More Choices for Buyers, Strategic Decisions for Sellers
The Sacramento housing market continues to show a mix of opportunities and challenges. Mortgage rates have eased slightly, inventory is climbing, and buyers have more leverage than they’ve had in years. At the same time, understanding who is selling right now reveals a lot about where the market is heading.
Let’s break it down.
Mortgage Rates: A Small Decline with Big Impact
Mortgage rates have dipped to around 6.5%, the lowest in nearly a year. While still well above the record lows of 2020–2021, this drop has created breathing room for buyers.
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New construction builders are leaning in hard, offering incentives like closing-cost credits, upgrades, and even temporary rate buydowns as low as 3.99%.
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For resale buyers, the rate relief makes monthly payments more manageable and opens doors that were shut just months ago.
Even a small decline in rates is making a big difference in buyer affordability.
Who Is Selling in Today’s Market?
Recent data highlights a clearer picture of the types of sellers fueling today’s inventory in Sacramento:
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Move-up Sellers: Families needing more space or better neighborhoods are selling to trade up.
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Downsizers: Empty-nesters and retirees are cashing in on equity and simplifying life.
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Inherited Properties: Estate sales are becoming a more visible segment, adding unique properties to the market.
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Distressed Sellers? Rare. Unlike the last housing crash, foreclosures and short sales remain minimal.
This mix of sellers explains why inventory is rising without panic selling. Many are making lifestyle-driven moves rather than being forced out.
Prices and Inventory: More Options, Stable Values
The median home price in Sacramento County is around $540,000, essentially flat compared to last year. Price per square foot has slipped slightly, showing mild downward pressure but no dramatic decline.
What’s changing most is inventory:
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Active listings are up nearly 50% year-over-year, giving buyers far more choices.
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Homes are taking longer to sell, averaging 45–50 days to go pending (compared to just 16 days during the 2021 frenzy).
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Nearly 1 in 5 homes still sells quickly if priced right and presented well, while overpriced homes linger and face eventual reductions.
Price Reductions: The New Normal
About 45% of listings this summer saw at least one price cut, averaging 5–6% off the original list price. For sellers, the message is clear:
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Price realistically from day one.
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Overpricing leads to bigger discounts later.
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Well-maintained, move-in ready homes still attract buyers quickly.
Buyers: A Market with Leverage
This is the most buyer-friendly Sacramento market in years:
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More choices and less competition.
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Room to negotiate credits for repairs, rate buydowns, or closing costs.
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A slower pace that lets you shop carefully without the frenzy of bidding wars.
For buyers who sat out during the pandemic boom, this is the window you’ve been waiting for.
Sellers: Strategy is Everything
Yes, homes are still selling—but strategy makes the difference between sitting on the market and closing successfully.
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Price right: Base your list price on today’s reality, not last year’s comps.
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Presentation matters: Staged, well-kept homes in desirable areas still move fast.
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Patience required: Expect longer timelines; 50 days to contract is the new normal.
Sellers who adapt to these dynamics can still secure strong results, but the era of instant multiple offers is behind us—for now.
Final Thoughts
Sacramento’s housing market in September 2025 isn’t crashing. It’s evolving. Buyers have regained leverage, inventory is more diverse, and sellers need sharper strategies to stand out.
If you’re buying, you have options and time. If you’re selling, the key is realistic pricing and strong presentation. For both sides, this is a balanced and strategic moment in Sacramento real estate.
