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.