El Dorado Hills saw one of the sharper year-over-year price declines in the Sacramento region this spring, with the median sale price falling 10.3% to $852,036 in the three months ending June 2026, down from $950,000 a year earlier, according to newly released data from Redfin. The drop stands out among neighboring cities, many of which posted flat or only modestly lower prices, and it came even as buyers turned out in larger numbers.

A steep price decline with a twist

The 10.3% drop in the median sale price is the headline figure, but it does not tell the whole story. The median price per square foot held essentially flat over the same period, rising 0.2% to $364 from $363 a year earlier. That divergence suggests the lower median reflects a shift toward smaller or lower-priced homes changing hands rather than a broad decline in the value of comparable properties.

Prices have also eased over the longer term. The current median sits below the $970,000 recorded two years ago in the three months ending June 2024, and it is down 5.0% from the $897,000 level of five years ago, in the three months ending June 2021. Month to month, the median slipped 1.6% from $865,500 in the three months ending May, a modest move within the normal range of spring fluctuation.

Buyers stepped up as sales rose

Sales activity moved in the opposite direction from prices. Homes sold climbed 15.2% year over year, with 242 transactions compared with 210 in the same period of 2025. Sales were also up 10.0% from the 220 recorded in the three months ending May. The pickup reflects both typical spring demand and the effect of lower prices bringing more buyers into the market.

Much of that renewed activity ties to affordability. A buyer purchasing a median-priced home with 20% down at June’s average 30-year fixed rate would face a monthly principal-and-interest payment of about $4,304 — roughly $661 less per month than a year ago. That improvement combines the 10.3% price decline with a drop in mortgage rates, which averaged 6.49% in June 2026, down from 6.82% a year earlier, according to Freddie Mac. The 15-year fixed rate averaged 5.82% in June.

Still, homeownership in El Dorado Hills remains a stretch. At current prices, the median home costs about 5.2 times the median household income of $165,349, according to the U.S. Census Bureau — above the 5x threshold generally considered unaffordable. The estimated monthly payment consumes about 31% of median household monthly income.

A market still tilted toward sellers

Despite the price decline, El Dorado Hills remains a tight, seller-favored market. The city, home to about 51,000 residents, had 514 active listings against 242 sales, translating to roughly 2.1 months of supply — well below the four-to-six months typically considered balanced. Inventory rose 8.7% from a year earlier and 6.9% from the prior period, giving buyers slightly more to choose from, but not enough to shift the overall balance.

Homes are taking a bit longer to sell than they did a year ago. The median days on market reached 22, up from 19 in both the year-earlier period and the prior three months — meaning homes are sitting roughly three days longer than last spring. Even so, that pace remains brisk by historical standards; homes moved in a median of just six days during the frenzied market of five years ago.

Competition also remained evident. About 32.7% of homes sold above their list price, up from 29.5% a year earlier, and the typical home sold at 99.3% of its asking price. New listings totaled 341, up from 307 a year ago, giving the market a steady flow of fresh inventory.

National backdrop

Nationally, home prices continued to edge higher, with the S&P/Case-Shiller U.S. National Home Price Index up modestly year over year — a contrast with the local price decline in El Dorado Hills. The combination of lower local prices, easing mortgage rates, and rising sales volume points to a market where improved affordability drew more buyers off the sidelines this spring, even as tight supply kept sellers in a strong position.