Alexandria, VA Housing Market Report

The Alexandria, Virginia real estate market is currently navigating a significant transition toward a more balanced environment, moving away from the hyper-competitive conditions of previous years. As of December 2025, the median home value stands at $656,941, representing a modest year-over-year increase of 0.34%. The most striking shift in the market is the substantial 30.05% surge in active inventory, bringing the total number of available listings to 12,538. This influx of supply, coupled with an average of 56 days on market—a 16-day increase from last year—suggests that buyers now have more leverage and selection than they have had in several seasons.

Price trends over the last six months indicate a period of stabilization followed by a gentle upward trajectory. After a slight dip in August 2025 to $652,961, values have climbed steadily for four consecutive months. This recovery reflects the enduring demand for the Washington-Arlington-Alexandria metro area, driven by its proximity to federal employment hubs and robust local infrastructure. Despite the increase in inventory, the sale-to-list ratio remains at a perfect 1, indicating that while homes are taking longer to sell, sellers are still successfully achieving their asking prices through disciplined pricing strategies.

Looking ahead, the Alexandria market presents a unique window of opportunity for both parties. For buyers, the increase in inventory and longer days on market provide a reprieve from the frantic bidding wars of the past, allowing for more thorough due diligence and negotiation. For sellers, the market remains healthy, but the days of rapid appreciation have cooled. Success for sellers in 2026 will depend on realistic pricing and property presentation, as buyers are becoming increasingly discerning with the wealth of options now available to them. The rental market mirrors this stability, with a median rent of $2,299 showing only marginal growth, suggesting a well-equilibrated housing ecosystem.