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Sacramento Real Estate Market Update – June 2025

As we reach the midpoint of 2025, Sacramento's housing market is experiencing notable shifts. Rising inventory levels, evolving buyer behaviors, and broader economic factors are influencing the landscape. Here's an in-depth look at the current trends shaping Sacramento's real estate market.


📉 Home Prices: Stabilizing with Mixed Signals

  • Median Sale Price: As of April 2025, the median sale price in Sacramento stands at $510,000, reflecting a 6.5% increase year-over-year. redfin.com

  • Zillow Home Value Index: Contrastingly, Zillow reports a slight 0.6% decline in home values over the past year, bringing the average home value to $492,574. zillow.com

  • Price Per Square Foot: The median price per square foot is $344, marking a 1.8% increase from the previous year. redfin.com


These figures suggest a market that's stabilizing, with some discrepancies depending on the data source.


🏘️ Inventory and Market Dynamics

  • Active Listings: Inventory has surged by over 60% compared to last year, offering buyers a broader selection of homes. linkedin.com

  • Months of Supply: The market currently has 2.2 months of inventory, still below the 5-6 months considered a balanced market but moving in that direction. linkedin.com

  • Days on Market: Homes are taking longer to sell, with the average days on market increasing to 37 days. linkedin.com


The increase in inventory and extended selling times indicate a shift towards a more balanced market, providing buyers with more negotiating power.


🔄 Buyer and Seller Behavior

  • Multiple Offers: Despite the market cooling slightly, homes still receive an average of 3 offers, and "hot" properties can go pending in about 7 days. redfin.com

  • Concessions: Approximately 45% of sales in April included concessions, such as covering closing costs or offering repair credits, highlighting increased flexibility from sellers. sacramentoappraisalblog.com


These trends suggest that while competition remains, buyers have more room to negotiate, and sellers are adapting to the evolving market conditions.


🌍 Broader Economic and Environmental Factors

  • Climate Risks: A recent report from First Street Foundation predicts significant population declines in Sacramento due to increasing climate risks, particularly catastrophic flooding. The city's vulnerability stems from its geography and urban development patterns. sfchronicle.com

  • Statewide Trends: California's housing market is showing signs of a potential slowdown in price growth, with a notable increase in inventory levels. However, experts believe a dramatic price correction is unlikely, anticipating a gradual market reset. nypost.com


These factors underscore the importance of considering both local and broader trends when evaluating the real estate market.


🎯 Key Takeaways

  • Market Cooling: The Sacramento housing market is transitioning from a seller's market to a more balanced state, with increased inventory and longer selling times.linkedin.com

  • Price Stability: While some data indicates slight declines, overall home prices remain relatively stable, with modest year-over-year increases.

  • Buyer Opportunities: Increased inventory and seller concessions provide buyers with more options and negotiating power.

  • Consider External Factors: Climate risks and statewide economic trends may influence long-term market dynamics.


For both buyers and sellers, staying informed and working with knowledgeable real estate professionals is crucial in navigating the current market landscape.


Scott Sweeney

Your NorCal Realtor

M&M Real Estate

BRE Lic# 01938720

Cell: Call/Text 707-330-2324


About Scott Sweeney


SweeneySells

Full Time Realtor 13 Years +

Over 100 Families Served

Top 5% Producing Agent

Buying & Listing Specialist

Contract & Negotiation Ninja

CSUS Business & Marketing Graduate 2006


With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.


Reach out to SweeneySells today, and take the first step towards your real estate goals!

📞707-330-2324




Top Producer 2016-2023


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