What’s Going On in Sacramento’s Real Estate Market in 2025?

With fewer bidding wars, price drops, and more negotiation power, homebuyers finally have the upper hand after years of intense competition. Is now the best time to buy a home in the last three years? Lately, we’re seeing more homes come onto the market, and they’re staying available a bit longer. This shift is opening up new opportunities for buyers who have been waiting for the right moment. Let’s dive deeper to see why this could be the best time to buy. Buyers are in a better spot. Inventory is up about 30% to 35% compared to last year. At the same time, the number of homes going pending has dropped sharply, especially over the past 60 days. When you put those together — more homes available and fewer are selling quickly — deals are starting to happen. Sellers are dropping prices to compete, and buyers are getting offers accepted well below asking, which hasn’t been common in recent years. This is a change from the last three years when buyers often had to compete with multiple offers or submit very high bids just to be considered. "Sellers are dropping prices to compete, and buyers are getting offers accepted well below asking, which hasn’t been common in recent years." I believe this is the best window we’ve had to buy since the pandemic started. If you’ve been on the fence or wondering if buying is possible, now might be the time to take a closer look. We can help break down the numbers for you. We can also build a plan to help you save and prepare over the next year. A shift sellers didn’t expect. Sellers have held the upper hand for about six years, so this change in the market feels significant. While they’re still getting solid prices and we’re not seeing a major drop in home values, the momentum has shifted. Based on current trends, it wouldn’t be surprising to see values dip by 1% to 5% this year. Buyers are finally gaining some leverage again —and that’s a welcome change. If you’ve been thinking about buying, now’s a great time to explore your options. We’re happy to help—at no cost to you—by putting together a personalized purchase plan. Just give us a call at 916-436-SELL , or check out homesbyelevate.com . We’ll walk you through the steps to save and prepare. 

Sacramento’s inventory is up 25%, but buyer demand is dropping. Know what’s driving the shift and how it affects home prices for buyers and sellers. What’s going on with the Sacramento real estate market halfway through 2025? This year has been moving fast, but what’s really interesting is how much the market has shifted in just the past couple of months. After a relatively quiet start, things have started to change in ways that are important for both buyers and sellers. Over the last 60 days, some significant trends have emerged that could shape the rest of the year. It’s definitely worth taking a closer look at what’s driving these changes and what they mean for the market right now. Let’s dive in. Looking back: from a slow 2024 to a hopeful start in 2025. Last year, 2024, was one of the slowest on record for home sales in Sacramento, setting a quiet tone for the market. Going into 2025, I expected things to stay fairly similar, with no big changes in interest rates or sudden surges in buyer activity. However, the first few months surprised us a bit— sales picked up by about 10% compared to last year, and buyers seemed noticeably more motivated and confident. This early momentum gave hope that the market might be warming up after a sluggish period. Inventory is rising as buyer demand slows. Over the past 60 days, the Sacramento real estate market has taken a noticeable turn. Buyer demand has slowed down, with fewer people going under contract and purchasing homes. Meanwhile, the number of homes listed for sale has risen sharply. "This isn’t a market crash—it’s simply the housing market rebalancing after being inflated by low inventory." When fewer buyers are buying but new listings keep coming, inventory starts to build up quickly. For example, if 1,000 homes are listed in a month but only 300 go pending, that leaves 700 homes still available the following month. Add another 1,000 new listings on top of that, and you end up with a growing backlog of homes sitting on the market. This increase in inventory alongside slowing sales is exactly what we’re seeing right now. Shifting dynamics are putting pressure on home prices. With more homes hitting the market and fewer buyers actively looking, smart pricing has become more important than ever. A well-priced home might get three to five showings each week, but if it's even slightly overpriced, showings can drop to one every couple of weeks—or none at all. That’s a big change from previous years, when buyers were more aggressive despite high interest rates because there weren’t many options available. Back then, homes went under contract quickly, often within two weeks. Now, inventory is up roughly 20% to 25% compared to this time last year, while pending sales are down 10% to 15% over the past two months. If this continues, inventory will keep rising, and home prices will face more downward pressure. At this point, I expect prices to remain mostly flat or dip slightly for about 1% to 3% in some neighborhoods. That said, this isn’t a market crash—it’s simply the market rebalancing after being inflated by low inventory. If you’re thinking about selling, it’s really important to price and present your home right to attract buyers. For buyers who have been hesitant over the past few years, now is a great time to jump in. We’re seeing homes sell under their asking price, and despite higher interest rates, there are still some great deals available. If you want to learn more, give us a call at 916-436-SELL , or check out homesbyelevate.com . We’re happy to keep you updated about the market.

