Greater Sacramento Market Update – Special Edition

STARS ALIGNING FOR HOME SALES JUMP IN 2026

(SACRAMENTO, CA) – Greater Sacramento experienced its third straight year of far below normal market activity yet quietly closed out 2025 with renewed optimism for a measurable rebound in the new year. The four-county area was left with 2,704 homes posted as active and available for sale on December 31st. This number represents a 14 percent increase over last year at this time and also reflects the second straight year of double-digit increases in our housing inventory at year-end. As we look back over the course of the last 3 years, the stats begin to show stabilization and various leading indicators that point to a promising 2026 for both buyers and sellers.

“A notable increase in supply is a very positive development for the region heading into 2026,” says Pat Shea, President of Windermere Signature Properties. “Specifically, it most certainly is the required, first critical step necessary to restore our annual sales activity to a “normal” level based upon historical experience and expectations. For added perspective, please understand that inventory levels for the five years prior to 2020 were all north of 3,000 homes active and available for sale at year-end.”

The improving supply is still recovering from a protracted correction period post the great market surge of 2020 and 2021. Sales during that era were beyond extraordinary due to historically low mortgage interest rates. Once-in-a-lifetime, rates from that anomaly period have also kept purchasers and refinancers parked in their existing homes and mortgages far longer than prior patterns and trends.

The median sold price for 2025 came in at $598,000, with the fourth quarter averaging $585,000—nearly flat compared to the 2024 median of $595,000. Homes that closed escrow in Q4 spent an average of 55 days on the market, up from 42 days last year.

See new homes on the market in 2026. 

Together, these metrics point to encouraging news for both buyers and sellers, reinforcing price stability and signaling a more balanced, solid market foundation as we head into 2026.

New listings entering the market during the fourth quarter were down 2 percent year-over-year, however, up 10 percent in December alone vs. those posted in 2024. This activity certainly helped maintain a healthier level of standing inventory at year-end. There were slightly less than 2 months of resale housing supply available on January 1st based on the current rate of sales. A “balanced” market for both buyers and sellers in this modern age is often considered to hold 3 to 4 months. New open escrows, the other key metric for measuring direction, further revealed the market’s stability and potential to gain momentum. New opens posted during both the month of December and the entire fourth quarter were 2 percent higher than those of last year despite the holidays and severe weather period.

“The stars are most assuredly aligning for a major lift in Greater Sacramento homes sales this year,” says Shea. “Look for a sizable number of new listings hitting the market as we emerge from our typical holiday hiatus and the 130% of normal rainfall received over the past few weeks. Inventory is on the rise and mortgages rates are on the slide. Most economic analysts and forecasters predict rates to either drop a bit more or at the very least remain stable throughout 2026. The Greater Sacramento region continues to be recognized as one of the best places to live in California and remains much more affordable than other major population centers throughout the state.”

CLICK HERE to download the full Market Update for the Greater Sacramento. 

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 80 years. In 2025, the company closed over 2,800 transactions and $1.75 billion in sales volume. Windermere Signature Properties has over 550 agents in 13 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 $1,622,565 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.