Housing market in the States is presently quite strong. As per reports from the U.S. Department of Commerce, home sales of new single-family have seen an upsurge by 12.4% from June in July, 645,000 units being seasonal adjusted rate.

Now, before buying a house in US this autumn, take into consideration the following factors.

Things to consider before buying a property:

  1. Mortgage payments –

As per budget estimation, the monthly mortgage payments need to be calculated. And this further depends on the amount borrowed, current interest rates and the period of paying off loan.

  1. PMI or Private Insurance Mortgage –

In case the down-payment is below 20% of actual price of home, you need to pay the lender for Private Insurance Mortgage. This is provided as a guarantee to a lender against any default that might occur. However, you should always verify with mortgage servicer, whether you can remove the PMI after you have reached 20% equity or not.

  1. Taxation –

You must be aware of property taxes that the local government charges. Being a buyer, you must ask your real estate agent to share with you present annual property tax.

  1. Tracking the US real estate market –

The most important factor is to track the current US market scenario – especially the house prices in your particular area. When you have a stable finance and real estate prices having gone down, it’s a good chance to purchase a house. However, if prices are high, you must be patient before investing.

Below is how the US real estate market is presently.

Current scenario suggests purchasing house in fall:

According to NAR reports, the existing sales of homes in US moved to reach its highest in May and June. Hence, autumn is expected to have a strong real estate market in the United States. That’s because rock-bottom interest rates are drawing mortgage rates of historically low standards. This will increase people’s buying power, creating a good sense of urgency, for capitalising on low rates.

Economic aspect

US economy is experiencing growth in various economic sectors, the major one being decreased rate of unemployment (by 5%). According to U.S. Bureau of Labor Statistics, in July 2015, there were around 215,000 jobs. But in 2016, around 255,000 jobs have been added by the nation. Continued growth of job opportunities is hinting on more buyers entering the housing market.

Again, there has been a considerable rise in the number of new home buyers in the US market. As National Association of Realtors state, around 35% share was of first-time purchasers in July.

Hence, these figures and statistics state a positive indicator on purchasing a house in US this fall. You should always be updated about the current US market status.

by Duncan Wierman
Founder Boston REIA