COULD PEACE ENERGIZE LOCAL HOME SALES?

Closed sales year-to-date are up a modest 4 percent versus 2025.

(SACRAMENTO, CA) – The residential real estate market has been coasting at a very moderate but steady pace for over 3 years all across Greater Sacramento and for most of the entire country. Specifically, home sales have performed 30 percent or more below what was deemed normal during the entire previous decade for Northern California before the extraordinary world health and subsequent economic events of 2020 and 2021.

Could positive developments in the Middle East clear the final obstacle for a more vibrant and sustained “back to normal” period in our local market? Mortgage interest rates have trended downward from recent highs, leaving prospective buyers more prepared and acclimated to realistic expectations. More homeowners on self-imposed house arrest due to historically low rates on their existing mortgages seem to be getting restless and more inclined to make lifestyle changes and moves. 

At the time of this writing, there are 4,259 homes listed as active and available for sale in the 4-county area. Although that number is 10 percent lower than last year, it leaves just over 2 months of supply based upon the current rate of sales. There have been 7 percent more homes placed under contract or in “pending sale” status vs. last year, and closed sales are up 4 percent. The month of May alone saw 5 percent more homes go under contract versus April and 11 percent more compared to May of last year. Could this be an indicator of new momentum or another flash of acceleration followed by braking? 

Browse through available homes on the market today! 

The upper-end properties above the $1,000,000 price point are performing nearly identically to last year, with 944 closed escrows year-to-date on June 15th. That segment, comparatively speaking, outperformed the remaining residential market in 2025. Since that upper-end landscape sees larger down payments and more cash sales, it is more stock market and less mortgage interest rate sensitive. The entry-level market, homes below $500,000, remains solid with 13 percent more homes placed under contract year-to-date and 5 percent more closings thus far this year. Momentum in the entry-level space is always a good sign, as it drives the move-up market as well. 

Curious what luxury looks like? 

The average sales price for homes that closed escrow in May landed at $707,000. This metric was up approximately 2 percent year-over-year and 3 percent versus April. Sellers who closed escrow in May received an average of 99 percent of the original list price and were on the market an average of 35 days. These numbers reflect notable market stability.

“Consumer confidence is playing a pivotal role in major purchase decisions at this time and place in America,” says Pat Shea, President of Windermere Signature Properties. “This is true especially in their most important and largest investment, the purchase and sale of their primary residence. It is also a very emotional decision, and people just want to be comfortable that the stars are aligning in their favor. The stock markets are at record highs, employment numbers and wage metrics are all positive, and mortgage interest rates are historically speaking, good enough. Perhaps the final piece of the puzzle is peace, open commerce in global waters, and a precipitous drop in oil and gasoline prices. There is still much to be resolved, so stay tuned. If those economics trend in a positive direction, the real estate market will respond swiftly.”

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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.