By Gene Galin
Pittsboro, NC – As 2025 draws to a close, the real estate market in Chatham County presents a complex landscape shaped by limited inventory, rising prices, and shifting buyer expectations. In my conversation with Eric Andrews of Realty World Carolina Properties, we delve into the nuances of the local market, highlighting key trends, the impact of new construction, and the effects of external factors such as population influx and interest rates. Eric helps provide a comprehensive overview of the current state of real estate in Chatham County, offering insights for both buyers and sellers navigating this evolving market.
A Year That Felt Like Déjà Vu: Prices Still Rising, Appreciation Slows
The overarching theme for Chatham County in 2025 was continuity — but with important shifts under the surface.
Locally, median home prices in Chatham County hovered significantly higher than national averages, and while appreciation continued, it did so at a much slower pace than the double-digit gains seen earlier in the decade.
Eric highlighted this pattern when summarizing the year: prices did go up compared to 2024, but only modestly — far below the 8–11% annual increases experienced during the pandemic-era boom. Instead, 2025 saw appreciation in the 1.5% to 2.5% range for many local homes, a big shift from the market’s peak pace. It’s a telling indicator that while values remain elevated compared to a decade ago, the red-hot growth of recent years has eased.
Market Overview: A Year of Surprising Stability
Chatham County’s real estate market in 2025 has shown surprising stability, closely mirroring trends from the previous year. While the chaotic fluctuations of the COVID-19 pandemic have subsided, the market continues to experience limited inventory, with many potential buyers facing challenges in securing homes. Andrews notes that while there was hope for a drop in interest rates, the reality has been a modest decrease rather than a significant shift. Consequently, the appreciation rate, which once soared to double digits during the pandemic, has slowed to a range of 1.5% to 2.5% for the year.
The median home price in Chatham County has reached approximately $725,000, positioning it as one of the highest in the state. This price point is particularly notable when compared to neighboring areas such as Orange County and Wake County, where more affordable housing options, including condos and townhomes, are available. The lack of such options in Chatham County, combined with a focus on new construction on larger lots, has contributed to the higher median price.
The Dynamics of New Construction
New construction remains a driving force in Chatham County’s real estate landscape. With many homes being built on half-acre to two-acre lots, the average size of homes sold has increased significantly. The current average square footage for homes in the county hovers around 2,600 to 2,700 square feet, reflecting a trend toward larger residences. Andrews emphasizes that buyers moving from areas like California often find themselves astonished at the value they can achieve in Chatham County, where they can purchase significantly larger homes for the same price as a smaller property in their previous locations.
However, the rising costs associated with new construction—due to increased material prices, labor costs, and land value—have further contributed to the upward pressure on home prices. The average price per square foot for new construction has surged to around $300, a stark contrast to the $50 to $75 range seen a decade ago.
The Influx of New Residents
Chatham County has become increasingly attractive to new residents, particularly those relocating from more expensive urban centers. The county’s appeal is further bolstered by developments such as Chatham Park and the anticipated arrival of major employers like Disney. This influx has not only driven demand but has also led to a perception of Chatham County as a desirable suburb of the Research Triangle, despite its rural characteristics.
Interestingly, the data I see from the Chatham Journal website and Facebook page indicates that nearly 40% of our online traffic comes from outside the county, highlighting the growing interest in the area. As more people discover Chatham County, the competition for homes is expected to intensify, exacerbating the existing inventory challenges.
Why Prices Remain High: Land, Lot Sizes, and New Construction
One of the most distinctive features of Chatham County’s market is what’s being built — and where.
Unlike more urbanized areas where condominiums and townhomes contribute a broad range of price points, much of Chatham’s housing stock is new single-family construction on large lots. Eric explains that local homes tend to sit on half-acre to two-acre properties — or more — with many new builds pushing prices well above $800,000. Some luxury listings easily exceeding $1 million.
This structural reality contributes to Chatham’s higher median prices, often surpassing neighboring markets such as Wake or Orange counties when measured without a broad base of smaller homes included in those averages. In part, the scarcity of smaller units — combined with continued demand from buyers relocating from pricier metros — has kept the county’s market robust even in the face of rising borrowing costs.
Builders face their own cost pressures: land values, materials, and labor have climbed, and short-term financing adds to spec home expenses. These factors not only elevate new construction pricing but also ripple across existing home values by anchoring expectations upward.
Sales Pace and Days on Market: A More Measured Pace
One of the clearest signs of a slight market cooldown is the pace at which homes sell.
During the pandemic and the years that followed, homes in Chatham County routinely flew off the market — sometimes under contract within a week. In 2025, that pace slowed, though it remained brisk by historical standards.
Local data showed average days on market closer to the 47–50 day range for many listings, with Realty World office averages in some cases running around 70–75 days when acreage properties are included. While still quicker than a truly balanced 180-day cycle, this slower rhythm reflects buyers taking more time to evaluate options amid higher interest rates.
Buyer Behavior: More Selective, Watchful, and Price-Sensitive
As the market matured through 2025, buyers grew more discerning.
Andrews noted that many sellers initially overshot listing prices, pushed by comparisons to recent neighbor sales. When homes lingered without offers, prices inevitably came down, often to levels closer to actual market value. This dynamic — price reductions becoming more common — underscores a shift toward value consciousness among buyers rather than reactionary bidding.
While homes with ideal locations or features — such as sizeable acreage near Jordan Lake or quick commutes into the Triangle — can still spark multiple offer scenarios, the frenzy of earlier years has largely dissipated. Buyers are carefully inspecting homes, negotiating based on inspection results, and placing due diligence funds more conservatively than in the overheated pandemic era.
In contrast to bidding wars where buyers contributed tens of thousands of dollars in due diligence checks to secure contracts, current offers often include modest due diligence deposits in the $2,500–$5,000 range, reflecting a more balanced risk tolerance between buyers and sellers.
Buyer and Seller Dynamics: Navigating the Market
The current market conditions present unique challenges for both buyers and sellers. Andrews notes that while it remains a seller’s market, there are signs of softening, particularly in the new construction sector. Builders are offering incentives to move inventory, indicating a slight shift in the dynamics. However, the overall demand continues to outstrip supply, leading to a competitive environment for desirable properties.
Sellers are often tempted to price their homes based on recent sales in their neighborhoods, leading to instances of overpricing. Andrews advises that home values should be determined by recent sales data rather than perceived trends, as the market has not maintained the same rates of appreciation as in previous years. Homes that are priced appropriately tend to sell more quickly, while those that are overvalued may linger on the market.
Local Factors: The Gravity of Lifestyle and Location
Chatham County benefits from its unique blend of rural charm, accessible commutes, and lifestyle appeal. As Andrews noted, many newcomers are relocating from high-cost markets (e.g., California) and perceiving Chatham as a relative bargain — even at prices north of $1 million for many homes.
The county’s rural acreage draws families seeking space and privacy, while its proximity to the Triangle’s job hubs adds practical appeal. Commuter patterns are evolving with increased traffic both into and out of the county, reflecting broader growth and changing work patterns that further integrate Chatham with regional centers.
This combination of lifestyle preference and economic opportunity has sustained housing demand — even as buyers become more selective and lenders remain cautious.
The Role of Inspections and Due Diligence
As buyers navigate the purchasing process, home inspections remain a critical component. Andrews emphasizes the importance of reasonable expectations based on the age and condition of the property. Buyers should be prepared for the realities of older homes, understanding that certain issues may not warrant significant concessions from sellers. Additionally, the concept of due diligence money—an upfront payment to secure a property—has evolved, with buyers now offering lower amounts compared to the peak of the market.
Outlook for 2026: Stabilization with Potential Opportunity
As we approach the end of 2025, Chatham County’s real estate market continues to reflect a blend of stability and complexity. While prices remain high and inventory is limited, the dynamics of new construction and the influx of new residents are shaping the landscape. Buyers and sellers are encouraged to approach the market with informed expectations, recognizing that while opportunities abound, navigating this evolving environment requires careful consideration and strategic planning.
For Chatham County, this could mean:
- Continued demand for quality inventory, particularly larger homes on acreage.
- Incremental price growth as inventory remains limited relative to demand.
- Opportunities for buyers who enter the market with realistic price expectations and financing preparedness.
- Sellers benefiting from stable demand, though perhaps placing more emphasis on pricing strategy and presentation.
Whether you’re looking to buy, sell, or simply learn more about the market, understanding these trends will be essential in making informed real estate decisions in Chatham County.