Sacramento housing market faces worst June sales in 25 years

In June 2025, the housing market in the Sacramento region showed significant signs of slowing down. According to real estate experts, last month's sales figures indicated one of the weakest Junes for home sales in over two decades. Sellers, such as Erin Narveaz from Fair Oaks, express mounting frustration, as she noted that her home has been on the market for nearly a year, far exceeding her expected timeframe for selling. Many sellers are facing similar challenges due to a decrease in buyers and offers. Real estate agent Johnny Jennings highlighted that the current market climate is particularly tough and that sellers may not yet have adapted to the current realities of home pricing and demand. He emphasizes that homes must be presented in a turn-key condition and priced appropriately to attract potential buyers in this challenging environment. Although there is a glimmer of hope for a market shift, Jennings cautions sellers not to overlook how rising interest rates are influencing buyer behavior. The market's evident slowdown has demonstrated that many pending home sales are receiving only a single offer - a stark contrast to the competitive, multi-bid situations of previous years. Furthermore, in approximately 40% of these pending sales, sellers had to reduce their asking price before a buyer expressed interest. The general consensus among experts indicates that the sluggish market will persist until there are favorable changes in interest rates. Overall, both real estate agents and sellers are left waiting, as the current economic indicators do not suggest that interest rates will decline in the near future. This environment has left many people feeling uncertain about their next steps in the housing market, making it a pivotal time for both buyers and sellers alike.