New home sales across the Sacramento region held strong in October, remaining well above the long-term seasonal average even as many buyers continue to wait for further declines in mortgage rates, according to data released this week by the North State Building Industry Association.
BIA-member builders reported selling 507 new homes during the month, an 18 percent increase from September and down only 5 percent compared to October 2024. It marked the fourth-highest October total in the past decade. Historically, October averages 386 new-home sales across the region dating back to 1997.
BIA President and CEO Tim Murphy said current market behavior shows buyers are watching interest rates closely, even as many builders continue offering incentives that are helping keep sales elevated. Mortgage rates have dipped below 6.5 percent in recent weeks, but he noted many prospective buyers are holding out in hopes that rates will fall further.
“Sales are also being driven by the fact that many area builders are continuing to offer generous incentives to help make home buying more attainable. These deals can make buying a new home a reality and prospective buyers should strongly consider exploring new home communities while these incentives are being offered,” Murphy said.
He emphasized that interest rates are only one part of the region’s affordability challenges. The BIA continues to work with local governments to reduce fees and streamline permitting, noting that impact fees alone now average more than $100,000 per home in many areas.
Among individual communities, Roseville once again led the region with 99 new-home sales in October, followed closely by Rancho Cordova with 92. Elk Grove recorded 63 sales, while Plumas Lake reported 43 and Lincoln 41. Sacramento posted 40 new-home sales, followed by Natomas with 29, El Dorado Hills with 27, Rocklin with 20 and Antelope with 10. The data tracked 199 new-home communities throughout El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties.
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