Sacramento Real Estate Market Update – January 2025

It’s time to kick off the year. Let’s talk about the Sacramento Real Estate market for January 2025.

Let’s get into the details.

New Home Sales

BIA members reported selling 598 homes in January, a 50% increase from December, 3% more than January 2024 and 30% higher than the monthly average dating back to 1997.

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 home price in January for the 4-County Region was down slightly to $646,000. That’s still up 4.2% compared to January of ‘24.

Average Price Per Square Foot

The average price per square foot in the region was up slightly, to $335, compared to December and up 3.7% from this same period last year

Number of Homes Sold

In January, a total of 1,032 homes were sold, an decrease of 27.6% from December and down 1.7% from this time last year. Now before you take that as a sign of impending doom, December was a slow sales month. Pending sales are the better indicator of direction and they were up 20.7% compared to December and are up 3.7% from January of last year.

Months of Inventory

Inventory is up slightly this month to 2.5 months. This is still a seller’s market, but that doesn’t tell the whole story.

Many Buyers are waiting for the perfect deal, often losing out tons of equity right now. As a Seller, even though inventory is low you need to price your home at or just below the true market strike price, present it very well and make sure you have Real Estate Professional who knows how to actually market your home to the right buyers in order to sell in todays market. There is a lot of art and skill required to navigate the unique issues we’re seeing today.

Mortgage Rate Stats

Rate are still hanging out in the mid to high 6’s. That is going to be the story of the year as rates won’t move much out of this range for a while.

Builders 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

We’re now at the very start of what is looking to be a busy selling season. If you’ve been one of those on the fence, rates aren’t gonna get much better, but prices are going to keep inching up because of low supply and strong demand. Each month you wait it gets harder to get in and it more wealth generation you’ve lost.

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!