Sacramento Housing Market Forecast: Q1 2026

As we head into 2026, the Sacramento real estate market continues to show resilience and unique opportunities for both buyers and sellers. With interest rates stabilizing and inventory levels shifting, here is what you need to know about the local landscape.

Key Trends to Watch

1. The "Roseville Effect" Continues

Roseville and Rocklin continue to outperform the broader region. Driven by top-rated schools, new commercial developments, and a migration of remote workers seeking more space, we project a 6.2% year-over-year appreciation in these sub-markets.

2. Inventory Remains Tight in Entry-Level

Homes priced under $600k are still seeing multiple offers, though the bidding wars are less intense than in 2024. If you are selling a starter home, pricing it correctly is crucial to generating competition.

3. The Luxury Market Stabilizes

Granite Bay and El Dorado Hills are seeing a normalization. Days on market (DOM) have increased slightly to 45 days, giving buyers more leverage to negotiate repairs and credits.

Interest Rate Outlook

While we don't have a crystal ball, economic indicators suggest rates will hover in the 5.5% - 6.0% range for Q1 2026. This stability is encouraging more sellers to trade up, slowly unlocking more inventory.

Advice for Sellers in 2026

• Prep Matters: Buyers are pickier. Turnkey homes sell fastest.
• Pricing Strategy: Don't "test" the market. Overpriced homes are sitting.
• Consider Cash Offers: For homes needing work, the cost of renovations often outweighs the potential price bump. Selling as-is to a local investor (like Community Renaissance) can net you more when you factor in time and fees.

Conclusion

2026 is shaping up to be a balanced year. Whether you're looking to upgrade in Roseville or downsize in Midtown, understanding these micro-trends is your key to success.

Frequently Asked Questions

Is 2026 a good time to sell in Sacramento?

Yes, 2026 is shaping up to be a balanced market with stable prices and reasonable days on market. Sellers in desirable areas like Roseville and Rocklin continue to see strong demand.

What are interest rates expected to be in 2026?

Economic indicators suggest mortgage rates will hover in the 5.5% - 6.0% range for Q1 2026, providing stability for both buyers and sellers.