Introduction

If you’re planning to buy a home this year, this Sacramento housing market guide will help you understand what’s happening, where prices are going, and how to navigate the process step-by-step. The Sacramento housing market 2025 remains one of California’s strongest, largely because of steady job growth, migration from the Bay Area, and a lifestyle that blends affordability with urban convenience.

Even with fluctuating mortgage rates and shifting inventory, Sacramento continues to attract first-time buyers, families, and investors looking for long-term value.

Sacramento Housing Market Trends for 2025

Understanding what’s happening in the market helps you make smarter decisions. Here’s what buyers should expect this year:

Home Price Trends

Prices in the Sacramento real estate market are still rising, though at a slower pace. Most experts expect modest appreciation, not the rapid jumps seen during previous years.

Interest Rate Effects

Higher mortgage rates have cooled demand slightly, but Sacramento remains more affordable than the Bay Area — meaning demand stays steady.

Inventory Changes

Sacramento inventory levels are still very limited. Low supply continues to create competition, especially for move-in-ready homes under the median price point.

Growth in Suburban Areas

Suburban communities like:

• Roseville

• Elk Grove

• Folsom

• Natomas

…continue to attract buyers looking for more space and newer homes.

Sacramento Home Prices (Current Averages)

Home prices vary widely depending on the neighborhood and type of property.

Median Home Price

The median price for a single-family home remains competitive compared to Southern California and the Bay Area.

Condos vs. Single-Family Homes

Condos offer a more affordable entry point, especially for first-time buyers who want to stay closer to downtown.

Neighborhood Comparisons

Popular communities like East Sacramento, Midtown, and Land Park tend to cost more, while South Natomas, Citrus Heights, and Rancho Cordova offer more budget-friendly options.

Is Sacramento a Buyer’s or Seller’s Market?

Right now, Sacramento leans toward a moderate seller’s market.

Here’s why:

• Low months of inventory

• Steady buyer demand

• Competitive offers on well-priced homes

Buyers should be prepared for competition, but not the extreme bidding wars seen in past years.

Sacramento Rental Market Overview

Understanding the rental market helps buyers decide whether owning or renting makes more sense.

Average Rents

Rent continues to increase, making ownership more attractive over time.

Rent vs. Buy Comparison

In many parts of Sacramento, buying a home is now comparable — or even cheaper — on a monthly basis than renting.

Investment Trends

Investors are still active, especially in areas like West Sacramento, South Natomas, and Rancho Cordova, where rental demand is high.

Sacramento Real Estate Market Predictions for 2025–2026

Here’s what analysts expect:

• Moderate price growth as demand stays strong

• Slight improvement in inventory, but still below ideal levels

• Continued migration from Bay Area buyers seeking affordability

• Job growth from government, tech, and healthcare driving demand

Most forecasts agree: the Sacramento real estate market forecast points to long-term stability, not a downturn.

Best Neighborhoods in Sacramento for Buyers

Midtown

Walkable lifestyle, popular restaurants, great for young professionals.

East Sacramento

Tree-lined streets, historic homes, and top-tier schools.

Land Park

Family-friendly with parks and charming architecture.

Natomas (North & South)

Good value, newer homes, close to downtown and airport.

Elk Grove & Roseville

Ideal for families wanting top schools and suburban convenience.

Best Neighborhoods for Investors

West Sacramento

Strong rental demand and new development.

Rancho Cordova

Affordable homes with growing infrastructure.

Citrus Heights

Budget-friendly entry point for investors.

South Natomas

Near downtown with strong rental potential.

Downtown Sacramento

Condos and multi-family units with high demand.

Factors Driving the Sacramento Housing Market

Understanding what’s pushing prices up helps buyers time the market wisely.

Population Growth

New residents from the Bay Area and other states help keep demand steady.

Remote Work

More remote and hybrid jobs allow buyers to live farther from their office — often choosing Sacramento for its affordability.

Bay Area Migration

Sacramento remains a top destination for Bay Area residents priced out of their markets.

New Construction

New homes are being built, but not fast enough to meet demand.

Local Economy & Jobs

Strong government, medical, and tech employment create stability.

How to Buy a Home in Sacramento (Step-by-Step)

1. Get Pre-Approved Early

With competitive sellers, pre-approval is essential.

2. Choose Your Neighborhood

Decide based on budget, schools, commute, and lifestyle.

3. Work With a Local Sacramento Agent

They understand the local micro-markets and competition levels.

4. Submit a Competitive Offer

Speed and strategic terms matter in a seller’s market.

5. Complete Inspections & Close

Stay in close communication with your agent and lender.

Tips for Sellers in the Sacramento Housing Market

Price Strategically

Avoid overpricing — buyers are cautious in 2025 due to higher mortgage rates.

Stage the Home

Staging boosts appeal in a competitive market.

Know the Best Months to Sell

Generally spring and early summer bring the most buyer activity.

Use Multiple-Offer Strategies

If priced right, your home may still receive strong offers.

FAQ: Sacramento Housing Market Guide

Q1: Is the Sacramento housing market going up or down?
Most forecasts expect slight price increases due to low supply and steady demand.

Q2: Is Sacramento still a good place to buy a home in 2025?
Yes. It remains more affordable than many major California markets.

Q3: Are home prices dropping in Sacramento?
Not significantly. Prices may stabilize but remain competitive.

Q4: What is driving Sacramento’s real estate demand?
Bay Area migration, remote work, job security, and California government employment.

Q5: Is Sacramento a buyer’s or seller’s market right now?
It remains a moderate seller’s market with limited inventory.