January 2026 Report
Philadelphia Metro
Philadelphia | January 2026
Home Demand Index
The Home Demand Index (HDI) for the Philadelphia metro area is 46 in this report period, down sharply from 64 last month and below the 50 reading a year ago. This decline indicates that buyer activity has softened notably, pushing the market further into the Limited demand range after stronger conditions through much of last year. The pullback suggests more cautious buyers and potentially longer selling times, as demand resets to a quieter start-of-year pace.
Demand by home type in Philadelphia continues to show increasing divergence this report period, with notable volatility across single-family segments. Entry-level single-family homes have softened compared with both last month and last year, reflecting ongoing affordability pressures in the most accessible detached segment. Mid-range and luxury single-family homes continue to experience irregular activity, likely driven by limited inventory rather than broad-based buyer interest. Entry-level condos maintain some support, while luxury condos have weakened. Townhouses also remain subdued, reflecting cautious buyer behavior across these segments. Overall, the market continues to reflect uneven demand, with buyers approaching decisions deliberately and selectively.
Monthly Statistics for January 2026
Home Demand
Index
Index
46
(Limited)
Home Demand Index
from prior month
from prior month
64
Home Demand Index
from prior year
from prior year
50
Index change
from prior month
from prior month
-28.1%
Index change from
same time last year
same time last year
-8%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2026
Home Demand Index | Historical Year-over-Year Comparison
Philadelphia’s Home Demand Index registers 46 this report period, down meaningfully from 64 last month and below the 50 recorded during the same period last year. The widening year-over-year gap points to weaker demand momentum relative to early 2025, with buyers pulling back more decisively. Viewed across the past 12 months, the trend shows demand shifting from midyear stability toward a deeper late-year slowdown, highlighting growing sensitivity to pricing, financing costs, and economic uncertainty.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2026
Home Demand Map
Buyer demand across the Philadelphia metro area remains geographically uneven, with most submarkets showing softer conditions this period. Core Pennsylvania counties are generally experiencing slow demand rather than steady levels, reflecting broader market cooling, while Philadelphia County continues to lag due to affordability constraints. New Jersey counties and coastal areas remain firmly in limited-demand ranges, reinforcing the ongoing divide between core commuter markets and more discretionary submarkets.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2026
Demand and Inventory by Home Type
Demand by home type in Philadelphia continues to show increasing divergence this report period, with notable volatility across single-family segments. Entry-level single-family homes have softened compared with both last month and last year, reflecting ongoing affordability pressures in the most accessible detached segment. Mid-range and luxury single-family homes continue to experience irregular activity, likely driven by limited inventory rather than broad-based buyer interest. Entry-level condos maintain some support, while luxury condos have weakened. Townhouses also remain subdued, reflecting cautious buyer behavior across these segments. Overall, the market continues to reflect uneven demand, with buyers approaching decisions deliberately and selectively.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2026
Single Family Home Below $360k
The index for entry-level single-family homes in Philadelphia is 49 this report period, down from 66 last month and below last year’s level of 55. This move deeper into the Limited demand range points to a meaningful cooling in buyer activity at the most affordable single-family price points. The decline suggests that affordability pressures and constrained inventory are weighing on first-time and budget-conscious buyers, resulting in slower traffic and more selective purchasing in this segment.
Monthly Statistics for Single Family Home Below $360k
Home Demand
Index
Index
49
(Limited)
Home Demand Index
from prior month
from prior month
66
Home Demand Index
from prior year
from prior year
55
Months of
inventory
inventory
1.8
Average daily inventory last month
1,136
Inventory sold
last month
last month
640
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2026
Single Family Home $360k - $800k
The index for mid-range single-family homes in Philadelphia stands at 38 this period, a decline from 55 last month and below the 42 recorded a year ago. This drop signals a pronounced pullback in move-up buyer activity, shifting the segment further into subdued, Limited demand conditions. The softer readings indicate that mid-range buyers may be reacting to higher borrowing costs and price sensitivity, leading to longer decision cycles and less competitive bidding in this price band.
