In this blog, I’m getting the above question answered plus I’m sharing a few graphs (re our local real estate market) and going over some of them. If you find it helpful, feel free to share it with friends and also, if you give me a feedback, it will encourage me to do similar work in the future.

Are prices coming down in Sacramento?

Let’s study the graph below: Peak of the market in our area was in May of 22. After that, prices came down and seems like they are staying flat. All those peaks and valleys you see, are just seasonal fluctuations in the market. “So, what happened in May of 22 that caused that big drop in prices?” Mortgage Rates. That’s when we had to say goodbye to the once in a lifetime 2% mortgage rate. Next generations will talk about it around campfire. Where are the rates today? 6.625%. Take home lesson: Home prices aren’t coming down. But they’re not going up any more either AND THAT IS IMPORTANT TO INTERNALIZE.

What does it look like compared to a year ago?

Even though this might not be a question many ask, by looking at the table below which compares May/ 24 data with that of May/25 we might learn a few interesting facts about todays’ market.

– Changes in Median & Average sold price are insignificant: Almost +/- %1. So, Home prices have stayed / are staying flat. Because Joneses sold their house last year for $700K, doesn’t mean you can list yours for $750. Reality might be more like you list yours for $680K and selling it for $675-$710. Still, the mindset of a lot of sellers is “I’ll list if for $750K and get $780K for it.” No folks. We’re in not in Kansas any more.

–Number of Sales (Since the beginning of the year) has gone down 7.1%. That’s significant. And why is that? Two / three words: Affordability (or lack of it) + Economic Uncertainty= less people are buying.

–Months of Supply has increased by 53%. It means buyers have more homes to choose from. They have options. They can afford to be picky. Sellers need to take a note of this: If buyers think your house is “priced high”, they’ll go find another one which they find “priced right”. That is so real and I witness that everyday.

–Average Days on Market has gone up %27. The fact is that there are less willing and qualified buyers on the market looking at homes. It’s not 2015 any more. It takes longer time to sell a house.

Something weird happened in March. What was it?

This graph shows the Median Price of Sold Homes in our region from 2021 to 2025. Let’s look at it together.

Let’s take a look:

-2021 prices were the lowest, almost all the way through.

-2022 prices started very high until May (when rates went up). Then it dived down till October and it went flat.

-2023 prices were higher than 21 all the way through.

-2024 They gradually went up till June and flattened afterwards.

-2025 stands out from all other 4 years. Prices peaked quickly and as early as March, we saw them declining. Buyers pushed back: “Mr. & Mrs. Seller, with these high rates and economic uncertainty, there’s no way I’m paying you what you’re asking for. You better lower the price or I’m walking. I have options. “

What % of sellers are getting “asking price” for their homes?

Another interesting graph: The red line is showing us the average of the % of homes sold below list price. This year, until March, we were following the trend. But after that we notice a surge in buyers wanting to pay lower than the asking price. Basically, more buyers said ” Rates and economic uncertainty are high, therefor I refuse to pay you asking price. Reduce the price or we will walk.”

My source for these graphs were Sacramentoappraisalblog.com. Great resource but lots of data which can make someone feel confused and overwhelmed. If you had any questions or just wanted to have a casual real estate related conversation, give me a call.