It’s hard to believe, but it has now been five years since the COVID lockdowns began in California. During that time, we’ve seen massive changes in the real estate market, driven by migration trends, shifting home preferences, and fluctuating interest rates.
From the market freeze of early 2020 to the record-breaking price surge of 2021, followed by the correction and stabilization we see today, let’s take a closer look at how Placer County real estate has evolved over the last five years.
Spring 2020: The Market Freeze
When California entered lockdown in March 2020, the real estate market came to a standstill. Open houses were banned, showings were limited, and buyers and sellers hit pause due to uncertainty.
But then, mortgage rates plummeted, dropping into the high 2s and low 3s. As people spent more time at home, buyers re-evaluated their living situations, setting the stage for the housing boom that followed.
Mid-2020 to Spring 2022: The Market Surge
By May and June 2020, Placer County real estate was on fire. Remote work opportunities allowed buyers from the Bay Area, Sacramento, and beyond to relocate in search of more space, larger homes, and lower prices compared to urban areas.
- Sales Hit Record Highs – 6,463 homes sold in 2021, the highest in years.
- Prices Soared – The median home price jumped from $490,000 (early 2020) to $725,000 (April 2022)—a 48% increase in just two years.
- Interest Rates Dropped – Buyers secured mortgage rates as low as 2.5-3%, making homeownership more affordable despite rising prices.
- Fast Sales, Multiple Offers – Many homes sold above asking price in days, with multiple competitive offers.
During this period, Placer County cities like Rocklin, Roseville, Lincoln, and Loomis saw an influx of new residents. Demand for larger homes, home offices, and outdoor space skyrocketed, leading to fierce competition among buyers.
Spring 2022 to Today: The Market Correction & Stabilization
In April 2022, the Federal Reserve began aggressively raising interest rates to fight inflation. This caused mortgage rates to jump from the 3s to over 7% by late 2023. Affordability took a hit, and buyer demand cooled significantly.
- Sales Slowed – In the last 12 months, 4,665 homes sold in Placer County—a 28% decline from the 2021 peak.
- Inventory Rebounded – In February 2025, there were 775 homes for sale, a 51% increase compared to last year.
- Prices Adjusted, Then Stabilized – The median home price fell from $725,000 in 2022 but has now leveled off at $650,000, still 27% higher than pre-pandemic levels.
- Interest Rates Remain Elevated – Currently in the mid-to-high 6% range, after peaking above 7% in 2023.
As a result, today’s market is more balanced. Buyers have more choices, but well-priced homes still sell quickly—especially in desirable areas like Granite Bay, Auburn, and Rocklin.
Where Is the Market Headed?
Looking ahead, affordability and inventory will continue to shape the market. If interest rates drop further in 2025, we could see another surge in demand. But for now, we’re in a period of stability, where pricing strategy and preparation matter more than ever for sellers, and buyers need to be well-prepared to compete for the best homes.
If you’re thinking about buying or selling in Placer County, now is the time to plan your strategy. Let’s talk about your goals and create a plan to navigate today’s market successfully!
Call/Text: (916) 316-5626
Posted by Patrick Hake on
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