Real Estate Market Updates: June 2025

We’ve reached the midpoint of 2025, and according to most economists the national real estate market is beginning to show signs of balancing. Locally, individual markets are still thriving while a few have slowed, but overall predictions are still largely impacted by the national picture. With interest rates holding steady and the unpredictability of the effects of tariffs, many believe potential volatility is still impacting buyers across the board.

According to NAR Chief Economist Lawrence Yun, existing homes sales went up .8% from April to May 2025 while the year-over sales decreased by .7%

“The relatively subdued sales are largely due to persistently high mortgage rates,” he said. “Lower interest rates will attract more buyers and sellers to the housing market. Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth.”

The national median home sale price is $422,800, which represents a 1.3% change year-over-year for the month of May. This has decreased every month since December 2024, when the median sale prices were increasing by 5.8%.

According to Forbes Advisor, a buyer purchasing a house at this price, putting 20% down with an interest rate at 6.8% for a 30-year mortgage will pay $2,200 a month. This does not include home insurance, property taxes, and HOA payments, if necessary, which could bring the total closer to $2,800. NAR’s annual report indicates just over 74% of buyers in 2024 financed their home and 50% of homebuyers used a conventional loan. 38% of buyers in 2024 used an FHA or VA loan, so monthly payments could easily exceed $3,000 a month at the above price point for most buyers.

First time home buyers represented 30% of the market in May, down from 31% in May 2024. 17% of sale purchases in May came from investors, up 1% from the same time last year. 27% of all sales were cash transactions, also down 1%, and year-to-year distressed sales rose from 2% to 3% of all transactions. Homes spent an average of 27 days on the market in May, up from 24 days in 2024, representing the gradual shift toward a buyer’s market as supply increases. Many leaders also dispel the rumors by some in the profession that indicate a 2008-type of change and say there are too many economic factors that will prevent a surge of buyers entering the market, overwhelming demand.

Source: Bright MLS

Since the Philadelphia area continues to grow, many local markets have seen changes along the national and state trends while others continue to perform well above, creating unique opportunities for buyers, sellers, and investors.

In Bucks County, Doylestown (3.1%, 16.3%) and Lower Makefield (5.5%, 9%) continue to see a steady increase in sales and median sale prices. Newtown (-4%) and Solebury (-1.6%) had slight decreases in median sale prices and a much higher time on the market with homes staying 55% and 76% longer respectively before transacting. Solebury also had a 21.7% increase in sales from the first half of 2025 compared to the first half of 2024. As a whole, the highlighted markets in Bucks spent more time on the market.

In Montgomery County, Abington had a 3.8% increase in median sale prices and a 22% decrease in time on the market, indicating a positive opportunity for sellers. Upper Moreland had a 12.3% increase in sales, a less than 1% drop in median sale prices, and a 9% drop in days on the market. With an average of 10 days on the market, Upper Moreland represents the fastest-moving of the highlighted markets for the first half of the year.

Compared to national averages, in the highlighted markets, home sales are higher, median sales prices are higher, and the days on market are higher (though some markets trend differently in specific measures), indicating continued growth but a shift toward balance. In Bucks County in particular, the ratio of pending sales to active listings is 1.16, which is well below the 5-year average. This shows there is more inventory county-wide than in previous years.