Sacramento, CA Housing Market Report

The Sacramento housing market is currently navigating a period of stabilization as it transitions toward a more balanced environment. As of December 2025, the median home value stands at $468,373, reflecting a year-over-year decline of 3.21%. While the market favored sellers for several years, the current data suggests a shift in leverage. With active inventory rising by nearly 4% to 4,537 units and homes spending an average of 65 days on the market—a significant 13-day increase from last year—buyers now have more options and greater negotiating power than they did in the recent past.

Price trends over the last six months indicate that the market may have found its floor. After a steady decline from July through October, values began a modest recovery in November and December. This stabilization is occurring despite the annual dip, suggesting that the rapid corrections seen earlier in the year are tapering off. The sale-to-list ratio remains strong at 0.99, indicating that while buyers are taking more time to make decisions, homes are still selling very close to their asking prices once a deal is reached. This suggests that sellers have adjusted their expectations to meet current market realities.

Looking ahead, the Sacramento-Roseville-Folsom metro area remains a critical hub for those seeking relative affordability compared to the Bay Area, which continues to support demand. However, the rental market is showing resilience with a 2.06% annual increase, bringing median rents to $2,039. For potential buyers, the increase in inventory and longer days on market provide a window of opportunity to be selective. Sellers, on the other hand, should be prepared for a longer marketing period and must ensure their properties are priced competitively from day one to capture interest in a market where the pace of sales has slowed.