IS OUR HOUSING MARKET SPRINGING FORWARD?

New listings and available inventory are definitely on the rise.

(SACRAMENTO, CA) – Good things may be on the horizon for home sales. Just one year ago, low inventory and a shortage of new listings made the Greater Sacramento housing market difficult. These conditions slowed any chance of sustainable momentum. The Federal Reserve Bank continues to influence the market by raising mortgage rates and tightening monetary policy to fight inflation. As a result, many buyers remain hesitant. Financing and affordability challenges make it hard to commit to a home they love. Move-up sellers are also holding back. They’re reluctant to give up their current low-rate mortgages for more expensive homes with higher payments.

Now, halfway through April 2025, more buyers and move-up sellers are making moves after months of hesitation, signaling they’re ready to move forward with their life plans. Fortunately, mortgage rates have dipped slightly in recent weeks due to improving inflation data and stabilizing economic indicators. While the shift hasn’t been dramatic, it’s been enough to give some buyers renewed confidence—though most still understand that significant rate drops aren’t likely in the near future.

Specifically, 3,217 homes were listed as active and available on March 31st. That number represented a 46 percent increase year-over-year. Sellers brought 14 percent more new listings to the housing market in March compared to the same time last year. “These metrics reinforce the idea that more prospective sellers have decided that it’s time,” says Pat Shea, President of Windermere Signature Properties. “In 2025 we will see more listings and sales that more closely resemble other calendar years recognized as having a normal and balanced market.” 

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The resale market did launch into the new year rather slowly as only 3,792 homes successfully closed escrow in the first quarter. This was less than a 2 percent increase compared to last year, but things appear to be looking up. New open escrows for the quarter were up 5 percent year-over-year with March numbers alone, up 10 percent versus last year. March opens were also 31 percent higher than those of February which supports the idea that momentum is building. These combined market metrics left the market with approximately 2 months of supply. This is considered low by historical standards as 3 to 4 months are perceived as healthier and more balanced.

The average sales price for homes that closed escrow in March rested at $695,000. This metric was up approximately 4 percent year over year and 6 percent versus February. Sellers that closed escrow in March received an average of 98 percent of the original list price and were on the market an average of 40 days. Year-to-date numbers as we approach mid-April show closed sales 1 percent less, and new open escrows 4 percent greater when compared to last year. Thus, the next few months will be very revealing as we forecast overall market potential. 

Shea offers that: “Most market analysts suggest that home sales will continue to rebound throughout Greater Sacramento with typical seasonality likely to surface again at year-end. They have though, been saying similar things for the past year or so. Do not be surprised, if lower rates eventually materialize and the year finishes much stronger than 2024. Buyers and sellers are finding their way and are well aware of refinancing options if rates improve down the road. Homes that are priced properly and placed in market-ready condition will surely sell. When people ask me if this is a good time, the answer is always the same. There is no time like the present to pursue your goals and dreams.”

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This market information was presented by Windermere Signature Properties based on data provided by Trendgraphix Inc., a Sacramento-based reporting company.

ABOUT WINDERMERE REAL ESTATE

Windermere Signature Properties, formerly known as Lyon Real Estate, has served the Greater Sacramento Region for over 79 years. Last year, the company closed over 3,300 transactions and nearly $2 billion in sales volume. Windermere Signature Properties has over 650 agents in 14 offices located throughout the Sacramento region. The company is a member of the Leading Real Estate Companies of the World®, the largest network of premier locally branded firms, as well as LeadingRE’s Luxury Portfolio International® program. Since 2015, Windermere Real Estate has contributed more than $1,525,865 to local nonprofits throughout the Sacramento region.

ABOUT TRENDGRAPHIX, INC.

TrendGraphix, Inc. is a real estate data analytics company based in Sacramento that uses local Multiple Listing Service (MLS) data. TrendGraphix provides highly visual performance and market statistical graphs to real estate brokers, agents, and MLS/Realtor associations across the country. TrendGraphix’s programs are currently used by tens of thousands of brokers and agents in more than 300 brokerages across the nation. For more information about TrendGraphix, visit www.trendgraphix.com.