Greater Sacramento Real Estate Update: Fall Market Warms Up!
If you’ve been watching the Sacramento housing market, you know it’s been a ride! As we move deeper into fall, we’re seeing a surprising upswing. Mortgage rates have started to ease, sparking some exciting momentum for both buyers and sellers alike. September alone reported a 6% increase in new open escrows compared to August and a whopping 27% increase compared to last year. So, what’s behind the buzz?
The Power of Slightly Softer Mortgage Rates
While mortgage rates are still higher than pre-pandemic days, they’ve softened just enough to nudge buyers who had been waiting on the sidelines. More sellers are listing as well, leading to a 12% rise in new escrows for the entire third quarter compared to 2023. The market is finally experiencing some normal seasonal patterns we hadn’t seen since the “fantasy years" of 2020 and 2021. If mortgage rates continue trending in a favorable direction, we could see even more listings and sales come into play.
Inventory Balance & Pricing Stability
Another big factor? A 16% increase in new listings this quarter, compared to last year, has kept the market in solid balance despite steady buyer demand. With fewer than 2.5 months of resale housing supply available, the market is moving, but without any significant price jumps. Average and median sales prices are up by less than 2% from last year, keeping things stable and predictable. In short, the Sacramento market has found its stride after years of volatility, offering both buyers and sellers a little more breathing room.
Upper-End Market Highlights
For homes priced over $1 million, there’s more to celebrate! New listings are up 23% from last year, and new escrows in this price range surged by 36% in September alone. The high-end market has seen a 14% year-over-year increase in open escrows this quarter, proving that buyers are still active at every price point.
What’s Next for the Sacramento Market?
The market is emerging from a natural “correction phase” following the low-interest rate frenzy of the last few years. Buyers and sellers are finally feeling ready to make a move as rates begin to ease. They’re motivated to pursue life goals and dreams, and if rates drop even more, refinancing is always an option.
With new escrow trends pointing toward even more sales before year-end, Sacramento’s fourth quarter is shaping up to be one of the strongest we’ve seen in recent years. If you’ve been considering a move, it’s an exciting time to explore your options.
Stay tuned for more updates as we keep an eye on these promising trends!