Now that we are almost through January, many of my buyers have been asking me the same question: Is now a good time to buy a home in Alexandria? The short answer — yes, especially for prepared and informed buyers. The Alexandria VA real estate market is showing signs of balance and opportunity that haven’t been this clear in years, and recent shifts in mortgage rates are adding a new twist to the story.
Where the Market Stands
The Northern Virginia housing market wrapped up 2025 with steady, measured growth and a hint of normalization after years of intense competition:
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Home Sales: Units sold across Northern Virginia rose about 1.5% in 2025, reflecting healthy demand stabilizing after pandemic peaks.
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Median Price: The median sold price region-wide landed around $750,000, up nearly 3% year over year.
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Alexandria’s Growth: In the city itself, 1,987 homes sold in 2025 — a 2.2% increase from the prior year — with average sales prices rising to about $818,871 across all home types.
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Inventory: New listings have been climbing, giving buyers more choices than we’ve seen in the recent past.
These numbers show a market that’s still appreciating, but not at the breakneck pace of the recent seller-heavy years. That’s good news for buyers who are cautious, discerning, and ready to act.
Mortgage Rates: Lower — and a Real Opportunity
One of the biggest stories right now is mortgage rates. After hovering near 7% in parts of 2024 and 2025, rates have drifted down into the low-to-mid 6% range, which is something we simply haven’t seen in years — and that makes a real difference in monthly payments and purchasing power.
Here’s what buyers should know:
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Current averages: The average 30-year fixed mortgage rate recently dipped around 5.97% – 6.01%, depending on the source, with VA and FHA products slightly lower.
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Near multi-year lows: Freddie Mac data shows rates hitting their lowest point in more than three years in mid-January 2026, averaging about 6.06% for conventional 30-year loans.
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Year-over-year improvement: Rates are down nearly a full percentage point compared with early 2025, when the 30-year average was closer to 7%.
Why this matters: Even a small drop in mortgage rates can meaningfully increase your purchasing power. For example, a buyer who might qualify for a $500,000 mortgage at 7% could potentially afford more home or enjoy lower monthly payments with rates closer to 6%.
That’s not just math — it’s confidence, choice, and timing working in a buyer’s favor — and a key part of why many people are asking whether now is actually a good time to buy.
The Winter Market Advantage
Winter isn’t just about cooler weather — it’s historically one of the best times for buyers who are serious and well-prepared:
Less competition: Fewer buyers means less pressure, more breathing room in offers, and often better negotiating power.
Sellers who list now are motivated: Winter sellers aren’t waiting for spring — they’re on the market with purpose.
Nearby Spring rush: Getting under contract before spring can put you ahead of the curve when more buyers flood in.
Combine this winter cadence with easing mortgage rates, and you’ve got a market that’s more balanced and approachable than many buyers realize.
What Buyers Should Watch for in Early 2026
If you’re considering buying — especially in Alexandria proper — here’s what to watch early in the year:
Mortgage rate trends: Rates fluctuate with economic data, Fed policy expectations, and bond markets. Even small drops or increases can shift affordability.
Inventory changes: Early 2026 could continue to see incremental increases in listings as sellers test the market ahead of spring.
Neighborhood dynamics: Conditions vary across micro-markets in the city — from Old Town’s historic charm to broader NOVA submarkets — so local insight matters.
Appraisal and financing timing: With moderate price growth forecasted for Alexandria in 2026, getting pre-approved and ready early gives you an edge.
So… Is Now a Good Time to Buy a Home in Alexandria?
The short answer... Yes — for many buyers, this moment presents real opportunity.
The combination of more inventory than recent years, mortgage rates at multi-year lows, and a balanced market feeling suggests that well-prepared buyers can find choice and comfort in their search — from cozy condo options to family-friendly homes across Alexandria and NOVA.
Whether you’re first-time buyer, upgrading, or relocating, timing your purchase with current rate and inventory trendscould put you in a strong position financially and strategically. Don't hesitate to reach out. If this post sparked questions or made you curious about your own plans, just call or email me — I’m always happy to be a sounding board. Sometimes a quick conversation is all it takes to bring things into focus!
