Sacramento’s housing market is giving buyers more choices, even as borrowing costs keep their budgets under pressure. September brought more listings and fewer signed contracts, while the median sale price edged higher. The picture is one of softer demand without a broad retreat in reported prices. [1]More listings and fewer contractsThe Sacramento Association of real estate agents’ September market summary, released October 15, recorded 2,523 active single-family listings, up 6.2% from August. Pending sales fell 12.8% to 903 sales, and completed sales declined 7.7% to 935 sales. These figures cover Sacramento County plus West Sacramento—not the county alone. [1]Homes averaged 35 days on the market, three days longer than in August. Supply rose to 2.7 months from 2.3 months, still within the report’s seller’s-market category. Yet the median sold price increased to $555,000 from $550,000. That combination calls for careful pricing rather than sweeping claims about a boom or a collapse.Mortgage rates pause at an elevated levelFreddie Mac’s October 15 survey put the national average 30-year fixed mortgage rate at 7.40%, unchanged from October 8. The 15-year average slipped to 6.71 % from 6.73%. These are national benchmarks, not individual loan offers. [2]The latest verified mortgage-application release offers little evidence of a demand rebound. MBA reported on October 14 that total applications fell 2.7%and seasonally adjusted purchase applications fell 4% in the week ending October 9. [3]Consider the costs and projects beyond the asking priceInsurance remains a major factor in California housing affordability. While the FAIR Plan's 29.1% average rate increase took effect October 15, 2026, a potentially positive shift is emerging. On September 18, California regulators announced that State Farm and Allstate filed plans to resume writing new homeowners insurance policies, following years of restrictions. Farmers, Travelers, and other insurers have also announced expansion plans. Increased competition could eventually improve coverage availability and give buyers more options, although lower premiums are not guaranteed. For Sacramento buyers and sellers, insurance availability and cost are becoming just as important to a successful transaction as mortgage rates and purchase pricesHousing construction remains a longer-term consideration. The City’s September 1 announcement outlined 119 affordable apartments and 100 single-family homes planned at Fong Ranch Road in South Natomas, without a delivery date. Those proposed homes should not be counted as available inventory. [6] Meanwhile, larger development areas in Natomas, Vineyard, and Rancho Cordova could expand future housing inventory. Sacramento County has also expanded programs to reduce upfront construction costs for developers, potentially encouraging additional housing production. For buyers, more new construction could mean additional choices, builder incentives, and greater negotiating opportunities. For sellers, increased competition from new homes may require sharper pricing, strategic marketing, and incentives to attract buyers. However, affordability will ultimately depend on mortgage rates, construction costs, and the prices builders bring to market. These developments are worth watching, but proposed homes should not be confused with inventory available today.Housing policy is evolving alongside the market. California's September 29 housing legislation aims to accelerate construction, streamline approvals, and expand townhome ownership opportunities. Locally, Sacramento County has expanded development fee deferrals, while Sacramento's 2040 General Plan and transit-oriented housing reforms could create opportunities for additional housing. New ADU legislation may also expand options for homeowners seeking rental income or multigenerational living. For buyers, these changes could eventually mean more housing choices; for sellers, increased inventory could bring greater competition. However, most affordability benefits will take time to materialize, and the Federal Reserve's October 27–28 meeting remains another important event to watch.A real estate agents True story of a Shifting Market.Recently, one of my listings had been on the market for 50 days without a single showing. We needed to pivot. The problem wasn’t the marketing or the pricing. The property was competitively priced and high-quality consistent marketing was being used. The challenge was that within just 15 days of being on the market, interest rates skyrocketed from 6.6% to 7.3%. Obviously, this increase impacted affordability and purchasing power. So together, with the sellers, we decided to shift our selling strategy. The sellers decided to offer $20,000 in buyer incentives. With the incentives, the buyer could buy down the interest rate to lower the monthly mortgage payment or use it to save for out of pocket closing costs …within 48 hours of updating we received 2 offers!My final local intelligence takeawayThis is a real-world example of what is happening in today’s market. Although, there may be fewer homes going into contract, it is imperative that real estate agents, along with their sellers, think creatively, act strategically and develop a deep understanding of current market conditions. This story is an example of a shifting housing market. A market where buyers are gaining new power and where sellers, with their real estate agents help, must become more strategic.Over the next 60 days, I would watch new contracts and financing costs before calling a recovery or a deeper slowdown. That is a working interpretation, not a numerical forecast.Buyers: Know the full payment, including insurance, before deciding what to offer. Compare the home with its actual competition.Sellers: Patience needs a plan. Review showing feedback and competing listings, then weigh a price adjustment or lender-approved credit against your net proceeds.Investors: Test achievable rents against financing, taxes, insurance, vacancy, maintenance and management. A lower asking price alone does not establish a sound investment.Leia BarazaLET'S TALK STRATEGY : Set up an appointment here https://calendly.com/leiainthecity/real-estate-consultationHelping you move in faith with local intelligence you can trust.eXp Realty · DRE #01500025 · 916.879.4435

Sacramento October Market Brief

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