Nearly half of Sacramento home listings have price reductions. What does it mean?
Nearly half of all residential real estate listings active as of Tuesday in the Sacramento region — 44.6% — have had a price reduction, according to MetroList.
The last time the region had that high of a percentage of reductions was three years ago, in 2022, said Ryan Lundquist, a Sacramento appraiser and housing market analyst.
“Everyone’s talking about it going, ‘What’s going on?’” Lundquist said. “I think sellers are really needing to listen to this.”
The counties included in the regional data are Sacramento, Yolo, Placer and El Dorado. The percentage of listings that have been reduced for Sacramento County alone is 42%, Lundquist said, citing Altos Research data.
If the trend continues, it could push prices down more substantially, affect affordability and even make it easier for more Sacramentans to buy their first home.
“If rates remain high and we keep seeing supply grow more than demand, then this is good news for affordability,” Lundquist said.
Kelly Pleasant, a Sacramento-area Realtor, said he has been noticing that trend. He said he has two first-time home buyers closing in Sacramento this week. One is in the $500,000 range, in Tahoe Park, and the other is in the $300,000 range, in south Sacramento. That price is below the Sacramento average sale price for single-family homes of $549,450, according to California Association of Realtors’ data for June.
Both buyers had been renting in the Sacramento area previously.
“Buyers have been getting beat up for so long and so sellers are offering concessions,” Pleasant said. “I think they understand with the interest rate, buyers need help.”
Although the number of active listings is up in Sacramento compared to last year, both homes had multiple offers, Pleasant said.
“I think as a whole we are seeing price reductions because sellers are still thinking it’s a different market,” Pleasant said. “But when you’re pricing it correctly and the home shows well, I think buyers are showing up and they’re willing to spend.”
However, the other main hurdle remains, which is economic uncertainty. Since April, when President Donald Trump announced widespread tariffs, buyers have been backing off the market, Lundquist said.
“The math is tough so a lot of buyers aren’t able to engage, but also there’s increased uncertainty,” Lundquist said. “People wonder what’s going to happen to the economy, the job market, their future. It’s been a big deal since April — that’s when tariffs happened. Consumer sentiment has really been hit.”
Residential real estate included in the data include single-family detached units and did not include condos.
