Ask McEnearney

Renting vs. Buying in the DC Metro: Which Makes Sense?

For many people living in or relocating to the Washington, DC metro area, the question isn’t whether to make a move — it’s whether to rent or buy. With rising rents, fluctuating interest rates, and a fast-paced housing market, it’s not an easy decision. As a real estate professional in the Washington, DC area, I see both sides every day — and the right choice often depends on timing, goals, and lifestyle.

The Current State of the Market

After several years of rapid change, the DC-area housing market has started to level out. Home prices remain strong, especially in close-in areas like Arlington, Alexandria, and the District, but the double-digit price gains of the pandemic era have cooled. Interest rates, while higher than their historic lows, have stabilized — giving buyers a bit more predictability. Today’s ~6.2-6.3% is much higher than what we saw in years prior. But compared to the 2023 highs (~7.5%-8%), it’s lower and has come down from that peak.

On the rental side, the story isn’t much easier. Rents across the DC metro continue to climb, particularly in popular neighborhoods and close to metro stations. For many renters, it’s starting to feel like they’re paying a mortgage — just not their own.

The Financial Equation

If you plan to stay in the area for at least three to five years, buying often makes more financial sense. You’re building equity each month and protecting yourself from rising rents. In Alexandria, for example, monthly mortgage payments on a $600,000 condo with a modest down payment may be comparable to rent on a similar property.

The Benefits of Buying

Homeownership offers both financial and personal rewards. Beyond building equity, owning a home provides stability in monthly payments, the freedom to customize your space, tax advantages, can amplify your credit, and build long-term wealth. In markets like Alexandria and Arlington, where long-term property values have remained resilient, homeowners often see steady appreciation.

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This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703.244.6115 or email [email protected]. You may also submit your questions to Corcoran McEnearney via email for response in future columns.

Question: When should you get a home inspection?

Answer: Many buyers, especially those who have never bought a home before, have a lot of questions about the inspection aspect of the contract process. While it is ultimately up to the seller to decide if they will allow home inspectors to enter their home, the buyer has a few options to ask for.

The most common choice is a “home inspection contingency.” This is a time period set forth in the offer that allows the buyer to bring in a licensed inspector who will inspect the home & write up a report listing items that need to be repaired.

Other inspections may also occur during this contingency period. Home inspectors are generalists, and can advise you when you need to get a specialist – such as a chimney inspector or a mold remediation specialist. They will not diagnose an issue, but let you know what to look out for. For that reason, it is always best to complete the inspection on the earlier side of the contingency so that there is time for additional inspections, if needed.

While this probably sounds fairly straightforward, there are actually two inspection contingency options to consider.

The first option is inspection contingency to negotiate or void. This gives the buyer the most flexibility, and is also the most risky to the seller. With this option, the buyer has a few choices after conducting an inspection – they can move forward with no changes to the contract, void the contract due to items found during the inspection, or request that the seller repair certain items or provide a credit at settlement.

The second option is an inspection contingency to void only. This means that the buyer is agreeing not to ask the seller for any changes after the inspection – they only have the option to void the contract. The general understanding with this choice is that the buyer is mainly inspecting to understand what they should budget for, and will likely only void the contract if there are major defects uncovered.

In competitive offer situations, buyers can make their offer more attractive by either shortening the contingency time period, making the contingency to void only, or waiving the contingency altogether.

In situations that are not competitive, I would never advise a buyer to waive an inspection. Home inspections can be very helpful in estimating future costs, as well as establishing the condition of the home. Sometimes, even in homes that have been recently built or renovated, inspections can find things that may not be immediately visible to the average home buyer.

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This week’s Q&A column is written by David Howell, Executive Vice President and Chief Information Officer, of Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant market news, contact David at [email protected].

Question: What is happening in the real estate market in Alexandria?

Answer: This week, we look at market activity year-to-date for 2025 compared with the same months of 2024 in the City of Alexandria and South Alexandria (Fairfax County portions of Alexandria). The charts below show average available month-end inventory, total new listing activity by price range, total contract activity by price range, and total contract activity by property type (condos, attached homes, and detached homes).

If you are interested in more information and analysis, every month on our website, we profile the most important market indicators for Northern Virginia – contract activity, interest rates, inventory, affordability, and the direction of the market – in an easy-to-read and digest summary followed by supporting charts and data.

