The number of homes for sale in Elk Grove has grown noticeably scarcer over the past year, a shift that helps explain why the city’s market remains firmly in sellers’ territory even as prices have eased. According to newly released data from Redfin covering the three months ending June 2026, active inventory in the city of roughly 188,000 residents fell 11.8% from the same period a year earlier, dropping to 687 listings from 779.

Fewer homes, more buyers

The tightening supply came at the same time that sales activity picked up. Homes sold totaled 373 in the three months ending June, up 8.4% from 344 a year earlier. That combination — fewer homes available but more of them selling — left Elk Grove with just 1.8 months of supply, well below the four-to-six-month range typically considered a balanced market. In practical terms, buyers are competing over a shrinking pool of listings.

New listings also came in lighter than a year ago, at 456 compared with 526, a sign that fewer sellers chose to put their homes on the market. The scarcity of choices is reflected in how quickly homes are trading: the median time on market was 22 days, down from 24 days a year earlier, meaning homes are finding buyers roughly two days faster. Nearly 40% of homes sold above their asking price, up from 34.9% a year ago, and the typical home sold at 99.7% of list price.

On a month-to-month basis, sales rose 15.5% from the three months ending May, a jump consistent with the normal spring and early-summer buying season. Inventory was essentially flat over that same stretch, ticking up just 0.1%. Homes did take slightly longer to sell than in the prior period, with median days on market rising from 20 to 22.

Prices ease off last year’s levels

Even with tight supply, prices did not climb. The median sale price was $624,660, down 4.5% from $653,723 a year earlier. The median price per square foot told a similar but milder story, slipping 1.9% to $322 from $328, suggesting the decline reflects broad softening rather than a shift toward smaller homes. Month over month, the median price edged down 0.8% from $630,000.

Prices remain modestly below where they stood two years ago, when the median sale price for the three months ending June 2024 was $645,000. Over a longer horizon, prices have risen 7.7% over the past five years, when the median stood at $580,250 in the three months ending June 2021 — a period when homes were selling in a median of just six days.

The price decline, combined with lower borrowing costs, has improved the math for buyers over the past year. The 30-year fixed mortgage rate averaged 6.49% in June 2026, down from 6.82% a year earlier. Taken together with the lower median price, the monthly principal-and-interest payment on a median-priced home with 20% down works out to about $3,155 — roughly $261 less per month than the $3,417 a year ago. Nationally, home prices continued to rise modestly, with the S&P/Case-Shiller index up slightly from a year earlier.

What it costs to buy in Elk Grove

At the current median price, a home in Elk Grove costs about 5.0 times the median household income of $125,924, according to the U.S. Census Bureau. That price-to-income ratio sits just above the level generally considered affordable. The estimated monthly payment on a median-priced home consumes about 30.1% of median household monthly income, a level the National Association of Realtors would classify as stretched but not unaffordable.

Elk Grove’s population grew 2.1% over the past year, adding demand pressure that helps explain why inventory has stayed tight even as prices cooled.

The market at a glance

Taken together, the June figures paint a picture of a market that continues to favor sellers, driven primarily by limited supply rather than surging demand. With inventory down nearly 12% from a year ago, homes selling in about three weeks, and nearly four in ten selling above asking, buyers face real competition despite the year-over-year dip in prices. The gap between the softening price trend and the tight supply is the defining feature of Elk Grove’s market this period.