Philadelphia, PA Housing Market Report

The Philadelphia housing market as of December 2025 is characterized by a steady, moderate growth trajectory that suggests a transition toward a more balanced environment. With a median home value of $227,453 and a year-over-year increase of 2.4%, the city remains one of the more affordable major metropolitan hubs on the East Coast. The current sale-to-list ratio of 1 indicates that homes are generally selling for their asking price, reflecting a disciplined market where buyers are not overextending, but sellers are still achieving their valuation targets.

Price trends over the last six months show a consistent upward crawl, moving from $226,099 in July to $227,453 in December. This incremental growth is supported by a 3.6% increase in active inventory, which now stands at 11,892 units. While the increase in supply provides more options for prospective homeowners, the market is moving slightly slower than it did a year ago. The average time on market has increased by five days to a total of 48 days, signaling that buyers are taking more time to evaluate their options amidst rising inventory levels.

Looking ahead, the Philadelphia-Camden-Wilmington metro area remains a resilient market for both investors and traditional buyers. Rental rates have mirrored home value appreciation, rising 2.51% to a median of $1,701, which continues to make Philadelphia an attractive location for buy-and-hold real estate strategies. Sellers should be prepared for longer listing periods and ensure their properties are priced accurately to the current 1:1 sale-to-list ratio. Buyers, meanwhile, can benefit from the increased inventory and the lack of aggressive bidding wars that characterized previous years.