Sacramento Housing Market Update – August 2025
The Sacramento housing market in 2025 continues to shift, creating both opportunities and challenges for buyers and sellers. While the boom days of 2021 are behind us, this is not 2008 either—the market isn’t crashing, it’s adjusting. Whether you’re in Sacramento, Elk Grove, Folsom, or Roseville, here’s what you need to know about today’s real estate market.
Mortgage Rates: Holding Steady, But Change May Be Ahead
As of late August 2025:
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30-year fixed mortgage rates are around 6.58%
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15-year fixed rates sit near 5.69%
Rates remain high compared to a few years ago, but with the Federal Reserve hinting at possible cuts, we may see relief for buyers in the coming months. A drop in rates could quickly boost demand in the Sacramento real estate market.
Sacramento Home Prices and Market Trends
Prices & Sales
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Median Sacramento home price (July 2025): ~$497,000 (down 2.6% from last year)
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Average days on market: 26–44 days, compared to just 17 days in 2024
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Inventory: Rising, with about 40% of pending sales showing price reductions
In the broader region (Placer, El Dorado, Yolo Counties), the average price sits near $638,000, with many sellers adjusting their expectations.
Sellers: Time to Get Real
For sellers, the key is pricing strategy. Overpricing leads to long waits, multiple reductions, and fewer offers. June 2025 marked one of the slowest sales months in 25 years across Sacramento. Sellers must partner with hyper-local agents who know their exact neighborhood—East Sacramento, Arden, Folsom, or Elk Grove—to price correctly and position their home strategically.
Buyers: More Leverage, Less Competition
For buyers, this is an opportunity-filled market:
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More inventory → more options
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Longer days on market → stronger negotiating power
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Price reductions → realistic sellers finally meeting the market
This is not 2008. While prices are softening, the Sacramento real estate market is not crashing—it’s stabilizing. Buyers who act now can negotiate favorable terms before rates potentially dip and competition heats up again.
Sacramento vs. Bay Area: Why Buyers Still Move Here
Sacramento continues to attract Bay Area buyers because of affordability:
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Bay Area median home price: ~$1.5 million
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Sacramento median home price: ~$589,000
The value gap keeps Sacramento competitive for remote workers, families, and investors seeking more for their money.
Final Takeaways
| Sellers | Buyers |
|---|---|
| Price realistically for today’s market, not 2021. | Take advantage of more inventory and slower sales. |
| Expect longer selling timelines. | Negotiate favorable terms and concessions. |
| Work with a hyper-local Realtor who knows your neighborhood. | Don’t wait for a crash—it’s an adjustment, not 2008. |
Bottom Line
The Sacramento housing market in 2025 is all about realism and timing. Sellers must price competitively and lean on local expertise, while buyers can seize leverage to get better terms. With potential mortgage rate cuts ahead, this could be the sweet spot for smart buyers and sellers.
If you’d like a personalized update for your neighborhood—whether it’s East Sacramento, Folsom, or Elk Grove— contact me!
