HOUSING MARKET PREPPING FOR SPRING BLOOM 

New pending sales year-to-date at mid-February deliver optimism.

(SACRAMENTO, CA) – The Greater Sacramento resale housing market kicked off the new year as expected during January, with new pending sales enjoying a large, 23 percent lift versus those posted in December. The momentum continued in February with new pending sales at mid-month already a healthy 31 percent better than those at mid-January. Sales metrics at year-end always pale compared to spring and summer figures, and January remains a bit sleepy while the market slowly strives to get back on track. There are wide expectations, however, that 2026 will be the bounce-back year after suffering more than 3 years of 30 percent fewer sales than normal.

More than 1,900 new resale listings also came onto the market in January across the four-county area. This represented an 83 percent increase in new listings versus the always much quieter month of December. New listings are showing additional enthusiasm in mid-February, as said entries are another 14 percent higher versus the same time frame in January. The competition between new listings entering the market and new pending sales left the region once again with a modest 2 months of supply.  That supply metric remains quite low as we approach the spring selling season, yet many real estate forecasters expect the flow of new listings to continue and grow throughout all of 2026. 

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The region’s average price for closed sales in January landed at $628,000. This represented a 4 percent dip from December and a 3 percent decrease compared to one year ago at this time. Average and median sales prices followed another typical pattern in 2025, peaking in summer, holding pretty steady through September, and then softening at year-end. The spring market in 2026, though, appears to be positioned for growth. 

“Sales activity and prices always retreat over the winter months, and 2025 followed that path. There is renewed optimism, though, that the seasonal recovery is already underway. Higher inventory is expected as people have been delaying their moves, and the recent slide in mortgage rates is unlocking sellers and buyers alike,” states Pat Shea, President of Windermere Signature Properties. “Any further rollback of mortgage interest rates below 6 percent will certainly unleash a significant jump in sales.” 

Even though standing inventory has risen 20 percent year-over-year, properties priced below $500,000 remained the tightest market segment with only 1.5 months of supply based upon the rate of new sales. Further, properties in this price range that are in good market showing condition still typically see multiple offers. Homes priced at above 1 million dollars saw a 48 percent increase in new pending sales in January compared to December. February numbers are also besting mid-January by 27 percent.   

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“The early uptick in resale market activity throughout January and February reveals that buyers and sellers are ready, willing, and able to make their moves. Prices, inventory levels, new listings entering the market, and new pending sales are all trending in the right direction. The decline in mortgage interest rates has loosened up more sellers who were previously entrenched due to ultra-low rates obtained when they originally purchased or refinanced. Buyers are thrilled with the rate movement as well and looking to get into contract before more competition moves off the sidelines, says Shea. Our market conditions will continue to improve over the coming year. Prices will resume their steady but manageable climb. Interest rates may retreat even further, but will never return to the incredible lows seen during the pandemic years. Waiting is no longer a good idea for buyers entering the market or sellers looking to sell and then purchase a replacement home. 2026 definitely is go time.”

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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 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.