Sacramento Real Estate Market Update – March 2025

Did you hear about the big changes in the market?

Let’s get into the details.

New Home Sales

While the resale market jumped to life in March, the new home market saw a slow start to the year with 472 homes sold in March. That’s down 9% from February and down 22% from March of last year.

Traffic numbers have been consistent, but due to economic uncertainty, people are not making decisions.

Sacramento County saw the most sales with 264 reported, followed by 134 in Placer County, 35 in the Yuba-Sutter market, and 20 in El Dorado County.

Average Home Price

Based on data from Trendgraphix, the average sold home price in March for the 4-County Region big jump of 5.6% to $695,000.

Average Price Per Square Foot

The average price per square foot in the region was up slightly this month, to $345, compared to February and up 1.2% from this same period last year.

Number of Homes Sold

In March, a total of 1,461 homes were sold, an increase of 19.7% from February and up 2.4% from this time last year. Pending sales also jumped to a whopping 31% from February. Take that number with a little grain of salt. February was a slower month historically and I think a lot of people delayed their buying decisions until March, which is reflected here.

Months of Inventory

Inventory dropped back down to 2.2 months. This is a reflection of the large jump in sales volume versus the homes coming to market.

Mortgage Rate Stats

Rates continued to inch down starting to touch the low 6’s the end of the month with FHA falling below the perceived magic line of 6%.

New home builders continue to bridge the affordability gap with buydowns and closing cost help on quick move-in homes. There’s a lot of 4.99% promo’s going on. There are also some new programs that are going to make getting into a new home easier than ever. Stay tuned for more details on that program.

Opinion

While Sacramento started the year off slow, many people jumped back into the market in March. Sales and prices are continuing to rise. With the current economic pressure and tariffs being used to negotiate, there will be pressure on the Fed to reduce rates faster than planned. We’ve already seen rates slide and if they adjust even lower, that brings a marked increase in buyer demand into an already under supplied Sacramento market.

If you’re ready, willing and able to purchase now is a great time to get into the market and start building wealth in Real Estate.

Closing

Our job is to help you move up in life. Let NEXT help you get from where you are to where you want to be.

Please make sure to like this video, subscribe, and hit the notification bell so you never miss a market update. I’m Christopher Brown with NEXT Real Estate Group and Next New Homes Group. See you next month!