Orange County Housing Market Slows Down
The Orange County housing market just hit a major slowdown—and it’s catching many sellers off guard. Homes are sitting longer, price reductions are climbing, and buyers finally have more leverage.
But this isn’t a housing crash. It’s a reset that requires smarter strategy and a realistic understanding of today’s shifting landscape.
It’s Taking Longer to Sell a Home
The current Expected Market Time (EMT) has climbed to 96 days—making this the slowest pace we’ve seen in years.
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35% of active listings have been on the market for more than 60 days
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Even in the active price ranges under $1.5M, 27%–32% of homes have been sitting unsold for two months or longer
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Luxury listings over $2M are taking the longest, with EMT ranging from 223 to 373 days
For sellers, this means testing the market with an aggressive price is no longer a viable strategy. Homes that aren’t priced right from the beginning are sitting—and many are getting overlooked altogether.
Inventory Keeps Climbing
Orange County now has 5,050 active listings, the highest since 2019. That’s a:
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5% increase in the past two weeks alone
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50% increase from July 2024
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111% increase from July 2023
Even though inventory is still 25% below pre-COVID levels, the trend is upward. And it’s not just about new listings. In June alone, 850 listings were pulled from the market—the highest number since 2019—as sellers chose to wait for more favorable conditions.
Buyer Demand Is Flat
While inventory grows, buyer activity has barely moved. There are currently 1,584 pending sales—just a 1% uptick since earlier this month.
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That’s 3% higher than this time last year
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But still 63% below pre-COVID demand levels
High mortgage rates are keeping buyers cautious. With interest rates hovering between 6.75% and 7%, many are choosing to wait. Unless we see rates dip below 6.5%, demand is likely to remain flat through the summer and fall.
What This Means for Sellers
You’re not just competing on price anymore—you’re competing for attention. With more homes on the market, buyers have options and they’re being selective.
Homes that are selling share a few key traits:
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Priced at or near Fair Market Value
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Move-in ready or well-presented
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Located in desirable neighborhoods with strong amenities
If your listing isn’t getting showings or offers, it’s time to take a serious look at both price and presentation. In some cases, the smartest move may be to pause and relist later when market conditions improve.
What This Means for Buyers
This is one of the best environments buyers have seen in years—more choices, more time, and more negotiating power.
Here’s what you should know:
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Prices aren’t crashing, but you have leverage
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Sellers aren’t desperate, but they are more negotiable
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Don’t expect extreme discounts, but do look for well-priced homes with room to negotiate on terms, repairs, or closing timelines
If you’re pre-approved and ready, this slower market could offer the opportunity to lock in a home without the frenzied competition of the last few years.
The Luxury Market: Patience Required
Luxury homes are seeing the sharpest slowdowns in market time—even as inventory remains stable.
Current Expected Market Times by price range:
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$2.5M–$4M: 161 days
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$4M–$6M: 320 days
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$6M+: 373 days
At this pace, a luxury home listed today might not go into escrow until early 2026. High-end sellers need to be strategic, patient, and prepared for a longer runway.
Key Takeaways
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Inventory is up 50% year-over-year, giving buyers more leverage
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Buyer demand is flat, keeping pressure on sellers
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Homes are sitting longer, with an average market time of 96 days
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The pricing gap is widening—fair pricing is the difference between selling and sitting
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Most sellers have equity, so deep price drops are unlikely
If you’re thinking about buying or selling in Orange County, now is the time to rethink your approach. A shifting market requires strategy, facts, and local expertise—and we’re here to help guide you through it.
