Sacramento Real Estate Market Update – October 2025

We’re heading into the quiet time of the year, but sales are still happening

New Home Market

BIA members reported selling 507 homes in October. This is up 18% from last month. This is the 4^th highest October in the past decade. Traffic continues to be slow in most communities, but we’ve started to see some incentives go away. 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 October for the 4-County Region dropped to $668,000 or 1.2%. And the Active Price was down 0.2% to $801,000.

Average Price Per Square Foot

The average price per square foot in the region dropped slightly to $335, compared to September and down 2% from this same period last year.

Number of Homes Sold

Sales softened in October, a total of 1,635 homes, down 6.1% from September and down 4.8% from this time last year. Pending sales dropped slightly by 0.9% from September but are up 6.8% 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

Days On Market

The days on market continued its climb since May to 51 days from 49 last month. Correspondingly we’re seeing the Sold Price to List Price percentage hold steady at 96%. Meaning homes are selling 4% below their list price. That’s been a pretty consistent number for the past several months.

Months of Inventory

Inventory stayed steady at 2.5 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 those lag on the market and eventually selling for less than they should have simply because of days on market. Pricing strategy is more important than ever right now.

Mortgage Rate Stats

Rate slide up over the past few weeks. The talk of additional fed cuts is waning . 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 mid 6 range for the foreseeable future.

Opinion

We hear all the time that buyers are waiting for rates and prices to drop. Economics doesn’t work that way. As soon as rates drop, every builder is going to get rid of these big incentives which effectively means a price increase. It also means that many more people come back into the market which increases demand and prices.

New homes is still where the best deals are. Builders are either dropping prices or offering huge incentives on inventory homes right now and investors and smart buyers are taking advantage of it. Those incentives are starting to temper as builders are reaching their sales goals and reducing their standing inventory. As soon as rates drop those are all going to go away because people jump back into the market. If you wait until that moment that home will cost you more money than you saved on the rate.

Be a smart buyer and get a steal on a new home while this small moment in time lasts

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!