Home values in Alexandria have risen more than 20 percent in the past year, according to real estate assessments announced by city officials yesterday, keeping pace with hefty increases elsewhere in Northern Virginia and the region.
The average assessment for all residences in Alexandria, both single- and multi-family, was $441,823, up 21 percent from last year. Condominium values jumped 28 percent from last year, to an average of $287,765.
City officials said they were not surprised at the increase, given assessments in other Northern Virginia jurisdictions, where the average value of a home has roughly doubled since 2000.
Home values in Alexandria have increased 131 percent since 2000. In neighboring Arlington County, where property owners received assessment notices last month, residential values were up 24 percent in the past year.
The unprecedented increase in Alexandria home values is attributable to low interest rates, continued job growth in the region and the city's desirable location close to Washington, city officials said.
Mayor William D. Euille (D) said the increase reflects the strength of the city's housing market but could place an "increased burden" on taxpayers at a time when Alexandria and its neighbors are trying to encourage affordable housing programs for teachers, municipal workers and low-income families.
At the city's current real estate tax rate, the assessment increases would bring in an additional $3 billion in the coming fiscal year. But Euille said the city probably would cut the tax rate by 6 to 8 cents after the budget is introduced next month. In Virginia, unlike Maryland, there is no percentage cap on how much real estate taxes may rise in one year.
At the current tax rate, 99.5 cents per $100 of assessed value, the real estate tax for a typical Alexandria homeowner would increase $772.
"While all of this is good news for homeowners, the bad news is that we'll all . . . be paying an increase in property taxes," Euille said. "We don't want to force anyone out of Alexandria because they can't afford to pay the taxes on their property. That is of concern. What we're trying to do is determine a tax rate reduction that is reasonable."
The city will continue to offer tax breaks to the elderly and disabled, and officials said they want to expand a year-old program for residents who make $62,000 a year or less and whose homes are assessed at average value or less. Last year, about 800 residents received a $250 credit on their taxes through that program.
Cynthia Smith-Page, the city's chief real estate assessor, said the neighborhoods that had the biggest assessment increases were in the West End and Arlandria, where there are relatively more affordable homes.
Kathleen Burns, president of the Brookville-Seminary Valley Civic Association in the West End, said people in her neighborhood were dreading the arrival of assessments, which were mailed yesterday.
The value of single-family houses has increased in her neighborhood by 21 percent, while the value of condominiums increased by a whopping 35 percent, officials said.
"Everybody's worried," Burns said.
