📍 Sacramento-Roseville Market Watch: Home Sales Defy Expectations Despite Higher Mortgage Rates

🏡 Against the Odds: Home Sales Show Surprising Strength in the Sacramento-Roseville Area

Despite economic headwinds and elevated mortgage rates, the real estate market in the Sacramento and Roseville area is showing unexpected strength. Recent national housing data mirrors what many local agents and buyers are experiencing—homes are still moving, demand is steady, and inventory is finally loosening up.

📊 Buyer Activity Holds Strong

With mortgage rates hovering between 6.64% and 7.25%, many expected a significant drop in homebuyer activity. Instead, mortgage purchase applications only declined 5% week-over-week—a much smaller drop than anticipated. Even more impressive? Year-over-year application growth improved from 10% to 13%, showing that motivated buyers are still stepping into the market.

Here in Sacramento and Roseville, we’re seeing similar patterns—buyers remain active, especially when homes are priced right and show well.

🏠 Pending Sales Up Nationwide—and Reflect Local Sentiment

Nationally, pending home sales rose to 391,488 homes under contract, outperforming both 2024 and 2023 numbers. This matches the local narrative we’re seeing in Northern California: when the right home hits the market, buyers move quickly—even if rates are higher than they were a year ago.

🏘️ Inventory Growth Offers Relief

One of the most promising signs—both nationally and locally—is the steady growth in housing inventory. Between April 11–18, national inventory grew to 719,400 homes, up 32% year-over-year. This mirrors recent trends in Sacramento and Placer County, where more sellers are entering the market, creating more choices and better balance for buyers.

📈 More Listings, More Price Adjustments

Along with rising inventory, new listings nationally reached 77,004 last week—a big jump from prior years. While increased listings are great news for buyers, we’re also seeing an uptick in price reductions, with 35.5% of homes adjusting their prices, a reminder that sellers must stay in tune with market realities.

💡 Homeownership Still a Smart Long-Term Move

Here’s what hasn’t changed: the value of homeownership. Even in 1981, when mortgage rates hit nearly 18%, Americans still bought homes—and most don’t regret it. Why? Because owning a home remains one of the best ways to build financial security, lock in housing costs, and create long-term wealth.

That mindset continues in 2025. Buyers in Sacramento and Roseville know that while interest rates may fluctuate, real estate continues to be a long-term wealth-building tool.

Takeaway for Sacramento-Roseville Buyers & Sellers:
Even in a high-rate environment, the local housing market remains active. More inventory, serious buyers, and a shared belief in the long-term value of real estate are keeping things moving. If you’re looking to buy or sell in the Sacramento or Roseville area, this market offers opportunity—especially for those with a long-term view.

Based on insights from Logan Mohtashami’s April 2025 HousingWire article: Home Sales Stay Surprisingly Positive Even With Higher Rates.