Home values will start dropping for the rest of 2025

[Gordon Cuffe]

I have the data to show that home values will drop during the rest of 2025 around the Sacramento county areas. The three county areas of Sacramento, El Dorado, and Placer county had 4413 homes listed for sale on MlS in June of 2025. We only had 3130 homes for sale in June of 2024. We had just 2377 homes for sale in January 2025. We are now in a buyers market along with the high mortgage rates this will push home values down during the rest of 2025. I have always said that once we get over 3300 or 3400 homes for sale in a month then it turns into a buyers market. Every time that we have gone over this number of homes for sale we have seen a drop in home values. We don't have to hit the panic button until we are over 9000 or more homes for sale like we saw back around 2008-2012. I posted the link of the graph showing the progression of homes for sale if someone wants to see how it has climbed since January 2025.