Is Orange County Heading Toward a Market Correction? What Buyers and Sellers Need to Know

The summer real estate season in Orange County is unfolding a little differently this year. Inventory has climbed to the highest levels we’ve seen in years, interest rates are holding in the high six percent range, and affordability remains a challenge for many buyers.

So what does that mean for the market?

As of early June, Orange County started the month with around 4,600 homes on the market, compared to 4,400 just one month prior. However, buyer activity is slowing. Only 1,800 homes sold last month, down from 1,900 the month before. Homes are also taking longer to sell, with median days on market rising to 42.

While some pockets of the county still see home prices climbing, most areas are seeing values stay flat, and a growing number are beginning to show mild declines. This does not indicate a major correction, but it is a clear sign of a market shift.

If interest rates stay where they are, we may see the market continue to tilt slightly in buyers' favor over the summer. More inventory means more choices, and sellers are starting to show more flexibility in pricing. But rates are unpredictable. If they rise above 7 percent, buyer demand could slow further. If they drop below 6.5 percent, we could see another wave of buyers re-entering the market.

For buyers, this is a great time to shop carefully. Homes are sitting longer, you have time to do your research, and in certain neighborhoods, you may have room to negotiate. Just remember that real estate is hyper-local—understanding the market conditions in each neighborhood is key to writing a strong offer.

For sellers, preparation and pricing are more important than ever. Overpricing even slightly can lead to long days on market and eventual price reductions. Presenting your home well, investing in staging, professional photography, and having a strong marketing plan can make all the difference. Set realistic expectations, and be patient—homes are still selling, but it's taking longer than it did during the peak pandemic years.

If you’re thinking about buying or selling a home in Orange County, staying up to date on interest rate trends, local data, and neighborhood activity is essential to making the right decision.

Need help planning your next move? Download my free home buying budget guide below, or reach out directly with any questions.

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

------------------------------------------Buyer Resources--------------------------------------------------

FREE Guide: How to Budget for a home - https://vid.us/70npzs

Free Guide: Thinking of buying a home, want to know the process and costs involved? - http://vid.us/kk81kx