Philadelphia homebuyers are pulling back—even as more homes hit the market—reflecting growing caution about making big, long-term purchases right now
More homes for sale gave buyers more options, but tight supply and high prices kept competition strong. As a result, local home sales fell to their slowest pace for a May since 2020.
Buyer demand slips despite more sellers entering the market
Buyer demand is cooling right in the middle of the spring homebuying season, a shift from the past two years. Philadelphia logged 5,221 home sales in May, down 5.6% from a year ago and marking the slowest May since 2020—ranking near the bottom among the 40 largest U.S. markets.
Affordability remains the biggest hurdle. Higher home prices, rising mortgage rates, and local cost pressures are keeping many would-be buyers on the sidelines, even as the number of homes for sale continues to grow.
For-sale inventory rebuilds to a five-year high, but the market still tilts toward sellers
Inventory is climbing, with 18,370 homes for sale—the most for any May in five years—boosted by a surge of new listings in areas like Cherry Hill and Mount Laurel. Listings are up 4.3% from a year ago, ranking Philadelphia 10th nationwide.
Still, supply remains tight. At 3.8 months of supply, it’s below the nation's more balanced 4.9, keeping the market still tilted in sellers’ favor.
Tight inventory continues to push home prices higher
Home prices kept climbing even as buyer demand slowed. The median price rose 3.6% to $405,000 in May—slower than recent years, but still outpacing the national increase.
Philadelphia remains a strong market for price growth, ranking in the top third nationwide and performing on par with Washington, D.C., while trailing only Baltimore in the Mid-Atlantic. Limited inventory and continued demand for higher-end homes are keeping upward pressure on prices, giving sellers a slight edge.
Philadelphia Sale Prices
The median home sale price in Philadelphia increased by 3.6% in May compared to the same time last year, double the nation’s pace of 1.8%.
Philadelphia ranks 11th for annual median price gain among the top 40 US markets
Philadelphia median home prices rose by $13,900 year over year on a nominal basis in May to $405,000. Meanwhile, the national median home price increased by $7,000 to $395,000
Philadelphia's median home price is still among the most affordable across the Mid-Atlantic
Philadelphia was the 26th highest-priced housing market among the top 40 largest markets last month. The Philadelphia median home price of $405,000 was 2.5% above the national median home price. Philadelphia's median home price in May compares to the market's peak of $410,000 recorded in July of 2025.
Philadelphia single-family prices recorded the steepest price increase, while condos lagged
The median price of Philadelphia single-family homes rose by $15,750 over the past year to $500,000, reflecting a 3.3% gain. Meanwhile, the median townhome price rose by only $1,000, or 0.3%, and the median condo price declined by 1.3%.
Philadelphia Inventory
The number of homes for sale in Philadelphia increased by 11.6% in May compared to the same month last year, while national homes for sale rose by 4.3%.
Philadelphia's active for-sale inventory increases to a five-year high for the month of May
Philadelphia homes for sale improved by 1,912 since last May to 18,370. Philadelphia ranked 10th, on a percentage basis, for the annual change in the number of homes for sale among the top 40 U.S. markets in May.
Philadelphia homes for sale are below their pre-pandemic levels despite improving momentum
Philadelphia homes for sale rose by 11.6% or 1,912 year over year in May 2026. For context, homes for sale were still 40% below the May 2019 total of 30,676. While momentum has been building, buyers still face a shortage of options compared to seven years ago.
Philadelphia townhomes recorded the strongest increase in for-sale listings
Townhome homes for sale rose by 21.7% to 8,447, the highest level since November 2022. In comparison, single-family homes for sale grew by 15.1% to 7,205 in May, and condo homes for sale increased by 16.9% to 1,685.
Philadelphia Home Sales
The number of home sales in Philadelphia decreased by 5.6% in May compared to the same time last year, while national home sales declined by 1.2%.
Philadelphia home sales decrease
Philadelphia home sales slowed to 5,221 homes sold in May, marking a year-over-year decline of 308.
Philadelphia's annual sales activity change ranks toward the bottom nationally
Philadelphia ranked 36th for the annual change in home sales among the top 40 U.S. markets in May on a percentage basis. This month’s decrease of 5.6% is a slight improvement over the 8.2% year-over-year decrease in May 2025 but still signals slower buying activity for the spring season.
Townhomes in Philadelphia experienced the steepest year-over-year decline in closings
Buyer demand retreated across all segments. Philadelphia townhomes experienced a 7.1% year-over-year decline in sales to 2,087 for May. Meanwhile, single-family home sales declined by 5.1% and condos dipped by 1.3%.
For questions and commentary about this report:
Brenda Nguyen, Director of Market Analytics at CoStar and Homes.com, based in Philadelphia, is available for interviews to provide expert insights on this data and the broader residential real estate market.
Brenda Nguyen
Director of Market Analytics
Homes.com releases preliminary figures on housing trends on a monthly basis. Although these numbers may change slightly once all home sales are accounted for, they provide an early indication of home price appreciation, inventory changes and sales volume in Philadelphia during May 2026.
For most markets, geographical coverage consists of the Census-defined Core-Based Statistical Area (CBSA). Data for San Francisco, Los Angeles, Miami, and New York is at the Metropolitan Division level.
Definition of Sale Prices
Median home price is the midpoint sale price of homes closed during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.
Definition of Inventory
Inventory is the number of unique active listings that were for sale during each month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.
Definition of Home Sales
The total number of closed home sales on the MLS during the month. This data includes homes that are detached, attached, and condominiums. Detached homes are single-family units. Attached homes are townhomes, rowhouses, and duplexes. The condominium classification includes co-ops.
About the Homes.com Market Analytics Team
The Homes.com Market Analytics group is a team of experienced analysts embedded in nearly 30 markets across North America. These experts reside in and regularly visit the markets they cover, providing local expertise and a national perspective on all sectors of real estate: residential, office, industrial, retail, and multifamily.
About Homes.com Analytics Data
The Homes.com analytic data is compiled by the CoStar Analytics team, the largest and most experienced analytics team in the real estate industry. The team consists of over 50 economists, analysts, and data scientists, who collectively have more than 900 years of real estate experience and over 30 advanced degrees. Analysts on the team live in and around the markets they cover, enabling them to build deep local knowledge and unique insights.
The data set being used by the team is one of the most comprehensive and robust in the industry. It spans all 393 metropolitan markets, 542 micropolitan markets, and over 35,000 local neighborhoods in the U.S. The data set is sourced from almost 500 Multiple Listing Service (MLS) providers around the country, as well as public record data from each market, and is supplemented by proprietary data collected by CoStar's team of over 2,000 researchers. It includes a complete inventory of all homes in the U.S., including homes for sale, homes for rent, new construction homes, as well as sale comps and rent comps.