The Philadelphia, PA metro area housing market in January 2025 presents a complex landscape characterized by contrasting trends in pricing, sales, and inventory. The Median Sales Price has decreased by 4.7% year-over-year, settling at $267,500. This decline contrasts with the Median List Price, which has risen by 10.0% to $275,000, indicating a potential gap between seller expectations and buyer willingness.

In terms of Price Per Square Foot, the Median Sales Price per square foot has seen a modest increase of 1.5%, reaching $193.36. Meanwhile, the Median List Price per square foot has grown by 3.5% to $206.52. These figures suggest a slight upward pressure on pricing, although the overall sales price decline indicates a more competitive market environment.

Sales activity has shown mixed signals. The number of Homes Sold has increased by 3.0% year-over-year, totaling 1,279 units. However, Pending Sales have decreased by 7.1%, with 1,564 transactions in the pipeline. This decline in Pending Sales could signal a slowdown in future closings, potentially influenced by the rising list prices.

New Listings have increased by 5.7%, reaching 1,872, while inventory has decreased by 4.2% to 4,821 homes. The Months of Supply have dropped significantly by 30.0% to 3.80 months, indicating a tighter market with fewer homes available relative to demand. This reduction in supply could contribute to the upward pressure on list prices.

The Median Days on Market have remained relatively stable, with a slight increase of 1.0% to 53 days. The average sale to list ratio has improved marginally by 0.3%, now at 97.7%, suggesting that homes are selling closer to their asking prices. However, the percentage of Homes Sold above list price has decreased by 0.5% to 23.8%, reflecting a potential cooling in competitive bidding.

Price Drops have increased by 1.3%, affecting 27.1% of listings, which may indicate that sellers are adjusting their expectations in response to market conditions. The percentage of homes going off market in two weeks has remained unchanged at 34.1%, suggesting consistent buyer interest despite the evolving market dynamics.

Overall, the Philadelphia housing market in January 2025 is characterized by a decline in sales prices amidst rising list prices, increased sales activity, and a tightening inventory. These factors create a dynamic environment for both buyers and sellers, with potential implications for future market trends.