Alexandria recorded a significant year-over-year decline in home sales during August as the regional and national markets slowed due to rising interest rates.
Total sales across the city for the month were 130, down 28.6% from 182 transactions in August 2025, according to figures reported by MarketStats by ShowingTime.
The average sales price of single-family homes sold during the month was $1,506,223, up 14.7% from a year before. But given the relatively limited number of transactions in that market segment — just 20 for the month — swings up and down are not unusual.
For the 110 attached homes that sold, the average sales price of $727,164 was up 13.6%. That category includes townhouses, rowhouses and condominiums.
Add up the sales and prices, and the total sales volume of $111.1 million for August was down 19.4% from $137.9 million a year before.
Homes that went to closing during the month spent an average of 26 days between listing and ratified contract, up slightly from 24 days a year before. They garnered 97.9% of listing price, down from 98.6%.
Pending sales at the end of August totaled 125, down about 24% from a year ago and suggesting September and October sales figures may also be in negative territory.
House hunters have more inventory to pick from; the 390 homes on the market at the end of August represented an increase from 318 a year before. For the month, 149 properties were listed, down from 171 in August 2025.
Metro area sales down, prices up
Across the D.C. metropolitan area, sales in August stood at 3,872, down 9.2% from a year before. The median sales price was $640,000 regionwide, up 2.4%, according to figures reported by Bright MLS.
Lisa Sturtevant, the organization’s chief economist, said economic headwinds remain a major factor in the local market.
“With mortgage rates remaining elevated and affordability a growing challenge, many prospective homebuyers in the D.C. region are holding back, waiting for more favorable market conditions later in the year,” Sturtevant said.
The next few months are unlikely to see a major uptick in local market activity, she said.
“Expect a relatively slow fall market, with fewer buyers and sellers, slower price growth, and homes taking longer to sell,” Sturtevant said.
Across the region in August, buyers had 11.3% more homes to choose from than a year before, but showing activity was down 7.3%.
For the first eight months of the year, total sales across the metro area stood at 33,786, up 0.6% from the same period in 2025.
Showings for the first eight months were up 0.8% to 751,581.
City fourth across region in per-square-foot costs
Average per-square-foot home sales prices across Alexandria were above $500 for the first eight months of 2026, one of the highest totals in the region.
The average per-square-foot sales price was $502 for the January through August period, up from $468 a year before, according to data reported by MarketStats by ShowingTime.
Alexandria was one of four jurisdictions in the Washington region with per-square-foot costs of more than $500 during the eight-month period. Falls Church led the regional pack at $523 per square foot, down from $536 a year before.
At $514 (up from $505 a year ago), Arlington edged out D.C. ($512, down from $527) for second place.
Among other localities in the immediate area:
- Fairfax County: The average per-square-foot sales price was $377 for the first eight months of 2026, up from $373 a year before
- City of Fairfax: The average per-square-foot sales price of $364 was up from $347
- Loudoun County: The average per-square-foot sales price of $304 was up from $300
- Prince William County: The average per-square-foot sales price of $256 was unchanged
For August, average per-square-foot sales prices were $532 in D.C., $516 in Falls Church, $511 in Alexandria, $510 in Arlington, $366 in Fairfax County, $365 in the City of Fairfax, $302 in Loudoun County and $259 in Prince William County.
Across the Mid-Atlantic, the median per-square-foot sales price for the first eight months of the year was $261, up from $257 a year before.
Figures represent most, but not all, homes on the market. All August 2026 figures are preliminary and are subject to revision.
Photo via Vitaly Gariev/Unsplash
