Sacramento Real Estate Market Update – May 2025

The Sacramento Real Estate Market is really confused. Stick around to the end for some insight into new homes that you won’t hear anywhere else.

Let’s get into the details.

Why do I say the market is confused?

Let’s start with the bad news.

New Home sales have been very slow this year. We had a great January and then traffic and sales have been very slow since then. This is counter to the used home market where sales and prices continue to rise.

I’ve never seen this before especially when your dollar can go so much further buying a new home right now with the rate buydowns, incentives and location or home specific price reductions.

Weird right?

Now let’s talk about the bright spot in the market which is used homes.

Average Home Price

Based on data from Trendgraphix, the average price for a Sold home in May for the 4-County Region increased 3.1% to $696,000. And the For Sale Price was flat at $835,000.

Average Price Per Square Foot

The average price per square foot in the region jumped 2.3%, to $355, compared to April and up 1.4% from this same period last year.

Number of Homes Sold

In April, a total of 1,694 homes were sold, a slight increase of 0.6% from April but down 8.9% from this time last year. Pending sales also increased slightly by 1.6% from April.

Months of Inventory

Inventory increased to 2.6 months. This is a reflection of the normal spring increase of homes coming to market, but a slightly slower sales pace.

Mortgage Rate Stats

Rates fluctuated between the high 6’s to the low 7’s throughout the month due to continued market volatility.

Opinion

The market is just weird right now. Used homes continue to sell well and prices are moderately increasing. New homes are selling slowly, despite builders offering some of the best deals in a long time.

If you’re smart and don’t make your financial decisions based on media headlines or TikTok, now is a great time to buy a home. Investors know this and are buying new homes right now because they see the big value that builders are providing right now to move inventory.

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!