It was another banner year in 2025 for the Pelham real estate market. Inventory remained relatively low, and demand remained strong, pushing prices higher again and generating a very brisk sales pace.
Higher Prices
While the total number of Pelham single-family homes sold in 2025 increased by 20% year over year from 81 in 2024 to 99 last year, this remains way below the norm in absolute terms. Even with this percentage increase, total sales in 2025 were 30% lower than the 145 single-family homes sold just four years ago. With inventory remaining historically low and demand not slackening, average and median prices per square foot rose again, setting new records at $588 and $615, up from $528 and $537 in 2024.
Sales Velocity Remains High
Except for a dip in April coinciding with what became called the Tariff Tantrum that rattled the stock market, the number of bids on Pelham homes seemed generally higher than in 2024, a phenomenon that continued (unusually) even with listings that came on in September. As has been the case for most of the last decade, the majority of Pelham homes offered for sale still received multiple bids—usually the first weekend on the market. With demand still outstripping supply, the sale/list ratio rose to a median sale price that was 5% over the asking price—up more than a full percentage point from 2024. As a result, sales velocity remained as fast-paced as in 2024, with a median of just 15 days on the market from listing to contract signing.
What’s Next
The new year is off to a rousing start, suggesting that 2026 will be a continuation of the past three. The macroeconomic indicators all look supportive, and even with no apparent greater likelihood of a substantial cut in mortgage rates, demand remains strong. At the same time, the supply of Pelham homes for sale may have set a new low. As of the last week of January, there were a grand total of six single-family homes on the market in Pelham (ranging in price from $1.2M to $3.35M), one of which received multiple bids the first weekend on the market and is selling for significantly above the asking price.
Pelham is not only the best place to live, but it proved again last year that, with an annual increase in value that exceeded the property tax rate, it is also a good place to remain invested in homeownership.
