CHESTER COUNTY, PA — While homeowner equity slipped slightly nationwide in the third quarter of 2025, Chester County’s housing market remains one of the strongest in Pennsylvania, buoyed by rising property values, low underwater rates, and continued demand in a high-priced, supply-constrained region.
According to ATTOM’s latest U.S. Home Equity & Underwater Report, 46.1% of mortgaged U.S. homes were considered equity-rich — where loan balances are no more than half of a property’s estimated value — marking a modest decline from earlier this year. Nationally, the share of seriously underwater homes ticked up to 2.8%, indicating a slight cooling after several years of historic appreciation.
In Pennsylvania, approximately 45.8% of mortgaged properties were equity-rich in the second quarter of 2025, aligning closely with national averages. However, in affluent Chester County — where median sale prices hover between $560,000 and $570,000 and homes sell in an average of just 35 days — the equity picture remains significantly stronger than the broader market.
Home values in the county climbed 5–6% year-over-year through September, fueled by limited inventory and steady buyer demand. The area’s average home value of roughly $561,600 reflects its status as one of the most stable and desirable real estate markets in the state.
“After several years of strong equity growth that peaked in 2022, homeowner equity levels appear to be stabilizing,” said Rob Barber, CEO of ATTOM. “The modest fluctuations seen over the last few quarters may suggest a housing market that’s finding balance after an extended period of appreciation.”
Chester County’s low negative equity exposure further highlights its resilience. While 3.7% of Pennsylvania homes are considered seriously underwater, that rate is likely lower locally due to higher household incomes, limited foreclosures, and sustained demand for well-located suburban homes.
Nationwide, equity-rich ownership declined in most major metro areas, with the largest drops seen in Florida, Arizona, and Colorado — markets that overheated during the pandemic. In contrast, the Northeast remained steady, with New York, New Jersey, and Connecticut among the few states where equity-rich levels actually rose year over year.
Despite a modest national cooldown, Chester County’s market shows no sign of distress. Its combination of high equity, strong buyer activity, and tight inventory continues to make it a standout performer — a local bright spot in a national housing landscape searching for equilibrium.
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