As we’ve noted for months, Alexandria City, which includes Old Town, continues seeing high home sale prices, limited inventory, and stiff competition for some of the most sought-after homes in the region. At the same time, interest rates remain low and inventory has increased a bit, possibly incentivizing buyers to stay in the game and find their next dream home.
In June, average Alexandria City home sale prices were at $701,302, according to MarketStats by ShowingTime. Average prices achieved their highest point of the year in April, when they hit $711,713, and year-to-date average prices in the city are $673,885—almost 1.5 percent higher than Alexandria City’s 2020 average sale price of $664,881.
Competition remains stiff. Though the average days on market from January through June in Alexandria City is 21, recent monthly numbers show a decline. Average days on market in January was 27, and then it climbed to 34 days in February. Since then, days on market have dropped from 22 days in March to just 15 in May and June. Remember, that’s the average, tempered by a handful of homes that at times can be on the market quite a long time. So far this year, 58 percent of homes sold in Alexandria City did so in 10 days or less.
This high demand favors sellers contemplating a jump into the market, but buyers have seen some benefits lately as well.
For starters, after an extended period of extremely low inventory, 2021 has shown steady inventory increases throughout Alexandria City. Each month this year has shown a substantial increase in active listings compared to the corresponding month in 2020. In June, for example, Alexandria City had 337 active listings, while June 2020 saw just 201 active listings—a 68 percent difference. Though the percentages vary, each month this year has shown a consistently higher number of active listings than in 2020.
In addition, mortgage rates continue to hover in rather low territory. As of July 8, the average 30-year fixed-rate mortgage rate was 2.9 percent, and the 15-year average rate was 2.2 percent, according to freddiemac.com. These are boons as well to buyers looking to lock in a good rate on a future home purchase.
As was defined by our collective experience from last year, there’s no way to predict the future—and we’re not trying to do so here. While enjoying low interest rates, buyers and sellers alike should keep a close eye on inflation as it has taken a decided upward path over the past few months. The inflation rate this year has taken stairstep jumps since the beginning of the year. Check out these inflation numbers: January, 1.4 percent; February, 1.7 percent; March, 2.6 percent; April 4.2 percent; May 5.0 percent; and June, 5.4 percent.
What can higher inflation do? Among other drags on the economy, it can force interest rates higher while the buying power of a dollar drops—definitely a factor when applied to the homebuying and selling market.
Still, both sellers and buyers can find positives in this extremely active local market. Just make sure you’re careful and stay informed as these many economic variables push and pull on the market as a whole.
If you’re looking for well-informed professionals to help you navigate the exciting word of D.C. Region Real Estate, please contact us for a chat or consultation. We’ll keep your best interests at the forefront and work overtime ensuring you get the latest perspective and guidance to succeed in this exciting local market.
Christopher Prawdzik and his wife Angela Logomasini are licensed Realtors® with Samson Properties in Alexandria and are members of the Northern Virginia Association of Realtors® Top Producer’s Club. Operating as D.C. Region Real Estate, they offer comprehensive real estate services, including 4½% full-service listings, throughout the entire Washington, D.C. real estate market. Angela is licensed in Virginia, Washington, D.C., and Maryland. Christopher is licensed in Virginia and Washington, D.C. In addition, Christopher holds a broker license in North Carolina and is affiliated with McGary and Associates.
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