As 2025 comes to a close, it’s the perfect time to pause, reflect, and look ahead, especially when it comes to real estate in El Dorado Hills, Folsom, and the Greater Sacramento region.
This year reminded us that real estate is never just about buying or selling a house. It’s about life transitions, timing, strategy, and trust. Behind every transaction is a story, sometimes joyful, sometimes challenging, often emotional, and always important.
At The Friedrich Team, year-end reflections aren’t about tallying sales numbers. They’re about understanding what the market taught us, how our clients’ needs evolved, and what homeowners and buyers should know heading into 2026.
2025 Was a Year of Adjustment, and Opportunity
If we had to sum up the 2025 real estate market in one word, it would be “adjustment.”
After years of rapid price growth, shifting interest rates, and changing buyer expectations, this year required a more thoughtful approach from everyone involved, buyers, sellers, and agents alike.
What We Saw Locally:
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Buyers became more intentional, patient, and deliberate in their decision-making
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Sellers needed pricing accuracy and strategy more than ever
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Homes that were properly positioned still sold well
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Homes that missed the mark often sat,or failed to sell entirely
In El Dorado Hills and Folsom, demand remained strong for well-located, well-presented homes, especially in established neighborhoods and lifestyle-driven communities. However, gone were the days of “list it and they will come.”
Success in 2025 came down to strategy, presentation, and experience.
Why “Who You Work With” Mattered More Than Ever in 2025
One of the biggest takeaways from this year is something we’ve always believed:
Who you work with matters, especially in a shifting market.
We worked with several sellers in 2025 whose homes failed to sell with a previous agent. In nearly every case, the reason wasn’t the house,it was the approach.
Common issues we saw:
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Overpricing based on outdated comps
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Weak or missing marketing
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Poor positioning against competing homes or new construction
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Lack of communication or proactive problem-solving
When those homes were relaunched with:
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Accurate pricing
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Professional staging
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High-quality photography and video
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Strategic exposure and messaging
They sold,even in a competitive environment.
The lesson? In a balanced or adjusting market, experience and execution matter far more than optimism alone.
Buyers in 2025: Cautious, Smart, and Long-Term Focused
Buyers in 2025 were different than buyers in years past.
They asked better questions.
They analyzed numbers more closely.
They thought longer-term about lifestyle and affordability.
And that’s a good thing.
What Buyers Prioritized:
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Monthly payment comfort, not just purchase price
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Neighborhood stability and resale value
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School districts and community amenities
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Long-term livability over short-term hype
First-time buyers, in particular, will benefit most from clear guidance, clarity, and proactive planning, not rushing into decisions.
Helping buyers feel confident, instead of rushed was one of the most rewarding parts of this year.
Life Happens, and Real Estate Often Follows
One truth that never changes: real estate decisions are often tied to life events.
In 2025, we helped clients navigate:
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Job changes and relocations
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Upgrading because of a new family being formed or welcoming new family members and needing more space
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Downsizing after children moved out
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Retirement planning and out-of-state moves
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Health challenges and urgent timing needs
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Estate-related sales and trust planning considerations
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Marriage separations and needing to liquidate assets
Some transactions were joyful. Others required sensitivity, urgency, and careful coordination.
These experiences reinforced why real estate is not a one-size-fits-all business, and why having a trusted advisor matters most during pivotal moments.
What Homeowners Should Know Heading Into 2026
As we look ahead to 2026, here’s what we believe homeowners should keep in mind:
1. Pricing Strategy Will Still Be Critical
The market rewards accuracy. Homes priced correctly from day one perform better than those that chase the market downward.
2. Preparation Pays Off
Homes that are clean, staged, and professionally marketed consistently outperform similar homes that are not.
3. Timing Is Personal
The “right” time to sell is not just about market headlines,it’s about your goals, finances, and life plans.
4. Equity Is Still a Powerful Tool
Many homeowners still hold significant equity. Understanding how to leverage it, whether selling, downsizing, or investing, matters.
What Buyers Should Watch for in 2026
For buyers considering a move in the coming year:
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Opportunities still exist, especially for prepared buyers
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Negotiation power is stronger than it was during peak frenzy years
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Pre-approval and clarity on goals will be essential
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Patience and guidance can save tens of thousands of dollars
The buyers who succeed in 2026 will be those who combine preparation with realistic expectations.
