What’s going on in the Philadelphia market?

The spring housing market is just about to begin, and I’ve personally already seen a ramp up in both sellers and buyers in the Philadelphia and Suburban markets. Financial experts anticipate that mortgage interest rates will remain above 6% throughout 2025, with modest declines possible but significant reductions unlikely. Fannie Mae forecasts average rates to stay above this threshold, while HousingWire projects a range between 5.75% and 7.25%, citing potential economic volatility. CBS News notes that while a drop below 6% is possible, it is not guaranteed. Overall, the consensus suggests that while rates may decrease slightly, they are expected to stay elevated in the near future. Here are a few links to some articles that explain more:

• Philadelphia Metro Area: As of February 2025, the Philadelphia metropolitan housing market continues to experience robust activity, ranking fifth among the nation's hottest housing markets. This surge is driven by steady demand, moderate price growth, and a tight inventory, attracting both local and out-of-state buyers seeking affordability and urban amenities.
• Bucks County: The housing market shows resilience with rising prices reflecting steady demand, providing opportunities for both buyers and sellers.
• Montgomery County: The market is experiencing a shift towards a more balanced environment, moving away from the seller's market of the past two years, which may benefit buyers seeking opportunities.
• Delaware County: Home prices have increased by 5.2% year-over-year, with a median price of $315,000, and homes typically selling after 42 days on the market, indicating a competitive landscape.

Gellman PA Properties
325 Chestnut St. Suite 1300
Philadelphia, PA 19106
267.259.0134
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