The North State Building Industry Association said member homebuilders reported 486 sales during the month. That was down 10 percent from the 542 sales reported in February but up three percent from the 472 sales in March 2025. Designed by Freepik

SACRAMENTO REGION, CA (MPG) – New home sales in the greater Sacramento region started out strong during the first two weeks of March but tailed off significantly later in the month as buyers appeared to pull back due to economic uncertainty as the war in Iran continued.

The North State Building Industry Association said member homebuilders reported 486 sales during the month. That was down 10 percent from the 542 sales reported in February but up three percent from the 472 sales in March 2025.

BIA President & CEO Tim Murphy said 274 sales occurred during the first two weeks of March before slumping to 212 during the second half of the month.

"While March generally sees the highest number of new home sales in the area, it seems clear that buyers were concerned about the uptick in mortgage interest rates, skyrocketing gasoline prices, a falling stock market and other economic reactions to the war," Murphy said.

While Murphy expects a modest slowdown will linger for some time, particularly if fighting continues, he said prospective buyers who remain in the market should consider new homes when making their decisions.

"Even though rates have bumped up slightly, they are still quite low by historical standards and builders continue to offer incentives to improve affordability. In addition, the supply of existing homes remains relatively low, which means new homes provide more options for buyers," he said.

"So, while nobody can predict the outcome of the conflict in the Middle East, people looking to buy today should definitely explore the nearly 200 new home communities now open in our eight-country region to see what best meets their needs."

Roseville reclaimed the top spot in March with 111 sales, followed by Rancho Cordova (76), Elk Grove (54), Sacramento (48) and Lincoln (46). With a couple of new developments now open, Antelope rejoined the top 10 list after a lengthy absence, coming in ninth with 15 sales.

There were 197 active communities at the end of the month in the region, which includes Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties.