Last week I wrote that home sales are holding steady in Alexandria, Virginia.  The market has not slowed in Alexandria City as much as some other places in the Northern Virginia.  

Today, I had the opportunity to attend a presentation by Christine Todd, CEO of the Northern Virginia Association of Realtors, on the state of the local economy and the housing market.  She reminded us that while the press may have you believing that the sky is falling by reporting on those problem areas (such as Herndon or areas of Prince William County) within the region, it is important to examine each locality separately.

When you take a closer look, especially in close-in areas like Arlington and Alexandria City, the picture is not so bleak.  Homes that are priced right for the market are still selling in relatively short time periods.  Inventory has steadied out, and with this week's Fed rate cut, some buyers who have been sitting on the fence may look again at purchasing.

The main thing that has hurt the Northern Virginia housing market has been the affordability of homes.  The fundamentals of our market are still present -- we have 2.3% unemployment (the lowest in the nation of any region), phenomenal job growth, and high-paying jobs.  These are all indications that the housing market should be prospering.  However the enormous appreciation of the last 4 to 5 years has caused an affordability problem because wage increases have not kept up with house price increase.  

But while, "people used to keep driving out further from D.C. until they could qualify and afford a home," according to Todd, "now they are starting to drive back closer because the infrastructures of the outlying areas has not kept pace with the population growth and the commutes are wearing on people."  Thus, the still prospering market in Alexandria.

Where are the homes in Alexandria?

There are currently 393 single family homes and townhouses on the market in Alexandria City.  99 homes sold in the  last 30 days.  This means that there is slightly under 4 months supply of Alexandria homes available.  (For comparison, look at Herndon, Virginia with 551 homes on the market and 62 sales last month for an almost 9 month supply).

Here is some information on pricing in these neighborhoods: