As spring 2025 unfolds, the real estate market in Chatham, NJ, continues to experience significant growth, with rising home prices and a highly competitive atmosphere. Local realtors indicate that sellers are currently in a strong position, while buyers are facing a more challenging landscape due to limited inventory and increasing mortgage rates.
Kathleen Barrett, a Sales Associate at Prominent Properties Sotheby’s International Realty, highlights that sellers have the upper hand in today’s market. “Chatham’s real estate market is characterized by rising home values and a competitive atmosphere,” she states. “Sellers are in a strong position to take advantage of the upward trend in prices, allowing them to capitalize on favorable market conditions. However, buyers will face a challenging landscape, with limited inventory making it necessary to act quickly and be prepared for competition.”
Mortgage rates have continued to rise, further complicating the situation for potential homebuyers. “The combination of higher mortgage rates has made it more difficult for homebuyers to secure affordable financing,” said Cindy Bienemann, also a Sales Associate at Prominent Properties Sotheby’s International Realty. “Rising mortgage rates, which crossed the 6.5% mark in early 2025, will continue to squeeze affordability for many buyers. While this may cool some demand, it is unlikely to significantly reduce competition in a sought-after market like Chatham.”
Inventory in Chatham has remained tight, with active listings notably lower than in previous years. As reported in February’s Real Estate Market Report, there are currently only three active listings in Chatham Borough, marking a 40% drop from five listings in 2024. Despite this, homes continue to sell quickly, with many properties going under contract within weeks of being listed. Multiple offers on properties are common, further intensifying the competitive nature of the market.
Looking ahead, both Barrett and Bienemann predict that the seller-favored market will continue throughout 2025. “The inventory of homes in Chatham has remained relatively tight, contributing to competitive market conditions,” Barrett explains. “Homes are selling quickly, and multiple offers are common, which is accelerating the pace at which properties go under contract. Prospective buyers should be prepared for a competitive market, while sellers are likely to continue benefiting from favorable pricing conditions.”
Bienemann also notes that Chatham’s desirability, driven by its excellent schools, proximity to New York City, and strong community, will keep demand high. “Overall, 2025 is expected to be another seller-favored year, with high demand shaping the market despite rising interest rates and concerns about affordability.”
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