Buy or Rent in Northern VA?

The current housing market is causing residents to question if it is better to buy or rent in Northern VA. With an improving market and lower interest rates, it can be a difficult choice. This recent article tackles which makes more sense financially. “According to the latest Existing Home Sales Report from the National Association of Realtors, the median sales price of a home in the U.S. is $184,300. The mortgage payment (principal & interest) on that purchase would be $661.89 assuming a 20% down payment and a 3.5% mortgage interest rate. Currently, the median asking rent in the U.S. according to the Census Bureau is $717 a month. The monthly housing expense on a median price home is $661.89 and the median rent is $717. We now want to discuss what will happen to these costs over time. The principal and interest portion of the mortgage payment is locked in for the next 30 years. We know real estate taxes may be included in the payment and will increase to some degree over that time. We also acknowledge that the homeowner will have occasion to spend money on repairs. No one wants to unexpectedly replace a roof. They also receive many tax advantages as a homeowner. However, the actual monthly housing expense remains the same for the next 30 years. Now, let’s look at what happens to a rent payment. The best thing to do to predict the future is to study the past. We believe rents will follow their historically pattern and increase dramatically over the next 30 years. Buyers have a choice: either lock in your housing expense or deal with the uncertainty of rental increases.” With these trends presented, what will you choose- to rent or buy your home?