Philadelphia & Montgomery County Real Estate Forecast 2026: What’s Coming Next
The 2026 Market Outlook: Calm After the Chaos
After several years of record-breaking highs and whiplash adjustments, 2026 is shaping up as the year of balance.
Buyers are regaining negotiating power, sellers still hold equity, and agents who understand market dynamics are thriving.
Let’s break down what’s driving the market in Philadelphia, Montgomery County, and surrounding suburbs this year — and how to position yourself to win.
Mortgage Rates: The New Normal
Interest rates are expected to average 5.9% – 6.25% for much of 2026, offering relief after years of volatility.
While not the ultra-low rates of 2021, this “new normal” has restored predictability — giving both buyers and sellers confidence to act.
Tip: If you’re planning to move, secure your pre-approval early. Many lenders offer “rate-lock-and-shop” programs that freeze your rate for 60–90 days.
Home Prices: Leveling Off, Not Crashing
The doom headlines miss the nuance — home prices aren’t falling, they’re normalizing.
In Montgomery County, the median home price sits around $520,000, a steady 3–4% annual increase from 2025.
Philadelphia’s city core has softened slightly in older housing stock areas, while suburban walkable towns like Ambler, Ardmore, and Conshohocken remain competitive due to strong schools and transit access.
Inventory: Still Below Historical Norms
New listings are ticking up, but inventory remains 25% below pre-2020 levels.
This creates a “micro-balance” — homes in prime locations or updated condition move fast, while others linger.
Sellers who list early (February–April) are poised for the best results.
New Construction: Coming Back Slowly
Builder confidence is improving, but construction costs and zoning delays still limit large-scale development.
Expect more infill townhome projects and luxury condo buildings in Ambler, Conshohocken, and King of Prussia.
If you’re building new in 2026, factor in longer lead times — 6–9 months on average.
Investor & Rental Market Shifts
Rental prices are plateauing after record jumps. Investors are now focusing on multifamily rehabs and mid-range suburban rentals with low maintenance costs.
Philadelphia neighborhoods like East Falls and Roxborough are regaining investor attention thanks to affordability and strong rental yield.
What It Means for Sellers
Don’t wait for a “hotter” market — this is the balanced window you’ve been waiting for.
Buyers are motivated but price-sensitive.
Homes that are staged, well-priced, and marketed professionally still see multiple offers.
Book Your 2026 Seller Consultation
What It Means for Buyers
There’s more breathing room — fewer bidding wars.
Focus on long-term value: good school districts, walkability, low taxes.
Use negotiation power to ask for repairs or seller credits.
Schedule Your Buyer Consultation
Montgomery County Market Snapshot
Metric 2025 2026 Forecast
Median Home Price $505,000 $520,000 (+3%)
Avg Days on Market 19 23
Avg Mortgage Rate 6.75% 6.0%
Avg Seller Concession $4,200 $5,000
The Bottom Line
2026 is the year for strategy, not speculation.
The frenzied, emotion-driven markets of 2021–2023 are gone — and that’s a good thing.
Buyers can plan confidently. Sellers can list with precision. And with The Shaina McAndrews Team guiding every step, you can move with clarity in a market built for smart decisions.
Ready to Plan Your 2026 Move?
Get Your Free 2026 Home Value Estimate
or
Book a Quick Strategy Call
