WEST CHESTER, PA — The Chester County housing market showed modest price growth and a slight increase in available inventory in February 2026 as the spring homebuying season approaches.
The median sale price for homes in the county reached about $526,000 in February, representing a 6.3% increase compared with February 2025.
Average home values were estimated at $552,938, an increase of about 3.1% over the past year.
Mortgage rates have stabilized in the high 5% to low 6% range, which has improved predictability for buyers and helped release some pent-up demand from earlier in the winter, according to market data.
Inventory levels also showed modest improvement.
New listings totaled 290 in February, a 2.5% increase compared with the same month last year.
Total active listings ranged from about 484 to 521 homes, still below the level generally associated with a balanced housing market.
Limited supply continues to constrain overall sales activity.
In January, 307 homes were sold in Chester County, representing a 12% decline from the same month a year earlier.
Despite lower sales volume, homes in many parts of the county continue to sell quickly.
Properties typically go under contract within 10 to 16 days in high-demand communities.
Competition remains strongest in walkable boroughs and neighborhoods served by highly rated school districts.
Communities such as West Chester and Phoenixville remain among the most competitive housing markets in Pennsylvania, with many properties receiving multiple offers and selling above their list price.
In the West Chester Area School District, the median home price reached about $670,000.
Countywide, about 38% of homes sold for more than their asking price.
Higher-priced homes, particularly those between $1 million and $2 million or more, are seeing somewhat more negotiating flexibility for buyers.
However, entry-level and mid-priced homes remain a seller’s market because of the limited supply.
The rental market in Chester County also remains strong.
Median rents in the county range from approximately $2,115 to $2,161 per month, representing year-over-year increases of roughly 3.3% to 3.8%.
Occupancy rates across the Philadelphia suburbs remain near 95%, with an average of about 11 prospective tenants competing for each available rental unit.
Premium rental markets such as Newtown Square and Glen Mills command higher average rents of about $2,546 and $2,454 per month.
New construction activity continues throughout the county.
More than 80 active housing communities are currently under development, including single-family homes, townhomes, and age-restricted housing developments.
Major builders including Keystone Custom Homes, Toll Brothers, and Ryan Homes are responsible for many of the projects underway.
High-end single-family developments include The Woodlands at Brandywine in West Chester, where homes range from roughly $1,038,814 to more than $1,104,700.
Other luxury communities include The Estates at Stonecliff in Glenmoore and Worthington Farm in Exton.
Townhome developments remain active in areas near walkable borough centers.
Projects include Phoenixville Heights by Lennar, Thorndale Woods Towns by Ryan Homes in Downingtown, and Anfield at Malvern by Toll Brothers.
Age-restricted housing communities are also expanding.
Developments such as Honeycroft Village in Cochranville and The Meadows at Wicklow in Oxford offer housing designed for residents aged 55 and older.
National housing data shows some similar trends.
According to the February Monthly Housing Report from Realtor.com, housing inventory nationwide increased for the 28th consecutive month compared with a year earlier.
Active listings reached 914,860 homes in February, representing a 7.9% increase from the previous year.
Despite the increase, national housing supply remains about 16.8% below typical pre-pandemic levels between 2017 and 2019.
Danielle Hale, chief economist at Realtor.com, said inventory growth has slowed in recent months.
“Inventory has improved for more than two years, but the momentum has faltered in recent months,” Hale said.
She said supply gains have been concentrated in the South and West while the Northeast and Midwest continue to face housing shortages.
Nationwide, homes spent a median of 70 days on the market in February, four days longer than a year earlier.
The national median list price declined 2.1% year over year to $403,450.
Analysts said the housing market continues to adjust after several years of lower sales activity and rising mortgage rates.
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