Are Home Prices Finally Coming Down in the Greater Sacramento Region in 2026?

By Nancy Adinolfe

Nancy Adinolfe is a top-producing RE/MAX real estate agent who has served California clients since 2018. A member of the RE/MAX Master Club, she provides expert guidance to buyers, sellers, and families throughout Sacramento, Elk Grove, Folsom, Rancho Cordova, and surrounding communities.

Is 2026 the year home prices in the Greater Sacramento Region finally come down? I’ve been getting this question a lot this year. People assume prices should be falling because inventory has been going up and mortgage rates have been climbing.

That’s why I’m going to break down what’s really happening in the Greater Sacramento housing market and explain why prices are unlikely to decline.

Local data shows prices are still rising. Looking back over the past few years, especially during the pandemic, median home sales prices shot up dramatically. It felt like they were climbing a huge, steep hill. Now, the growth rate is starting to level out. We’re no longer seeing the huge spikes from before, but prices are still going up.

Early in 2025, we saw solid year-over-year price increases, and while the growth rate started to slow toward the end of the year, it’s still positive. There’s a big difference between prices leveling off and actually declining.

Why it feels like prices should fall. Inventory has been increasing, which means there are more homes available for buyers. Mortgage rates have stayed high for the past few years, and buyer demand is not what it was during the post-pandemic frenzy. Back then, multiple offers would come in immediately after a property hit the market. Now, homes are spending more days on the market, and buyers are not moving as quickly.

2026 Sacramento market outlook. Looking ahead, homeowners with low 3% mortgage rates are not eager to trade up to a 6% rate. Last year, many sellers put their homes on the market at very high prices, thinking they could get top dollar, which led to a lot of expired and canceled listings early in 2025. But that’s mostly cleared up now.

Inventory isn’t coming on the market as quickly as it was at the start of last year, which means supply is limited. Even if buyer demand cools a bit, low inventory is still pushing prices upward.

What this means for buyers and sellers. For buyers, this translates into a few advantages. You’ll face less competition than during the frenzy, have more negotiating power, and have a wider selection of homes to choose from.

For sellers, the market looks a bit different. There are fewer buyers actively looking, which makes pricing right from the start critical. Gone are the days when you could just demand a price based on what you want to see in your bank account or upgrades you’ve made.

Pricing is market-driven, and while prices will continue to rise, the increase will be slower than what we’ve seen in the past.

Hear from a local expert. I’ve been in real estate for almost ten years and have followed the Sacramento market closely the entire time. I know neighborhoods across Sacramento County and the greater region, which allows me to put together a full, comprehensive market analysis for anyone buying or selling a home.

So if you are thinking about making a move or just want to better understand the local market, feel free to reach out to me at (916) 841-3800 or send me an email at nancy@listingexpert.net. I’m more than happy to help you navigate your real estate decisions and make sure you’re positioned for success.