August 2025 Orange County Housing Market Update

Orange County Housing Market Update: August 2025 – Buyer’s Market Softens as Interest Rates Fall

If you’re buying or selling a home in Orange County, CA, there are some important shifts happening in the market you’ll want to know about. Inventory growth is slowing down, demand is ticking up, and interest rates just dropped to their lowest point in 10 months.

Here’s what that means for you:

🔍 Active Inventory Is Slowing Down

In July, Orange County added just 150 homes to the market—down from 400 new listings the previous month. Some cities are even starting to lose inventory. At the same time, demand has increased slightly, with 100 more homes sold than the month prior.

💸 Fewer Homes Selling Above Asking

Only 40% of homes sold at or above list price in the last 30 days. That’s down from 45%. It’s also taking longer for homes to go into escrow—only 46% are selling within two weeks, compared to 49% last month.

📉 Mortgage Rates Drop to 6.57%

Thanks to a disappointing jobs report, interest rates have fallen significantly. The market now expects the Fed to cut rates as early as September, which could push mortgage rates even lower—and drive more buyer activity.

🛍 For Buyers

Now is a rare window to take advantage of both softer prices and lower interest rates. Get pre-approved early, and focus on homes that have been sitting on the market for 3+ weeks—those sellers may be more flexible.

🏡 For Sellers

Yes, things are looking better than last month. But this is still a slight buyer’s market. Homes aren’t flying off the shelves, so pricing strategy, home condition, and market presentation matter more than ever.

Want to have a friendly no pressure conversation about your specific real estate related questions? Schedule a 15 minute discover call with me by clicking here: https://calendly.com/joshalexanderrealestate/over-the-phone-informational-session

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Josh Alexander

THE brokeredge

JoshAlexanderRealEstate@gmail.com

714.366.2186

DRE#:01974435