Sacramento Housing Market Update – July2026 | NEXT Real Estate Group

Published August 11, 2026 by Christopher Brown, Broker — NEXT Real Estate Group & Next New Homes Group. Data period: July 1–31, 2026. Sources: Trendgraphix (4-County Region) and the North State Building Industry Association (8-County Region).

Key Takeaways

• The average sold price in the Sacramento 4-County Region was $698,000 in July 2026 — up 2% from June, and down 0.1% from July 2025.
• The average active list price was $828,000 — a $130,000 gap between what sellers are asking and what buyers are actually paying.
• 1,785 homes sold in July 2026, down 8.7% from June but up 0.3% year over year.
• Days on market rose to 40 days, the first increase in four months.
• The sold-to-original-list-price ratio held at 98%, meaning correctly priced homes are still selling at nearly full asking price.
• Months of inventory rose to 2.5, still well below the 5–6 months considered a balanced market.
• New home sales totaled 331 across the 8-county region, down 7% from June, with builders reintroducing incentives.
• The average 30-year fixed mortgage rate finished July 2026 around 6.69%.

What is the average home price in Sacramento right now?

As of July 2026, the average sold price for a home in the Sacramento 4-County Region — Sacramento, Placer, El Dorado and Yolo counties — was $698,000, according to Trendgraphix data. That is a 2% increase from June 2026 and essentially flat year over year, down one-tenth of one percent from July 2025.

The average price per square foot rose 0.3% from June and 1.2% from July 2025.

The more revealing number is the gap between asking and selling. The average active list price in July 2026 was $828,000 — down 3% from June, but up 2% from a year ago. Sellers are listing higher than they did last year. Buyers are paying about the same as they did last year. That $130,000 spread between the average asking price and the average selling price is the defining feature of the Sacramento market this summer.

Two important caveats on these figures. First, these are averages across a four-county region, so they move with the mix of homes that happen to sell in a given month, not only with underlying value. A month with more luxury closings in El Dorado Hills lifts the average without any individual home appreciating. Second, your specific neighborhood may differ substantially from the regional figure.

Sacramento Housing Market Data — July 2026

Resale figures: Trendgraphix, 4-County Region (Sacramento, Placer, El Dorado, Yolo). New home figures: North State Building Industry Association, 8-County Region.

Is the Sacramento housing market slowing down?

Yes — in transaction volume, not in value.

Sales volume fell 8.7% from June to July 2026, and pending sales dropped 4.9% month over month. Days on market increased for the first time in four months, from 36 to 40 days. Those are real signs of a slowdown.

But the year-over-year picture is steadier than the monthly one. Homes sold were up 0.3% versus July 2025, and pending sales were up 7.2% — meaning more contracts were written this July than last July. Price per square foot is still appreciating. This is a seasonal summer slowdown layered on top of a market that is fundamentally healthy, not a market in decline.

Is it a buyer’s market or a seller’s market in Sacramento?

Sacramento remains a modest seller’s market as of July 2026, though it is moving toward balance.

Months of inventory — how long it would take to sell every listed home at the current pace — rose to 2.5 months in July, up from 2.3 in June. A balanced market is generally defined as 5 to 6 months of inventory. Below that range favors sellers; above it favors buyers. At 2.5 months, Sacramento still has meaningfully less supply than demand, but buyers have more choice and more negotiating room than they had a year ago.

The 98% sold-to-original-price ratio reinforces this. Sellers who price correctly are still capturing nearly their full asking price.

Why are some Sacramento homes selling in days and others sitting for months?

Because pricing accuracy now determines outcomes more than any other factor.

Two statistics from July 2026 tell this story together. Homes are selling at 98% of their original list price — not their reduced price, their original one. At the same time, average days on market rose to 40. Those two facts coexist because the market has split into two groups:

1. Homes priced at market value sell quickly and at close to full asking price. They pull the price ratio up and the days-on-market average down.
2. Homes priced above market value sit. They accumulate days on market, eventually reduce, and frequently sell for less than they would have if priced correctly from day one.

