Alexandria, VA Real Estate Market Update: Spring 2025

As we move into the heart of spring 2025, Alexandria’s real estate market is experiencing notable shifts. Whether you’re considering buying, selling, or investing, understanding the current trends is essential.

Surge in Housing Inventory

Alexandria has witnessed a significant increase in housing inventory, with new listings up by 32.1% compared to the same period last year . This surge provides buyers with more options and indicates a more balanced market.

Home Values and Pricing Trends

• Average Home Value: $672,709, reflecting a 4.1% increase over the past year . 
• Median Sale Price: $664,165 as of March 2025, up 5.2% year-over-year . 
• Old Town Alexandria: Average home value stands at $1,208,994, marking a 4.7% annual increase . 

These figures highlight a steady appreciation in property values, making it a favorable time for sellers.

Neighborhood Highlights

• Del Ray: Known for its charming streets and community vibe, Del Ray continues to attract buyers seeking a blend of urban and suburban living. 
• Old Town: With its historic appeal and waterfront views, Old Town remains a premium location, reflecting higher property values. 

 Developments Impacting the Market

The proposed arena at Potomac Yard is already influencing local real estate dynamics. Some homeowners are capitalizing on the potential value increase by listing their properties, while others are holding onto their homes as long-term investments .

Market Outlook

The Northern Virginia Association of Realtors projects a 9.9% increase in the median price of single-family homes in Alexandria for 2025, the highest growth rate among Northern Virginia jurisdictions . This forecast underscores the city’s robust real estate market and its appeal to buyers and investors alike.

Thinking of making a move in Alexandria? With the market evolving, it’s crucial to stay informed and work with knowledgeable professionals. Whether you’re buying your first home, upgrading, or investing, understanding these trends will help you make informed decisions.