A total of 254 new homes were sold in Sacramento County new home communities during May. Image by Paul Brennan from Pixabay

SACRAMENTO, CA (MPG) - New home sales in the Sacramento region dropped off sharply in early May as area buyers continued to pull back due to heightened economic uncertainties but they rebounded in the second half of May, the North State Building Industry Association (BIA) reported June 10.

A total of 455 new homes in the region were sold by Building Industry Association members during May, which was up 10% from April but down 32% from May 2024, which was the highest-selling May since 2005. In fact, May 2025 sales were just slightly below the average for the month dating back to 1997.

North State Building Industry Association President and CEO Tim Murphy said that buyers here and nationally are continuing to react to the swings in economic news.

"Early in the month, prospective buyers were still adjusting to the administration's tariff policies and other initiatives but by the end of the month, the number of people visiting new home communities rebounded to the highest level since January and sales increased as well," said Murphy. “While mortgage interest rates remain close to 7% and the number of existing homes on the market is slowly increasing, it's clear that the demand for new homes in our region remains strong.”

A total of 254 new homes were sold in Sacramento County new home communities during May, as expected, given that the majority of developments are located there.

Another 141 homes were sold in Placer County, with the remainder of sales in the Yuba-Sutter region, El Dorado County and Yolo County.

“As people continue to adjust to current economic trends, we continue to believe that new home sales in our region will remain solid,” said Murphy.

Roseville again saw the most sales of any submarket last month with 87, followed by Rancho Cordova with 71, Elk Grove with 63, Sacramento with 61 and Natomas with 29. Rounding out the Top 10 markets were Lincoln (21), Rocklin (17), El Dorado Hills and Folsom with 16 each, and Plumas Lake with 14.

Building Industry Association statistics include sales by members in Amador, El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba counties.