Not cheap. Not a bargain bin. Just calmer.

Buyers slowed down and got pickier. Sellers had to price with reality (not nostalgia). Transactions took longer, were less frenetic, and more strategic. That shift created stress for some, but it also created breathing room for homeowners planning a right-size move, whether that’s downsizing, relocating, simplifying, or trading “more house” for “more life.”

Below is a straight-talk recap of what the numbers actually said at the end of 2025 and what they mean if you’re planning your next chapter.

Why prices stayed stubborn (even with fewer buyers)

A big frustration in 2025: prices didn’t drop in a meaningful way.

One major reason is what economists call the rate lock-in effect: a lot of homeowners are sitting on very low mortgage rates from 2020–2021 and don’t want to trade those for today’s higher payments. That keeps potential sellers on the sidelines, which limits inventory and helps support prices.

And here’s the part that matters for next-chapter planning:

If your current home is paid off (or close), or you refinanced at a very low rate years ago, it can feel backwards to sell and “pay more” each month— even if the home is too big, too much upkeep, or no longer fits your life.

So instead of the market correcting through big price drops, 2025 adjusted through time (longer market times, more negotiation, more concessions).

What the price data showed in late 2025

Nationally, prices were still near record territory.

Locally, the story depended on where you measure:

• Sacramento (city): a December 2025 median sale price of around $471K, down 2.9% year-over-year, with homes averaging 35 days to sell.
• Sacramento County: a December 2025 median sale price of around $524K, down 1.1% year-over-year, with homes averaging 41 days to sell.

Homes took longer to sell (and that’s not all bad)

Time on market is a confidence meter.

The direction was clear: homes generally took longer to sell than the year before, meaning fewer rushed decisions and more room to negotiate.

Why this matters for next-chapter moves

When the market slows down a bit, you gain something priceless: planning time.

• sort through decades of belongings without panic
• time repairs and prep instead of rushing
• negotiate terms that protect you (rent backs, longer closings, contingent strategies when appropriate)
• choose a move based on lifestyle not pressure

That calmer tempo was one of the quiet “wins” of 2025.

Sales showed late-year momentum

By December, sales activity improved. It didn’t mean the market suddenly turned hot again. It meant buyers who needed to move (life change, family change, job change, right-sizing goals) started accepting the new normal and moving forward.

Mortgage rates also helped a little. The direction into year-end was modestly lower than earlier peaks, which mattered psychologically more than people admit.

Affordability is still the heavyweight problem

Even with a calmer pace, affordability remained the biggest challenge because it’s not just about the rate.

People feel the full cost of ownership:

• insurance increases
• utilities and maintenance
• repairs on aging homes
• cost of living squeeze

So, yes, buyers were cautious. But the buyers who could move forward were often doing so with a strategy: larger down payments, negotiated concessions, and a clear plan.

Who was actually buying (and why it matters if you have equity)

Here’s a huge clue about 2025:

• First-time buyers dropped to 21%, a historic low in NAR’s 2025 profile.
• All-cash buyers hit an all-time high of around 26% in that same report.

That tells you the market was (and still is) equity-driven.

What does that mean for right-sizers

If you’re selling a long-held home and bringing equity into the next purchase, you’re competing in a very different lane than first-time buyers.

And that opens up smart options, like:

• selling first and renting temporarily to buy with stronger terms
• buying with a larger down payment to control monthly costs
• using negotiation power (repairs, credits, rate buydowns when the numbers make sense)

What 2025 taught us (and what to carry into 2026)

Here are the biggest takeaways I’d want any next-chapter homeowner to remember:

1. Pricing is supported, but not emotional. Homes that are priced based on today’s comps moved; “2022 pricing” often didn’t.
2. Time became a tool. Longer market times created room for thoughtful transitions.
3. Negotiation is back. Concessions and credits became a normal part of the conversation again.
4. Equity is power. The market rewarded buyers who came prepared, often with proceeds from a sale.
5. Your lifestyle matters more than headlines. Rates and prices matter, but so does fit: maintenance, walkability, community, and day-to-day ease.

And locally, this plays out differently across neighborhoods because Sacramento is a collection of micro-markets. A right-sized home in East Sacramento behaves differently from a downtown condo or a single-story in Land Park.

My “Next-Chapter” decision framework (so you don’t get stuck)

If you’re thinking about a move this year, here are the 5 questions that keep you out of confusion:

1. What problem are we solving? (maintenance, stairs, commute, isolation, lifestyle, budget, safety, time)
2. What does “right-sized” actually mean for your day-to-day? (space, layout, storage, yard, proximity)
3. What monthly number feels peaceful, not tight? (not just mortgage, total outflow)
4. Do we want to sell first, buy first, or bridge the gap? (each has tradeoffs)
5. What’s our timeline: wish, likely, and must? (so the plan fits real life)

That’s how you move from “we should probably…” to “we have a plan.”

Who am I (and how can I help)?

Ready to explore your options (without pressure)?

If you want, I’ll map out two or three clear right-sizing paths based on your neighborhood, equity position, and timing, so you can make a decision with clarity (not stress).