The nationwide slowdown in new home sales has spread to the Sacramento region, as the North State Building Industry Association reported today that sales during June fell to 313—the lowest monthly total since 2022, when sales dropped off precipitously following sharp increases in mortgage interest rates.
BIA President and CEO Tim Murphy said many prospective buyers here and across the country are putting purchases on hold as they wait for expected lower interest rates and a better sense of where the economy is going.
“In recent months, sales for new and existing homes have ticked upward when rates have dropped toward 6% and then pulled back when rates rose,” Murphy said. “The Federal Reserve is likely to begin easing interest rates, perhaps as early as this month, but to kickstart the housing market, they need to take steps to get rates down to the 6% range.
“But buyers should remember that homebuilders can offer rate reductions and incentives that existing homeowners can’t offer, and some builders can even offer new homes that are built and ready to move into. Prospective buyers should consider the options available because a new home may be more affordable than they think.”
June sales fell 31% from May and dropped 38% from June 2024, but Murphy noted that sales for the first half of 2025 are at levels comparable to the years immediately prior to 2020, when the pandemic caused sales to drop sharply and then quickly rebound to the highest levels in nearly 20 years.
Roseville recorded the most sales (66), followed by Rancho Cordova (49), Sacramento (47), Natomas (32) and Plumas Lake (25). Elk Grove saw the sixth-highest total (21), followed by Lincoln (17). Rocklin and El Dorado Hills tied for eighth place with 12, and Folsom rounded out the top 10 with 10 sales.
BIA statistics covered 197 new home communities reported by members in Amador, El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba counties.
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