Montgomery County remains at the center of one of the most competitive suburban housing markets in the country, writes Ryan Mulligan for The Philadelphia Business Journal.
As limited inventory continues to push buyers into bidding wars across the Philadelphia region, Montco prices go up.
The three-county market covering Montgomery, Bucks, and Chester counties ranked among the top 10 nationally for the share of homes selling above their original asking price in May. This is according to a Redfin report published Tuesday.
About 43.6% of homes in the tri-county area sold above list price, far exceeding the national rate of 25.8%.
One of Only Seven Seller’s Markets in the U.S.
The Philadelphia suburbs are not just outperforming most of the country. The tri-county market is one of only seven seller’s markets identified nationwide in the Redfin analysis. The distinction sets it apart even from many metros where competition remains elevated.
Nationally, more than half of all homes sold below asking price in May, making the local dynamic a genuine outlier.
The strength of the market reflects the enduring appeal of communities along the Main Line and throughout Montgomery County.
Access to strong school districts, employment centers, SEPTA rail lines, and established downtowns keeps demand elevated year over year.
Prices Near Record Highs
The competition has helped maintain historically high prices. The median sale price across Montgomery, Bucks, and Chester counties reached $517,405 in May, up 1.6% from the same month last year.
That was the second-highest median price recorded for the suburban market, behind only the $530,000 mark reached in June 2025.
Within Montgomery County itself, Redfin data shows the median sale price running around $430,000 in early 2026, while Bucks County has tracked closer to $538,000.
Chester County has commanded even higher prices, with a median around $556,000 in recent months, reflecting the premium buyers pay for homes in that corridor.
Inventory Is Rising, but Demand Keeps Pace
There are signs the market may be gradually becoming less restrictive for buyers. New listings in the three suburban counties increased 6.1% year over year to 2,155, while active listings climbed 12.6% to 5,753.
Pending sales were also up 11.3%, suggesting that additional supply is being absorbed by a steady pool of buyers rather than sitting on the market.
For Montgomery County residents, that means the market is easing without necessarily becoming affordable.
Buyers may have more homes to consider than they did a year ago. Still, move-in-ready properties in communities such as Lower Merion, Ambler, and Blue Bell can still attract multiple offers.
A Sharp Contrast With the City
The gap between the suburbs and Philadelphia proper remains wide. Philadelphia and Delaware counties saw 29.1% of homes sell above asking price in May. This is still above the national average but well below the rate in the northern and western suburbs.
Limited construction in the region is a key reason the competitive conditions persist. The Philadelphia suburbs have seen little new inventory enter the market at price points accessible to most buyers, keeping the balance of power tilted toward sellers.
For now, Montgomery County remains firmly in seller’s market territory, even as rising inventory begins to give buyers a little more room to maneuver.
Learn more about how the Philadelphia suburbs’ housing market compares to communities nationwide in The Philadelphia Business Journal.
