Real Estate

Chester County Housing Market Defies Expectations: How Rising Inventory and Steady Demand Shape a Balanced Market

Chester County’s housing market saw rising prices, inventory, and sales in September.

byAndres Castro

November 3, 2025, 10:38 AM

High-angle aerial view of a residential neighborhood with houses featuring terracotta roofs and lush green yards.

A high-angle view showcasing an affluent suburban neighborhood with winding streets. By MDL.

Executive Summary

Pennsylvania’s housing market, including Chester County, demonstrated significant resilience in September 2025, with statewide listings surging 7.1% year-over-year to their highest level in three years, alongside increases in sales and median prices.

Chester County’s local market mirrored these trends, with its median home price rising to $548,900 (a 3.6% increase), closed sales up 6.1%, and inventory surging over 21%, though homes still sold quickly in an average of nine days.

The combination of increasing housing supply statewide and stable mortgage rates (around 6.27%) is fostering a more balanced market, cooling aggressive bidding wars and transitioning towards a more normalized and sustainable pace of activity.

The Trajectory So Far

The current housing market’s resilience, characterized by rising prices and expanding inventory, is largely attributable to a significant statewide surge in available listings and sustained buyer demand, which is underpinned by consistent employment and demographic growth. This trend is further supported by stable mortgage rates, helping to balance the market and temper aggressive bidding wars, leading to a more normalized pace of activity.

Assessing Risk and Value

The notable increase in housing inventory across Pennsylvania and Chester County, the highest in three years, suggests a market shifting towards greater balance, which could moderate rapid price appreciation but also offers more strategic entry points for real estate investors. Despite this rise in supply, sustained price growth and quick sales indicate robust underlying demand and market resilience, supporting continued value appreciation. With stable mortgage rates and strong fundamental factors like consistent employment and demographic expansion, the market is poised for sustained healthy activity, reducing immediate investment risk and bolstering long-term value in real estate assets.

Expert Predictions and Forecasts

Bill Lublin, president of the Pennsylvania Association of Realtors, suggests that year-over-year increases in listings, sales, and prices indicate continued stability in the housing market.

The market is transitioning towards a more balanced and normalized environment, with increasing supply and stable mortgage rates cooling aggressive bidding wars and allowing strategic buyers to re-engage.

Both the county and state markets are expected to maintain robust activity well into 2026, driven by consistent employment, demographic expansion, and restricted housing development.

Chester County’s housing market demonstrated significant resilience in September 2025, with rising prices and expanding inventory, mirroring a substantial statewide surge in listings not seen since 2022. This growth in available homes, coupled with steady demand, is fostering a more balanced market across Pennsylvania.

Statewide Market Trends

According to the Pennsylvania Association of Realtors’ September 2025 Housing Market Report, the state recorded 43,352 homes on the market, marking a 7.1% increase year-over-year and the highest listing level in three years. Statewide home sales climbed 9.5% to 10,696 transactions, while the median sales price reached $299,900, a 3.4% increase from 2024.

Chester County Performance

Chester County’s local market closely tracked these statewide gains. The median home price in the county rose to $548,900, representing a 3.6% increase over the previous year. Closed sales also saw an uptick of 6.1% compared to the same period last year.

Despite increasing supply, homes in Chester County spent an average of just nine days on the market, indicating strong buyer demand. Inventory surged by over 21%, with new listings up 19% year-over-year, providing buyers with more options and tempering intense competition.

Expert Outlook

Bill Lublin, president of the Pennsylvania Association of Realtors and CEO of Century 21 Advantage Gold, highlighted the positive trends. He stated that increases in listings, sales, and prices year-over-year suggest continued stability in the housing market.

Market Balance and Mortgage Rates

While Pennsylvania’s market still slightly favors sellers with 4.46 months of inventory—below the six-month benchmark for balance—increasing supply and stable mortgage rates, currently around 6.27%, have helped cool the aggressive bidding wars of recent years. This moderation is leading to a more normalized pace of activity.

For Chester County, the blend of higher inventory and strong pricing indicates a transition toward a more sustainable market environment. This shift allows strategic buyers to re-engage, while sellers continue to benefit from the area’s long-term limited housing supply.

Sustained Activity Expected

Overall, both the county and state markets remain robust, underpinned by consistent employment, demographic expansion, and restricted housing development. These fundamental factors are expected to maintain healthy housing activity well into 2026.