If you are asking yourself, is it time to buy a home in Northern VA , you are probably getting a lot of advice from friends and family. Even though they will have your best interest at heart, they may not be aware of your financial standing and housing needs or what is currently happening in the NOVA real estate market.

A great starting place is to ask yourself the following 3 questions to help determine if now is a good time for you to buy in today’s market.

1. Why am I buying a home in the first place?

This is certainly the most important question to answer. Forget the finances for a minute. Why did you even begin to consider purchasing a home? For most, the reason has nothing to do with money.

For example, a survey by Braun showed that over 75% of parents say “their child’s education is an important part of the search for a new home.”

This survey supports a study by the Joint Center for Housing Studies at Harvard University which revealed that the top four reasons Americans buy a home have nothing to do with money. They are:

• A good place to raise children

• A place where you and your family feel safe

• More space for you and your family

• Control of that space

What does owning a home mean to you? What non-financial benefits will you and your family gain from owning a home? The answer should be the biggest reason you decide to purchase or not.

2. Where are home values headed?

According to the Existing Home Sales Report from the National Association of Realtors (NAR), the median price of homes sold in December (the latest data available) was $232,200, up 4.0% from last year. This increase also marks the 58th consecutive month with year-over-year gains.

If we look at the numbers year over year, CoreLogic forecasted a rise by 4.7% from December 2016 to December 2017. On a home that costs $250,000 today, that same home will cost you an additional $11,750 if you wait until next year.

Here in Northern VA, a similar future in home values is shaping up over the next few years. I believe home values will continue a steady upward movement averaging around 4% over the next 3 years.

What does that mean to you?

Simply put, with prices increasing each and every month in Northern VA, it will likely cost you more if you wait until next year to buy. Your down payment will also need to be higher in order to account for the higher price of the home you wish to buy.

3. Where are mortgage interest rates headed?

All home buyers must be concerned about more than just prices but also the overall cost. The ‘long-term cost’ of a home can be dramatically impacted by even a small increase in mortgage rates.

The Mortgage Bankers Association (MBA), the National Association of Realtors, and Fannie Mae have all projected that mortgage interest rates will increase over the next twelve months, as you can see in the chart below:

Bottom Line

Only you and your family will know for certain if its time to buy a home in Northern VA. Answering these questions will help you make that decision. If you still have challenges deciding, download my free detailed guide — Things to Consider When Buying a Home in Northern VA.