Sacramento County  Real Estate

A Seller’s Market Continues

By Daniel M. Rivas,
U.S. Navy Veteran & Real Estate Professional

The Sacramento County real estate market remains firmly in seller’s territory—offering opportunity, strategy, and a unique set of challenges for both buyers and sellers. While I don’t have a crystal ball, I do have something better: real data, analyzed daily, and interpreted with the insight of someone who lives and breathes this market. Let’s explore what the latest numbers from May 2025 mean for you and your next move.

Market Snapshot: May 2025

A Clear Seller’s Market

All key indicators confirm that Sacramento County continues to favor sellers:

• Months of Inventory based on Closed Sales is at 2.3 months—below the 3-month threshold that typically defines a seller’s market.

• Absorption Rate is at 43.1%, well above the 33.3% benchmark, showing high demand relative to supply.

Inventory Is Increasing

The number of homes for sale surged:

• Up 52.4% year-over-year

• Up 14.6% month-over-month
  This gives buyers more options, which may help ease competition slightly, though sellers still hold the advantage.

Sales Activity

• 948 homes sold in May, a 10.5% drop year-over-year

• Pending sales increased 8.5% month-over-month and 1.8% compared to last year
  Despite fewer closed sales, buyer interest remains steady.

Price Trends

• Median Sold Price: $551,000 (+0.2% from last month)

• Average Sold Price: $613,000 (–0.3% from last month)

• Average Price per Sq. Ft.: $349 (+0.6% from  last month; unchanged from last year)
  The 6-month pricing trend is categorized as neutral, suggesting stable value for homeowners and investors alike.

Days on Market

• 25 Days on Market (DOM)—unchanged from April but up from 22 days in May 2024
  Homes are still moving quickly, reinforcing seller confidence.

Sold Price vs. Original List Price

• Sellers received 99% of asking price on average—unchanged from the previous month, underscoring the strong negotiating position sellers maintain.

The Bigger Picture: National Trends to Watch

Mortgage Rates & Inflation

The Fed’s preferred inflation gauge—the PCE index—rose just 0.1% month-over-month and 2.1% year-over-yearin April, signaling continued cooling. Core PCE (excluding food and energy) rose 2.5%, the lowest level since March 2021. With these figures aligning with expectations, mortgage rates have remained around 7%, holding steady—for now.

However, potential pricing shifts from major retailers (Costco, Target, Walmart) may influence inflation in the months ahead, which could ripple into housing.

Mortgage Delinquency Rates

Nationwide, 2.8% of mortgages were 30+ days delinquent as of Q1 2025—unchanged from last year. Despite economic uncertainty, we’re not seeing a spike in delinquencies, suggesting a resilient homeowner base.

What This Means for You

For Sellers

With inventory low and demand steady, you’re still in a strong position. Homes are selling near asking price, often within weeks. If you’ve been considering listing, this is a great time to act before competition increases further.

For Buyers

Yes, it’s still a seller’s market—but the increase in available listings means more choices and (in some cases) less competition. Stay prepared, work with an agent who knows how to negotiate aggressively, and move quickly on the right property.

For Homeowners & Investors

Rising price-per-square-foot trends suggest stable appreciation, even as average sale prices fluctuate slightly. It’s an ideal time to evaluate your equity position or explore potential upgrades before year-end.

Final Thoughts

Success in real estate—whether buying, selling, or investing—requires timing, data, and strategy. As a U.S. Navy combat veteran, I bring the same discipline and dedication to real estate that I brought to my military service. My commitment to you is clear: I will guide you through every step of this fast-moving market with clarity, integrity, and relentless focus.

If you’re considering a move, want to know your home’s current value, or just want to talk strategy, I’m here to help.

Let’s connect—and let’s make your next move count.