Sacramento Housing Market 2027: Will Mortgage Rates Drop or Home Prices Rise?

Waiting until 2027 to buy or sell a home in Sacramento? The latest housing forecasts may change how you look at that decision.

Economists are predicting a relatively steady housing market next year — but steady doesn't mean lower rates or cheaper homes.

What About Mortgage Rates?

Fannie Mae and the Mortgage Bankers Association both see rates leveling off rather than dropping through 2027.

For Sacramento buyers hoping a big rate drop will do the work for them, the forecasts point the other way.

The savings are in what you control: comparing lenders, exploring loan programs, and negotiating seller concessions or rate buydowns.

Will Sacramento Home Prices Fall?

National forecasts point to modest home price growth in 2027, not a decline.

Locally, Sacramento County's September data shows:

• $555,000 median sold price, up 2.8% year over year
• 2,446 homes for sale, up nearly 10%
• 35 days average time on market
• 2.7 months of inventory

Prices are holding. Buyers have more to choose from, and sellers have more to compete with.

What This Means for 2027

Buyers: more inventory and longer market times open room to negotiate, even with rates where they are.

Sellers: pricing and presentation decide the outcome. Buyers are comparing more homes and looking harder at value.

Homeowners thinking about downsizing or relocating: the equity you've built can make the next move more affordable than you expect.

The Bottom Line

The Sacramento market is changing. The move is to plan around the market we have, not the one we're waiting for.

Thinking about buying or selling in Sacramento, Elk Grove, Folsom, Rancho Cordova, or the surrounding communities in 2027? Let's look at your options and build a plan around your goals, your timeline, and today's market.

Eva Tagore | Broker Associate, LPT Realty