As summer winds down and school bells ring across the Greater Philadelphia region, the housing market is also shifting gears. The end of August traditionally brings a pause as families wrap up vacations and settle into new routines. But once Labor Day passes, real estate activity often re-energizes—and this year looks no different.

A Softer August, but Signs of Strength Ahead

Across the metro area, buyer demand cooled slightly in August, with Bright MLS’ Home Demand Index registering 83, essentially unchanged from last year. That lull is typical for late summer, but there’s more energy just beneath the surface: showings across the region were already running 7% higher than last year by late August, a sign that buyers are ready to re-engage this fall.

At the same time, home values remain resilient. July’s metro-wide median sale price reached $420,000, a 6.3% jump over last year—a record for the month. Yet sellers are noticing a shift: closed sales dipped nearly 3%, and active listings rose 17%, offering buyers a little more breathing room than they had a year ago.

Mortgage Rates Add Fuel

The biggest wild card in 2025 has been mortgage rates, which have recently dropped to about 6.6% for a 30-year fixed loan—the lowest in nearly a year. For buyers who stepped back earlier this year, that’s welcome news. A half-point swing in rates can mean the difference between affording a two-bedroom condo in the city or a three-bedroom colonial in the suburbs.

If rates stay put—or fall further—it could spark stronger-than-usual activity this fall.

City vs. Suburbs: Where the Market Stands

• Philadelphia (city): The July median sale price held steady around $275,000. Homes are taking longer to sell (47 days on average vs. 41 last year), giving buyers more room to compare options.

• Western Suburbs (PA): Counties like Montgomery continue to see double-digit appreciation, with steady demand meeting new listings. Buyers looking here will still face competition, especially for well-kept single-family homes.

• South Jersey Suburbs: Gloucester and Mercer Counties posted strong, double-digit gains, while Burlington ($415,000, +5%) and Camden ($360,000, +3%) showed steadier growth. Importantly, months of supply—the measure of how quickly homes would sell if no new listings came on—has crept up to just over 2 months in several NJ counties. That’s still a seller’s market, but a more balanced one than last year.

What Buyers and Sellers Should Know

For Sellers:

• Expect more listings to hit after Labor Day, so presentation matters. Fresh paint, small repairs, and standout photos are key to catching attention.

• Pricing should reflect today’s comps, not last spring’s frenzy. Overpricing risks a quick price cut later.

• Consider offering incentives like closing-cost help or rate buydowns to widen your buyer pool, especially as competition among sellers increases.

For Buyers:

• More inventory is coming. With new listings and slightly longer days on market, you’ll have more negotiating power than last fall.

• Keep an eye on mortgage rates. Locking in while rates hover in the mid-6s could save you thousands over the life of a loan.

• Local conditions vary. In the city, prices are flat and homes linger longer; in select suburbs, competition remains fierce. Tailor your strategy by neighborhood.

The Fall 2025 Outlook

Looking ahead, expect a typical autumn pickup in showings and contracts. Prices are likely to stay stable or rise modestly across the region, with the strongest growth in select suburbs like Gloucester and Montgomery. Inventory should continue to build compared with 2024, giving buyers a little more leverage while keeping the market competitive overall.

If mortgage rates hold in the mid-6s, this fall could offer one of the best windows in recent years for buyers looking to balance price and affordability.

Bottom line: Back-to-school season is bringing a fresh wave of opportunity for both buyers and sellers across Greater Philadelphia. With more listings, steady prices, and friendlier rates, this fall may strike the balance that’s been missing since the height of the pandemic market.