Navigating Sacramento’s Real Estate Market:

July 2025 Insights

Navigating the real estate market can feel like steering a ship through shifting tides. For small business owners and entrepreneurs, understanding these currents is key to making confident decisions for both personal and professional investments. The latest data from July 2025 paints a picture of a market in transition—still favorable to sellers, but with growing opportunities for buyers.

A Seller’s Market with Expanding Inventory

July remained a seller’s market, meaning conditions generally leaned in favor of those putting their homes on the market. However, there was a notable shift: the number of homes for sale rose 43.2% compared to last year and was up 0.7% from the previous month.

For buyers, this means more options. For sellers, it means standing out requires sharper pricing and stronger presentation. It’s an unusual balance—a seller’s market with growing inventory—but it signals a market working toward equilibrium.

What’s Happening with Prices

The story on pricing is more nuanced. Both the Average Sold Price and Median Sold Price increased by 1.8% month-over-month. Over the past six months, however, the Average Sold Price has been trending upward (“appreciating”), while the Median Sold Price has held steady (“neutral”).

Yet the Average Sold Price per Square Foot tells a different story, dropping 2.6% from the previous month and 2% year-over-year. While overall prices rose, the decline in value per square foot suggests buyers are exercising more caution—an important detail for entrepreneurs thinking about long-term asset values.

The Pace of the Market is Shifting

Another key metric is speed. In July, homes took an average of 32 days to sell, up 10.3% from the previous monthand 28% compared to last year. A rising Days on Market trend typically signals a cooling market and hints at a gradual shift toward buyer advantage.

Similarly, the Sold Price vs. Original List Price ratio came in at 97%, down 1% from last month and 2% from last year. Any number under 100% reflects sellers conceding on asking prices—a further sign that the frenzy of past markets may be easing.

The Takeaway for Business Owners

As a veteran and former firefighter, I’ve learned that preparation is everything—and the real estate market is no different. The current trends show a market still strong for sellers, but increasingly balanced. With more inventory, longer selling times, and greater negotiation, buyers are regaining some leverage.

For entrepreneurs, this balance creates opportunity. Whether you’re exploring commercial space for your business, considering expansion, or investing in residential property, the months ahead may offer favorable conditions—especially if you move with strategy and clarity.

Trends tell part of the story, but the most important factor is aligning your decisions with your goals. By working with a professional who listens and understands what matters most to you, you can turn market shifts into opportunities.

The market may be evolving, but with preparation, information, and the right guidance, you can navigate these waters with confidence.