#1 Thing Impacting The Orange County Housing Market This Year Is...

March 2025 Orange County Housing Market Update

The Orange County housing market is experiencing a shift in momentum as inventory levels rise, demand remains steady, and market time extends compared to previous years. More Homes for Sale, but a Slower Market

The active listing inventory has grown 38% compared to last year, reaching 3,183 homes—the highest level for this time of year since 2020. Despite a 5% increase in demand over the past two weeks, with 1,569 pending sales, this is still 34% lower than the pre-pandemic average (2017–2019).

The Median Days on Market (how long it takes to sell a home) has increased to 35 days. What’s Driving This Shift? Higher mortgage rates have slowed buyer activity. Although rates have dropped from 7.25% in January to 6.74%, they remain well above the historic lows seen in 2020-2021.

More sellers are listing their homes. While many homeowners remain reluctant to move due to their locked-in low rates, there are more homes hitting the market right now than the beginning of the last few years. Affordability challenges persist. Even with the recent rate dip, home payments remain significantly higher than just a few years ago, limiting demand.

Advice for Buyers & Sellers ​

🔹 Buyers: With rising inventory, you have more options and potentially more negotiating power, but move-in ready, well-priced homes, still move fast. If rates keep dropping it will make things more affordable but if they drop below 6.5%, expect competition to pick up quickly for homes again. 🔹 Sellers: Pricing strategy is crucial. Homes are not selling as instantly as they did in the past, so listing at a competitive price and ensuring your home is move-in ready will be key to attracting buyers.

What to Watch Next ​

The next few months will be critical as mortgage rates and economic data dictate market conditions. If unemployment goes up and inflation goes down expect rates to continue to decline, increasing demand, but if they remain high, especially if they get back above 7%, expect inventory to keep growing faster than demand, giving buyers more options.

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Josh Alexander

THE brokeredge

JoshAlexanderRealEstate@gmail.com

714.366.2186

DRE#:01974435

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