BUYERS HAVE MORE CHOICES IN THE RESALE HOME MARKET

Sales remain steady but are still lower than normal.

(SACRAMENTO, CA) – Prospective home buyers throughout Greater Sacramento are seeing more opportunities than in the previous two years, as 4,424 homes were left available in standing inventory at the end of May. The market has now enjoyed five straight months of increased supply and currently stands with forty-six percent more properties available than last year at this time. Spring buyer demand increased moderately as well, however, and ultimately left the market reasonably balanced with approximately 2.5 months of housing supply available based upon the current rate of sales. Traditionally, four to six months of supply were considered a balanced market. Current market conditions would suggest three to four is more realistic.

A very steady increase in the number of new listings arriving on the market since January 1st continues to provide more opportunities for prospective home buyers. The flow of new listings over the past 3 months was 12 percent greater than the same period last year. New listings posted during the month of May alone were nearly even with those of April, yet 6 percent greater than May of 2024. This likely reflects that more homeowners who were previously “locked-in” to their existing mortgage interest rates over the past few years are gradually re-entering the market.

Buyer activity, however, remained steady but still lower than normal during the month of May. New open escrows posted were 5 percent higher than those of April but landed nearly even with May of last year. Some positive changes, though, may be taking shape. New listings at mid-June appear to be softening somewhat as they fall 18 percent lower than those of mid-May. New pending sales in the same comparison period increased an encouraging 14 percent.

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The average sales price for the month of May landed at $696,000, with the median at $605,000. There is clearly price stability evident in the market as the average sold price reflected a one percent increase year-over-year, while the median remained identical. Homes that closed escrow during the month of May were on the market an average of 33 days, and sellers received an average of 98 percent of their original list price. These market metrics are really quite good for sellers by historical standards, yet offer some relief for prospective buyers as well.

“The significant lift in new listings coming to market has provided many more opportunities and choices for prospective home buyers throughout the Greater Sacramento region,” says Pat Shea, President of Windermere Signature Properties. “Now, we are fortunate to see a slow but steady improvement in new pending sales. Even though mortgage interest rates remain quite reasonable by historical standards, the super lows of a few years back remain fresh in many would-be buyers’ minds. Any lowering of rates at all will surely produce a sustainable increase in sales figures. Inflation numbers are looking more favorable, and thus, rate cuts may be on the horizon. Consumer confidence is also paramount, and thus getting the budget bill and tariff matters resolved soon is just what the market needs. Should the stars align, we may just see a return to normal and a much busier fall than last year.”

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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.