CHESTER COUNTY, PA — Chester County’s housing market is showing signs of cooling amid a broader national shift, even as local prices remain relatively strong. According to Zillow’s latest housing market report, buyer demand is softening across the country, and inventory levels have climbed to their highest point in over five years — trends now clearly visible in southeastern Pennsylvania.
In Chester County, the median home sale price reached $555,000 in June, marking a 1.8% increase from last year. On a per-square-foot basis, prices climbed 2.5% to $244. However, the median list price for homes fell 5.8% month-over-month to $599,000, a signal that sellers may be adjusting expectations in response to changing conditions.
Inventory has surged. The number of homes for sale jumped to 1,266 in June, a 70.2% increase from May. This spike mirrors the national picture, where 1.36 million homes were listed for sale last month — the highest since November 2019.
Zillow’s report indicates a shift toward a more balanced market nationally, with 28 of the 50 largest U.S. metro areas now classified as either neutral or buyer-friendly. Listings are lingering longer, and price cuts are becoming increasingly common. Nationally, 26.6% of active listings saw a price drop in June, a record high for that month in Zillow’s database.
While Chester County hasn’t experienced that level of markdowns, the drop in median listing prices and sharp rise in inventory suggest sellers may soon be more open to negotiation. For buyers, this translates to more options and potentially better leverage at the closing table.
Yet, affordability remains a challenge. Despite minor improvements in mortgage rates, high home values continue to strain budgets, particularly for first-time buyers. The average home in Chester County is now valued at $571,407 — up 3.8% year-over-year.
Nationally, sales activity followed typical seasonal trends, declining 4.9% from May. New listings also fell by nearly 11%, as some potential sellers hesitated amid slower buyer activity.
Locally, the market may be stabilizing, but it’s not yet a clear win for buyers. Homes that sell are still moving relatively quickly — often within three weeks — and demand remains steady enough to support current price levels.
As Chester County mirrors the national shift toward a more balanced market, both buyers and sellers will need to adjust their strategies. Buyers should be prepared to act decisively on well-priced properties, while sellers must focus on competitive pricing and strong presentation to stand out in a growing pool of listings.
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