Disclosure: We use AI tools like ChatGPT to help craft and organize our ideas, but the heart and experience behind each article are entirely human. This content is for informational purposes only and should not be taken as legal, tax, financial, or mental health advice.
Dear Philadelphia Sellers,
Every so often I attend an event that makes me think, “Every homeowner in the city needs to hear this.” That happened at a recent presentation by Real Estate Economist Kevin Gillen Ph.D on November 20, 2025. What he shared confirmed what many of you are feeling right now. The market is shifting, the momentum is changing, and you deserve clarity, not confusion.
So consider this my open letter to every seller in Philadelphia, filled with straight talk, perspective, and grounded guidance.
Let’s break it down in simple, helpful terms.
What’s Actually Happening With Home Values?
Economists are now showing that since the pandemic, home values have climbed about 22 percent. To put that in context, homes normally grow about 4 percent a year. In other words, values have been sprinting when they usually jog.
And when home prices run faster than wages, something has to give. In this case, affordability took the hit.
Here is the ripple effect you’re seeing:
• The average first time buyer is no longer in their twenties, they are now well into their forties.
• Millennials are renting longer or living with parents because student debt grew faster than their paychecks.
• Gen Z, the Zoomers, are starting to wonder if the “American Dream” is just something older generations talk about between commercials for allergy medicine.
Not exactly a buyer stampede.
Is Philadelphia Still Affordable Compared to Other Areas?
Yes. And buyers know it.
Philadelphia remains more affordable than many surrounding regions, which is one of our greatest market advantages. But affordability alone does not override the reality that we are now in what economists call a soft market.
A soft market happens when buyer demand starts to cool because:
• The economy gets shaky
• Interest rates stay high
• Inventory rises
• Expectations change on both sides
A soft market means less urgency, longer days on market, and buyers who want to negotiate everything from roof condition to whether you can throw in your Peloton.
Are We In a Buyers’ Market Now?
Not quite.
Philadelphia is entering what we call a balanced market. Think of it like a seesaw that has finally started to level out after almost ten years of sellers sitting comfortably on the high side.
Inventory is now around five to seven months in the Philadelphia metro. Here is what that means:
• Less than 5 months, sellers have the advantage
• More than 7 months, buyers hold the power
• Between 5 and 7 months, the market is neutral
Balanced is not bad. It just requires a different strategy.
This is the moment when the sellers who pay attention win, and the ones who ignore the market end up wondering why their home is collecting more days than showings.
What About Rentals, New Construction, and Investors?
Inflation pushed rental prices up, which is increasing demand for multi units that generate income. Investors love predictable cash flow in uncertain times.
On the flip side, developers and flippers are slowing down because construction materials cost more and profits are thinner. When builders pause, inventory changes. When inventory changes, strategy shifts. When strategy shifts, sellers need good guidance, not guesswork.
When Will the Market Improve?
Based on the data shared, the outlook for 2026 and 2027 is positive. This is not a crash. It is a correction.
Think of the market as a snow globe. Someone shook it during the pandemic. Prices swirled, interest rates flew everywhere, and nothing looked quite normal. Now everything is settling into place again.
What Should Philadelphia Sellers Do Right Now?
Here is the honest guidance I would give anyone sitting across from me at a kitchen table:
1. Price with the market, not with your memory.
Buyers are smart, informed, and patient. Overpricing is the fastest way to become the house they use as a cautionary tale.
2. Expect more negotiation.
Condition, repairs, credits, inspections, timing, contingencies. Buyers will ask. Prepare for it.
3. Be clear on your goals.
If you need to sell now, we create a competitive strategy for the current environment.
If you have flexibility, renting for a period may be worth exploring.
Here is the most important point.
It is not your house. It is not your agent. It is the market.
The goal is not wishful thinking, it is smart planning.
And for the record, if your home could talk right now, it would probably say, “I still look great. I just need you to be realistic.”
Final Thought
No matter what the market is doing, you still have options. You still have leverage. And you still have a path forward that protects your equity and supports your next chapter.
If you are thinking about selling, or simply want to understand what your options look like in this climate, I am here to help you navigate it with clarity and care.
At Next Chapter, we help people build, protect, and pass on wealth through real estate so their next chapter becomes their best one yet.