CITY OF ALEXANDRIA

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This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703.244.6115 or email [email protected]. You may also submit your questions to Corcoran McEnearney via email for response in future columns.

Question: What is the relationship between list price and days on market?

Answer: One thing that is very important for both home sellers and buyers to understand is the relationship between list price & days on market (often referred to as DOM). Since they each have an effect on the other, this relationship is important to understand when pricing a home or considering making an offer.

From a buyer’s perspective, if a home has been on the market for longer than other listings, several ideas might run through their heads.

Are there potential issues with the home? Perhaps there have been failed offers, or the seller is difficult to work with. Most commonly, they will see the home as overpriced.

A simple miscalculation of the market could raise all of these red flags for buyers.

Setting the right price at the start is crucial to avoid these concerns from buyers, as well as giving the seller the most negotiating power.

Sellers might have a target in mind for what they would like to list for, but this is not always the best place to start.

Sellers should think of the list price as the starting point of a negotiation. The goal is to get as many buyers in on that negotiation as possible. Buyers are much more likely to go higher than the list price if there is competition, and if the house sits for weeks or months, they may very likely go lower than the list price.

It is important for both buyers and sellers to discuss the market regularly with their agent. A “long time” on the market can vary greatly over time and by region. Consult with an experienced agent for the best advice.

Hope Peele is a licensed real estate agent with Corcoran McEnearney in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many-faceted process of buying or selling a home. Contact Hope at 703.244.6115.

If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email: [email protected] or call 703-549-9292.

Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.

This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703.244.6115 or email [email protected]. You may also submit your questions to Corcoran McEnearney via email for response in future columns.

Question: What’s the Best Strategy for Pricing Your Home?

Answer:

When it comes to selling your home, one of the most important factors will be choosing the right price. If you price it too high, buyers will head towards better value homes, and maybe not even visit your home. If you price it too low, you may be leaving money on the table. The goal is to get buyers to flock to the home and want to buy it. It’s a beautiful thing when there are multiple offers and buyers bid up! So what is the best strategy for pricing your home?

1. Start with a CMA. The first step in price is to consult the experts. Your realtor will do a Comparative Market Analysis, a CMA. This data will show you what homes are on the market currently, what homes are Under Contract, Expired and Sold. It’s very important to focus mainly on the sold properties, as they are the true indicator of the market. While the prices of homes currently on the market are good to note, they have not sold, so they do not reflect what a buyer will pay. It’s also important to note that homes that are under contract have not sold yet, so we do not know if they got their list price or not. The CMA will take into account the square footage, the lot size, how many days the homes were on market and other factors. With some additional analysis, the CMA should let you know the condition and upgrades of the homes sold. This gives you a clear picture of what buyers are paying for, not what sellers are asking for.
2. Keep Emotions of Pricing. It’s very important to use the data from the CMA and price your home accordingly. This can be difficult for some sellers, as you have built memories in the home. Buyers look at your home with fresh eyes, and consider the data very closely to determine whether this home fits in their budget and aligns with other sales prices, so don’t let your emotions guide the price.
3. Use Strategic Price Points. When buyers are searching for homes, they typically search in specific price brackets. For instance, they may search for homes from $750,000-$800,000, even if they are willing to pay a little more for a home they love. So if the data is telling you that your home should be priced at or near $790,000, and you decide to price at $810,000, those buyers will never see the home. Just because you have an amazing yard or you just spent a lot of money fixing things or you think your home is the best in the neighborhood, buyers will not be swayed by those “feelings”. If you price it right, there is a stronger likelihood of getting lots of buyers looking, possibly multiple offers and maybe even that high price you are dreaming of.
4. Look at the Competition. Your home will be compared to everything currently on the market, as well as those that have recently sold, so you should actively keep an eye on the current market. Ask your realtor to set up a report for you, so you see the other homes that are competition for your home. Put on your buying hat, and look at the photos and the prices and how it compares to your home. It’s important to know what’s out there, because buyers will just move on if they do not think your home is worth the price. Work with your Realtor to make sure that your home stands out.
5. Never Overprice. Especially in this market, over pricing is never a good strategy. Some sellers want to over-price to leave room for negotiation.This often backfires, as overpriced homes tend to sit on the market longer and this makes buyers wonder if something’s wrong with the home. The longer your home sits on the market, the more likely it is that you will have to lower your price and oftentimes more than once. Data shows that homes that were initially overpriced tend to sell for lower than they would have if priced appropriately in the first place.
6. Create Urgency with the Right Price. The goal in pricing your home is to create a sense of urgency. Going slightly lower than what the market dictates is in your best interest. Homes that are seen as a great value get lots of showings immediately, as buyers don’t want to miss the opportunity. Typically, aggressively priced homes have multiple offers and sell for higher, and sometimes MUCH higher than the list price.
7. Adjust Quickly if Needed. The DC Metro area still has a strong, vibrant real estate market. If your home is not consistently getting showings and does not get any offers within the first few weeks, this is an indication that you have overpriced the home. It is very important that you adjust quickly rather than become a stale listing that sits on the market. The longer a listing sits, the more likely that buyers will think something is wrong with the home, and they will lose interest. If a buyer does come along, they are most likely going to insist on a much lower price, since the listing has been sitting for a long time. It’s important to keep the listing fresh and desirable, so listen to the market and adjust the price accordingly.

