Elk Grove’s housing supply tightened over the past year. Active inventory in the three months ending May 2026 came in at 683 listings, down 9.2% from 752 a year earlier, according to newly released data from Redfin. The pullback in supply has kept the city tilted toward sellers even as the broader market has cooled on price, with just 2.1 months of supply available at the current sales pace — well inside what economists generally consider a sellers’ market.

Supply is rebuilding, but slowly

The year-over-year drop in listings stands out because it comes despite a clear seasonal rebound. Active inventory rose 9.8% from the three months ending April, as the spring selling season brought more sellers off the sidelines. New listings totaled 479 during the period, compared with 433 a month earlier — but still below the 542 new listings recorded in the same stretch last year.

The result is a market where buyers have more to choose from than they did in winter, but less than they did last spring. For context, active inventory two years ago, in the three months ending May 2024, stood at 605 — meaning current supply is actually higher than that earlier benchmark, even after the YoY decline. Population growth helps explain the underlying demand: Elk Grove, now home to 188,319 residents, grew 2.1% over the past year, according to the California Department of Finance.

Prices ease, but per-square-foot drop is smaller

The median sale price came in at $626,625, down 5.1% from $660,000 a year earlier. The median price per square foot, at $319, fell a more modest 1.9% from $325 — suggesting some of the headline price decline reflects buyers gravitating toward smaller homes rather than a uniform drop in values.

Month-over-month, the median price ticked up 0.9% from $620,888 in the three months ending April, consistent with typical spring strength. Prices remain below the $643,430 median recorded two years ago, and over the past five years, Elk Grove’s median sale price has risen 10.3% from $568,000 in the three months ending May 2021 — a gain that has lagged inflation over the same stretch.

Nationally, the S&P/Case-Shiller Home Price Index was down slightly year-over-year, indicating that the softness in Elk Grove prices is broadly in line with a flattening national trend.

Buyers get a small break on monthly costs

Mortgage rates have eased modestly. The 30-year fixed rate averaged 6.44% in May 2026, down from 6.82% a year earlier, though up from 6.33% in April, according to Freddie Mac. Combined with the lower median price, the principal-and-interest payment on a median-priced Elk Grove home with 20% down works out to roughly $3,149 a month — about $301 less than the same calculation would have produced a year ago.

Still, affordability remains stretched. That payment represents about 30% of the city’s median household monthly income of $125,924, as reported by the U.S. Census Bureau. The price-to-income ratio sits at 5.0, at the upper edge of what housing economists consider affordable.

Homes are selling at a steady pace

The market’s pace has held remarkably steady year-over-year. Homes took a median of 19 days to sell in the three months ending May 2026 — identical to the same period in 2025. That said, homes are moving faster than they were earlier this year: the median days on market fell from 24 in the three months ending April, a 20.8% decline that reflects the typical spring acceleration.

Sales volume edged up. Some 330 homes changed hands during the period, a 2.8% increase from 321 a year earlier and 4.1% more than the three months ending April. The share of homes selling above the list price rose to 41.7%, up from 39.9% a year ago, and the sale-to-list ratio stood at 99.4%, meaning the typical home sold just under its asking price.

For longer-term perspective, 330 sales is well below the 463 closings recorded in the three months ending May 2021, when mortgage rates were near record lows and homes were selling in a median of just six days.