Alexandria, VA – As we welcome the New Year, we wish all Zebra readers a happy, healthy, and prosperous 2026. Reflecting on 2025 year-over-year performance compared to 2024, the Old Town Alexandria real estate market once again demonstrated notable resilience despite ongoing uncertainty related to federal layoffs and the potential for government shutdowns. Historically, Alexandria is one of the Northern Virginia submarkets which should be sensitive to federal employment shifts, making this stability particularly noteworthy.
It is important to note that the data referenced here applies exclusively to zip code 22314, offering a focused snapshot of Old Town Alexandria and its surrounding neighborhoods. In 2024, the market recorded approximately 650 closed sales, with a median sold price of $870,500 and an average sold price just over $1 million. Homes continued to sell efficiently, averaging 22 days on market, while sellers achieved strong results with sale prices averaging close to 99% of original list price. That strength carried into 2025, when Old Town Alexandria recorded 680 closed sales, a median sold price of $900,000, and an average sold price of $1,054,256, reflecting steady year-over-year gains in both pricing and activity. Average days on market remained unchanged at 22 days, reinforcing the market’s stability despite broader economic uncertainty and federal workforce concerns.
Attached homes, including condominiums and townhomes, continued to account for the majority of sales activity, reinforcing Old Town’s appeal to buyers seeking walkable, low-maintenance living close to Washington, D.C.
Despite heightened attention on federal workforce reductions, Old Town Alexandria has not experienced a meaningful softening in pricing or demand. One reason is the area’s increasingly diverse buyer pool. While federal employees remain an important segment, demand is also driven by dual-income households, private-sector professionals, downsizers, and buyers prioritizing lifestyle, historic character, and proximity to transit. This diversity continues to help buffer the market during periods of federal uncertainty.
Looking ahead to 2026, expectations remain cautiously optimistic. Inventory constraints are likely to persist, particularly for townhomes/fee simple (non-condo) homes and updated properties in prime locations. As a result, well-priced homes should continue to attract competitive interest, while sellers benefit from limited supply rather than speculative demand. Any significant market shift is more likely to be driven by broader economic factors such as interest rate movement rather than local demand fundamentals.
Sellers need to price their homes competitively and present their homes pristinely if they wish to get top dollar.
Interest rates, as of this writing, are generally below 6%. Having a 5 in front of the interest rate is significant psychologically. If January buyer activity is any indication of the strength of the 2026 market, buyers are back in force! For both buyers and sellers, Old Town Alexandria remains a market defined by long-term desirability and stability. While federal headlines may introduce short-term noise, the neighborhood’s strong fundamentals suggest it will continue to hold its ground in the year ahead.
We never want to minimize the impact on the lives of our neighbors that are impacted by the federal layoffs. The stress of losing a job is incredibly difficult and we hope that our region will continue to offer new opportunities for our citizenry.
Listing of the month:
2005 Clark Place, Alexandria, VA 22308
4 bed/3 bath updated and expanded stunner in Hollin Hall Village in the heart of Fort Hunt Road. Cul-de-sac location. $1,065,000 www.2005ClarkPlace.com
Learn more www.Seward-Group.com.
The Seward Group
(703) 298-0562