The Bottom Line! The best strategy for pricing your home is to work with a Realtor who knows your market inside and out, and to trust the data. A well-priced home doesn’t just sell faster, it sells for more money. When you align with the market instead of second guessing it, you put yourself in the best position for getting the most money for your home.

Hope Peele is a licensed real estate agent with Corcoran McEnearney in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many-faceted process of buying or selling a home. Contact Hope at 703.244.6115.

If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email: [email protected] or call 703-549-9292.

Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.

This week’s Q&A column is sponsored and written by Hope Peele of The Peele Group and Corcoran McEnearney, the leading real estate firm in Alexandria. To learn more about this article and relevant Alexandria market news, contact The Peele Group at 703.244.6115 or email [email protected]. You may also submit your questions to Corcoran McEnearney via email for response in future columns.

Question: If I’m considering buying a home, when should I start to look?

Answer: Whether I’m working with home buyers or sellers, there are usually a lot of questions about the timeline. It can be hard to know when it’s the right time to start looking for a home, especially if you have a lease ending or are moving from a home that you are selling. It is important to think about the timing of your home search process, and the answers depend on several factors: your current living situation, your moving goals, and your financial timeline.

First, remember that there are typically three to four weeks between making an offer and settlement. Getting final financing approval takes time, as do other various contingency periods. Depending on what works best for both the buyer and seller, it is often about 30 days between the offer date and closing. If you have a date in mind for moving into your new home, you should identify your new home at least a month before that date.

This can be a little scary for buyers who are moving out of rentals and are concerned about the possibility of paying a mortgage before their lease ends. So, another important thing to consider is when the first mortgage payment will be due. When a buyer pays Closing Costs at settlement, it includes the rest of that month plus the following month. That means that whether settlement occurs on July 1st or July 25th, the first payment would be due on September 1st. If settlement occurs any time in August, the first payment would not be until October 1st, and so on…

This can be an important factor for buyers when thinking about their timeline. Having possession of the home for a month or so before the first payment is due could help to give some wiggle room when stopping payments on the house they are moving out of.

The bottom line is, if you have a move-in date in mind, you should plan to go under contract at least 30–45 days in advance. And don’t let fears about overlapping payments hold you back—your first mortgage payment might be further off than you think, giving you a bit of financial breathing room.

Looking for help mapping out your timeline? I’d be happy to walk you through it and create a strategy that fits your goals and lifestyle.

Hope Peele is a licensed real estate agent with Corcoran McEnearney in Alexandria, Virginia. She grew up in Old Town and currently lives in Del Ray. As a partner with The Peele Group, Hope is dedicated to guiding her clients successfully through the many-faceted process of buying or selling a home. Contact Hope at 703.244.6115.

If you would like a question answered in our weekly column or to set up an appointment with one of our associates, please email: [email protected] or call 703-549-9292.

Corcoran McEnearney, 109 S. Pitt Street, Alexandria, VA 22314, corcoranmce.com. Each office is independently owned and operated. Equal Housing Opportunity.