Sacramento Market Update 1.07.2026

by Paul Peletta

 
 
 
Back in action.  Let's make 2026 a great year!

NAR Realtor came out with their market outlook for 2026.  I'll touch briefly on each main point they've highlighted for this year.  Let's start with the overall view from their Chief Economist:
  • Supply Side Dynamics - An interesting point here is the extremely rare occurrence of re-sale homes median prices more expensive then a newly build home.  Also, while we've seen inventory grow, as I've stated many times in this newsletter, we still are not back to normal levels.
  • Housing Affordability Improves - We are seeing a more balanced market.  Sellers are price sensitive.  Some sellers are willing to give a price drop, others will just remove the home from the market.  Mortgage rates have held below 6.5% and projected to go lower.  Do not expect a significant move in rates, but enough to make payments more affordable and palatable.
  • Demographic Trends Reshape the Market - They'll be keeping a close watch on the share of first-time home buyers vs. cash buyers.  Currently, baby boomers are the dominant force with an abundance of equity and an ease to trade down or up within the market.
  • All Eyes on Mortgage Rates - Mortgage rates in this environment are the easiest way to make homes more affordable.  Price is the other way, but supply and demand need to be way off balance for that to be a factor.  A 1% decrease in mortgage rates could unlock can 5.5 million buyers. Not every one of those 5.5 million would buy a home, but the estimate is about 10%, so 500,000 buyers.  Not, it's really hard to see a 1% decrease in mortgage rates, but can we get them under 6%?  That is something realistic and worth watching.
I'm looking forward to this year.  I already have one home in contract to begin the year, and I'm looking to help many more.
What are you expecting in 2026? What are your goals?
I'd love to hear your thoughts!
What are you seeing or hearing? I'd love to know paul@guiderealestate.com
Visit www.paulpelettarealtor.com
Curious About Your Home's Current Value?
 

Listing Highlight

A New Year, A New Standard of Luxury in Orangevale. Tucked away on a prestigious gated lane of only five custom homes, 7527 Country Oaks Ln is a sanctuary of privacy and sophistication. Bordered by the tranquil Linda Creek and a lush nature preserve, this meticulously maintained 2-acre estate offers a rare blend of country quiet and modern luxury. This home is perfectly positioned for convenience, located in the heart of the region just minutes between the upscale dining and shopping of Folsom, Granite Bay, Roseville, and Fair Oaks. Inside this 3,605 sq. ft. custom home, flexible living is the priority. The heart of the home is a chef's kitchen featuring a brilliant rolling quartz island that adapts to your needs acting as a prep station, second island, or a dining table. Architectural details abound, from the modern stacked-stone fireplace to custom cabinetry and cantilevered shuttered window treatments. With a primary retreat featuring dual bathrooms and two additional en-suite bedrooms, the floor plan effortlessly supports multigenerational living or an executive home office suite. Experience a true resort-style backyard framed by over 100 mature trees and custom hardscaping. Relax by the pool's cascading waterfalls, unwind in the hot tub with custom hidden ramp access, or host gatherings under the lighted pergola. The estate is divided into one acre of professional landscaping and a second, fully fenced acre offering endless possibilities for equestrian pursuits or space to build an additional dwelling unit. Beyond the beauty lies incredible utility, including RV/Boat access with hookups on both sides of the home, two large storage sheds, and gated vehicle storage. This is more than a home; it is a meticulously curated lifestyle opportunity offered at an incredible new value for 2026.

  Listed at $1,699,000 by Lola F. Mazzuca - GUIDE Real Estate
7527 Country Oaks LN, Orangevale, CA 95662

Know someone who may be interested? Let me know at paul@guiderealestate.com
 

Interest Rate Update

*These rates are courtesy of Dara Delgado - Home Loans*
 

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