Hose bib leaks inside home

[shobuddy]

When I open the shut-off valve (located in my basement) to spigot on the front of my house and open the spigot, I get a leak in my basement coming from the wall where the piping goes thru. Luckily my basement is unfinished so I can see where the water is dripping/leaking from. In the image below, i've circled the leak spot in red.

That said, when the cut-off valve is open and the spigot is closed, I don’t see a leak.

I know little to none about plumbing so I’m just trying to narrow down what the issue could be. Being that it doesn’t leak when the spigot is closed, does that provide any clues on where/what the issue could be?

 

[Matt30]

Chances are water froze in there over the winter and the faucet split. This is common if the hoses were left on too long before being put away for the winter.
Only option is replacement.

 

[Jeff Handy]

Matt is right.

You left a hose attached, or a fitting like a Y adapter or splitter.

Or some chucklehead installed the sillcock with an uphill pitch.

So the faucet could not fully drain.

Which defeats the purpose and design of the frost proof sillcock.

The outside handle operates a valve which turns off the water further inside the house, far from the cold exterior, but if the faucet can’t drain by gravity, that water is trapped and can burst the body of the sillcock.