Fracture in the Market
As we enter the heart of the Spring Market, Orange County's housing momentum is fading. Inventory is climbing fast, demand is falling, and cracks are forming in what had been a relatively balanced market just weeks ago.
Key Highlights
1. Inventory Surge: +31% in Just Two Months
Active listings grew by 1,003 homes—the steepest rise since 2018. Homeowners who had “hunkered down” during the mortgage rate surge of 2022–2023 are now starting to sell, leading to heightened competition heading into summer.
2. Buyer Demand is Cooling
Despite lower mortgage rates compared to last year (currently around 6.82%), demand is down 9% year-over-year. Affordability remains the top concern, compounded by shaken consumer confidence following the April tariff announcement and financial market volatility.
3. Homes Are Taking Longer to Sell
The Expected Market Time jumped from 62 to 81 days in the past six weeks—its slowest pace for this time of year since April 2020. The increase reflects a growing imbalance: rising supply and softening demand.
4. This is a Broader Trend
Just like in LA County, markets across Southern California are seeing more sellers, fewer active buyers, and longer market times. The shift is regional, not just local, and it’s changing the dynamic across the board.
What This Means for You
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Sellers: Pricing and preparation matter more than ever. Overpricing in this market can lead to stale listings and eventual price cuts.
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Buyers: More choices and slower pace may offer negotiating room, but affordability is still a major hurdle.
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Market Outlook: Expect the inventory to continue climbing while demand tapers—slowing the market further as we head into summer.
Have questions about buying or selling in today’s changing market?
Let’s talk about your next move. Contact Hamid Koochak for expert guidance and personalized insight.
