ANOTHER COOL SUMMER FOR OUR HOME MARKET

Year-to-date closed sales fall short of normal for 3 years running.

(SACRAMENTO, CA) – Year-over-year home sales remain steady yet stubbornly modest throughout the Greater Sacramento region at the halfway point of 2025. The local market conditions follow those across the country, as many would-be buyers and sellers patiently wait for mortgage interest rates to take a slide. Year-to-date closed sales at 8,853 fell within a very narrow margin of those of both 2023 and 2024. The reason most analysts believe this downturn will eventually pass is that the number of closed units for the prior 10 years has fallen within the range of 12,000 to 13,000 at mid-year. 

 “Buyers who choose to be in the market are paying cash, leveraging interest rate buy-down programs or enjoying offers from their mortgage lender to refinance at low or no cost when rates finally make a positive move,” says Pat Shea, President and CEO of Windermere Signature Properties. “Fortunately, standing inventory has doubled over the past 24 months, and buyers are enjoying more choices and less pressure. Many additional would-be sellers still remain sensitive, however, to the gap between their current mortgage rate compared to what they will have next. Any significant retreat in interest rates will consequently release more sellers and buyers alike.”

The cumulative data continues to reveal that our local market remains softer by historical standards and most likely will chug along through the remainder of the summer until something changes in the national economic landscape. The average sales price for homes that closed escrow in June was $706,000, up approximately 2 percent versus June of last year. The median price of $615,000 was identical to that of last June. These price metrics reflect stability in all price points that is largely driven by the increased inventory supply.

Other market indicators suggest the market is maintaining a stable and balanced direction, but at a steadier and more casual pace than during the “dream come true” interest rate period. Homes that closed escrow during the month of June were on the market an average of 36 days compared to 28 for those of last year. Successful home sellers also received an average of 97 percent of their original list price, versus 99 percent last June. This still remains a positive and reasonable outcome for sellers making their moves during what many agree is a slower-than-normal market.

“Uncertainty in the U.S. economy is easing,” says Shea. “We have a federal budget, and tariff issues on the verge of being resolved. Our financial markets are hovering at record highs. There is a great deal of enthusiasm and energy currently being directed at the Federal Reserve Bank to lower rates. Thus, the gap between existing mortgage rates and what is available for new loans should be shrinking sooner rather than later. Regardless, the job market and wage levels remain quite strong, and buyers are surely waiting in the wings with additional favorable tax policies helping their cause. There are many reasons to buy and sell right now and refinance down the road if rates fall. Regardless, one can rest assured that an upward trend in the market will come, it always does.”

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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.