Market Report: Q2 2025
- Spotlight Real Estate Group
- Jul 21
- 2 min read
Opinion: Chris' Thoughts
Prices Rise Amidst Shifting Declining Inventory and Steady Interest Rates
Our local housing market continues its dynamic trajectory: prices are still increasing, albeit at a slower pace, even amidst higher interest rates. Nationally, we've observed a 4.9% appreciation over the past year, with rising inventory starting to catch up with buyer demand. Locally, we have not see the increase in inventory. The broader economy shows strength with a robust job market, moderate inflation, and increased consumer spending, yet federal policy keeps long-term investment decisions uncertain. Locally, our real estate market is trending towards balance, but sellers largely remain in the driver's seat. The number of homes for sale continues to decrease, dropping another 3.6% to 7.8% across our markets this year. This persistent low supply continues to drive prices upward. However, two key indicators, Days on Market (DOM) and List-to-Sale Price averages, suggest a slow shift toward a more balanced environment. This often occurs when a period of rapid appreciation leads some homeowners to overprice their homes, resulting in longer selling times and a slightly lower list-to-sale price ratio.
What This Means for Buyers: It's still a competitive landscape. In Chester County, selling above asking price remains the norm (101.8% list-to-sale price). However, in Cecil and New Castle counties, buyers may find some room for limited negotiation below the initial listing price. While the Federal Reserve hints at potential interest rate reductions this fall, they faced similar plans last year that didn't materialize. With unknown impacts from tariffs looming, don't plan on substantial rate drops anytime soon.
What This Means for Sellers: While the market is cooling slightly from its peak, you can still expect your home to sell within a month on average. Homes that are priced correctly, show well, and are fully marketed should receive offers within two weeks. If your financial situation allows, now can be an opportune time to buy your next home first, then confidently sell your current property, knowing it's likely to move quickly.
New Castle County, DE
Cecil County, MD
Chester County, PA
