There’s no doubt that Alexandria’s real estate market in 2021 was strong, with home values increasing significantly. But that means higher tax bills are headed toward local mailboxes.
The average price of a home sold in Northern Virginia in 2021 was $714,208, an increase of 6.5 percent above 2020’s average of $670,408. The median price rose by 5 percent, from $590,000 in 2020 to $620,000 in 2021, according to data released by the Northern Virginia Association of Realtors in January.
Larger single-family homes (four bedrooms or more) posted the largest average price gains, increasing 12 percent on average compared to those sold in 2020, according to NVAR.
In the City of Alexandria, homes sold for an average of $592,087 in December 2021. In Fairfax County, the average was $708, 455.
There may be headwinds on the horizon, though. As inflation continues at a record pace — 7.5 percent in the past year — and interest rates start to climb, buyers may feel the need to reduce their budgets or delay moving if they can. The pandemic may also play a factor, depending on whether there’s another Omicron-like wave of illnesses in the region in 2022.
Higher Tax Bills Coming
In the City of Alexandria, the overall value of Alexandria’s taxable property increased 6.24 percent compared to January 2021, according to data released by local real estate officials. That means more tax revenue for the city.
“The equalized tax base increased by approximately $2.93 million, including $2.07 billion in appreciation of existing properties and $857.64 million in either new development or improvements,” city officials said.
- The residential tax base increased by 6.91 percent overall.
- The average assessment for all residential property types (including single-family homes, townhomes and condominiums) increased by 5.36 percent to $655,901.
- The average single-family home value increased 6.44 percent to $896,176.
- The average condominium value increased by 2.81 percent to $398,470.
Commercial properties also saw an increase in value, reversing last year’s decline. The reversal was due to the growth in multifamily rental properties (new apartments) and an increase in the value of office buildings (some of which are seeing new life as residential buildings). Commercial properties, including multifamily apartments, comprise 40.2% of the tax base in the City of Alexandria.