By Gene Galin
Pittsboro, NC – As the real estate market in Chatham County continues to evolve, residents and potential buyers are left grappling with several pressing issues, from sewer access challenges to changing commission structures for real estate agents. In part three of my discussion with Eric Andrews, we delve into the current state of the Chatham County real estate market, forecasts for the remainder of the year, and the implications of recent changes in how real estate agents are compensated.
Understanding the Sewer Access Dilemma
A Historical Perspective
One of the most significant challenges facing Chatham County is the issue of sewer access, which has remained a critical concern since the late 19th century. The ability to manage wastewater effectively is paramount for any community’s growth and sustainability. Currently, the county has a mix of private wastewater treatment facilities, with limited municipal options available.
Eric points out that the only significant municipal sewer systems in the county are found in Pittsboro, Siler City, and Goldston. The absence of a robust public sewer infrastructure means that many homes are built on large lots, often exceeding an acre in size, particularly in areas without access to municipal water. This situation contributes to urban sprawl, which contradicts efforts to maintain the rural character of the region.
The Implications for Development
The limitations imposed by inadequate sewer access have substantial implications for future development in Chatham County. As the population continues to grow, the demand for housing increases, but without a coherent plan for expanding sewer services, growth may be stunted. Local officials have begun discussions about potential solutions, including legislative changes that could facilitate the development of multifamily housing in areas currently zoned for industrial use.
This shift could provide a pathway for more affordable housing options, which are desperately needed in the region. However, without addressing the sewer issue, any growth may be limited or inefficient.
The Current State of the Real Estate Market
Market Trends and Buyer Behavior
As of 2025, the Chatham County real estate market is experiencing a leveling-off phase. Eric points out that while there is no imminent crash, the expectations for continued appreciation in home values may be overly optimistic. The market is currently facing challenges, particularly with interest rates hovering around 7%. This high rate affects affordability and buyer behavior, leading many potential buyers to remain on the sidelines.
Interestingly, many homeowners who secured lower interest rates in previous years are reluctant to sell and move into a new property at a higher rate. This reluctance is particularly pronounced among older homeowners looking to downsize, as they find that the cost of smaller homes often exceeds their current mortgage payments.
The Impact of Interest Rates
The current interest rate environment is a significant factor influencing the real estate market. With rates around 7%, potential buyers are finding it increasingly difficult to afford homes, especially as prices remain stable or even increase. This situation has created a paradox where existing homeowners are “locked in” to their current properties, leading to fewer homes available for sale and a stagnation in the overall market.
Eric feels that many buyers will continue to stay put, resulting in fewer transactions and a potential decline in overall market activity. The forecast for 2025 suggests that the number of homes sold may be the lowest in three decades, echoing trends seen during the 2009 financial crisis.
Changes in Real Estate Agency Compensation
A Shift in Commission Structures
One of the most significant changes in the real estate industry is the shift in how agents are compensated. Traditionally, seller-paid commissions included fees for buyer’s agents, often leading to a lack of transparency in the process. However, recent changes have introduced a new framework where buyer’s agents must negotiate their fees directly with clients.
This new model emphasizes the need for buyer’s agents to demonstrate their value and engage in discussions about commission rates upfront. While some agents may view this change as detrimental, others believe it will lead to a more professional and competitive environment.
The Challenges for Buyers
Despite the potential benefits of increased transparency, the new commission structure may pose challenges for first-time buyers or those seeking affordable housing. With buyers now responsible for covering their agent’s fees if the seller does not offer a commission, the financial burden may become a significant hurdle. This situation could deter potential buyers from entering the market, particularly in lower price ranges where every dollar counts.
For example, a buyer looking at homes priced between $200,000 and $350,000 may find it challenging to absorb additional costs associated with hiring an agent. Eric recommends that sellers consider offering commissions to attract more buyers, thereby increasing the likelihood of a successful sale.
Future Forecasts and Recommendations
Market Predictions for 2025
Looking ahead, Eric anticipates a continued period of adjustment. While there may not be a dramatic decline in home prices, the overall market is expected to stabilize, with fewer transactions occurring. This trend could be exacerbated by the ongoing challenges related to sewer access and the evolving compensation structures for real estate agents.
Eric suggests that potential buyers remain informed about market conditions and consider their financial capabilities carefully. With interest rates likely to remain elevated, it may be wise for buyers to explore various financing options and be prepared for the possibility of higher costs.
Recommendations for Stakeholders
For sellers, understanding the new commission structure is essential. Engaging in open discussions with real estate agents about compensation can lead to better outcomes and a more transparent process. For local officials, addressing the sewer access issue will be crucial for facilitating growth and ensuring that the community can accommodate its expanding population. Additionally, stakeholders should advocate for policies that promote affordable housing and streamline the development process.
Watch on YouTube – Part 3 Chatham County Real Estate – 5.23.25
Chatham County Real Estate Update: Forecasts, Sewer Access Challenges, and Agency Compensation Review for 2025
00:13 Chatham County’s real estate issues focus on sewer access and commission trends.
- Sewer access remains a historical and ongoing challenge for Chatham County, affecting real estate development.
- Discussions around real estate agency compensation continue to trend, highlighting concerns about commissions.
02:13 Chatham County aims to manage growth and housing through zoning changes.
- Infill and concentrated growth around municipalities with sewer systems are encouraged to preserve rural character.
- Proposed legislation may allow multifamily zoning in industrial areas and duplex approval for affordable housing solutions.
04:02 Chatham County real estate is stabilizing, with high interest rates impacting seller expectations.
- Current interest rates around 7% are limiting affordability for new buyers and affecting market dynamics.
- Most homeowners locked into low rates are likely to stay put, reducing inventory and stabilizing prices.
05:51 Chatham County real estate faces stagnation due to low housing mobility.
- Homeowners are reluctant to move as they benefit from low mortgage rates, hindering the real estate cycle.
- Seniors aiming to downsize are deterred by higher costs compared to their current paid-off homes.
07:53 Real estate commission structures are changing amidst market uncertainties.
- Sellers now have the option to choose whether to pay buyer’s agent commissions.
- Upcoming industry changes will impact traditional practices of real estate transactions.
09:50 Buyer’s agency agreements and commission negotiations reshape real estate transactions.
- Buyers negotiate commission rates with agents, which can range from 2% to 3% depending on the property price.
- If the seller pays less than the agreed commission, buyers must cover the difference, impacting affordability.
11:51 Transparency in real estate commissions benefits sellers and agents.
- Sellers are encouraged to offer competitive commissions to increase market exposure and facilitate discussions with listing agents.
- Despite differing opinions on commission rates, open dialogue allows agents to demonstrate their value to clients and helps sellers understand market dynamics.
13:48 Buyers bear costs for commission deficiencies in home purchases.
- If the buyer does not cover the commission deficiency, it impacts their overall budget for the home.
- Buyers may reconsider properties for sale by owner if extra costs are required upfront rather than being included in the purchase price.
15:32 Discussion on local real estate concerns and community connections.
- Residents prioritize local knowledge and community ties over trends from other counties.
- Long-term residents reflect on their relationships with former students seeking real estate advice.