OC Housing Report - The Wait

With half of 2025 now behind us, the Orange County housing market stands at a pivotal point—caught between rising inventory, steady demand, and the ever-present influence of mortgage rates.

What’s Happening Now:
→ Inventory continues to rise, climbing to 5,050 homes—its highest level since November 2019 and 50% higher than last year.
→ Demand remains muted, inching up by just 1% in the past two weeks to 1,584 pending sales, still 63% lower than the pre-COVID 3-year average.
→ 35% of active listings have been on the market for over 60 days, signaling that pricing and condition are more critical than ever.
→ Luxury listings are especially slow-moving, with market times of 223 days for homes above $2.5 million and over 373 days for homes above $6 million.

Key Insights:
For Sellers: Overpricing is a recipe for sitting on the market. June saw 850 sellers pull their homes from the market—the highest number since 2019. Correct pricing, based on recent comparable sales, is crucial.
For Buyers: Negotiation power is on your side. While sellers aren’t desperate, extended market times are creating more flexibility on terms and pricing.
Seasonal Shift: The Spring and early Summer Market are behind us. As we head toward fall, inventory is expected to peak and then gradually decline as sellers who don’t find buyers decide to wait until next year.

What we’re seeing now:
→ Inventory is at a 6-year high, yet pricing remains sticky.
→ Buyers have leverage but need to act decisively on well-priced homes.
→ Mortgage rates hovering around 6.75–7% continue to weigh on affordability.
→ The market is favoring thoughtful, deliberate strategies—not rushed decisions.

The market is entering a new chapter of patience and precision. Whether buying or selling, success now depends on data, strategy, and timing. If you’re considering a move, I’d be happy to walk you through what this means for your neighborhood.

Call or text me anytime at 949-463-0400.