We partnered with Sweet Dreams Foundation to make a Pokémon-themed bedroom and firehouse playroom for a brave young boy. This month, the Elevate team had the immense honor of partnering with the Sweet Dreams Foundation for our second dream bedroom transformation project. Sweet Dreams Foundation is a nonprofit in Folsom, CA, dedicated to creating safe havens called “DREAM ROOMS” for medically fragile children to forget treatments and find joy. Their mission is to spread peace, hope, and love while encouraging a healthy lifestyle to lift each child’s spirit. We collaborated to support Leo, a bright, brave young boy courageously battling a life-threatening illness. With Sweet Dreams leading the vision and Elevate lending our hands and hearts, our shared mission was to bring light, comfort, and joy to Leo’s world by creating a bedroom and playroom that reflected his favorite things and gave him a space to feel safe, playful, and loved.  With the help of volunteer firefighters, generous vendors, and the dedicated Sweet Dreams team, we unveiled a completely transformed space for Leo. His new bedroom featured a Pokémon theme and a custom firehouse-themed playroom. It was complete with imaginative details and interactive elements that turned the space into his dream come true. This partnership with Sweet Dreams Foundation is one we deeply value. At Elevate , we believe in using our skills and resources to uplift the communities we serve , and nothing means more than making a difference for children like Leo. If you’d like to learn more, get involved, or explore future partnership opportunities, please don’t hesitate to reach out. 916-436-SELL , or check out homesbyelevate.com to learn more. We’d love to hear from you.

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See how real estate remains stable even when the stock market dips, giving homebuyers confidence to move forward. Are you wondering if the stock market has any impact on the real estate market? It’s a question I get a lot, especially when the stock market takes a hit—which it just did! With a recent 10% pullback, I’ve seen more buyers holding back from buying a home. Some even ask if they should wait for a possible recession. Big financial shifts can really make anyone second-guess a major purchase. But let’s take a step back and look at the bigger picture. I’m breaking down how stock market activity can potentially impact real estate. Stock dips don’t stop real estate growth. The stock market may have dipped recently, but it’s still far higher than it was in 2020 and remains n ear record highs. The same is true for real estate, as home values in Sacramento have nearly doubled over the past five or six years. This shows that a 10% to 15% drop in stocks is normal and hasn’t historically caused home prices to fall. Even though a major crash could impact decisions, smaller dips like this are common and don’t mean home values are at risk. Both markets follow long-term growth trends despite short-term fluctuations. "Even though a major crash could impact decisions, smaller stock market dips are common and don’t mean home values are at risk." How the stock market can impact home-buying decisions. Even though home prices don’t change directly with the stock market, there are two main ways it can affect real estate. First, some buyers use their investments or retirement savings for a down payment. If the stock market is down, they might not want to sell their investments. Doing this could delay their home buying. Second, when the stock market is unstable, people feel unsure about their finances. They opt to wait before making big decisions like buying a home. Real estate is a long game. After all, most people don’t buy a home for just a year or two—they plan to live there or hold the investment for a decade or more. Over time, both the stock market and real estate tend to go up. That’s w hy short-term market swings shouldn’t be the deciding factor in a home purchase. Stock market corrections are a normal part of investing, just like ups and downs in real estate. What matters most is looking at the long-term tr ends. If you have questions about how today’s market conditions could affect your real estate plans, give me a call at 916-436-SELL , or check out HomesbyElevate.com to learn more. I’m happy to help.

Learn how Prop 19 allows eligible homeowners to transfer their low property tax rate to a new home. In California, property taxes are based on your home’s purchase price, so longtime homeowners often pay much less than new buyers. But what if you want to sell and move to a new home without your tax bill skyrocketing? That’s where Proposition 19– or simply Prop 19– comes in. Let’s break it down. How does Prop 19 work? Prop 19 lets eligible California homeowners transfer their current property tax rate to a new home anywhere within the state. This means you can sell your home, buy a new one, and keep your lower tax rate instead of paying based on today’s higher values. "Prop 19 provides the flexibility to move without facing a massive tax increase." Who qualifies for Prop 19? This program is available to California homeowners who are 55 years old or older, people with disabilities, and those affected by wildfires or natural disasters. If you’re downsizing, you get to keep your lower tax rate. If you buy a more expensive home, your tax basis adjusts, but you still receive some savings. For many longtime homeowners, high property taxes are a major reason they feel stuck in their current homes. Prop 19 provides the flexibility to move homes without facing a massive tax increase, making it easier to relocate, downsize, or find a home that better suits your needs. So if you’re moving soon and need some advice, reach out to HomesbyElevate.com or call 916-436-SELL . I’m happy to talk anytime!

