SACRAMENTO REAL ESTATE MARKET TRENDS AND INTEREST RATES: NOVEMBER 2024 ANALYSIS

The Sacramento real estate market has long been a hotbed of activity, with its unique blend of urban development, suburban charm, and affordability relative to other California markets. November 2024 is no exception, as buyers, sellers, and realtors navigate a landscape shaped by shifting trends, fluctuating interest rates, and evolving buyer preferences.
Whether you're a first-time buyer, an experienced investor, or someone looking to sell your house in Sacramento, understanding the latest market trends and interest rate dynamics is crucial. In this analysis, we'll break down the key factors influencing the Sacramento real estate market this month and provide actionable insights to help you make informed decisions.
Key Sacramento Real Estate Trends in November 2024
1. Buyer Demand Remains Strong but Selective
While the housing market has seen cooling demand in some parts of the U.S., Sacramento remains a top destination for homebuyers, thanks to its relative affordability and proximity to major hubs like San Francisco. However, buyers in November 2024 are becoming more selective due to rising interest rates and increased inventory.
- First-Time Buyers: First-time buyers in Sacramento continue to play a significant role in the market, particularly in suburban areas like Elk Grove and Roseville. These buyers are prioritizing affordability and proximity to good schools and amenities.
- Relocation Buyers: Sacramento remains attractive to those relocating from pricier cities like San Francisco and Los Angeles. Many are seeking larger properties with outdoor spaces, which the region offers at a fraction of the cost compared to the Bay Area.
- Investors: While rising interest rates have tempered investor activity, Sacramento still appeals to those seeking long-term rental income due to its steady population growth and job market stability.
2. Inventory Levels: A Shift Toward Balance
November 2024 is seeing a shift toward a more balanced market, with inventory levels increasing compared to earlier in the year. This is great news for buyers who were previously struggling with fierce competition and limited options.
- Single-Family Homes Dominate the Market: Detached homes continue to be the most sought-after property type in Sacramento, especially those priced under $600,000.
- Luxury Market Growth: The luxury segment is seeing a slight uptick in activity, with high-end properties in areas like East Sacramento and Land Park attracting attention from affluent buyers.
- New Construction Gains Traction: Builders are taking advantage of increased buyer demand for new homes with energy-efficient features and modern amenities. Subdivisions in areas like Folsom and Elk Grove are seeing robust interest.
3. Home Prices Show Moderate Growth
The median home price in Sacramento has increased modestly in November 2024 compared to the same period last year. While home price appreciation has slowed from the rapid growth seen in 2022 and 2023, values remain stable and on a positive trajectory.
- City vs. Suburb Trends: Homes within Sacramento city limits are seeing slower price growth compared to suburban areas, where demand for larger properties and quieter neighborhoods remains high.
- Affordable Price Points: Homes under $500,000 are moving quickly, while higher-priced properties are seeing longer days on the market.
- Seller Challenges: Sellers are having to price their homes more competitively to attract buyers, especially in neighborhoods with a growing number of listings.
4. Interest Rates: A Game-Changer for Buyers and Sellers
Interest rates have been a major topic of discussion in 2024, with November seeing rates for 30-year fixed mortgages hovering around 7.1%. This represents a significant increase compared to the historically low rates seen just a few years ago, and it's having a notable impact on buyer behavior.
- For Buyers: Higher interest rates are reducing purchasing power, forcing some buyers to lower their price range or delay their purchase altogether.
- For Sellers: Sellers must be realistic about pricing, as buyers are more cost-conscious than ever. Offering incentives such as rate buydowns or covering closing costs can help attract offers.
- Refinancing Activity: With current rates at their highest levels in years, refinancing activity has slowed to a trickle, further emphasizing the need for careful financial planning.
5. Seasonal Trends: Slower but Still Active
November typically marks a slower season for real estate, as the holidays and colder weather shift buyer focus. However, Sacramento is bucking this trend to some extent in 2024.
- Motivated Sellers: Many sellers are listing their homes now to take advantage of the still-strong buyer pool before the year-end lull.
- Serious Buyers: Those shopping for homes in November tend to be highly motivated, whether due to relocation, life changes, or end-of-year tax planning.
- Fewer Listings: While inventory has improved overall, the number of new listings typically decreases this time of year, which could create more competition for well-priced homes.
How to Navigate the Sacramento Real Estate Market in November 2024
For Buyers
If you're a first-time buyer or someone looking to move into the Sacramento market, here are some tips to maximize your opportunities:
- Get Pre-Approved: With higher interest rates, it's critical to know exactly what you can afford before making an offer.
- Work with a Realtor: Partnering with the best realtor in Sacramento will give you an edge in finding the right property, negotiating effectively, and navigating market conditions.
- Consider Alternatives: If higher rates are limiting your budget, consider condos, townhomes, or fixer-uppers with potential for customization.
For Sellers
If you're looking to sell your house in Sacramento, here's how you can stand out in this market:
- Price Competitively: Be realistic about your home’s value based on current market trends and comparable sales in your area.
- Make Your Home Move-In Ready: Buyers are less likely to take on renovation projects with higher borrowing costs.
- Offer Incentives: Consider offering credits for closing costs or interest rate buydowns to sweeten the deal for buyers.
Looking Ahead: What’s Next for Sacramento Real Estate?
As 2024 nears its end, Sacramento’s real estate market is expected to remain stable but highly dependent on interest rate trends and economic conditions. Buyers and sellers should monitor:
- Fed Rate Decisions: Any changes in Federal Reserve policy could impact mortgage rates and buyer affordability.
- Job Market Stability: Sacramento’s economy, driven by government, healthcare, and tech sectors, continues to be a source of strength for the housing market.
- Inflation Rates: Rising inflation could put further pressure on both buyers and sellers as living costs increase.
Conclusion
The Sacramento real estate market in November 2024 reflects a mix of opportunities and challenges for buyers and sellers. While higher interest rates and seasonal trends are influencing activity, the region remains a strong and appealing market due to its affordability, location, and quality of life.
Whether you’re a first-time buyer, a seasoned investor, or someone planning to sell your house in Sacramento, staying informed about market trends is essential. Working with the best realtor in Sacramento ensures you’ll have expert guidance to navigate these dynamics and achieve your real estate goals.
If you're looking to learn more about buying, selling, relocating or get the best real estate experience in the Sacramento area, get in touch with CJ Domondon. His team can provide valuable insights and guidance to help you navigate the market. You can contact CJ Domondon directly to schedule a consultation or discuss your real estate needs.




