August new homes sales from 2017 to 2026 graph. Photo courtesy of NSBIA

SACRAMENTO REGION, CA (MPG) – Buffeted by rising interest rates, economic uncertainty and continued affordability issues, new home sales in the greater Sacramento region continued to show weakness in August, the North State Building Industry Association reported.

There were 332 sales reported by BIA member builders, down 18% from July and down 33% from August 2025. However, the month-over-month decline was caused largely by the fact July was a five-week month. Average weekly sales for August were actually slightly above July's figures with 83 sales to 81.

Still, BIA President & CEO Tim Murphy said the fact interest rates have nudged up to around 6.75% has taken a toll.

“Last fall, before the conflict with Iran, economists had expected interest rates to continue drifting downward to around 6% this year. But with rates creeping upward, a lot of prospective buyers have put their purchases on hold,” Murphy said.

“Still, buyers should remember that builders are offering powerful incentives including rate buy-downs that make homes more affordable than they may think. Prospective buyers should contact their builder and see what kind of deals are out there. We're not likely to see incentives like these again for a long time.”

During August, Sacramento recorded the most sales at 68, followed closely by Roseville with 67, Rancho Cordova at 42 and Lincoln with 25. Elk Grove and Plumas Lake tied for fifth with 24 sales each.

Sales were reported for 203 communities in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties.