Sacramento Real Estate Market Update – August 2025

We’re finally seeing some movement in the market and smart buyers are finally jumping in to take advantage of it. There’s still a huge opportunity for buyers in the market, but it’s going to disappear pretty quickly. Stick around to the end to find out.

Let’s get into the details of what happened in the Sacramento Real Estate market in July.

Average Home Price

Based on data from Trendgraphix, the average price for a Sold home in August for the 4-County Region declined to $678,000. And the Active Price was down 1.5% to $800,000.

Average Price Per Square Foot

The average price per square foot in the region was down slightly to $341, compared to July and down just 0.3% from this same period last year.

Number of Homes Sold

In August, a total of 1,576 homes were sold, down 11.2% from July and down 11.4% from this time last year. Pending sales increased by 2% from July and are up 7.3% from this time last year. This means the little dip in prices brought the smart buyers back to the market with strong sales for the month.

Days On Market

The days on market have increased to 44 days. This is up 3 days from July and up 33% from this time last year. Correspondingly we’re seeing the Sold Price to List Price percentage hover around 96%. Meaning homes are selling 4% below their list price.

Months of Inventory

Inventory dropped slightly to 2.9 months. This is up 44% from this time last year, but last year saw unusually low inventory. There is a normal amount of homes available but the slower sales pace increases the time. Homes that are priced right are selling relatively quickly right now. If you’re even a little over the market value for your home, we’re seeing those lag on the market and eventually selling for less than they should have simply because of days on market. Pricing strategy is more important than ever right now.

Mortgage Rate Stats

Rate hung out in the mid 6’s for most of the month. There’s a lot of talk about the Fed dropping rates into the end of the year. But if you’re expecting 5.5% or lower anytime soon you are going to lose a lot of money.

Opinion

We hear all the time that buyers are waiting for rates and prices to drop. Economics doesn’t work that way. As soon as rates drop, every builder is going to get rid of these big incentives which effectively means a price increase. It also means that many more people come back into the market which increases demand and prices.

I mentioned at the beginning there’s a huge opportunity for buyers right now that is going to disappear soon. It’s new homes. Builders are either dropping prices or offering huge incentives on inventory homes right now. As soon as rates drop those are all going to go away because people jump back into the market. If you wait for that moment that home will cost you more money.

Be a smart buyer and get a steal on a new home while this small moment in time lasts

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!