WILL THE RESALE HOME MARKET GET ITS GROOVE BACK?

New listings in mid-March jumped 30 percent from February.

(SACRAMENTO, CA) – Most residential housing key metrics throughout Greater Sacramento are modestly trending up, as is typical, at the start of our spring selling season. There is strong optimism that 2026 could see a significant jump in annual sales volume compared to the far below normal output of our previous 3 years. A very similar number of new listings entered the market in February compared to last year at this time. Mid-March, however, has already seen a 30 percent increase in new listings versus mid-February.  

New pending sales jumped up an encouraging 15 percent in February compared to January and were also 10 percent higher compared to February of last year. The activity pace of new listings and new sales left standing inventory at 3,130 properties available for sale at mid-March. That is approximately 3 percent below last year at this time. More specifically, there are currently 2 months of housing supply available across the region based on the current rate of sales.

More buyers are also finding their way back into the market as mortgage interest rates have softened and are now bouncing around closer to 6 percent. Last month, 1,512 homes were placed under contract, a 15 percent increase compared to January. Fortunately, the boost in new listings is providing fuel for more buyer opportunities, though pending sales are currently tracking only 4 percent higher in mid-March versus mid-February. New pending sales year-to-date at mid-March rest 4 percent higher than last year at this time after experiencing a slower start in January. The early trends in these key metrics, though, all reflect that the housing market is producing green shoots that signal a path for continued momentum and higher sales numbers in the months ahead. 

“Greater Sacramento is an excellent ‘place to live, work and play’ in Northern California,” says Pat Shea, President and CEO of Windermere Signature Properties. “Plenty of buyers are fully employed, loving the current mortgage movement, and are eager to get busy with their life plans. Additional inventory will surely produce more sales in 2026.”

See all current inventory in the Greater Sacramento market. 

The number of closed sales in February was 16 percent higher than in sluggish January, yet down 2 percent compared to February of last year. At mid-March, total closings year to date are tracking 8 percent lower than last year at this time. The market did, however, start the year somewhat softer than normal due to lower inventory, heavy rains, and some interesting geopolitical issues. Currently, the market appears to be gaining springtime momentum. 

The average sales price across the region for the month of February rested at $649,000. That number was down slightly more than 1 percent versus the same month last year. The past 3-month average sales price of $646,000 also reflected a 2 percent decrease year-over-year. Prices typically soften over the winter months. Early price movement in the year thus far, however, once again reflects that continued upward pressure is likely as our spring market takes shape. Still lower inventory than optimal, and the apparent willingness of more buyers to find their way will likely result in further price appreciation. Homes that closed escrow in February received an average of 97 percent of the original list price and were on the market an average of 54 days. 

According to Shea, “tariff confusion, military conflicts, 2 government shutdowns, etc. have created several ‘start than stop’ periods in the housing market over the past 12 months. This too shall pass. The improved but measured start heading into spring reflects that many buyers are getting busy and more move-up sellers are likely to surface in 2026. The market undoubtedly will warm up over the next few months, and any further decrease in mortgage interest rates will surely propel the number of home sales throughout Greater Sacramento. Stay tuned!”   

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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 80 years. Last year, the company closed over 2,800 transactions and nearly $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.