LUXE IS THE DRUG FOR AREA HOME SALES

Year-to-date closed sales are up 7 percent versus 2024.

(SACRAMENTO, CA) – The Greater Sacramento region enjoyed an encouraging 577 closed luxury-priced home sales during the second quarter of 2025, which represented a 7 percent increase compared to the same period last year. Due to an equally strong start in the first quarter, closed luxury sales were also 7 percent higher year-to-date as of June 30th. This now marks the third straight year of elevated luxury-priced home sales, even with more normalized mortgage interest rates. Sales at mid-year are nearly three times higher than those of pre-pandemic 2019 and all prior years on record.

Buyer enthusiasm for this market segment is without question, as new open escrows reported during the second quarter were up 20 percent versus the same quarter of last year. More notable, though, is the fact that 35 percent more luxury-priced homes went under contract last month alone compared to June of 2024.

Luxury Portfolio International recognizes home sales above $1,000,000 throughout the Greater Sacramento market as properties that map most accurately toward consumer expectations regarding luxury real estate. Approximately 10 percent of the homes sold year-to-date across the region fall into this luxury price category.

Shop Greater Sacramento’s Luxe Listings

This persistent rate of sales activity implies that buyers and sellers alike are becoming less concerned with tariffs, federal budgets, inflation conjecture, and higher-than-desired mortgage interest rates. Greater Sacramento is fully on track to experience yet another solid year of luxury home sales totals.

The average sales price for the month of June rested at $1,404,000, approximately 2 percent higher than in June of last year. The average price per square foot for properties sold and closed, however, came in at $435, a 5 percent lift versus June of 2024. The luxury market is also considered to be reasonably balanced for both buyers and sellers, with slightly less than 4 months of supply available at the current rate of sales. Luxury-priced homes that successfully closed escrow in the second quarter did so at an average of 40 days on the market and received, on average, 97 percent of the original list price. These metrics are considered very reasonable by historical standards.

“The luxury home market throughout the Greater Sacramento region is vibrant,” says Pat Shea, president of Windermere Signature Properties. It really helps that sellers and buyers are less rate sensitive than those in other price points. A high percentage of homes in the luxury space have a great deal of equity or are free and clear. Sellers are much more invested in the financial markets, which are currently hovering near record highs, than in what rates are doing. Many buyers pay cash, and others are less concerned about mortgage interest rates and more focused on their lifestyle goals and dreams. Any retreat in interest rates, however, will indeed inspire even more move-up activity. Luxury-priced inventory has grown and consequently offers a more excellent choices, but still remains in a balanced space. This sustained market momentum is very real, and one can surely expect the second half of 2025 will be equally strong.”

Click here to download the Full Luxury Market Update

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.