Housing prices likely stabilize with modest appreciation through 2026; a broad crash is unlikely without a severe national recession or local job shock.
Moderating mortgage rates should gradually boost buyer activity, though affordability constraints will limit rapid price gains across most Sacramento neighborhoods.
Supply additions remain constrained by zoning and development timelines, so inventory growth may temper but not trigger steep price declines.
Overall outlook favors a soft-landing: measured appreciation or stability rather than sharp correction, barring unexpected economic shocks through 2026 and into early 2027.