This is the mistake costing Sacramento sellers the most money right now. In a fast-appreciating market, an aggressive list price gets absorbed — the market catches up to it. In a slow-appreciating market like this one, it does not. The listing goes stale, buyers begin asking what is wrong with it, and the eventual sale price lands below where a correct initial price would have landed.

A home’s first two weeks on market generate the most showing activity it will ever receive. Pricing above market spends that window on buyers who were never going to make an offer.

What is happening with new construction in Sacramento?

New home sales across the 8-county Sacramento region totaled 331 in July 2026, down about 7% from June, according to the North State Building Industry Association.

Foot traffic at communities has been slow throughout the region. In response, many builders have brought back incentives on standing inventory homes — rate buydowns, closing cost contributions, and upgrade credits. For buyers who can act now, new construction currently offers more negotiating leverage than it has in some time.

What are mortgage rates in Sacramento?

The average 30-year fixed mortgage rate rose slightly through July 2026, finishing the month around 6.69%.

Rates have stayed within a relatively narrow band and are not expected to move dramatically in the near term. Buyers waiting for a significant rate drop before entering the market should weigh that against continued price appreciation, which raises the purchase price while they wait.

What should buyers and sellers do in this market?

If you are buying: the right time remains whenever you are ready, willing and able. Prices are appreciating slowly rather than rapidly, inventory has improved modestly, builders are offering incentives, and rates are stable. There is no signal coming that makes waiting obviously correct.

If you are selling: price accuracy is the entire game. Work from recent comparable sales rather than active listings — active listings tell you what other sellers hope to get, and the July data shows that number is running $130,000 above reality on average. Getting the price right in week one is worth more than any amount of marketing applied in month three.

If you are moving up: selling a home that no longer fits and buying one that does keeps you invested in a market that continues to appreciate. Both sides of the transaction happen in the same market conditions, which is what makes a slower market a reasonable time to trade up.

Watch the July 2026 Market Update

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Frequently Asked Questions

What is the average home price in Sacramento in 2026?

The average sold price in the Sacramento 4-County Region was $698,000 in July 2026, according to Trendgraphix.

How long does it take to sell a house in Sacramento?

The average home sold in 40 days in July 2026, up 4 days from June. Correctly priced homes typically sell considerably faster than the average.

Are home prices going down in Sacramento?

No. Average sold prices were up 2% from June 2026 and essentially flat year over year, while price per square foot rose 1.2% over the past 12 months. Prices are appreciating slowly, not declining.

How much inventory is on the market in Sacramento?

2.5 months of inventory as of July 2026, up from 2.3 months in June. A balanced market is generally 5 to 6 months.

Is 2026 a good time to buy a house in Sacramento?

Conditions in July 2026 include stable mortgage rates near 6.69%, slightly improved inventory, and builder incentives on new construction. Whether it is a good time depends on individual readiness and financial position rather than market timing.

Which counties are included in this Sacramento market report?

Resale data covers Sacramento, Placer, El Dorado and Yolo counties. New home sales data covers the 8-county region tracked by the North State Building Industry Association.

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About the Author

Christopher Brown is a licensed real estate broker and the founder of NEXT Real Estate Group and Next New Homes Group, serving the greater Sacramento region including Sacramento, Roseville, Rocklin, Folsom, Elk Grove, El Dorado Hills, Granite Bay, Lincoln, Davis and West Sacramento. He has published a monthly Sacramento market update since 2016 and is an author, speaker and home builder.

Next update: Sacramento Housing Market Update, August 2026 — published early September 2026.

This article is for informational purposes only and does not constitute financial, legal or investment advice. Market data is sourced from Trendgraphix and the North State Building Industry Association and is deemed reliable but not guaranteed. Real estate values vary by neighborhood, property type and condition. Consult a licensed professional regarding your specific situation.