Sacramento Real Estate Market Update 2025: What Buyers and Sellers Need to Know

The Sacramento real estate market in 2025 showed signs of improvement compared to 2024, while also clearly shifting into a more balanced market. According to data and analysis from Sacramento Appraisal Blog, the local housing market experienced modest gains in activity, slight price softening, and longer days on market, all critical trends for Sacramento home buyers and sellers to understand heading into 2026.

If you’re considering buying or selling a home in Sacramento, Elk Grove, Roseville, Folsom, or surrounding areas, understanding these shifts can directly impact your bottom line.

Sacramento Home Prices in 2025

Sacramento home prices softened slightly in late 2025, with values dipping approximately 2 to 3 percent in recent months. This is not a market crash, but a normal correction following years of rapid appreciation.

For homeowners, this means values remain historically strong. For buyers, this creates more realistic pricing, fewer bidding wars, and increased negotiating opportunities.

Days on Market in Sacramento Are Increasing

Homes in the Sacramento region are now taking nearly two weeks longer to go under contract compared to last year. Buyers are being more selective, and overpriced homes are being skipped.

In today’s market, pricing and presentation are no longer optional, they are essential.

Sacramento Housing Inventory and Canceled Listings

Housing inventory increased in 2025, with approximately 8 percent more homes listed, along with a 22 percent increase in canceled listings. This tells us many sellers tested the market and pulled their homes when they didn’t get the results they wanted.

This is a clear signal that strategy matters more than timing alone.

Sacramento Home Affordability Trends

Affordability improved slightly in 2025. While still historically low, small shifts combined with seller concessions are helping more buyers get back into the market.

New Construction in Sacramento and Builder Incentives

New home construction slowed by approximately 18 percent, and many builders are offering strong incentives such as rate buydowns, closing cost credits, and price reductions. This can create significant opportunities for buyers who know where to look.

What This Means for Sacramento Buyers and Sellers in 2026

The Sacramento real estate market is shifting into a more balanced environment. Buyers have more leverage. Sellers must be more strategic. Local, hyper-specific data now matters more than general headlines.

If you are even thinking about making a move in 2026, now is the time to get real, neighborhood-specific guidance, not generic online estimates.

Here’s how I can help you right now:

• ✔ Get a custom home value and pricing strategy for your exact neighborhood

• ✔ Review buyer opportunities and leverage in today’s market

• ✔ Identify builder incentives and off-market opportunities you may not see online

• ✔ Create a personalized game plan so you don’t leave money on the table

👉 Message me at 916-799-1662 to request your free, no-obligation Sacramento home value and strategy session, or message me directly to get started.

The right strategy in this market can easily mean tens of thousands of dollars difference in your outcome. Let’s make sure you’re positioned to win.

Scott Ostrode

DRE 01241383

916-799-1662

Scott@TeamOstrode.com