Sacramento Real Estate Market Update – September 2025

The market is still relatively quite but showing signs of moving again. Investors are jumping into one segment of the market in a big way and that should be a sign for you if you’ve been waiting to make a decision on buying. Stay until the end to find out where the opportunity is.

New Home Market

BIA members reported selling 430 homes in September. This is 5% above the average of 409 for this period. Sales were down from August and September, but that is typical as we head into year end. Traffic has been slow in most communities. 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.

Average Home Price

Based on data from Trendgraphix, the average price for a Sold home in September for the 4-County Region increase to $679,000. And the Active Price was up 0.4% to $803,000.

Average Price Per Square Foot

The average price per square foot in the region was also up slightly to $341, compared to August and down 1.2% from this same period last year.

Number of Homes Sold

Sales continued to increase in September, a total of 1,690 homes, up 3.6% from August and up 11.6% from this time last year. Pending sales jumped 6.4% from August and are up 9% from this time last year. This is a continuation of the increase in pending sales over the past 2 months, which are historically quiet months. Somethings brewing here.

Days On Market

The days on market continued its climb since May to 49 days. This is up 4 days from August and up 44.1% from this time last year. Correspondingly we’re seeing the Sold Price to List Price percentage hold steady at 96%. Meaning homes are selling 4% below their list price.

Months of Inventory

Inventory dropped slightly to 2.6 months. This is up 8.2% from this time last year. There is a normal amount of homes available but the slower sales pace increases the time. Homes that are priced right 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 are at their lowest point in years. There’s a lot of talk of at least 2 more Fed Funds drops through year end. Some of that is already baked into the pricing, but the trend is good. 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.

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.

I mentioned at the beginning there’s a huge opportunity for buyers right now that is going to disappear soon. It’s new homes. Investors have been flocking to new homes lately, which is not normal. Investors buy a home on pure data, not emotion. They see Builders are either dropping prices or offering huge incentives on inventory homes right now and 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 save 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!