(Sacramento, CA) — After a slower-than-usual start to the year, Sacramento’s housing market is warming up just in time for the spring season. New data is painting a picture of growing optimism, with more homes hitting the market, increased buyer activity, and early price momentum that could carry into the warmer months ahead.
📊 More Listings = More Opportunity
In February 2025, 22% more listings hit the market compared to the same time last year. This increase is a strong signal that move-up sellers — homeowners looking to trade up — are returning with renewed confidence. As of the end of February, the market had 2,896 active listings, which is a 55% jump from February 2024. That brings the region to about two months of housing supply, a healthier balance for both buyers and sellers.
🔑 Buyers Are Stepping In
Despite higher-than-ideal mortgage interest rates, buyer activity is on the rise. 1,459 homes went under contract in February — a 13% increase from January, and early March is already tracking 15% higher than February for new pending sales. Year-to-date, pending sales are up 4% over last year, showing that buyers are gaining confidence and adapting to the market realities.
💬 What the Experts Are Saying
Pat Shea, CEO of Windermere Signature Properties, shared encouraging insights:
“Greater Sacramento is happily a very favorable ‘place to be’ in Northern California. Plenty of buyers are fully employed, finding mortgage programs that meet their needs, and eager to get busy with their life plans. This additional inventory will surely produce more sales.”
💵 Prices Holding Steady, With Upward Pressure Possible
- The average sales price in February was $658,000, a 2% increase from February 2024.
- The 3-month average sales price is $657,000 — up 3% year-over-year.
- The median sales price over the past 3 months was $612,000, showing a 3.5% increase from last year.
Homes are selling for 98% of their original list price, and the average days on market sits at 48 — relatively quick given the economic noise we saw earlier this year.
📈 What to Expect This Spring
With more homes being listed, rising pending sales, and buyer demand holding strong, all signs point to a robust spring housing season for Greater Sacramento. If mortgage rates start to ease — even slightly — the market could accelerate even faster, triggering more sales and possibly putting upward pressure on prices.
“Many buyers are ready to roll and move-up sellers are tired of waiting,” says Shea. “The market will surely warm up over the next few months.”
