Real estate (and tax assessments) continue to grow in Alexandria
There is no doubt that the Alexandria real estate market in 2021 was strong, with home values increasing significantly. But that means higher tax bills are heading to local mailboxes.
The average price of a home sold in Northern Virginia in 2021 was $714,208, up 6.5% from the 2020 average of $670,408. The median price rose 5% 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 or more bedrooms) posted the largest average price increases, rising 12% on average from 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.
However, there may be headwinds on the horizon. As inflation continues at a record pace – 7.5% last year – and interest rates start to climb, buyers may feel the need to cut their budgets or delay their move if they can. The pandemic may also play a role, depending on whether or not there is another wave of Omicron-like illnesses in the region in 2022.
Higher tax bills ahead
In the city of Alexandria, the overall value of Alexandria taxable property increased by 6.24% compared to January 2021, according to data published by local real estate agents. This means more tax revenue for the city.
“The equalized tax base has increased by approximately $2.93 million, including $2.07 billion in appreciation of existing properties and $857.64 million in new developments or improvements,” the authorities said. city officials.
- The residential tax base increased by 6.91% overall.
- The average assessment for all types of residential properties (including single-family homes, townhouses and condominiums) rose 5.36% to $655,901.
- The average value of single-family homes rose 6.44% to $896,176.
- The average value of condominiums increased by 2.81% to reach $398,470.
Commercial properties also saw their value increase, reversing last year’s decline. The turnaround is due to the growth of multi-family rental properties (new apartments) and the rise in the value of office properties (some of which are seeing new life in apartment buildings). Commercial properties, including multi-family apartments, make up 40.2% of the City of Alexandria’s tax base.