Mid-Year Tri-County Market Update: What Chester, Montgomery, and Delaware County Buyers and Sellers Need to Know

The mid-year 2025 real estate market across Chester, Montgomery, and Delaware Counties presents a unique landscape of opportunities and challenges for both buyers and sellers. With inventory rising dramatically while mortgage rates hold steady around 6.8%, the market is experiencing the most significant shift toward buyer-friendly conditions in recent years. Here's what our analysis reveals about each county and what it means for your real estate decisions.

Chester County: Price Adjustments and Expanding Inventory

Chester County has experienced the most dramatic market shifts among the three counties. The median list price dropped to $599,000 in June 2025, down 5.8% from May's $636,000. This represents one of the most significant monthly price corrections in the region, signaling a fundamental shift in market dynamics.

Current Market Snapshot:

Median Sale Price: $555,000 (up 1.8% year-over-year)

Days on Market: 20 days (compared to 12 days last year)

Sale-to-List Ratio: 102%, down 1.5 percentage points from last year

Homes Sold: 557 in May 2025, up from 520 in May 2024

The county's inventory has seen substantial increases, with homes selling closer to asking price rather than significantly above. This shift represents a normalization from the hypercompetitive conditions of previous years, where bidding wars and waived contingencies were common.

Montgomery County: Stabilization Amid Change

Montgomery County shows more stability compared to Chester County, though still experiencing notable inventory growth. The median list price decreased to $499,900 in June 2025, down 9.1% from May's $549,900.

Market Fundamentals:

Median Sale Price: $414,733 (May 2025)

Days on Market: 24 days

Sale-to-List Ratio: 100%

Year-over-Year Growth: 3.7% price increase from $481,000 to $499,000 (January 2025)

The county recorded its lowest number of home sales since 1995 in 2024, but experts anticipate a modest 5-10% increase in sales during 2025 if interest rates stabilize. Montgomery County's proximity to Philadelphia and quality school districts continue to drive demand, particularly in areas like Lower Merion Township, Blue Bell, and Ambler.

Delaware County: Steady Performance

Delaware County demonstrates the most stability among the three counties, with median list prices at $399,000 in June 2025, up 2.3% from May. The county maintains strong fundamentals with homes often selling above asking price at 100.8% of list price.

Key Statistics:

Median Sale Price: $350,000 (April 2025)

Days on Market: 27 days

Homes Sold: 454 in April 2025, compared to 488 in April 2024

Active Listings: 640 properties with 888 under contract

Delaware County's affordability relative to its neighboring counties makes it particularly attractive to first-time homebuyers and those seeking value in the Philadelphia suburbs.

Tri-County Market Overview

Rising Inventory Levels

All three counties are experiencing significant inventory increases. Pennsylvania statewide inventory rose 8.4% year-over-year in May 2025, with 41,854 homes for sale. This represents the 19th consecutive month of inventory growth, providing buyers with substantially more options than in recent years.

Price Moderation

The dramatic price appreciation of 2020-2022 has given way to more moderate growth. Pennsylvania home prices increased 5.8% year-over-year in May 2025, with a median price of $314,100. This moderation, combined with increased inventory, creates a more balanced market environment.

Market Timing Factors

Current mortgage rates remain elevated at approximately 6.77% for 30-year fixed loans, but experts predict rates will hover in the mid-6% range throughout 2025. The Federal Reserve's cautious approach to rate adjustments suggests continued stability rather than dramatic changes.

What This Means for Buyers

Increased Negotiation Power
The shift toward higher inventory and price moderation gives buyers significantly more negotiating power than they've had in years. Price cuts were reported on 19.1% of listings nationally in May 2025, the highest share since tracking began in 2016.

More Time and Options
With homes spending a median of 51 days on the market nationally, buyers have more time to make informed decisions. The competitive pressure that characterized recent years has diminished, allowing for proper inspections and thoughtful consideration.

Financial Considerations
While mortgage rates remain elevated, buyers should focus on monthly payment affordability rather than waiting for rates to drop. Historical data suggests that when rates do decrease, increased buyer competition often drives prices higher, potentially offsetting rate benefits.

What This Means for Sellers

Pricing Strategy is Critical
The market no longer tolerates overpricing. Sellers must price competitively from the start to attract serious buyers in a market with expanded inventory. Properties that sit on the market risk becoming stale listings.

Preparation and Presentation Matter
With buyers having more choices, home staging, professional photography, and minor repairs become essential for standing out. The days of selling homes "as-is" at premium prices are largely over.

Flexibility and Incentives
Seller concessions, closing cost assistance, and home warranties are becoming more common tools to attract buyers. Sellers who remain flexible on terms and timing will be more successful in closing deals.

Why Choose The Moore Maguire Team

Local Market Expertise
The Moore Maguire Team brings over 50 years of combined experience specifically in Chester, Montgomery, and Delaware Counties. Our deep understanding of local market nuances, neighborhood trends, and pricing strategies gives our clients a significant advantage.

Proven Track Record
With over $200 million in sales and hundreds of satisfied clients, our team has demonstrated success across all market conditions. Our 80% referral-based business reflects our commitment to client satisfaction and results.

Comprehensive Services
As specialists in luxury homes, first-time buyers, new construction, and investment properties, we provide tailored strategies for every client type. Our full-service approach includes strategic pricing, professional marketing, and staging resources to maximize seller value.

Strategic Market Positioning
Based out of the **#1 ranking office in Chester County, our team understands how to position properties effectively in the current market environment. We provide unmatched support and tools to help clients navigate the shifting market dynamics successfully.

Adaptability and Innovation
Our growth-oriented, collaborative approach ensures we stay ahead of market trends and adapt our strategies to current conditions. Whether you're buying or selling, we focus on long-term relationships and innovative solutions to achieve your real estate goals.

Looking Ahead

The mid-year 2025 market represents a pivotal moment in tri-county real estate. The combination of increased inventory, price moderation, and stable mortgage rates creates opportunities for both buyers and sellers who understand the new market dynamics.

For buyers, this is the most favorable environment in years, with more options, negotiating power, and time to make informed decisions. For sellers, success requires strategic pricing, professional presentation, and flexibility to meet buyer expectations.

The Moore Maguire Team's expertise in Chester, Montgomery, and Delaware Counties positions us to help clients capitalize on these market conditions effectively. Whether you're looking to buy your first home, upgrade to a luxury property, or sell in today's market, our proven strategies and local knowledge ensure optimal results.

Contact the Moore Maguire Team today to discuss how we can help you navigate the evolving tri-county real estate market and achieve your goals in 2025.