More often than not, the housing situation depends on the state of the real estate market at the time of inquiry for people that relocate to a new area. Many potential new residents consider that renting is the best choice, especially if they are young, new to the area, and haven’t set down their roots yet. When you relocate to a completely different area than the one you live in before, because you don’t know much about the city or neighborhood, it is customary to want to get a feel of things before you commit to a mortgage. You might not like the area at all and move out of the city in a couple of years. Many things can influence your decision, but choosing to either rent or buy is something that depends on your particular situation.
As Washington D.C. is among the hottest real estate markets in the country, newcomers should become aware that Alexandria, VA, is a great place to live as well. Since the Civil War, the city has been part of D.C.’s metropolitan area, and many people who live there work in D.C. This isn’t to say that working in Alexandria isn’t an option.
Considering the current situation and its impact on the real estate industry and the economy as a whole, many people look to renting as a safer option. Stories of friends or family drowning in their mortgage have swept the country, and in many instances, it would be better to rent. The reality of Alexandria, VA’s housing market, however, provides more benefits to buyers.
The Real Estate Market in Alexandria, VA
A quick glimpse at the housing market in the city of Alexandria, VA, tells us that the demand for housing is high while the supply is low. This fuels the city’s seller’s market towards the advantage of sellers. That is why we can see a discrepancy between the listing prices for homes and their selling prices. The median listing price for homes in Alexandria, VA is $500,000, but typically the value increases by closing time to $540,000. Sellers can be more adamant during negotiations as they have several parties interested in their property. It’s not particularly a bidding war, but it’s not far from it either.
An important fact to know about the housing market in Alexandria, VA, is that the homeownership rate is at 43%, while there are 57% renters. From those totals about 8% are vacant homes. Many newcomers are set on renting a home or an apartment in the city based on the selling prices but decide to buy as the rental market is quite limited. That leads to an increase in rental prices in Alexandria, VA as well, as they currently stand at $2,200. If you couple that with the diminished desirability of those homes, people are more motivated to buy. However, before you decide whether you should buy if it makes more sense to your situation, you must look into your mortgage qualifications to be able to make an informed decision about your future in Alexandria, VA.
Renting vs. Buying a Home in Alexandria, VA
Buying a home is a big decision that should be carefully considered and analyzed. For many families who consider purchasing a home in Alexandria, VA, emotions are big influencers in the decision-making process, but one should rely on logic when deciding. Renting or buying a home depends, as we already mentioned, on your particular situation. However, something to consider is that your rent will be affected by inflation, while your mortgage won’t be.
Timing is also essential. As we mentioned above, the current seller’s market doesn’t motivate many people to purchase. Still, if you find a bargain that fits with your lifestyle and budget, an investment could be a good idea with how the market is developing. It depends on your finances and future plans. If you are determined to live in Alexandria, VA, for more than five years, renting might not be the best idea.
Whichever your decision might be, you should look at both options before deciding. As we mentioned, the housing market in Alexandria, VA, doesn’t have an ample supply of homes put up for rent or purchase. This means that the options available might sway one way or the other.
What’s so different about buying or renting a home?
If you have particular needs or expectations from your housing, like owning a pet or accessibility features, rentals might not meet your needs. Out of ten interested newcomers looking to rent in Alexandria, VA, nine ended up buying as the house’s features and amenities don’t suit their lifestyle.
For example, if a bathtub is detrimental to your needs, having only available rentals without bathtubs might deter you from signing a contract. It’s the same with owning a pet or any accessibility features that you require. However, purchasing a home will allow you to add features, own a dog, and replace a shower with a bathtub. The level of flexibility with owning a home versus renting one makes a big difference for people who are looking at housing options.
Another pro of owning a home in Alexandria, VA, is that you will get access to tax breaks based on your mortgage’s interest deductions. If you belong in the 25% tax bracket, a monthly deduction of $2,000 will get you a $500 tax break. Multiply that by 12 months in a year, and you get a $6,000 annual deduction from your mortgage.
To help you make an informed decision about buying versus renting a home in Alexandria, VA, you can use this rent vs. buy calculator. Using this tool will help guide you towards the best decision based on your finances, the city, the home price, and your potential downpayment. There are financing options that don’t require you to put any down payment, but those might be more costly in the long-run. After putting in the median selling price and the median rent cost into the calculator, based on the housing market in Alexandria, VA, we got an analysis that promoted renting for those that will use the home for three years. Still, beyond that threshold, buying is more advantageous.
With all the tools at your disposal to help you make an informed decision, the real estate transaction becomes easier in today’s world. However, contacting the local real estate agents in Alexandria VA, will increase your odds to find the best fit for your current situation in this city tenfold. After years of working in the city’s market, they know what’s happening and can advise you towards the best decision. From their experience, they can tell you even which is the best time of the year to purchase in Alexandria, and they also understand all the requirements for either of the two options.
Conclusion
To rent or to buy? That is the question. Many people have been struggling with this decision, and far more will continue to face the same struggle in the years to come. The answer to this question can only come from each individual person, and in order to give the best answer, careful consideration, analysis, and financial evaluation have to take place. We already mentioned that deciding to purchase a home is influenced by emotions, but the thing is, it shouldn’t be. Or, at the very least, we should try to focus on the data before our emotions take over. There is no way to leave out your emotions altogether, but basing such an important decision on emotions might come with a price.
Something to always keep in mind: if you find yourself in financial struggle, don’t make swift decisions that you’ll have to pay for for the next 30 years. If finances permit, rent until your financial situation is more stabilized. Or just rent because it might be a better option for you.
Whichever your decision might be, let us know in the comments below if you have any other questions that we might supply an answer or guide for. Like & Share this article with friends and family as buying a home is one of the most important decisions of our lives, and many might use advice or guidance, especially now.