Is Now the Best Time to Buy a House in Orange County? - July 2025 Housing Market Update

For the first time in quite a while, buyers are starting to gain some real traction in the Orange County housing market. But is this the beginning of a longer trend—or just a short-lived window of opportunity?

Let’s take a look at what’s going on.

Inventory Is Up, and That Matters

At the start of July, there were nearly 5,000 homes on the market in Orange County. That’s about 500 more than just a month ago—and a massive 61% increase compared to this time last year. For buyers, this means more choices. For sellers, it means more competition.

Buyer Demand Is Steady

Even with more homes available, buyer demand has stayed relatively consistent. About 1,780 homes closed escrow in June, just a slight dip from May. But with inventory climbing and demand holding steady, the market is slowing down a bit. Fewer homes are selling above asking, and more are sitting on the market longer.

Interest Rates Are Tipping the Scales

Interest rates have also dropped slightly—from nearly 7% at the start of June to about 6.75% now. If rates dip below 6.5% and stay there, we could see a wave of buyer demand return (just like we did last fall). But until that happens, buyers have a rare advantage: more options and more room to negotiate.

What This Means for Buyers

If you're a buyer, this might be your moment. Sellers are feeling more pressure, and some are open to offers slightly below recent sales—especially if their homes have been sitting for a few weeks. But don’t expect huge price drops. This isn’t 2008. Still, a 2-3% softening in price is possible if conditions hold.

What Sellers Need to Know

If you're selling, strategy is everything. You need to price your home correctly, understand that it may take longer to sell, and be prepared to make small updates to compete with nearby listings. The good news? Homes in great condition and desirable locations are still moving quickly—some even getting multiple offers.

Thinking about buying or selling in Orange County?
Let’s talk. Click the link below to schedule a free 15-minute discovery call and get all your questions answered—no pressure, just honest advice.

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