...oh and according to the MLS, in the city of Arlington, the average and median asking prices right now are around $250k for a 1,500~1,600 sq ft home.

Realist,

You're asking a tough question that (truly) only you can answer. From the "macro" level: Do you want small town or in-city? At the "local" level: do you want to walk to shops or on a private lot? If you're looking to commute to Arlington, there are a lot of very beautiful options right *in* Arlington. It is a gorgeous part of the country.

You have your choice of Mukilteo to Mt Vernon, so 20 miles radius is a large area and there are currently 1,370 homes available under $325k. Because of the diversity of such a large area, a $/sq ft staistic is not useful...

:)