Rancho Cordova surpasses Roseville in new home sales

In August 2025, home sales across the Greater Sacramento region saw a significant rebound, marking a notable shift in the housing market dynamics. This resurgence led to Rancho Cordova taking the lead as the hottest city for home sales, surpassing Roseville, which had previously held this title. Most notably, a total of 496 newly built homes were purchased in the area, the highest volume since February and well above the historical average by over 80 units. Tim Murphy, CEO of the North State Building Industry Association, emphasized the trend of homebuyers looking for favorable interest rates and additional incentives offered by builders, such as swimming pools to attract buyers. Rancho Cordova's rise in the real estate market can be attributed to its strategic planning and accessibility from major roads like Highway 50, making it an appealing community for potential homeowners. During August, the city recorded 91 new home sales. With the competitive real estate landscape, interest rates have become a focal point for buyers. Murphy pointed out that many buyers are waiting for rates to potentially decrease, which could spur an additional wave of purchasing activity. He also highlighted that historical data shows an increase in home buying whenever interest rates dip closer to 6%. Despite this surge in activity, the housing prices have remained stagnant. The median home cost in the Sacramento area sits at $595,000, unchanged from the previous year, thus contributing to ongoing affordability challenges for many residents. Currently, only about 13% of Californians can afford homes at the median price level. Efforts are being made by builders and local governments to lower housing costs. This includes reducing mandatory development fees associated with new construction, which can surpass $90,000 per home. Such initiatives are aimed at making homes more accessible to a broader portion of the population. Looking forward, the future of homebuying in the region will likely hinge on movements in interest rates. With predictions of rate cuts by the year's end, many potential buyers are anticipated to re-enter the market seeking favorable conditions. Thus, the dynamics of the housing market in the Sacramento region are expected to evolve, propelled by both economic factors and changing consumer motivations.