🏡 El Dorado Hills Real Estate Market: Seven Years of Ups, Downs, and What’s Next

A Market That’s Matured Through Every Cycle
(2019 – 2025 Trends Every Luxury Homeowner Should Know)

The last seven Octobers tell quite a story. From the pre-pandemic calm of 2019, to 2020’s feeding frenzy, to the 2021 luxury surge and 2022 reset — the El Dorado Hills market has matured into a smart, balanced ecosystem in 2025.

Inventory is up, days on market have stretched, and prices continue to rise at a steady clip — proof that this is no bubble pop, but a healthy normalization.

1️⃣ Homes for Sale – Inventory Climbs Back to Healthy Levels

• Inventory bottomed out in 2021 (82 homes) — less than half of 2019’s 186.
  
  
• 2025 climbed to 180 homes for sale, the highest since before the pandemic.
  
  

Takeaway: Supply is back, but not excessive. Buyers finally have choices, yet prime properties still move fast. This balance is a return to normalcy — and that’s a good thing.

2️⃣ Homes Sold – Fewer Closings, But More Intentional Activity

• Closings peaked in 2020 at 103 homes and settled to 44 in 2025.
  
  
• The decline reflects fewer bidding wars and a return to measured, serious transactions.
  
  

Insight: Fewer sales doesn’t mean weakness — it means buyers and sellers are more strategic. Quality replaced quantity.

3️⃣ Absorption Rate – The Frenzy Has Faded to Functionality

• The 2020 absorption rate skyrocketed to 122 %, meaning homes were selling faster than new listings could appear.
  
  
• 2025 rests around 24 %, a balanced, sustainable level.
  
  

Perspective: This shift is not a cool-down — it’s a re-alignment. Buyers have time to think, and sellers who price right still win.

4️⃣ Average Sales Price – Resilient Growth and Luxury Momentum

• Prices rose from $760K in 2019 to $1.15 M in 2025 — a 51 % increase in six years.
  
  
• Even after interest-rate volatility, values have held and expanded in the upper tiers.
  
  

Luxury Impact: High-end homes carried the market through the slowdowns. Amenities, views, and modern design command premium pricing.

5️⃣ Days on Market – Patience Returns to the Process

• 2021’s market moved at warp speed (27 days).
  
  
• In 2025, 60 days is the new normal — twice as long, but reflective of healthier negotiations.
  
  

For Sellers: Longer DOM isn’t a problem if your pricing and presentation are tight. Think curated, not rushed.

6️⃣ Luxury Sales Over $1.5 M – A Powerful Comeback

• 2025 saw 10 sales over $1.5 M, the strongest October on record.
  
  
• The segment is outperforming the broader market, driven by upgrades, relocations, and equity buys from Bay Area and Tahoe owners.
  
  

Takeaway: The luxury buyer is back — and motivated by lifestyle, not leverage.

7️⃣ Median Price – Steady Appreciation for Core Homes

• The median price rose from $655K in 2019 to $1.03 M in 2025 — a strong upward trajectory that survived every cycle.
  
  

Why It Matters: Even mid-tier homes are building serious wealth. The data shows that owning in El Dorado Hills continues to outperform many equity investments over time.

📊 The Big Picture

The data tells a simple story: stability has replaced speculation.

• Inventory is healthy.
  
  
• Prices are solid.
  
  
• The luxury segment is thriving.
  
  

In short, the market has grown up. It’s no longer about chasing momentum — it’s about strategic timing and precision.

💡 Looking Ahead to 2026

Expect a spring market defined by confidence, not chaos. If rates ease slightly, we could see a bump in activity without destabilizing prices. Luxury inventory will continue to lead the conversation, and buy-and-hold investors will remain active as they hedge against inflation and market volatility.

For Sellers: Start prepping now for March – April launch timing. The best homes still sell first.
For Buyers: Use this window to shop calmly — great homes are available without the bidding frenzy of years past.

🏠 Final Thought

From the chaos of 2020 to the confidence of 2025, El Dorado Hills has proven why it’s one of Northern California’s most resilient and desirable real estate markets.

Whether you’re buying, selling, or holding, this is a market for strategic moves — not speculative ones.

Call to Action:
Ready for your own micro-market report or a pricing strategy session?
📞 Call Shannon Yoffie or Jon Yoffie - 916.941.6566
🌐 YoffieRealEstateGroup.com