The Philadelphia, PA metro area housing market in February 2025 presents a complex landscape characterized by rising prices and declining sales activity. The Median Sales Price has increased to $275,000, reflecting a year-over-year (YoY) growth of 3.8%. This upward trend in sales prices is accompanied by a more significant rise in the Median List Price, which stands at $295,000, marking a 9.3% increase YoY. These figures suggest a competitive market where sellers are optimistic about pricing.

The Price Per Square Foot has also seen an upward trajectory, with the median Price Per Square Foot reaching $199.09, a 4.0% increase YoY. Similarly, the Median List Price per square foot has risen to $214.32, up by 6.2% YoY. These increases indicate a robust demand for housing, despite the challenges in sales volume.

However, the number of Homes Sold has decreased by 8.7% YoY, with only 1,163 Homes Sold in February 2025. Pending Sales have also dropped significantly by 16.2% YoY, totaling 1,597. This decline in sales activity is further reflected in the number of New Listings, which have decreased by 4.5% YoY to 2,073. The inventory has slightly decreased by 2.0% YoY, now standing at 5,105 homes, which may contribute to the limited sales activity.

The Months of Supply have increased by 30.0% YoY, reaching 4.40 months. This increase suggests that while inventory is slightly down, the pace of sales has slowed, leading to a longer duration for homes to remain on the market. The Median Days on Market have increased by 3.0% YoY to 56 days, indicating that homes are taking slightly longer to sell compared to the previous year.

The average sale to list ratio has improved marginally by 0.5% YoY, now at 97.7%, suggesting that homes are selling closer to their list prices. The sold above list ratio has also increased by 1.5% YoY to 24.9%, indicating that nearly a quarter of homes are selling for more than their asking price. This trend highlights the competitive nature of the market, despite the overall decline in sales volume.

Price Drops have increased by 1.9% YoY, with 25.0% of listings experiencing a reduction in price. This increase in Price Drops may be a response to the slower sales pace and the need for sellers to adjust their expectations. Additionally, the percentage of homes going off the market in two weeks has decreased by 1.2% YoY to 41.8%, further emphasizing the slower market dynamics.

Overall, the Philadelphia housing market in February 2025 is characterized by rising prices and a slowdown in sales activity. While sellers remain optimistic about pricing, the decline in sales volume and increased time on the market suggest a more cautious approach from buyers. This nuanced picture indicates a market in transition, with potential opportunities for both buyers and sellers to navigate the evolving landscape.