Monthly Statistics for Single Family Home $360k - $800k
Home Demand
Index
Index
38
(Limited)
Home Demand Index
from prior month
from prior month
55
Home Demand Index
from prior year
from prior year
42
Months of
Inventory
Inventory
1.6
Average daily inventory last month
2,555
Inventory sold
last month
last month
1,586
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2026
Single Family Home Above $800k
Luxury single-family demand in Philadelphia has fallen to 25 in the latest report, down sharply from 43 last month and slightly below last year’s level of 28. This marks one of the weakest demand readings in the single-family spectrum, reflecting very limited buyer activity at the high end. The combination of elevated pricing, tighter financing conditions, and a smaller pool of qualified buyers is likely contributing to slower absorption and increased selectivity in the luxury segment.
Monthly Statistics for Single Family Home Above $800k
Home Demand
Index
Index
25
(Limited)
Home Demand Index
from prior month
from prior month
43
Home Demand Index
from prior year
from prior year
28
Months of
Inventory
Inventory
2.1
Average daily inventory last month
813
Inventory sold
last month
last month
389
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2026
Condo Below $427k
The index for entry-level condos in Philadelphia is 66 this period, down from 86 last month but modestly above last year’s reading of 63. The month-over-month decline indicates that demand in this affordable attached segment has cooled, consistent with the broader slowdown across the market. However, the slight year-over-year gain suggests that entry-level condos continue to attract buyers seeking relatively lower price points and urban convenience, even as overall activity moderates.
Monthly Statistics for Condo Below $427k
Home Demand
Index
Index
66
(Limited)
Home Demand Index
from prior month
from prior month
86
Home Demand Index
from prior year
from prior year
63
Months of
Inventory
Inventory
3.3
Average daily inventory last month
940
Inventory sold
last month
last month
282
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2026
Condo Above $427k
The index for luxury condos in Philadelphia stands at 59 this report period, down from 93 last month and below last year’s level of 63. This sharp month-over-month decline points to a notable easing of high-end condo demand, moving the segment into a more limited, selective market environment. The year-over-year softness indicates that, compared with last year, fewer buyers are transacting at the top of the condo market, likely reflecting sensitivity to pricing and macroeconomic uncertainty.
Monthly Statistics for Condo Above $427k
Home Demand
Index
Index
59
(Limited)
Home Demand Index
from prior month
from prior month
93
Home Demand Index
from prior year
from prior year
63
Months of
Inventory
Inventory
4.9
Average daily inventory last month
253
Inventory sold
last month
last month
52
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2026
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
The index for townhouses, rowhouses, and twins in Philadelphia is 56 this period, down from 73 last month and slightly below last year’s level of 60. This decline signals a cooling in demand for these attached homes, which have often served as a middle ground between condos and single-family properties. While interest remains present, the recent pullback suggests buyers are becoming more cautious on price and location, leading to slower absorption compared with the stronger conditions seen earlier in the cycle.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
56
(Limited)
Home Demand Index
from prior month
from prior month
73
Home Demand Index
from prior year
from prior year
60
Months of
Inventory
Inventory
3.1
Average daily inventory last month
6,038
Inventory sold
last month
last month
1,969
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Note
1. This report is generated with data from the following counties:
- Central Pennsylvania – Adams, PA; Berks, PA; Cumberland, PA; Dauphin, PA; Franklin, PA; Fulton, PA; Lancaster, PA; Lebanon, PA; Perry, PA; Schuylkill, PA; York, PA;
- Ocean County – Ocean, NJ;
- Philadelphia Metro – Bucks, PA; Burlington, NJ; Camden, NJ; Chester, PA; Delaware, PA; Gloucester, NJ; Kent, DE; Mercer, NJ; Montgomery, PA; New Castle, DE; Philadelphia, PA;
- Salem-Cumberland – Cumberland, NJ; Salem, NJ;
2. This report is for the January 2026 period with data collected from the previous month.
Released: January 11, 2026
Reference ID: 2361
Philadelphia | January 2026
Home Demand Map (Zip Codes)
Buyer demand across the Philadelphia metro area remains geographically uneven, with most submarkets showing softer conditions this period. Core Pennsylvania counties are generally experiencing slow demand rather than steady levels, reflecting broader market cooling, while Philadelphia County continues to lag due to affordability constraints. New Jersey counties and coastal areas remain firmly in limited-demand ranges, reinforcing the ongoing divide between core commuter markets and more discretionary submarkets.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com