Montgomery County Housing Market Update - September 2025

by Rick Sheppard

Hello Montgomery County friends!

September's housing numbers are in, and they tell a fascinating story of a market that's finding its rhythm. Montgomery County continues to demonstrate the steady, reliable character that makes it such an attractive place to call home—a market that's maturing beautifully with measured growth and thoughtful activity.

🌟 Market Highlights

The numbers paint a picture of measured growth and healthy activity. New listings jumped to 904 homes in September, representing a solid 4.4% increase from last year and a notable 13.4% boost from August. This uptick suggests sellers are feeling confident about market conditions as we head into the traditionally slower fall season.

Pending sales reached 767 homes, showing remarkable consistency with just a 0.5% dip from September 2024. More telling is the slight 0.6% decrease from August, indicating the market is settling into a sustainable pace rather than the frenetic activity we've seen in previous years.

Closed sales hit 712 transactions, up 3.2% year-over-year but down 21% from August's robust 901 closings. This seasonal adjustment is perfectly normal and actually suggests a healthier, more balanced market than the overheated conditions we've grown accustomed to.

💰 Home Prices: The Plot Thickens

Here's where things get interesting. The median sold price of $433,750 represents a modest 0.2% decline from last September, but here's the kicker—it's down 8.7% from August's peak of $475,050. Before you panic, this is actually excellent news for market stability.

Year-to-date, the median price sits at $465,125, still 3.4% ahead of 2024's pace. The five-year September average of $410,900 puts current prices in healthy territory—not the unsustainable heights that make everyone nervous, but solid appreciation that reflects genuine value.

📊 Market Dynamics: The Real Story

Active listings have climbed to 1,221 homes, the highest level we've seen in quite some time. This 15.4% increase from last year gives buyers actual choices—imagine that! The average days on market sits at a reasonable 24 days, allowing for proper due diligence without the pressure-cooker atmosphere of recent years.

Perhaps most encouraging is the sold-to-list price ratio of 99.3%, indicating that well-priced homes are selling at or very near asking price. This suggests a market where realistic pricing meets informed buyers—a recipe for sustainable growth.

📉 Mortgage Rates: A Welcome Surprise

Current mortgage rates have settled into the low-to-mid 6% range, with 30-year fixed rates around 6.30% as of early October. While still elevated compared to the historic lows of recent years, these rates represent the most favorable borrowing conditions we've seen in over a year. For context, rates in the 6% range are actually quite reasonable by historical standards.

🔊 Bottom Line

For Sellers: The market rewards realistic pricing and quality presentation. With 24 days average time on market, you have breathing room to showcase your home properly. The 99.3% sold-to-list ratio shows that fair pricing gets results.

For Buyers: This is the most balanced market we've seen in years. Increased inventory means actual choice, and while you might not get a steal, you won't be forced into bidding wars over mediocre properties either.

Montgomery County's housing market is maturing beautifully—less drama, more substance. It's becoming a place where both buyers and sellers can make informed decisions without the FOMO that has dominated recent years.

Want the inside scoop on your specific neighborhood? Get a personalized Market Snapshot that shows exactly what's happening in your area—from active listings to recent sales trends.

Also check out our neighboring markets:

• Chester County Housing Market Update - September 2025
• Bucks County Housing Market Update - September 2025

Let's connect and create a strategy that works in today's more sensible market environment.

Stay sharp, friends! 🏡