Sacramento Real Estate Market Update – November 2025

We’re heading into the quiet time of the year, but sales are still happening. Let’s get into the details.

New Home Market

BIA members reported selling 409 homes in November. This is down 22% from this time last year. However sales were 8% higher than the 10-year monthly average. Traffic continues to be slow in most communities, but we’ve started to see some incentives go away as inventory declines. Some have been in lieu of price reductions, and some have been due to the lack of standing inventory from the increase in sales and drawback in new starts.

Average Home Price

Based on data from Trendgraphix, the average price for a Sold home in November for the 4-County Region dropped to $654,000 or 2.5%. And the Active Price was up 1.1% to $810,000. This is an interesting shift where the buyers are savvy and buying at the right price and Sellers aren’t as savvy thinking their home is different than the rest of the market.

Average Price Per Square Foot

The average price per square foot in the region was flat at $334, compared to October and down 1.8% from this same period last year.

Number of Homes Sold

Sales continued the traditional holiday season slowdown in November, with a total of 1,301 homes, down 23.7% from October and down 6.9% from this time last year. Pending sales dropped 13.2% from October but are up 7.9% from this time last year. We’re seeing more homes coming off the market and less homes going on the market, reducing the overall volume of homes available over the past few months. The potential sellers we’ve been talking to lately who tried to sell or thought about selling in ’25 are all prepping their homes right now to go on the market in early ’26.

Days On Market

The days on market continued its climb since May to 53 days from 51 last month. Correspondingly we’re seeing the Sold Price to List Price percentage continue to hold steady at 96%. Meaning homes are selling 4% below their list price. That’s been a pretty consistent number for the past six months.

Months of Inventory

Inventory moved up to 2.8 months. Homes that are priced correctly are selling relatively quickly right now. If you’re even a little over the market value for your home, we’re seeing the market punish those Sellers. Those homes lag on the market and eventually sell for less than they should have simply because of days on market. Pricing strategy is more important than ever right now. We’ve put several homes on the market in the past several months using the strategy of pricing slightly below the target price. Two things happen with the strategy, the homes sell quicker and in a couple of instances have sold for more than the list price.

Mortgage Rate Stats

Rates declined to the low sixes with the most recent Fed Funds cut. It sounds like there may be only 1 more cut in 2026 which means there will not be much movement in rates all next year. If you’re waiting for 5% before you decide to buy you’re going to be waiting a long time (if ever) and will miss out on a lot of equity gains between now and then. Rates are going to be in the low to mid 6 range for the foreseeable future.

Opinion

As we head into the end of the year it’s a time of reflection. We look back on what happened this year and what we’re going to do next year. For those in the business and those of you who watch the real estate market closely it felt like a pretty rough year. Sales felt like they were down, we had to fight for every deal and had to switched tactics constantly. The reality was the average sales price stayed flat for the year and was up 1.5% over the past 2-years. The number of homes sold was up 2.8% this year and up 14% from this time 2 years ago.

Perspective is a great thing. The market was actually quite normal. It sounded bad because that’s what the news told you.

There are always great opportunities for smart buyers and sellers in any market.

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!