Sacramento Real Estate Update: Late Summer Market Trends

Inventory and market dynamics are stabilizing Sacramento’s housing market.

Are you curious about the latest trends in the Sacramento real estate market? In this update, we delve into the key factors affecting home values and market dynamics as we approach the end of summer.

• Home values stabilize. The median home price in Sacramento has reached its seasonal peak, now at approximately $560,000. This marks a slight increase month-over-month and a 2% rise compared to last year, putting us just 3% below the peak prices in 2022. The stability in home values is a positive sign for sellers, as it indicates that the market has recovered from the initial correction caused by rising interest rates. Over the past two years, we’ve seen a steady increase in home values, making the current market environment favorable for sellers and buyers.

• A balanced market. Whether you’re selling or buying, it’s essential to understand that the market has reached a stable and consistent pace. For sellers, this means that you can feel confident about the current value of your home. For buyers, the steady growth in home prices offers reassurance that you won’t be priced out of the market soon. The market’s patience reflects a balanced environment where both parties can take their time to make informed decisions.

"Stabilized home values offer confidence to both buyers and sellers."

• Inventory and market dynamics. Interestingly, while inventory is shrinking, the days on market for listed homes are gradually increasing. Typically, a decrease in inventory would lead to a more competitive market with quicker sales and aggressive offers. However, we’re seeing a more gradual rise in home values, with homes taking slightly longer to sell. This is partly due to a significant increase in the number of homes listed this year—about 40% more than last year—though it’s important to note that last year saw near-record-low inventory levels.

For buyers looking to time the market, the next six months in Sacramento could present some interesting opportunities. Seasonal trends may work to your advantage, with less competition and the possibility of securing favorable terms.

For sellers, particularly those planning to list their homes in the fall or winter, it’s crucial to price their homes accurately and ensure they are well-prepared and staged. In this price-sensitive market, buyers are less likely to negotiate and more inclined to wait for price adjustments.

Overall, the Sacramento real estate market remains stable yet patient. The key takeaway for sellers is that if your home isn’t compelling, it won’t sell. For both buyers and sellers, the next few months offer a unique opportunity to navigate this steady market. If you’re considering buying or selling soon, feel free to reach out to discuss your goals and how to best approach the current market conditions. Just call 916-847-2205 or email [email protected]. I look forward to connecting with you!