Philadelphia Housing Market Report: August 2025 Update

The Philadelphia housing market continues to shift as we move through late summer 2025. According to the latest Bright MLS Housing Market Report, home prices remain on the rise, inventory is expanding, and buyer activity is holding steady—even as sales slow slightly compared to last year. Whether you’re preparing to sell, buy, or both, this August 2025 update highlights the trends that matter most.

Philadelphia Home Prices in August 2025

The median sold price reached $405,000 in August, marking a 2.5% increase compared to August 2024. While this growth is more moderate than the sharp spikes we saw earlier in 2025, it shows that the Philadelphia market remains resilient.

For Sellers: Home values are strong, which means equity remains high. Positioning your property correctly can still bring in competitive offers.
For Buyers: Price growth is slower than it was in spring and early summer, making this a slightly less aggressive environment to enter.

See how July’s market compared here.

Closed and Pending Sales in Philadelphia

The Philadelphia Metro recorded 6,000 closed sales in August, a 1.7% decline year-over-year. Pending sales also dipped slightly to 5,793, down 0.9% from last year.

This data suggests that while buyers are still active, affordability concerns and higher interest rates are slowing down the pace of transactions.

Median Days on Market

Homes took a bit longer to sell in August:

Median days on market: 13 days
Change from last year: +2 days

Even though 13 days is still relatively fast by historical standards, this trend signals a shift toward a more balanced market where buyers have more time to make decisions.

Inventory and Supply Trends

Bright MLS data shows that inventory in the Philadelphia housing market is improving, even as new listings fell:

New listings: 6,196 (-9.0% YoY)
Active listings: 12,269 (+10.9% YoY)
Months of supply: 2.27 (+0.18 months)

This increase in active listings gives buyers more choice and eases some of the intense competition we saw in 2024 and early 2025.

Buyer Activity Remains Steady

There were 119,981 showings in August—a 0.5% increase compared to last year. While sales volume dipped, this number shows that motivated buyers are still actively shopping for homes across the Philadelphia Metro.

What This Means for Buyers and Sellers

For Buyers

More inventory means more options.
Slower price growth gives you a chance to negotiate.
Stay ready to act quickly on well-priced homes, as desirable properties still move fast.

For Sellers

Homes are selling a bit slower, so strategic pricing is key.
More active listings = more competition. Make sure your home stands out with staging, marketing, and professional photography.
You can still achieve strong returns with the right selling strategy.

FAQ:

1. Is now a good time to buy a home in Philadelphia?

Yes—inventory is improving, and slower price growth gives buyers more room to negotiate. If interest rates drop in the coming months, demand could rise again, making now a smart time to act.

2. How long are homes taking to sell in Philadelphia right now?

As of August 2025, the median days on market is 13 days, up slightly from last year. This indicates a less frenzied market than we saw in early 2025.

3. Will home prices in Philadelphia keep rising?

Prices are still trending upward, though at a slower pace than earlier this year. Bright MLS reports a 2.5% increase year-over-year, suggesting continued but moderated growth.

4. What should sellers focus on in this market?

With more active listings, sellers should focus on strategic pricing, professional marketing, and expert guidance to stand out and attract motivated buyers.

Final Thoughts on the August 2025 Philadelphia Housing Market

The Philadelphia housing market is balancing out, with prices holding steady, inventory improving, and sales volume showing a slight slowdown. For buyers, more choices and slower appreciation present opportunities. For sellers, equity remains strong, but success depends on smart pricing and marketing strategies.

If you’re planning to buy or sell this year, having the right team by your side makes all the difference.

Ready to make your move? Contact Rarity Real Estate today to start your personalized strategy for buying or selling in the Philadelphia Metro.