2025 California Housing Market Forecast: What Homebuyers and Sellers Need to Know Before the Year Ends

2025 California Housing Market Forecast: 

What Homebuyers and Sellers Need to Know Before the Year Ends

As we move through the second half of 2025, California’s real estate market—particularly in areas like Sacramento and Rancho Cordova—is shifting in ways that both homebuyers and sellers need to watch closely. With changing interest rates, fluctuating inventory levels, and evolving buyer demand, having a clear picture of what lies ahead is essential for making smart real estate decisions.

Here’s what the latest housing market forecasts reveal, and how Sac Platinum Realty can help you navigate the months ahead.

Inventory Is Rising, But the Market Is Still Tight

While more listings are hitting the market compared to last year, housing inventory across much of California is still limited. This is especially true in suburban communities where demand remains strong due to schools, amenities, and job access.

“Low inventory continues to be the biggest factor keeping home prices elevated.”
— National Association of Realtors (NAR)

In many California cities, homes that are updated and well-priced are still receiving multiple offers, proving that buyer demand hasn't gone away—it's just more selective.

Mortgage Rates Leveling Out — A Win for Buyers

After a rollercoaster ride in 2023 and early 2024, mortgage rates are finally stabilizing. This has reignited interest among first-time homebuyers and move-up buyers alike.

“We’re seeing a normalization of mortgage rates in the mid-6% range, which is helping buyer confidence return.”
— Lawrence Yun, Chief Economist, NAR

With rates unlikely to spike again this year, locking in a home now could be a smart move before potential competition increases heading into 2026.

Home Prices Expected to Grow Moderately

Experts forecast a 3% to 5% increase in home values across California through Q4 of 2025. While this isn't the explosive growth seen during the pandemic years, it's a sign of market stability—and long-term value.

“The days of double-digit appreciation may be over for now, but steady price growth is a sign of a healthy, sustainable market.”
— Redfin 2025 Housing Report

For sellers, this means it’s still a strong time to list—especially if your property is move-in ready. For buyers, it means buying now can lead to solid equity gains in the coming years.

Remote Work Keeps Suburban Demand High

Even in 2025, remote and hybrid work continue to reshape housing demand. More buyers are looking for space, home offices, and outdoor living—driving demand in suburban and semi-rural California communities.

“The rise in remote work is a permanent shift, and it continues to influence where people want to live.”
— Zillow Economic Research

This trend is keeping communities outside dense city centers competitive, making it a great time for sellers in those areas to capitalize.

How Sac Platinum Realty Can Help

The real estate market is more complex than ever—but with Sac Platinum Realty, you don’t have to go it alone.

Whether you're buying, selling, or investing, our expert team provides:

• Local market expertise rooted in Sacramento County and surrounding regions
• Strategic pricing and negotiation tailored to current buyer behavior
• Professional marketing tools that highlight your home's value
• Investor guidance for rental property acquisition or resale opportunities

With the right partner, you can move with confidence—no guesswork, no missed opportunities.

Ready to Make a Move Before 2026?

Whether you're considering buying, selling, or investing before the year ends, now is the time to connect with a local expert who understands where the market is headed. Reach out to Sac Platinum Realty today for a personalized consultation and start building your next chapter with confidence.