Updated: 6-12-26

Check out what's going on in your local real estate market this past month:

Analysis: While May is generally one of the busier months of the year for our local real estate market, this past month ended up being noticeably slower than in years past. As you can see above, the number of homes for sale were down across the region this past month as sellers have continued to pull back due to changing market conditions. With fewer sellers in the market comes fewer deals and despite a good month in Placer County, overall across the three counties we saw the number of closings slide 1% from the previous year and a further 5% from where they were in 2024. Despite the slow down our average sales prices have continued to improve year-over-year, something that continues to reflect the lack of total inventory available in our local housing market. With the warm summer months upon us it remains to be seen whether or not these trends will continue throughout the second phase of the moving season. With schools years having come to their conclusions over the past few weeks, those who have been waiting to make larger, out-of-area moves will now be entering the market. While this has larger impacts in certain cities and regions around the country moreso than others, Sacramento has remained amongst the top destinations for out-of-area movers according to migration data from Redfin. With large swaths of local homebuyers coming from the Bay Area and Southern California there is still an opportunity for our real estate market to see an influx of buyers and sellers over the next couple of months. A big determining factor in the activity of our real estate market will be where mortgage rates stand as we head through the summer, for more on where mortgage rates are at and where they could be heading continue reading below. 

Mortgage rates inched back up to 6.5% this past week as rising inflation and a stronger-than-expected jobs report came out, leading to increased uncertainty surrounding our nation's current economic situation. With inflation rising for consecutive months on the backs of rising energy prices, it is becoming increasingly unlikely that we will see mortgage rate relief in the months ahead. "Together, the data reinforce a 'higher-for-longer' view: Markets have largely abandoned hopes for rate cuts this year, treasury yields rose, and mortgage rates restarted their ascent," Kara Ng, a senior economist at Zillow, said in a statement. At this time about two-thirds of traders now expect that the Fed will raise benchmark interest rates at least once before the end of the year, according to CME FedWatch data. It's worth mentioning again that the Federal Reserve doesn't directly set mortgage rates, they are influenced by expectations of future central bank interest rate policy. While it remains to be seen which way mortgage rates are truly heading, at this time it seems unlikely that they will be trending back downward in the weeks and months to come.            

If you found this information useful then stay tuned for more of our weekly and monthly market updates and in the meantime reach out with any of your real estate related questions or needs! 

Fernando Mota

Fernando@TheMotaTeam.com

(916)494-9543

www.TheMotaTeam.com