WEST CHESTER, PA — Chester County’s housing market roared into 2026 with rising prices, lightning-fast sales, and inventory levels that continue to frustrate would-be buyers, reinforcing the region’s reputation as one of Pennsylvania’s fiercest seller’s markets.
In January, the county’s median home sale price ranged between $540,000 and $549,000, marking a 5% increase compared with January 2025. Active listings hovered around 521 units — far below the six-month supply considered a balanced market — fueling bidding wars that often pushed homes to or above asking price.
In boroughs such as West Chester and Phoenixville, homes frequently went under contract in roughly 16 to 20 days. Other municipalities are moving even faster. West Goshen averaged just 15 days on market, while Exton hovered around 16 days, reflecting intense demand tied to strong school districts, revitalized downtowns, and transit access.
Downingtown, classified by analysts as one of the “hottest suburbs for 2026,” continues to benefit from redevelopment projects such as improvements surrounding the Downingtown Station train hub. Berwyn and West Brandywine are averaging approximately 18 days on market, underscoring sustained buyer urgency across price tiers.
Even more affordable and emerging markets are seeing renewed interest. Coatesville, amid ongoing revitalization efforts, is drawing investors seeking long-term appreciation. Kennett Square remains in high demand for its walkable downtown and expanding development projects. Oxford is increasingly viewed as a “high-upside” play tied to future transit growth.
At the high end, Devon remains among the most expensive markets in Pennsylvania, with typical home values exceeding $895,000. Chester Springs and Malvern continue to attract affluent buyers, supported by consistent year-over-year appreciation.
Despite a seasonal dip from December’s year-end peak, total January sales volume still topped $174.6 million, highlighting the county’s economic resilience. Chester County’s diversified economy — spanning healthcare, finance, information technology, life sciences, agriculture, manufacturing, and tourism — underpins the market’s strength. The county maintains the fourth-largest GDP in Pennsylvania at $57.3 billion as of 2023, with 43% of households earning more than $150,000 annually. Unemployment stood at 3.3% in December 2025, well below the state average.
Looking ahead, analysts expect a competitive spring season, aided by mortgage rates projected to ease into the low-6% range by late 2026. Buyers are increasingly eyeing January and February as a narrow window before the traditional surge in spring listings and competition.
Nationally, the picture is more mixed. Realtor.com’s January Monthly Housing Report showed active listings rose 10% year over year, extending 27 consecutive months of inventory gains. Yet supply remains 17.2% below typical 2017–2019 levels, signaling ongoing constraints. The national median list price held steady at $399,900, while homes spent a median of 78 days on the market — five days longer than a year ago.
Pending home sales nationally rose 1.2% year over year, buoyed by mid-January mortgage rates that hit their lowest levels since 2022. Still, economists caution that if supply tightens further, lower rates could simply reignite competition rather than restore affordability.
Compared with the broader national landscape, Chester County’s market remains significantly tighter, faster-moving, and more expensive — a testament to sustained demand in one of Pennsylvania’s most desirable residential regions.
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