The Greater Sacramento housing market has shown some promising signs heading into the fall. While year-to-date home sales are slightly below last year’s pace, recent activity suggests a potential shift in momentum. With more inventory on the market, slightly stronger buyer activity, and downward-trending mortgage interest rates, the final quarter of 2025 could be more active than the flat patterns we’ve seen over the past few years.
Key Market Highlights
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Sales Activity
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Year-to-date closed sales: down 1.5% compared to last year.
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New open escrows: even with 2024 overall, but August up 7% year-over-year.
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Mid-September: escrows tracking 3% above 2024.
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Inventory Levels
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4,603 homes available as of August 31st.
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27% more inventory than August 2024.
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Still below pre-pandemic 2019 benchmark of 5,701 homes.
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Price Trends
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Average sale price (past 3 months): $694,000.
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Median price: $603,000.
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Both up less than 2% year-over-year, showing price stability.
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Market Balance
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Average days on market: 44.
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Sellers receiving 96% of original list price.
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Supply: 2.7 months under $1M; 4.5 months over $1M.
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High-End Market
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$500K–$1M range: steady with nearly identical activity to 2024.
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$1M+ range: 20% increase in August escrows year-over-year.
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Mid-September tracking 31% higher than mid-August.
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What This Means for Buyers
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More Choices: Inventory is up significantly, giving you more options than in the past two years.
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Less Competition: Homes are taking longer to sell, which can give you negotiating power.
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Stable Prices: With prices holding steady, it’s easier to plan your purchase without fear of rapid increases.
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Interest Rates Trending Down: Lower borrowing costs may create a window of opportunity before demand heats up again.
What This Means for Sellers
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Balanced Market: Homes are selling at about 96% of list price—good, but not the overheated bidding wars of recent years.
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More Inventory = More Competition: Pricing right and strong marketing are key to standing out.
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Luxury Market Momentum: Properties over $1M are seeing strong buyer activity, signaling confidence in higher price points.
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Timing Matters: With buyer activity increasing in August and September, listing in the fall may bring stronger results than usual.
📌 Bottom line: Sacramento’s housing market is showing signs of renewed energy as we move into fall. Buyers can enjoy more options and slightly softer conditions, while sellers still benefit from stable prices and growing activity, especially in higher price ranges.
