Sacramento Real Estate Market Update – February 2025

The post Super Bowl Sales Season hasn’t started like normal. What does that mean for you?

Let’s get into the details.

New Home Sales

Sacramento-area new home sales slowed during the first three weeks of February before coming back strong during the last week of the month, the North State Building Industry Association reported today.

BIA member builders sold 521 new homes in the seven-county region in February, which was above the average for the month (505 sales) but below February sales totals reported in recent years. Sales were down 32% from February 2024 (partly because that year was a five-week month) and down 21% from January

Roseville recorded the highest number of sales during the month (127), narrowly edging out Rancho Cordova where 123 sales were reported. Sacramento and Elk Grove tied for third place with 65 sales each, and Folsom rounded out the top five markets with 31 sales.

Average Home Price

Based on data from Trendgraphix, the average sold home price in February for the 4-County Region was up slightly to $658,000. You’ll notice in the chart that the Average List price continues to decline. That’s the headline you’ll hear in the news. All that is happening there is people getting realistic on their sales prices and better matching the market. Maybe more of you are starting to actually listen to your real estate professional when they recommend a price for your home.

Average Price Per Square Foot

The average price per square foot in the region was also up slightly this month, to $343, compared to January and up 2.7% from this same period last year.

Number of Homes Sold

In February, a total of 1,155 homes were sold, an increase of 5% from January but down 8% from this time last year. The trendline is heading up, as it tends to do this time of year, but just at a little slower pace. The great news is that Pending sales jumped 12.8% in February.

Months of Inventory

Inventory is up slightly this month to 2.5 months. We should expect to see this number climb a little over the next couple of months as more homes hit the market during selling season.

Mortgage Rate Stats

Rates inched down into the mid 6’s at the end of the month. I think that’s why we saw much better numbers for the month than how it actually felt for the month.

Builders are helping to bridge the affordability gap and are offering some amazing rate incentives on the limited inventory homes they have. We have a few you can get some great deals on right now, but those are going to disappear quickly given the current pace of new home sales.  If you’re a buyer or a Realtor, New Homes is the place to be. As a new home brokerage, we’ve got the inside track to the builders. Let us help find that special deal for you on one of our homes or from one of our builder friends.

Opinion

The Sacramento market got off to a little bit of a slower start than normal, but signs are that’s starting to change in the past couple of weeks. There are a few opportunities to get some deals, mainly on the new home side, but don’t expect massive discounts or big below market offers to get accepted. If that’s what you’re waiting for your opportunity already passed by.

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!