From Post-Pandemic Slide to Stabilization
In April 2022, the housing market across the Greater Philadelphia region sharply reversed course. Transaction activity fell and then drifted lower for nearly four years. According to Larry Flick V, CEO of Berkshire Hathaway HomeServices Fox & Roach Realtors, that downward trend in unit sales has now leveled off.
Sales volume remains roughly 20% below historical norms in the local marketplace, but compared with other major metros, the region has proven relatively resilient. While some parts of the country have shifted decisively into buyer’s market territory, Greater Philadelphia continues to operate largely as a seller’s market, defined by persistent demand and limited housing inventory.
The Slow Unwinding of the “Lock-In Effect”
For years, homeowners who secured mortgage rates below 3% were reluctant to sell once borrowing costs climbed. This so-called “lock-in effect” constrained supply and intensified competition among buyers.
That dynamic is now gradually easing. The number of homeowners carrying mortgage rates above 6% has surpassed those holding ultra-low pandemic-era rates. As a result, more properties may begin to enter the market. Flick expects a modest increase in listings and a slight bump in median sale prices as the 2026 spring market gains momentum.
Philadelphia: Mixed Price Signals Across ZIP Codes
Data from the HomExpert Market Report shows varied performance across Philadelphia neighborhoods in 2025.
Chestnut Hill (19118) posted one of the strongest gains, with median sales prices rising 23.8% year over year to $930,000. Avenue of the Arts (19102) climbed 25.4% to $407,500, alongside a 20.5% increase in units sold.
Meanwhile, Rittenhouse/Logan Square (19103) saw a 6.3% decline in median price to $445,000 despite a modest uptick in transaction volume. Old City/Society Hill (19106) recorded an 8.6% price increase, while Chinatown/Washington West (19107) experienced a slight price dip even as sales surged 26.7%.
Main Line and Suburban Strength
On the Main Line, Easttown Township stood out with a 31.1% jump in median price to $1.1 million. Lower Merion Township rose 6.9% to $850,000, and Merion Station (19066) advanced 10.1%.
In Bucks County, Bridgeton Township surged 35.3% in median price, though on limited volume, while Doylestown Borough climbed 23.3%. Chester County showed a mix of gains and pullbacks, with East Brandywine Township up 17.1% and Downingtown Borough up 15.3%.
Montgomery and Delaware counties reflected steadier trends, with many municipalities posting mid-single-digit percentage changes. Across the river in New Jersey, Cherry Hill Township rose 7.2% in Camden County, while Burlington and Gloucester counties showed a blend of moderate increases and localized declines.
What the Numbers Represent
The median price reflects the midpoint of all sales in a given area, with half of homes selling above and half below that figure. Areas required at least 10 transactions in 2025 for inclusion. Data is derived from MLS records compiled by the research division of Berkshire Hathaway HomeServices Fox & Roach Realtors.
Although overall sales remain below long-term averages, the gradual release of pent-up inventory and stable buyer demand suggest a more balanced and potentially healthier housing market heading into 2026.
