The Arlington real estate market is showing considerable growth, with single-family homes edging closer to an average sales price of $2 million.
According to recent data, the average sales price of single-family detached properties that closed in September reached $1,813,759, reflecting a remarkable 23.5% increase compared to the previous year.
These findings were released on October 10 by Bright MLS, using insights from MarketStats by ShowingTime.
In September, single-family detached homes accounted for 33% of all sales, a decrease from 38.5% one year ago.
The rising prices of single-family homes are believed to stem from overall housing inflation and the trend of smaller, older homes being replaced by larger new constructions throughout the county.
Homes with four or more bedrooms have already surpassed the $2 million mark, making up about 70% of the single-family home sales in September.
In this category, the average sales price was $2,143,893, a jump of 20.2% from $1,784,024 the previous September.
Late summer and early autumn brought a slight respite for buyers as mortgage rates fell in August and early September, allowing more buyers to enter the market according to Lisa Sturtevant, chief economist for Bright MLS.
However, the market faces challenges due to federal government layoffs and buyouts, which may be exacerbated by ongoing government shutdowns.
Sturtevant noted, “In regions with a strong federal presence, we are starting to see the repercussions of job insecurity and the financial implications of the shutdown.
Overall, 184 homes closed countywide in September, up from 143 a year prior.
The average sales price for all homes sold was reported at $986,422, marking a 3.6% increase.
While the single-family home prices were on the rise, other market sectors saw a decline.
The average sales price for attached homes, such as townhouses, rowhouses, and condominiums, was $586,098, which represented a 6.8% decrease from the previous year.
In the condo-only segment, the average sales price slipped to $400,467, down 6.9% year-over-year.
Despite increasing average prices in the single-family segment, these declines contributed to a 10.7% drop in the month’s median price, which settled at $686,388.
This median price reflects the midpoint where half of homes sold for higher and half for lower amounts.
Arlington’s total transaction volume reached $184.2 million in September, demonstrating a significant increase of 34.1% from the previous year.
More prospective buyers are finding increased selection, as active listings grew from 313 in September 2024 to 465 in September 2025.
Sturtevant highlighted that sellers are adapting to a new market dynamic, giving buyers more options and negotiating power, which is beginning to influence price trends.
With the increased inventory, the average time between listing and a ratified contract has ballooned nearly 60%, climbing from 23 days last year to 36 days in September.
The sales-price-to-listing-price ratio also saw a slight decline, dropping from 98% to 97% year-over-year.
Arlington home sellers received an average of $500 per square foot in September, a decrease of 4% from the previous year.
For context, this per-square-foot cost remains lower than Falls Church, which stands at $545, and Washington D.C. at $509, while tying with Alexandria.
The broader Washington metro area also saw an uptick in sales, with Bright MLS recording 3,894 closed sales in September, up 4.4% year over year thanks to falling interest rates.
However, new pending sales dipped by 3.3% year-over-year, despite stabilized mortgage rates, as many potential homebuyers are pausing their search due to uncertainties stemming from budget impasses and job insecurity.
Home price growth across the region appears to have come to a standstill, with a regional median sold price of $600,500 reflecting only a 0.3% rise from a year ago.
The variations in price performance between suburban and urban markets reveal that some suburban areas experience modest growth while urban regions show price declines according to Bright MLS.
In September, the median number of days on the market for homes across the region was 21, extending by 10 days compared to last year.
The increase in inventory, which has grown by 27% year-over-year, primarily can be attributed to longer selling periods, with showings remaining stable at 90,805 for the month.
It’s important to note that these figures represent most, but not all, sales across the market, and September 2025 data is preliminary and subject to revision.
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