WEST CHESTER, PA — Chester County’s housing market showed mixed signals in July 2025 as statewide inventory reached its highest level in three years, according to a new report from the Pennsylvania Association of Realtors® (PAR). While long-term demand remains strong, increased listings and softening contract activity suggest that short-term conditions are shifting.
Statewide Inventory Hits Three-Year High
Across Pennsylvania, the number of homes on the market climbed to 42,270 in July — a 9.5% increase year-over-year and a 1.5% rise from June. PAR President Bill Lublin described the growth as a positive step toward a healthier balance between supply and demand.
“We’re continuing to see a strong increase in housing inventory, reaching levels we haven’t seen since 2023,” Lublin said. “Over the past few years, we’ve faced historically low inventory, which fuels competition and higher prices. For the market overall, an increase in inventory points toward a healthier balance, supporting more sustainable pricing.”
Despite the added inventory, statewide median home prices still climbed 6.5% year-over-year to $320,000, although prices dipped slightly from $325,000 in June — marking the first month-over-month decline this year.
Chester County’s Market Remains Competitive
In Chester County, the July data reflects a more nuanced picture. The median sold price for all home types stood at $579,745, up 9.5% year-over-year, but down 3.4% compared to June. Detached homes saw even stronger annual gains, rising 10.3% to $650,000, though they experienced a sharper 7.5% month-over-month decline.
Other indicators reveal a shift in buyer behavior:
- Closed sales totaled 598, down 6.1% from June but up 8.1% from July 2024.
- New listings reached 626, up 9.2% year-over-year, keeping pace with statewide trends.
- Active listings rose 12% from June, suggesting improving availability.
- The contract ratio — pending sales relative to active listings — fell to 1.02 from 1.25 in June, signaling cooling demand.
Short-Term Slowdown, Long-Term Strength
While increased inventory is easing competitive pressure, Chester County remains one of the state’s most desirable markets. Homes are selling in an average of just 18 days and at 101.2% of original list price, underscoring continued seller leverage, particularly in high-demand areas such as West Chester, Glenmoore, and Kennett Square.
The combination of rising statewide inventory, easing contract activity, and slight price declines suggests that interest rates and seasonal factors may be tempering short-term demand. However, the year-over-year price growth highlights the region’s enduring appeal and strong underlying demand.
As Pennsylvania’s housing market adjusts to higher inventory, Chester County appears poised to maintain its status as one of the state’s most competitive — but buyers may begin to see slightly more breathing room heading into the fall.
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