Our Commitment Moving Forward
As we head into a new year, our commitment remains the same:
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Clear, honest communication
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Thoughtful, data-driven strategy
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Deep local expertise in El Dorado Hills, Folsom & Greater Sacramento
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A calm, supportive approach, no pressure, no hype
Whether you’re planning a move in the near future or simply want to stay informed, we’re always happy to be a resource.
What Should We Expect for the 2026 Real Estate Market?
As we move from reflection into preparation, one of the most common questions we’re hearing is:
“What do you think 2026 will look like for real estate in El Dorado Hills, Folsom, and Greater Sacramento?”
While no one has a crystal ball, there are clear trends, data points, and behavioral shifts that give us a strong framework for what’s ahead.
1. A More Balanced, Skill-Based Market
2026 is shaping up to be a balanced market, not a boom and not a bust.
This means:
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Buyers will have more options than they did during peak frenzy years
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Sellers will still benefit from limited long-term inventory,but only if homes are positioned correctly
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Strategy will matter more than timing headlines
In balanced markets, homes don’t sell themselves. Agents do. And buyers who are prepared,not reactive,tend to win.
2. Interest Rates: Less Shock, More Stability
One of the biggest changes heading into 2026 is buyer psychology around interest rates.
After years of volatility, many buyers have accepted that:
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Rates are unlikely to return to ultra-low pandemic levels
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Stability matters more than chasing the “perfect” rate
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Refinancing later is a strategy,not a gamble
As a result, we expect pent-up demand from buyers who have been waiting on the sidelines to slowly re-enter the market, especially if rates show consistency rather than dramatic swings.
3. Inventory Will Remain Tight, But Not Frozen
In El Dorado Hills and Folsom especially, inventory remains constrained due to:
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Long-term homeowners holding low mortgage rates
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Limited new construction in established neighborhoods
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Strong lifestyle demand for schools, safety, and amenities
That said, life continues to happen.
In 2026, we anticipate inventory driven more by:
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Downsizing and retirement moves
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Relocations and job changes
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Estate and trust-related sales
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Strategic moves based on equity, not distress
This means quality listings will continue to command attention, while homes that are overpriced or poorly presented will struggle.
4. Pricing Will Reward Precision, Not Optimism
If 2025 taught us anything, it’s this:
The market no longer rewards “testing” a high price.
In 2026:
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Homes priced accurately from day one will perform best
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Buyers will continue to analyze value closely
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Overpriced listings will sit longer and require reductions
Sellers who succeed will be those who focus on:
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Realistic comps
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Professional preparation
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Strong launch strategy
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Clear positioning against competition (including new construction)
5. Buyers Will Be More Confident,and More Selective
Buyers entering the market in 2026 will not be panicked,but they will be selective.
We expect buyers to:
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Take their time
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Negotiate more thoughtfully
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Prioritize lifestyle fit and long-term value
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Lean heavily on trusted advisors for guidance
First-time buyers, in particular, will benefit most from education, clarity, and proactive planning, not rushing into decisions.
6. Local Expertise Will Matter More Than National Headlines
One of the biggest mistakes people make is applying national real estate headlines to local markets.
In 2026, the difference between success and frustration will often come down to:
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Neighborhood-specific trends
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Micro-market inventory levels
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School districts and community demand
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Street-by-street pricing nuances
This is where working with a team deeply rooted in El Dorado Hills, Folsom, and Greater Sacramento makes a measurable difference.
Conclusion
As we head into 2026, the real estate landscape is becoming clearer,not simpler, but more strategic.
This is a market that will reward:
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Preparation over panic
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Strategy over speculation
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Experience over guesswork
For homeowners, 2026 presents an opportunity to make smart, intentional decisions with clarity,whether that means selling, staying put, or planning for a future move.
For buyers, it’s a year to re-enter the conversation with confidence, knowing that thoughtful planning and strong representation can create real advantages.
And for all of us, it’s a reminder that real estate isn’t about timing the market perfectly,it’s about making the right move for your life, at the right time, with the right guidance.
