Arlington, VA Housing Market Report

The Arlington real estate market is currently navigating a period of stabilization and increased choice for prospective homeowners. As of December 2025, the median home value stands at $794,369, reflecting a modest year-over-year increase of 0.36%. While the market remains competitive due to its proximity to the nation's capital and major employment hubs like Amazon's HQ2, the significant 30.05% surge in active inventory to 12,538 units suggests a shift toward a more balanced environment. The sale-to-list ratio holding steady at 1 indicates that while bidding wars have cooled, properties are still generally transacting at their asking prices.

Price trends over the latter half of 2025 reveal a resilient recovery following a brief mid-year dip. After hitting a low of $787,639 in September, values have climbed steadily for three consecutive months, ending the year at their highest point. This upward momentum, paired with a median rent decrease of 0.32% to $2,557, suggests that some residents may be transitioning from the rental market into homeownership as inventory levels provide more options. However, the average time a home spends on the market has increased by 16 days compared to last year, now reaching 56 days, giving buyers more breathing room to conduct due diligence.

Looking ahead, the Arlington market presents a unique window of opportunity for buyers who were previously sidelined by low inventory. With more homes available and longer marketing periods, buyers have gained leverage that was absent in previous years. Sellers, on the other hand, must be prepared for a longer sales cycle and should ensure their pricing is aligned with recent comparable sales to attract interest. As the Washington-Arlington-Alexandria metro area continues to see steady demand, the market is expected to remain stable, though the rapid inventory growth suggests that price appreciation will likely remain incremental rather than explosive in the coming months.