Market Report: Q3 2025

Spotlight Real Estate Group
Oct 30
3 min read

Opinion: Chris' Thoughts

or go straight to the market statistics.

Mixed Price Growth Signals a Healthier Market Balance

After years in the fast lane of an extreme seller's market, our local real estate landscape—spanning Chester, New Castle, and Cecil Counties—has reached a critical inflection point. This quarter's data paints a picture of a mixed, yet resilient market that is finally returning to a more sustainable pace. The two clear signals? An increase in both Days on Market (DOM) and the Supply of Inventory.

Locally, the data shows distinct price action across our markets:

Chester County saw continued strong price appreciation at +7%.
New Castle County experienced moderate growth at +3%.
Cecil County saw a slight dip in prices at (-3.9%).

While the price dips in one county might grab headlines, the common thread is the increase in time on the market and available inventory. This combination is a solid statistical marker that we've entered a "neutral market," shifting the power dynamics between buyers and sellers. NAR Chief Economist Dr. Lawrence Yun said that "Inventory is matching a five-year high, though it remains below pre-COVID levels".

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The National Picture: A Steady Ship in Choppy Waters

Our local shift aligns with broader economic trends of moderating national price growth and stabilizing interest rates. The Federal Reserve's actions, coupled with cooling inflation, are leading to some optimism. Experts are seeing the same easing in competitive pressure across the country.

As Greg McBride, Chief Financial Analyst for Bankrate, noted, "Rising inventory has some formerly hot real estate markets shifting from a seller's market to a buyer's market, and will be susceptible to price declines.”

Our region's movement toward a neutral market suggests we are part of this broader recalibration, a healthy sign that the market is normalizing rather than fundamentally correcting. Mortgage rate forecasts are generally predicting a slight downward drift, with the average 30-year fixed rate potentially settling around 6.5% by the end of Q4 2025, according to a recent average of forecasts from major housing economists.

What This Means for Buyers: Relief and Real Negotiation Power

For buyers who have been exhausted or entirely shut out of the market since the pandemic began, this shift brings welcome relief.

Time to Breathe: Properties are now listed for about a month on average, a stark contrast to the four-day peak in the frenzied market of 2021. This extended timeline allows you to breathe, see the property a second time, complete due diligence, and craft a strategic offer without the panic of a bidding war.
Negotiation is Back: For the first time since the pandemic, the average sales price is now below the listed price across all three of our counties, which means that price and contract negotiations are becoming a common occurrence. Buyers can leverage the growing inventory to confidently submit offers below asking price and negotiate contingencies.

Your Buyer Strategy: Don't wait on the sidelines for a 'crash' that national data does not predict. Instead, work with a professional to leverage the newfound negotiating power in this neutral zone. This is the most buyer-friendly market we've had since the pandemic.

What This Means for Sellers: Strategy is the New Speed

This is not a time to panic. In fact, compared to the national real estate landscape, our tri-county area shows impressive resilience. Our geographic location—offering a desirable blend of rural suburban environments near major employment hubs and relatively favorable tax rates—continues to attract a high level of relocation from areas like New Jersey, Pennsylvania, and New York.

Your Seller Strategy is Paramount: Selling your home successfully now requires a shift in mindset and a sharp focus on presentation and price.

With more competition on the market, your home must stand out:

Impeccable Presentation: Maximize your home’s appeal. This is the added incentive to ensure your house is presented in the best way possible: See our Photo Ready Checklist. A well-maintained, correctly priced home will still sell quickly.
Strategic Pricing: The era of testing the limits with an over-ambitious price is over. You must price your home strategically and in direct line with the current market conditions. You will be able to sell your home, but success now hinges on strategy, not just market momentum.

Ready to make your move in this new market? Whether you’re a buyer looking to capitalize on new negotiating power or a seller needing a precise pricing and staging strategy, let’s discuss the nuances of your local micro-market.