Why home insurance companies are losing money, leading to rising costs. Why are insurance rates increasing? If you've recently reviewed your home insurance bill, you may have experienced some serious sticker shock. Rates are rising rapidly, with some homeowners facing increases of 80%, 110%, or even 126%. It’s an alarming trend that leaves many wondering what’s driving these sharp increases. Let’s take a closer look at the key factors behind the surge in insurance rates. 1. Weather-related losses are at an all-time high. Natural disasters have always played a role in insurance costs, but in the last few years, the situation has gotten worse. It’s not just major hurricanes and wildfires, but also smaller events like hail storms and flooding are happening more frequently and causing widespread damage. The Midwest is seeing more hail, the East Coast is dealing with stronger storms, and in California, wildfires have increased by up to 40%. More weather-related claims mean insurance companies are paying out more money, which leads to higher premiums for everyone. 2. Construction costs are driving up claims. The cost of rebuilding has nearly doubled in the past seven years and is therefore another major factor in the rising insurance rates. Materials and labor are more expensive than ever, which means insurance companies are paying out significantly more when covering claims. As a result, they’re adjusting premiums to keep up with rising costs. 3. Insurance companies are losing money: Despite what some might think, insurance companies aren’t making massive profits. The truth is they’ve been losing money for years. In 2023, analysts estimated that insurers needed to raise rates by at least 35% just to stay financially stable. For every dollar they collected in premiums, they were paying out $1.36 in claims. That’s not a sustainable business model, and major disasters only make things worse. "If premiums become unaffordable, it could cool off the housing market in high-risk areas. " 4. Regulations are making things even harder: In some states, like California, strict regulations limit how quickly insurance companies can raise premiums. While these laws aim to protect homeowners, they’ve also led some insurance providers to pull out of the market entirely. When fewer companies offer coverage, competition decreases, and costs rise even further. 5. Reinsurance companies are passing down their costs: Most people don’t think about reinsurance companies, but they play a huge role in the industry. Large insurers—like AIG—act as a safety net for smaller providers by covering major claims when disasters strike. But these reinsurance companies are also losing money, so they’re increasing their rates. Those added costs eventually get passed down to homeowners. Unfortunately, this isn’t just a temporary spike—more price hikes are coming and it’s turning into a full-blown crisis. States like California, Florida, and South Carolina are at risk of losing access to affordable home insurance altogether. If premiums keep climbing—potentially reaching $15,000 a year—it could even affect home values. Buyers take insurance costs into account when purchasing a home, and if premiums become unaffordable, it could cool off the housing market in high-risk areas. While this situation isn’t ideal, there are steps you can take. First, understand that this isn’t price gouging because insurance companies are simply trying to stay afloat. If your policy is up for renewal, lock in your rates now because prices are only going to rise over the next year. If you need help finding a reliable insurance provider, we can help you find one. Just call us at 916-436-SELL or send an email to  steve@homesbyelevate.com  .

Learn how lower mortgage rates are improving affordability for homebuyers. Have you been waiting for interest rates to come down before making your next move? We just saw one of the biggest drops in 30-year fixed mortgage rates in over a year, which brings them back to 2022 levels. Let’s break down what’s happening, why it matters, and what it means for buyers and homeowners. Positive movement in interest rates: Mortgage rates have dipped to their lowest levels in the past 12 months, now hovering around 6% - 6.5%. That’s a significant shift, especially in a market like California, where interest rates have a huge impact on affordability. Even though the Fed hasn’t officially lowered rates, the mortgage market is already responding. That’s because mortgage rates tend to move based on the 10-year Treasury yield, which predicts where rates are headed in the future. Right now, the market is signaling that lower rates are coming. Stock market & interest rates: One major reason for this shift is the stock market. As stocks trend downward, investors are betting that the Fed will ease up on rate hikes, which puts pressure on mortgage rates to drop. It might seem counterintuitive, but when the economy slows down, interest rates often follow. "Rates will likely continue fluctuating, but the overall trend seems to be moving in a positive direction." Implications for buyers & homeowners: For buyers, lower rates mean more affordability. If you’ve been waiting for a better time to buy, this could be it. If you purchased a home in the last year with a 7%-8% mortgage, it’s also a good time to start looking at refinancing options. Future predictions & market volatility: Rates will likely continue fluctuating, but the overall trend seems to be moving in a positive direction. The market is always looking ahead, and right now, it’s predicting that rates will keep easing. If you’re considering refinancing, keep an eye on the market and check in with your lender to time it right. If you’ve been on the fence about buying, now could be a great time to jump in. For sellers, demand is still strong, and homes are moving quickly. The market remains competitive, and this shift in rates could bring even more buyers back. If you have any questions, don’t hesitate to call us at 916-436-SELL or visit www.HomesByElevate.com to get started.